UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07704
Schwab Capital Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
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, 2021
Item 1: Report(s) to Shareholders.
Semiannual Report | April 30, 2021
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®
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Eight cost-efficient ways to tap into the power of the stock market for long-term growth potential.
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 Portfolio Holdings are sub-categories of Sector classifications.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Total Return for the 6 Months Ended April 30, 2021 |
Schwab S&P 500 Index Fund
(Ticker Symbol: SWPPX) | 28.84% |
| S&P 500® Index | 28.85% |
| Fund Category: Morningstar Large Blend1 | 29.35% |
| Performance Details | pages 6-7 |
| |
Schwab 1000 Index Fund
(Ticker Symbol: SNXFX) | 29.67% |
| Schwab 1000 Index® | 29.70% |
| Russell 1000® Index | 30.03% |
| Fund Category: Morningstar Large Blend1 | 29.35% |
| Performance Details | pages 8-9 |
| |
Schwab Small-Cap Index Fund
(Ticker Symbol: SWSSX) | 48.07% |
| Russell 2000® Index | 48.06% |
| Fund Category: Morningstar Small Blend1 | 49.00% |
| Performance Details | pages 10-11 |
| |
Schwab Total Stock Market Index Fund
(Ticker Symbol: SWTSX) | 31.19% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% |
| Fund Category: Morningstar Large Blend1 | 29.35% |
| Performance Details | pages 12-13 |
| Total Return for the 6 Months Ended April 30, 2021 |
Schwab U.S. Large-Cap Growth Index Fund
(Ticker Symbol: SWLGX) | 24.27% |
| Russell 1000® Growth Index | 24.31% |
| Fund Category: Morningstar Large Growth1 | 25.20% |
| Performance Details | pages 14-15 |
| |
Schwab U.S. Large-Cap Value Index Fund
(Ticker Symbol: SWLVX) | 36.28% |
| Russell 1000® Value Index | 36.30% |
| Fund Category: Morningstar Large Value1 | 36.15% |
| Performance Details | pages 16-17 |
| |
Schwab U.S. Mid-Cap Index Fund
(Ticker Symbol: SWMCX) | 35.45% |
| Russell Midcap® Index | 35.42% |
| Fund Category: Morningstar Mid-Cap Blend1 | 38.94% |
| Performance Details | pages 18-19 |
| |
Schwab International Index Fund2
(Ticker Symbol: SWISX) | 28.53% |
| MSCI EAFE® Index (Net)3 | 28.84% |
| Fund Category: Morningstar Foreign Large Blend1 | 27.74% |
| Performance Details | pages 20-21 |
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. |
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
The Investment Environment
For the six-month reporting period ended April 30, 2021, U.S. and international equity markets generated solid returns, with major market indices ending the reporting period just shy of record highs. Despite persisting COVID-19 pandemic-driven stresses on the global economy—including widespread business disruptions, high unemployment, and prolonged stay-at-home orders—and a resurgence of COVID-19 cases in the fall and winter, equity markets continued to be buoyed by the extensive emergency rescue and fiscal stimulus measures passed by governments and central banks around the world beginning in March 2020, as well as the initial distribution of COVID-19 vaccines in December 2020 and the expanded rollout in 2021. The COVID-19 vaccine rollout helped fuel the early stages of a shift in the market towards cyclical sectors, beginning in November and December 2020 and continuing through the remainder of the reporting period. The U.S. dollar ended the reporting period weaker against a basket of foreign currencies, generally enhancing the returns of overseas investments in U.S. dollar terms. The S&P 500® Index, a bellwether for the overall U.S. stock market, returned 28.85% for the reporting period. U.S. small-cap stocks significantly outperformed U.S. large-cap stocks, with the Russell 2000® Index and the Russell 1000® Index returning 48.06% and 30.03%, respectively, for the reporting period. Outside the U.S., the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 28.84% for the reporting period.
Bolstered by the extensive emergency rescue and fiscal stimulus measures passed by the U.S. Federal Reserve (Fed) and U.S. Congress, the U.S. economy has held up relatively well, especially given the intensity of the COVID-19 pandemic’s economic impact. After a steep slide in the second quarter of 2020 and subsequent recovery in the third quarter of 2020, U.S. gross domestic product (GDP) grew at an annualized rate of 4.3% for the fourth quarter of 2020 and an annualized rate of 6.4% for the first quarter of 2021. Unemployment, which skyrocketed in April 2020, fell in each subsequent month through March 2021 before experiencing a slight uptick in April 2021. Inflation remained well below the Fed’s traditional target of 2% until March 2021, when it jumped, largely due to supply and demand imbalances in the labor market, increased demand particularly for travel-related services, as well as increasing energy costs.
Asset Class Performance Comparison % returns during the 6 months ended April 30, 2021
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. |
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
The Investment Environment (continued)
Outside the U.S., global economies wrestled with the fallout of the COVID-19 pandemic against the anticipation of its eventual end. In the eurozone, GDP growth jumped in the third quarter of 2020, regaining much of its losses from the second quarter, but turned slightly negative for both the fourth quarter of 2020 and the first quarter of 2021. The United Kingdom, which was particularly hard-hit by the COVID-19 pandemic, suffered its biggest slump in more than three centuries over the course of 2020, effectively wiping out its growth over the past seven years, but posted a small positive gain in GDP for the first quarter of 2021. Japan’s economy, after rebounding sharply in the third quarter of 2020, posted a positive, albeit smaller, gain in the fourth quarter of 2020 on strong exports and consumer spending. China, the only major economy to avoid contraction in the face of COVID-19 pandemic-related shocks, maintained positive GDP growth in the fourth quarter of 2020. China’s growth accelerated sharply for the first quarter of 2021 on rising domestic and global demand, strict COVID-19 containment measures, and continued fiscal and monetary support. India, after plunging into one of the worst recessions of any major economy, saw its first positive gain in GDP in the fourth quarter of 2020, but a huge spike in COVID-19 cases in April 2021 dampened its growth prospects.
Central banks around the world, including the Fed, maintained the low—and for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. In the U.S., the federal funds rate remained in a range of 0.00% to 0.25% throughout the reporting period. The Fed reiterated its intention to continue its support of the economy, and in April 2021 affirmed that despite showing signs of recovery, the U.S. economy still had a way to go before the Fed would consider raising interest rates or tapering its bond-buying policy. The Fed also maintained its revised approach to its interest rate policy, announced in August 2020, that would allow inflation to rise above its previous 2% target for periods of time, even in times of rising employment. Outside the U.S., the European Central Bank held its policy rate at 0.00%, unchanged since March 2016, and maintained its asset purchase program to help counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.01%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
 | Christopher Bliss, CFA, Vice President and Head of Passive Equity Strategies, 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. Before 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 the head of the 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 for 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 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. Prior to this role, Mr. Rios was an associate portfolio manager on the Schwab equity index strategies team for four years. His first role with CSIM was as a trade operations specialist. Prior to joining CSIM in 2008, Mr. Rios was 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. Mr. Sinha also spent time as a software consultant at DPM Mellon, LLC and an equity trader at Jane Street Capital. |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab S&P 500 Index Fund (5/19/97) | 28.84% | 45.96% | 17.37% | 14.10% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Fund Category: Morningstar Large Blend2 | 29.35% | 46.51% | 15.87% | 12.66% |
| Fund Expense Ratio3: 0.02% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “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 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 507 |
| Weighted Average Market Cap (millions) | $518,663 |
| Price/Earnings Ratio (P/E) | 26.5 |
| Price/Book Ratio (P/B) | 4.3 |
| Portfolio Turnover Rate | 2% 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. |
Schwab Equity Index Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab 1000 Index Fund (4/2/91) | 29.67% | 48.89% | 17.59% | 13.93% |
| Schwab 1000 Index® | 29.70% | 48.95% | 17.65% | 14.11% |
| Russell 1000® Index | 30.03% | 49.48% | 17.76% | 14.23% |
| Fund Category: Morningstar Large Blend2 | 29.35% | 46.51% | 15.87% | 12.66% |
| Fund Expense Ratio3: 0.05% |
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.
| 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. |
Schwab Equity Index Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 998 2 |
| Weighted Average Market Cap (millions) | $459,250 |
| Price/Earnings Ratio (P/E) | 26.4 |
| Price/Book Ratio (P/B) | 4.3 |
| Portfolio Turnover Rate | 3% 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 more or 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Small-Cap Index Fund (5/19/97) | 48.07% | 74.98% | 16.53% | 11.82% |
| Russell 2000® Index | 48.06% | 74.91% | 16.48% | 11.63% |
| Small-Cap Spliced Index | 48.06% | 74.91% | 16.48% | 11.76% |
| Fund Category: Morningstar Small Blend2 | 49.00% | 72.03% | 13.91% | 10.64% |
| Fund Expense Ratio3: 0.04% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
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 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 2,056 |
| Weighted Average Market Cap (millions) | $3,787 |
| Price/Earnings Ratio (P/E) | 19.2 |
| Price/Book Ratio (P/B) | 2.6 |
| 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Total Stock Market Index Fund (6/1/99) | 31.19% | 50.94% | 17.58% | 13.97% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Fund Category: Morningstar Large Blend2 | 29.35% | 46.51% | 15.87% | 12.66% |
| Fund Expense Ratio3: 0.03% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “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 IndexSM” 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 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 3,363 |
| Weighted Average Market Cap (millions) | $428,542 |
| Price/Earnings Ratio (P/E) | 25.7 |
| Price/Book Ratio (P/B) | 4.1 |
| 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Fund and Inception Date | 6 Months | 1 Year | 3 Years | Since Inception |
| Fund: Schwab U.S. Large-Cap Growth Index Fund (12/20/17) | 24.27% | 51.33% | 25.30% | 22.71% |
| Russell 1000® Growth Index | 24.31% | 51.41% | 25.37% | 22.78% |
| Fund Category: Morningstar Large Growth2 | 25.20% | 52.07% | 22.78% | N/A |
| Fund Expense Ratio3: 0.035% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 464 |
| Weighted Average Market Cap (millions) | $775,672 |
| Price/Earnings Ratio (P/E) | 36.8 |
| Price/Book Ratio (P/B) | 11.9 |
| Portfolio Turnover Rate | 3% 2 |
Sector Weightings % of Investments3
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 | 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 | Less than 0.05%. |
| 5 | This list is not a recommendation of any security by the investment adviser. |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Fund and Inception Date | 6 Months | 1 Year | 3 Years | Since Inception |
| Fund: Schwab U.S. Large-Cap Value Index Fund (12/20/17) | 36.28% | 45.69% | 12.18% | 10.06% |
| Russell 1000® Value Index | 36.30% | 45.92% | 12.30% | 10.16% |
| Fund Category: Morningstar Large Value2 | 36.15% | 46.33% | 11.71% | N/A |
| Fund Expense Ratio3: 0.035% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 861 |
| Weighted Average Market Cap (millions) | $154,908 |
| Price/Earnings Ratio (P/E) | 19.7 |
| Price/Book Ratio (P/B) | 2.6 |
| 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.
| 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Fund and Inception Date | 6 Months | 1 Year | 3 Years | Since Inception |
| Fund: Schwab U.S. Mid-Cap Index Fund (12/20/17) | 35.45% | 59.53% | 16.64% | 14.64% |
| Russell Midcap® Index | 35.42% | 59.57% | 16.71% | 14.71% |
| Fund Category: Morningstar Mid-Cap Blend2 | 38.94% | 61.29% | 14.22% | N/A |
| Fund Expense Ratio3: 0.04% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 828 |
| Weighted Average Market Cap (millions) | $22,788 |
| Price/Earnings Ratio (P/E) | 24.3 |
| Price/Book Ratio (P/B) | 3.3 |
| Portfolio Turnover Rate | 4% 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab International Index Fund (5/19/97) | 28.53% | 40.65% | 9.13% | 5.18% |
| MSCI EAFE® Index (Net)3 | 28.84% | 39.88% | 8.87% | 5.22% |
| International Spliced Index | 28.84% | 39.88% | 8.87% | 5.24% |
| Fund Category: Morningstar Foreign Large Blend4 | 27.74% | 42.21% | 9.03% | 5.13% |
| Fund Expense Ratio5: 0.06% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
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 | The fund’s performance relative to the index may be affected by fair-value pricing. 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. |
| 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 892 |
| Weighted Average Market Cap (millions) | $75,754 |
| Price/Earnings Ratio (P/E) | 19.1 |
| Price/Book Ratio (P/B) | 1.8 |
| Portfolio Turnover Rate | 2% 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. |
Schwab Equity Index Funds | Semiannual Report
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, 2020 and held through April 30, 2021.
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 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/21 | Expenses Paid
During Period
11/1/20-4/30/212 |
| Schwab S&P 500 Index Fund | | | | |
| Actual Return | 0.02% | $1,000.00 | $1,288.40 | $0.11 |
| Hypothetical 5% Return | 0.02% | $1,000.00 | $1,024.70 | $0.10 |
| Schwab 1000 Index Fund | | | | |
| Actual Return | 0.05% | $1,000.00 | $1,296.70 | $0.28 |
| 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 | $1,480.70 | $0.25 |
| 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 | $1,311.90 | $0.17 |
| Hypothetical 5% Return | 0.03% | $1,000.00 | $1,024.65 | $0.15 |
| Schwab U.S. Large-Cap Growth Index Fund | | | | |
| Actual Return | 0.035% | $1,000.00 | $1,242.70 | $0.19 |
| Hypothetical 5% Return | 0.035% | $1,000.00 | $1,024.63 | $0.18 |
| Schwab U.S. Large-Cap Value Index Fund | | | | |
| Actual Return | 0.035% | $1,000.00 | $1,362.80 | $0.21 |
| Hypothetical 5% Return | 0.035% | $1,000.00 | $1,024.63 | $0.18 |
| Schwab U.S. Mid-Cap Index Fund | | | | |
| Actual Return | 0.04% | $1,000.00 | $1,354.50 | $0.23 |
| Hypothetical 5% Return | 0.04% | $1,000.00 | $1,024.60 | $0.20 |
| Schwab International Index Fund | | | | |
| Actual Return | 0.06% | $1,000.00 | $1,285.30 | $0.34 |
| Hypothetical 5% Return | 0.06% | $1,000.00 | $1,024.50 | $0.30 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by 365 days of the fiscal year. |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $50.75 | $47.17 | $42.41 | $40.23 | $33.38 | $33.00 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.48 | 1.02 | 0.92 | 0.80 | 0.74 | 0.69 |
| Net realized and unrealized gains (losses) | 14.02 | 3.52 | 4.86 | 2.12 | 6.99 | 0.69 |
| Total from investment operations | 14.50 | 4.54 | 5.78 | 2.92 | 7.73 | 1.38 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (1.04) | (0.87) | (0.84) | (0.72) | (0.69) | (0.68) |
| Distributions from net realized gains | — | (0.09) | (0.18) | (0.02) | (0.19) | (0.32) |
| Total distributions | (1.04) | (0.96) | (1.02) | (0.74) | (0.88) | (1.00) |
| Net asset value at end of period | $64.21 | $50.75 | $47.17 | $42.41 | $40.23 | $33.38 |
| Total return | 28.84% 2 | 9.69% | 14.30% | 7.29% | 23.57% | 4.40% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.02% 3 | 0.02% | 0.02% 4 | 0.03% | 0.05% 5 | 0.09% |
| Net operating expenses | N/A | N/A | N/A | N/A 6 | 0.05% 5 | 0.09% |
| Net investment income (loss) | 1.62% 3 | 2.11% | 2.11% | 1.88% | 2.01% | 2.12% |
| Portfolio turnover rate | 2% 2 | 4% | 3% | 2% | 2% | 2% |
| Net assets, end of period (x 1,000,000) | $59,184 | $44,184 | $40,232 | $34,410 | $29,999 | $22,675 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective December 20, 2018, the annual operating expense ratio was reduced to 0.02%. The ratio presented for period ended 10/31/19 is a blended ratio.
5
Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
6
Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.4% of net assets |
| |
| Automobiles & Components 2.0% |
| Aptiv plc * | 449,400 | 64,664,166 |
| BorgWarner, Inc. | 396,616 | 19,267,605 |
| Ford Motor Co. * | 6,496,232 | 74,966,517 |
| General Motors Co. * | 2,107,938 | 120,616,213 |
| Tesla, Inc. * | 1,276,693 | 905,737,082 |
| | | 1,185,251,583 |
| |
| Banks 4.4% |
| Bank of America Corp. | 12,631,663 | 511,961,301 |
| Citigroup, Inc. | 3,470,641 | 247,248,465 |
| Citizens Financial Group, Inc. | 708,171 | 32,774,154 |
| Comerica, Inc. | 231,517 | 17,400,818 |
| Fifth Third Bancorp | 1,180,770 | 47,868,416 |
| First Republic Bank | 292,181 | 53,539,246 |
| Huntington Bancshares, Inc. | 1,690,804 | 25,903,117 |
| JPMorgan Chase & Co. | 5,073,541 | 780,361,341 |
| KeyCorp | 1,613,851 | 35,117,398 |
| M&T Bank Corp. | 213,097 | 33,603,266 |
| People's United Financial, Inc. | 713,207 | 12,930,443 |
| Regions Financial Corp. | 1,601,899 | 34,921,398 |
| SVB Financial Group * | 89,653 | 51,266,275 |
| The PNC Financial Services Group, Inc. | 705,164 | 131,830,410 |
| Truist Financial Corp. | 2,240,276 | 132,870,770 |
| U.S. Bancorp | 2,273,364 | 134,924,153 |
| Wells Fargo & Co. | 6,873,896 | 309,669,015 |
| Zions Bancorp NA | 273,614 | 15,267,661 |
| | | 2,609,457,647 |
| |
| Capital Goods 5.8% |
| 3M Co. | 962,908 | 189,827,683 |
| A.O. Smith Corp. | 224,025 | 15,177,694 |
| Allegion plc | 150,430 | 20,214,783 |
| AMETEK, Inc. | 382,469 | 51,606,542 |
| Carrier Global Corp. | 1,361,322 | 59,326,413 |
| Caterpillar, Inc. | 906,618 | 206,808,632 |
| Cummins, Inc. | 246,374 | 62,096,103 |
| Deere & Co. | 521,118 | 193,256,610 |
| Dover Corp. | 238,283 | 35,549,441 |
| Eaton Corp. plc | 662,208 | 94,649,390 |
| Emerson Electric Co. | 997,917 | 90,301,509 |
| Fastenal Co. | 952,840 | 49,814,475 |
| Fortive Corp. | 562,820 | 39,858,912 |
| Fortune Brands Home & Security, Inc. | 230,178 | 24,164,086 |
| Generac Holdings, Inc. * | 104,606 | 33,887,114 |
| General Dynamics Corp. | 385,762 | 73,383,505 |
| General Electric Co. | 14,578,823 | 191,274,158 |
| Honeywell International, Inc. | 1,156,428 | 257,929,701 |
| Howmet Aerospace, Inc. * | 645,630 | 20,634,335 |
| Huntington Ingalls Industries, Inc. | 66,350 | 14,087,432 |
| IDEX Corp. | 126,610 | 28,385,962 |
| Illinois Tool Works, Inc. | 478,998 | 110,389,879 |
| Ingersoll Rand, Inc. * | 620,307 | 30,649,369 |
| Security | Number
of Shares | Value ($) |
| Johnson Controls International plc | 1,198,649 | 74,723,779 |
| L3Harris Technologies, Inc. | 341,988 | 71,554,149 |
| Lockheed Martin Corp. | 409,928 | 156,002,200 |
| Masco Corp. | 429,272 | 27,421,895 |
| Northrop Grumman Corp. | 257,896 | 91,408,658 |
| Otis Worldwide Corp. | 676,520 | 52,680,612 |
| PACCAR, Inc. | 575,317 | 51,709,492 |
| Parker-Hannifin Corp. | 214,834 | 67,417,058 |
| Pentair plc | 276,653 | 17,846,885 |
| Quanta Services, Inc. | 228,586 | 22,090,551 |
| Raytheon Technologies Corp. | 2,526,995 | 210,347,064 |
| Rockwell Automation, Inc. | 192,679 | 50,917,353 |
| Roper Technologies, Inc. | 174,498 | 77,902,887 |
| Snap-on, Inc. | 89,574 | 21,282,782 |
| Stanley Black & Decker, Inc. | 266,954 | 55,198,079 |
| Teledyne Technologies, Inc. * | 61,859 | 27,697,367 |
| Textron, Inc. | 375,462 | 24,119,679 |
| The Boeing Co. * | 912,314 | 213,764,293 |
| Trane Technologies plc | 396,838 | 68,982,350 |
| TransDigm Group, Inc. * | 90,700 | 55,666,218 |
| United Rentals, Inc. * | 119,897 | 38,361,045 |
| W.W. Grainger, Inc. | 73,256 | 31,759,406 |
| Westinghouse Air Brake Technologies Corp. | 296,769 | 24,355,832 |
| Xylem, Inc. | 300,781 | 33,281,418 |
| | | 3,459,764,780 |
| |
| Commercial & Professional Services 0.8% |
| Cintas Corp. | 146,280 | 50,487,079 |
| Copart, Inc. * | 346,293 | 43,116,941 |
| Equifax, Inc. | 202,570 | 46,435,121 |
| IHS Markit Ltd. | 620,692 | 66,774,045 |
| Jacobs Engineering Group, Inc. | 216,895 | 28,979,341 |
| Leidos Holdings, Inc. | 220,652 | 22,347,635 |
| Nielsen Holdings plc | 595,540 | 15,275,601 |
| Republic Services, Inc. | 349,951 | 37,199,791 |
| Robert Half International, Inc. | 187,172 | 16,398,139 |
| Rollins, Inc. | 365,684 | 13,632,700 |
| Verisk Analytics, Inc. | 270,153 | 50,842,795 |
| Waste Management, Inc. | 647,233 | 89,298,737 |
| | | 480,787,925 |
| |
| Consumer Durables & Apparel 1.2% |
| D.R. Horton, Inc. | 548,944 | 53,955,706 |
| Garmin Ltd. | 248,836 | 34,150,253 |
| Hanesbrands, Inc. | 584,360 | 12,306,622 |
| Hasbro, Inc. | 211,022 | 20,986,138 |
| Leggett & Platt, Inc. | 223,532 | 11,102,834 |
| Lennar Corp., Class A | 457,526 | 47,399,694 |
| Mohawk Industries, Inc. * | 98,773 | 20,297,852 |
| Newell Brands, Inc. | 630,058 | 16,986,364 |
| NIKE, Inc., Class B | 2,113,355 | 280,273,140 |
| NVR, Inc. * | 5,772 | 28,964,473 |
| PulteGroup, Inc. | 441,020 | 26,073,102 |
| PVH Corp. * | 118,921 | 13,459,479 |
| Ralph Lauren Corp. * | 80,653 | 10,750,238 |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Tapestry, Inc. * | 464,188 | 22,211,396 |
| Under Armour, Inc., Class A * | 321,714 | 7,820,867 |
| Under Armour, Inc., Class C * | 313,942 | 6,250,585 |
| VF Corp. | 532,990 | 46,721,903 |
| Whirlpool Corp. | 104,631 | 24,740,000 |
| | | 684,450,646 |
| |
| Consumer Services 2.1% |
| Booking Holdings, Inc. * | 68,105 | 167,952,378 |
| Caesars Entertainment, Inc. * | 346,646 | 33,915,845 |
| Carnival Corp. * | 1,325,702 | 37,066,628 |
| Chipotle Mexican Grill, Inc. * | 46,810 | 69,841,924 |
| Darden Restaurants, Inc. | 215,904 | 31,677,435 |
| Domino's Pizza, Inc. | 64,704 | 27,327,087 |
| Expedia Group, Inc. * | 229,712 | 40,482,146 |
| Hilton Worldwide Holdings, Inc. * | 462,230 | 59,489,001 |
| Las Vegas Sands Corp. * | 548,272 | 33,587,143 |
| Marriott International, Inc., Class A * | 442,408 | 65,706,436 |
| McDonald's Corp. | 1,239,476 | 292,615,494 |
| MGM Resorts International | 686,284 | 27,945,485 |
| Norwegian Cruise Line Holdings Ltd. * | 603,928 | 18,751,964 |
| Penn National Gaming, Inc. * | 248,653 | 22,159,955 |
| Royal Caribbean Cruises Ltd. * | 362,485 | 31,518,071 |
| Starbucks Corp. | 1,957,244 | 224,084,866 |
| Wynn Resorts Ltd. * | 173,997 | 22,341,215 |
| Yum! Brands, Inc. | 497,641 | 59,478,052 |
| | | 1,265,941,125 |
| |
| Diversified Financials 5.0% |
| American Express Co. | 1,084,487 | 166,306,082 |
| Ameriprise Financial, Inc. | 193,794 | 50,076,370 |
| Berkshire Hathaway, Inc., Class B * | 3,169,928 | 871,571,704 |
| BlackRock, Inc. | 236,020 | 193,371,186 |
| Capital One Financial Corp. | 763,199 | 113,777,707 |
| Cboe Global Markets, Inc. | 179,114 | 18,694,128 |
| CME Group, Inc. | 596,956 | 120,579,142 |
| Discover Financial Services | 510,946 | 58,247,844 |
| Franklin Resources, Inc. | 453,311 | 13,599,330 |
| Intercontinental Exchange, Inc. | 933,948 | 109,935,019 |
| Invesco Ltd. | 622,293 | 16,801,911 |
| MarketAxess Holdings, Inc. | 63,240 | 30,890,210 |
| Moody's Corp. | 267,516 | 87,400,152 |
| Morgan Stanley | 2,495,052 | 205,966,543 |
| MSCI, Inc. | 137,498 | 66,792,404 |
| Nasdaq, Inc. | 192,218 | 31,050,896 |
| Northern Trust Corp. | 346,310 | 39,410,078 |
| Raymond James Financial, Inc. | 204,785 | 26,781,782 |
| S&P Global, Inc. | 400,200 | 156,234,078 |
| State Street Corp. | 583,513 | 48,985,916 |
| Synchrony Financial | 903,217 | 39,506,712 |
| T. Rowe Price Group, Inc. | 379,496 | 68,005,683 |
| The Bank of New York Mellon Corp. | 1,343,144 | 66,996,023 |
| The Charles Schwab Corp. (a) | 2,481,091 | 174,668,806 |
| The Goldman Sachs Group, Inc. | 572,076 | 199,339,882 |
| | | 2,974,989,588 |
| |
| Energy 2.7% |
| APA Corp. | 636,822 | 12,736,440 |
| Baker Hughes Co. | 1,217,601 | 24,449,428 |
| Cabot Oil & Gas Corp. | 655,090 | 10,920,350 |
| Chevron Corp. | 3,203,578 | 330,192,784 |
| ConocoPhillips | 2,253,586 | 115,248,388 |
| Devon Energy Corp. | 980,245 | 22,918,128 |
| Diamondback Energy, Inc. | 298,968 | 24,434,655 |
| EOG Resources, Inc. | 970,823 | 71,491,406 |
| Security | Number
of Shares | Value ($) |
| Exxon Mobil Corp. | 7,040,187 | 402,980,304 |
| Halliburton Co. | 1,476,758 | 28,885,386 |
| Hess Corp. | 454,848 | 33,890,724 |
| HollyFrontier Corp. | 248,173 | 8,686,055 |
| Kinder Morgan, Inc. | 3,228,496 | 55,045,857 |
| Marathon Oil Corp. | 1,316,871 | 14,827,967 |
| Marathon Petroleum Corp. | 1,084,924 | 60,376,021 |
| NOV, Inc. * | 649,682 | 9,712,746 |
| Occidental Petroleum Corp. | 1,392,658 | 35,317,807 |
| ONEOK, Inc. | 740,365 | 38,750,704 |
| Phillips 66 | 727,672 | 58,875,942 |
| Pioneer Natural Resources Co. | 341,119 | 52,474,336 |
| Schlumberger N.V. | 2,326,251 | 62,925,090 |
| The Williams Cos., Inc. | 2,014,983 | 49,084,986 |
| Valero Energy Corp. | 677,604 | 50,115,592 |
| | | 1,574,341,096 |
| |
| Food & Staples Retailing 1.3% |
| Costco Wholesale Corp. | 736,058 | 273,879,821 |
| Sysco Corp. | 849,140 | 71,947,632 |
| The Kroger Co. | 1,264,028 | 46,187,583 |
| Walgreens Boots Alliance, Inc. | 1,193,354 | 63,367,098 |
| Walmart, Inc. | 2,305,124 | 322,509,899 |
| | | 777,892,033 |
| |
| Food, Beverage & Tobacco 3.0% |
| Altria Group, Inc. | 3,090,901 | 147,590,523 |
| Archer-Daniels-Midland Co. | 925,898 | 58,451,941 |
| Brown-Forman Corp., Class B | 302,513 | 23,075,692 |
| Campbell Soup Co. | 337,053 | 16,094,281 |
| Conagra Brands, Inc. | 814,510 | 30,210,176 |
| Constellation Brands, Inc., Class A | 282,835 | 67,970,907 |
| General Mills, Inc. | 1,018,395 | 61,979,520 |
| Hormel Foods Corp. | 468,699 | 21,653,894 |
| Kellogg Co. | 422,539 | 26,374,884 |
| Lamb Weston Holdings, Inc. | 242,753 | 19,541,616 |
| McCormick & Co., Inc. - Non Voting Shares | 412,326 | 37,257,777 |
| Molson Coors Beverage Co., Class B * | 312,330 | 17,162,534 |
| Mondelez International, Inc., Class A | 2,349,903 | 142,897,601 |
| Monster Beverage Corp. * | 615,855 | 59,768,728 |
| PepsiCo, Inc. | 2,293,539 | 330,636,582 |
| Philip Morris International, Inc. | 2,589,271 | 245,980,745 |
| The Coca-Cola Co. | 6,448,010 | 348,063,580 |
| The Hershey Co. | 244,097 | 40,105,137 |
| The JM Smucker Co. | 181,182 | 23,733,030 |
| The Kraft Heinz Co. | 1,076,266 | 44,439,023 |
| Tyson Foods, Inc., Class A | 489,807 | 37,935,552 |
| | | 1,800,923,723 |
| |
| Health Care Equipment & Services 6.4% |
| Abbott Laboratories | 2,945,088 | 353,646,167 |
| ABIOMED, Inc. * | 75,278 | 24,143,913 |
| Align Technology, Inc. * | 119,803 | 71,346,281 |
| AmerisourceBergen Corp. | 245,691 | 29,679,473 |
| Anthem, Inc. | 407,158 | 154,471,674 |
| Baxter International, Inc. | 840,247 | 72,000,765 |
| Becton, Dickinson & Co. | 482,996 | 120,174,235 |
| Boston Scientific Corp. * | 2,355,745 | 102,710,482 |
| Cardinal Health, Inc. | 489,160 | 29,515,914 |
| Centene Corp. * | 968,238 | 59,779,014 |
| Cerner Corp. | 509,189 | 38,214,634 |
| Cigna Corp. | 584,925 | 145,652,174 |
| CVS Health Corp. | 2,180,073 | 166,557,577 |
| Danaher Corp. | 1,053,746 | 267,588,259 |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| DaVita, Inc. * | 120,591 | 14,052,469 |
| DENTSPLY SIRONA, Inc. | 365,959 | 24,705,892 |
| DexCom, Inc. * | 160,161 | 61,838,162 |
| Edwards Lifesciences Corp. * | 1,038,030 | 99,152,626 |
| HCA Healthcare, Inc. | 440,732 | 88,613,576 |
| Henry Schein, Inc. * | 237,886 | 17,246,735 |
| Hologic, Inc. * | 429,031 | 28,122,982 |
| Humana, Inc. | 214,221 | 95,379,758 |
| IDEXX Laboratories, Inc. * | 142,094 | 78,008,185 |
| Intuitive Surgical, Inc. * | 195,696 | 169,277,040 |
| Laboratory Corp. of America Holdings * | 162,450 | 43,190,582 |
| McKesson Corp. | 263,990 | 49,513,964 |
| Medtronic plc | 2,240,991 | 293,390,542 |
| Quest Diagnostics, Inc. | 221,276 | 29,181,879 |
| ResMed, Inc. | 241,554 | 45,404,905 |
| STERIS plc | 142,237 | 30,014,852 |
| Stryker Corp. | 543,986 | 142,867,043 |
| Teleflex, Inc. | 77,699 | 32,826,274 |
| The Cooper Cos., Inc. | 81,831 | 33,623,540 |
| UnitedHealth Group, Inc. | 1,571,604 | 626,755,675 |
| Universal Health Services, Inc., Class B | 128,991 | 19,143,554 |
| West Pharmaceutical Services, Inc. | 122,834 | 40,353,426 |
| Zimmer Biomet Holdings, Inc. | 346,281 | 61,347,142 |
| | | 3,759,491,365 |
| |
| Household & Personal Products 1.6% |
| Church & Dwight Co., Inc. | 407,792 | 34,964,086 |
| Colgate-Palmolive Co. | 1,410,930 | 113,862,051 |
| Kimberly-Clark Corp. | 562,254 | 74,959,703 |
| The Clorox Co. | 209,044 | 38,150,530 |
| The Estee Lauder Cos., Inc., Class A | 381,955 | 119,857,479 |
| The Procter & Gamble Co. | 4,094,124 | 546,238,024 |
| | | 928,031,873 |
| |
| Insurance 1.9% |
| Aflac, Inc. | 1,062,300 | 57,077,379 |
| American International Group, Inc. | 1,438,487 | 69,694,695 |
| Aon plc, Class A | 375,767 | 94,482,854 |
| Arthur J. Gallagher & Co. | 321,865 | 46,654,332 |
| Assurant, Inc. | 96,580 | 15,027,848 |
| Chubb Ltd. | 748,628 | 128,457,079 |
| Cincinnati Financial Corp. | 250,347 | 28,209,100 |
| Everest Re Group Ltd. | 66,410 | 18,392,250 |
| Globe Life, Inc. | 157,939 | 16,187,168 |
| Lincoln National Corp. | 299,266 | 19,191,929 |
| Loews Corp. | 376,198 | 20,973,039 |
| Marsh & McLennan Cos., Inc. | 844,894 | 114,652,116 |
| MetLife, Inc. | 1,250,512 | 79,570,079 |
| Principal Financial Group, Inc. | 421,012 | 26,890,036 |
| Prudential Financial, Inc. | 660,743 | 66,312,167 |
| The Allstate Corp. | 504,414 | 63,959,695 |
| The Hartford Financial Services Group, Inc. | 595,193 | 39,258,930 |
| The Progressive Corp. | 973,856 | 98,106,253 |
| The Travelers Cos., Inc. | 419,694 | 64,909,874 |
| Unum Group | 334,444 | 9,451,387 |
| W.R. Berkley Corp. | 231,583 | 18,461,797 |
| Willis Towers Watson plc | 213,937 | 55,379,732 |
| | | 1,151,299,739 |
| |
| Materials 2.7% |
| Air Products & Chemicals, Inc. | 367,826 | 106,110,444 |
| Albemarle Corp. | 194,296 | 32,674,758 |
| Amcor plc | 2,600,204 | 30,552,397 |
| Avery Dennison Corp. | 137,375 | 29,421,604 |
| Security | Number
of Shares | Value ($) |
| Ball Corp. | 544,309 | 50,969,095 |
| Celanese Corp. | 190,234 | 29,800,156 |
| CF Industries Holdings, Inc. | 356,784 | 17,350,406 |
| Corteva, Inc. | 1,239,551 | 60,440,507 |
| Dow, Inc. | 1,239,585 | 77,474,062 |
| DuPont de Nemours, Inc. | 895,416 | 69,045,528 |
| Eastman Chemical Co. | 225,640 | 26,036,600 |
| Ecolab, Inc. | 413,327 | 92,634,847 |
| FMC Corp. | 213,829 | 25,283,141 |
| Freeport-McMoRan, Inc. | 2,425,051 | 91,448,673 |
| International Flavors & Fragrances, Inc. | 414,322 | 58,904,159 |
| International Paper Co. | 653,809 | 37,920,922 |
| Linde plc | 869,024 | 248,401,820 |
| LyondellBasell Industries N.V., Class A | 427,774 | 44,377,275 |
| Martin Marietta Materials, Inc. | 103,606 | 36,585,351 |
| Newmont Corp. | 1,330,664 | 83,046,740 |
| Nucor Corp. | 494,987 | 40,717,631 |
| Packaging Corp. of America | 158,601 | 23,417,438 |
| PPG Industries, Inc. | 394,417 | 67,539,967 |
| Sealed Air Corp. | 256,321 | 12,662,257 |
| The Mosaic Co. | 571,096 | 20,091,157 |
| The Sherwin-Williams Co. | 402,068 | 110,114,363 |
| Vulcan Materials Co. | 220,388 | 39,281,957 |
| WestRock Co. | 435,621 | 24,285,871 |
| | | 1,586,589,126 |
| |
| Media & Entertainment 9.6% |
| Activision Blizzard, Inc. | 1,288,462 | 117,494,850 |
| Alphabet, Inc., Class A * | 500,011 | 1,176,775,888 |
| Alphabet, Inc., Class C * | 479,249 | 1,155,047,600 |
| Charter Communications, Inc., Class A * | 235,268 | 158,441,235 |
| Comcast Corp., Class A | 7,602,320 | 426,870,268 |
| Discovery, Inc., Class A * | 268,011 | 10,093,294 |
| Discovery, Inc., Class C * | 478,245 | 15,452,096 |
| DISH Network Corp., Class A * | 411,813 | 18,445,104 |
| Electronic Arts, Inc. | 478,739 | 68,019,237 |
| Facebook, Inc., Class A * | 3,999,328 | 1,300,101,546 |
| Fox Corp., Class A | 558,266 | 20,890,314 |
| Fox Corp., Class B | 254,332 | 9,252,598 |
| Live Nation Entertainment, Inc. * | 237,227 | 19,424,147 |
| Netflix, Inc. * | 736,445 | 378,142,414 |
| News Corp., Class A | 650,749 | 17,046,370 |
| News Corp., Class B | 197,400 | 4,798,794 |
| Omnicom Group, Inc. | 357,388 | 29,398,737 |
| Take-Two Interactive Software, Inc. * | 190,939 | 33,486,882 |
| The Interpublic Group of Cos., Inc. | 648,650 | 20,594,638 |
| The Walt Disney Co. * | 3,018,475 | 561,496,720 |
| Twitter, Inc. * | 1,327,168 | 73,286,217 |
| ViacomCBS, Inc., Class B | 973,074 | 39,915,495 |
| | | 5,654,474,444 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 6.4% |
| AbbVie, Inc. | 2,935,565 | 327,315,498 |
| Agilent Technologies, Inc. | 507,137 | 67,773,789 |
| Alexion Pharmaceuticals, Inc. * | 366,227 | 61,775,170 |
| Amgen, Inc. | 960,049 | 230,066,142 |
| Bio-Rad Laboratories, Inc., Class A * | 36,019 | 22,696,652 |
| Biogen, Inc. * | 253,370 | 67,733,402 |
| Bristol-Myers Squibb Co. | 3,724,704 | 232,496,024 |
| Catalent, Inc. * | 283,367 | 31,870,287 |
| Eli Lilly & Co. | 1,322,578 | 241,727,581 |
| Gilead Sciences, Inc. | 2,088,677 | 132,568,329 |
| Illumina, Inc. * | 242,519 | 95,271,164 |
| Incyte Corp. * | 312,126 | 26,649,318 |
| IQVIA Holdings, Inc. * | 318,258 | 74,691,970 |
| Johnson & Johnson | 4,370,251 | 711,170,945 |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Merck & Co., Inc. | 4,206,416 | 313,377,992 |
| Mettler-Toledo International, Inc. * | 38,852 | 51,025,109 |
| PerkinElmer, Inc. | 186,354 | 24,157,069 |
| Perrigo Co., plc | 221,287 | 9,212,178 |
| Pfizer, Inc. | 9,273,348 | 358,414,900 |
| Regeneron Pharmaceuticals, Inc. * | 174,995 | 84,225,094 |
| Thermo Fisher Scientific, Inc. | 654,493 | 307,762,243 |
| Vertex Pharmaceuticals, Inc. * | 432,028 | 94,268,510 |
| Viatris, Inc. * | 2,016,048 | 26,813,438 |
| Waters Corp. * | 103,844 | 31,139,700 |
| Zoetis, Inc. | 789,868 | 136,670,860 |
| | | 3,760,873,364 |
| |
| Real Estate 2.5% |
| Alexandria Real Estate Equities, Inc. | 211,388 | 38,282,367 |
| American Tower Corp. | 738,802 | 188,224,586 |
| AvalonBay Communities, Inc. | 231,636 | 44,474,112 |
| Boston Properties, Inc. | 236,961 | 25,911,685 |
| CBRE Group, Inc., Class A * | 558,582 | 47,591,186 |
| Crown Castle International Corp. | 717,076 | 135,570,389 |
| Digital Realty Trust, Inc. | 467,672 | 72,166,466 |
| Duke Realty Corp. | 623,343 | 28,997,916 |
| Equinix, Inc. | 148,455 | 107,000,426 |
| Equity Residential | 571,211 | 42,400,992 |
| Essex Property Trust, Inc. | 107,920 | 31,352,918 |
| Extra Space Storage, Inc. | 219,790 | 32,680,575 |
| Federal Realty Investment Trust | 116,767 | 13,175,988 |
| Healthpeak Properties, Inc. | 893,048 | 30,667,268 |
| Host Hotels & Resorts, Inc. * | 1,169,150 | 21,231,764 |
| Iron Mountain, Inc. | 476,982 | 19,136,518 |
| Kimco Realty Corp. | 720,481 | 15,130,101 |
| Mid-America Apartment Communities, Inc. | 189,972 | 29,888,295 |
| Prologis, Inc. | 1,229,439 | 143,266,527 |
| Public Storage | 253,117 | 71,166,376 |
| Realty Income Corp. | 620,212 | 42,887,660 |
| Regency Centers Corp. | 261,099 | 16,621,562 |
| SBA Communications Corp. | 181,525 | 54,406,673 |
| Simon Property Group, Inc. | 546,740 | 66,560,128 |
| UDR, Inc. | 491,094 | 22,811,316 |
| Ventas, Inc. | 623,213 | 34,563,393 |
| Vornado Realty Trust | 259,144 | 11,855,838 |
| Welltower, Inc. | 695,995 | 52,220,505 |
| Weyerhaeuser Co. | 1,240,718 | 48,102,637 |
| | | 1,488,346,167 |
| |
| Retailing 7.3% |
| Advance Auto Parts, Inc. | 108,506 | 21,718,561 |
| Amazon.com, Inc. * | 711,646 | 2,467,575,573 |
| AutoZone, Inc. * | 36,963 | 54,118,268 |
| Best Buy Co., Inc. | 383,045 | 44,536,642 |
| CarMax, Inc. * | 270,222 | 36,004,379 |
| Dollar General Corp. | 407,400 | 87,489,150 |
| Dollar Tree, Inc. * | 391,081 | 44,935,207 |
| eBay, Inc. | 1,075,587 | 60,006,999 |
| Etsy, Inc. * | 209,631 | 41,672,547 |
| Genuine Parts Co. | 241,213 | 30,144,389 |
| L Brands, Inc. * | 386,398 | 25,463,628 |
| LKQ Corp. * | 461,689 | 21,565,493 |
| Lowe's Cos., Inc. | 1,215,153 | 238,473,776 |
| O'Reilly Automotive, Inc. * | 116,856 | 64,607,345 |
| Pool Corp. | 66,530 | 28,110,256 |
| Ross Stores, Inc. | 591,815 | 77,492,256 |
| Target Corp. | 832,797 | 172,605,506 |
| The Gap, Inc. | 343,811 | 11,380,144 |
| The Home Depot, Inc. | 1,789,784 | 579,299,387 |
| Security | Number
of Shares | Value ($) |
| The TJX Cos., Inc. | 1,995,720 | 141,696,120 |
| Tractor Supply Co. | 194,064 | 36,600,470 |
| Ulta Beauty, Inc. * | 93,385 | 30,756,350 |
| | | 4,316,252,446 |
| |
| Semiconductors & Semiconductor Equipment 5.3% |
| Advanced Micro Devices, Inc. * | 2,014,842 | 164,451,404 |
| Analog Devices, Inc. | 613,383 | 93,945,740 |
| Applied Materials, Inc. | 1,525,829 | 202,492,767 |
| Broadcom, Inc. | 678,730 | 309,636,626 |
| Enphase Energy, Inc. * | 214,789 | 29,909,368 |
| Intel Corp. | 6,755,309 | 388,632,927 |
| KLA Corp. | 256,211 | 80,796,139 |
| Lam Research Corp. | 237,624 | 147,433,811 |
| Maxim Integrated Products, Inc. | 445,225 | 41,851,150 |
| Microchip Technology, Inc. | 447,966 | 67,324,810 |
| Micron Technology, Inc. * | 1,860,090 | 160,097,946 |
| Monolithic Power Systems, Inc. | 71,675 | 25,901,912 |
| NVIDIA Corp. | 1,030,829 | 618,889,115 |
| NXP Semiconductors N.V. | 460,627 | 88,675,304 |
| Qorvo, Inc. * | 188,402 | 35,451,604 |
| QUALCOMM, Inc. | 1,888,776 | 262,162,109 |
| Skyworks Solutions, Inc. | 273,547 | 49,602,278 |
| Teradyne, Inc. | 276,181 | 34,544,719 |
| Texas Instruments, Inc. | 1,529,948 | 276,170,913 |
| Xilinx, Inc. | 407,572 | 52,152,913 |
| | | 3,130,123,555 |
| |
| Software & Services 13.6% |
| Accenture plc, Class A | 1,054,552 | 305,788,444 |
| Adobe, Inc. * | 797,001 | 405,147,488 |
| Akamai Technologies, Inc. * | 272,080 | 29,575,096 |
| ANSYS, Inc. * | 143,899 | 52,618,108 |
| Autodesk, Inc. * | 365,650 | 106,736,892 |
| Automatic Data Processing, Inc. | 711,609 | 133,063,767 |
| Broadridge Financial Solutions, Inc. | 192,922 | 30,603,217 |
| Cadence Design Systems, Inc. * | 464,295 | 61,180,152 |
| Citrix Systems, Inc. | 204,104 | 25,278,280 |
| Cognizant Technology Solutions Corp., Class A | 882,581 | 70,959,512 |
| DXC Technology Co. * | 419,217 | 13,796,432 |
| Fidelity National Information Services, Inc. | 1,032,866 | 157,925,211 |
| Fiserv, Inc. * | 957,292 | 114,989,915 |
| FleetCor Technologies, Inc. * | 138,575 | 39,870,799 |
| Fortinet, Inc. * | 224,973 | 45,946,236 |
| Gartner, Inc. * | 146,906 | 28,775,947 |
| Global Payments, Inc. | 490,954 | 105,373,457 |
| International Business Machines Corp. | 1,485,950 | 210,826,586 |
| Intuit, Inc. | 455,396 | 187,696,015 |
| Jack Henry & Associates, Inc. | 126,513 | 20,600,112 |
| Mastercard, Inc., Class A | 1,457,794 | 556,964,776 |
| Microsoft Corp. | 12,539,879 | 3,162,306,686 |
| NortonLifeLock, Inc. | 963,243 | 20,815,681 |
| Oracle Corp. | 3,083,857 | 233,725,522 |
| Paychex, Inc. | 532,500 | 51,913,425 |
| Paycom Software, Inc. * | 81,743 | 31,422,827 |
| PayPal Holdings, Inc. * | 1,947,284 | 510,753,120 |
| PTC, Inc. * | 174,040 | 22,788,798 |
| salesforce.com, Inc. * | 1,525,906 | 351,446,670 |
| ServiceNow, Inc. * | 326,095 | 165,124,725 |
| Synopsys, Inc. * | 253,635 | 62,663,063 |
| The Western Union Co. | 684,535 | 17,633,622 |
| Tyler Technologies, Inc. * | 67,374 | 28,624,518 |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| VeriSign, Inc. * | 165,578 | 36,223,499 |
| Visa, Inc., Class A | 2,820,052 | 658,651,345 |
| | | 8,057,809,943 |
| |
| Technology Hardware & Equipment 7.6% |
| Amphenol Corp., Class A | 996,730 | 67,119,798 |
| Apple Inc. | 26,237,593 | 3,449,193,976 |
| Arista Networks, Inc. * | 91,664 | 28,889,743 |
| CDW Corp. | 234,142 | 41,754,543 |
| Cisco Systems, Inc. | 7,020,688 | 357,423,226 |
| Corning, Inc. | 1,279,977 | 56,587,783 |
| F5 Networks, Inc. * | 102,075 | 19,063,527 |
| FLIR Systems, Inc. | 217,711 | 13,056,129 |
| Hewlett Packard Enterprise Co. | 2,161,536 | 34,627,807 |
| HP, Inc. | 2,083,453 | 71,066,582 |
| IPG Photonics Corp. * | 60,191 | 13,068,068 |
| Juniper Networks, Inc. | 540,827 | 13,731,597 |
| Keysight Technologies, Inc. * | 308,909 | 44,591,014 |
| Motorola Solutions, Inc. | 280,314 | 52,783,125 |
| NetApp, Inc. | 368,857 | 27,549,929 |
| Seagate Technology plc | 335,382 | 31,136,865 |
| TE Connectivity Ltd. | 550,251 | 73,992,252 |
| Trimble, Inc. * | 417,420 | 34,228,440 |
| Western Digital Corp. * | 508,655 | 35,926,303 |
| Zebra Technologies Corp., Class A * | 88,879 | 43,349,843 |
| | | 4,509,140,550 |
| |
| Telecommunication Services 1.6% |
| AT&T, Inc. | 11,859,590 | 372,509,722 |
| Lumen Technologies, Inc. | 1,633,559 | 20,958,562 |
| T-Mobile US, Inc. * | 971,461 | 128,359,142 |
| Verizon Communications, Inc. | 6,880,245 | 397,609,358 |
| | | 919,436,784 |
| |
| Transportation 2.0% |
| Alaska Air Group, Inc. * | 204,931 | 14,168,929 |
| American Airlines Group, Inc. * | 1,057,107 | 22,960,364 |
| C.H. Robinson Worldwide, Inc. | 223,537 | 21,700,972 |
| CSX Corp. | 1,267,436 | 127,694,177 |
| Delta Air Lines, Inc. * | 1,064,265 | 49,935,314 |
| Expeditors International of Washington, Inc. | 282,613 | 31,047,864 |
| FedEx Corp. | 405,363 | 117,680,932 |
| JB Hunt Transport Services, Inc. | 138,603 | 23,660,918 |
| Kansas City Southern | 150,917 | 44,099,457 |
| Norfolk Southern Corp. | 418,745 | 116,930,354 |
| Old Dominion Freight Line, Inc. | 159,721 | 41,177,671 |
| Southwest Airlines Co. * | 983,446 | 61,740,740 |
| Union Pacific Corp. | 1,113,542 | 247,306,543 |
| United Airlines Holdings, Inc. * | 530,024 | 28,833,306 |
| United Parcel Service, Inc., Class B | 1,195,982 | 243,812,890 |
| | | 1,192,750,431 |
| |
| Utilities 2.6% |
| Alliant Energy Corp. | 412,684 | 23,180,460 |
| Ameren Corp. | 421,354 | 35,747,673 |
| Security | Number
of Shares | Value ($) |
| American Electric Power Co., Inc. | 826,136 | 73,286,525 |
| American Water Works Co., Inc. | 301,289 | 46,998,071 |
| Atmos Energy Corp. | 212,167 | 21,978,380 |
| CenterPoint Energy, Inc. | 913,325 | 22,367,329 |
| CMS Energy Corp. | 481,142 | 30,980,733 |
| Consolidated Edison, Inc. | 569,672 | 44,098,310 |
| Dominion Energy, Inc. | 1,339,539 | 107,029,166 |
| DTE Energy Co. | 322,725 | 45,187,955 |
| Duke Energy Corp. | 1,277,831 | 128,664,803 |
| Edison International | 633,011 | 37,632,504 |
| Entergy Corp. | 333,620 | 36,461,330 |
| Evergy, Inc. | 377,183 | 24,128,397 |
| Eversource Energy | 570,183 | 49,161,178 |
| Exelon Corp. | 1,623,098 | 72,942,024 |
| FirstEnergy Corp. | 905,673 | 34,343,120 |
| NextEra Energy, Inc. | 3,258,390 | 252,557,809 |
| NiSource, Inc. | 651,767 | 16,958,977 |
| NRG Energy, Inc. | 406,265 | 14,552,412 |
| Pinnacle West Capital Corp. | 188,364 | 15,945,013 |
| PPL Corp. | 1,278,268 | 37,235,947 |
| Public Service Enterprise Group, Inc. | 837,869 | 52,919,806 |
| Sempra Energy | 503,362 | 69,247,510 |
| The AES Corp. | 1,111,992 | 30,935,618 |
| The Southern Co. | 1,756,214 | 116,208,680 |
| WEC Energy Group, Inc. | 523,526 | 50,871,021 |
| Xcel Energy, Inc. | 895,209 | 63,828,402 |
| | | 1,555,449,153 |
| Total Common Stock |
| (Cost $23,085,675,668) | | 58,823,869,086 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investments 0.4% of net assets |
| |
| Time Deposits 0.4% |
| BNP Paribas S.A. |
| 0.01%, 05/03/21 (b) | 21,042,326 | 21,042,326 |
| Sumitomo Mitsui Trust Bank, Limited |
| 0.01%, 05/03/21 (b) | 245,591,532 | 245,591,532 |
| Total Short-Term Investments |
| (Cost $266,633,858) | | 266,633,858 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
($) |
| Futures Contracts | |
| Long | |
| S&P 500 Index, e-mini, expires 06/18/21 | 1,655 | 345,431,600 | 3,244,559 |
| * | Non-income producing security. |
| (a) | Issuer is affiliated with the fund’s investment adviser. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
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, 2021:
| |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Dividends
Received |
| The Charles Schwab Corp. | $98,294,462 | $6,145,186 | ($571,780) | ($35,845) | $70,836,783 | $174,668,806 | 2,481,091 | $864,008 |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $58,823,869,086 | $— | $— | $58,823,869,086 | |
| Short-Term Investments1 | — | 266,633,858 | — | 266,633,858 | |
| Futures Contracts2 | 3,244,559 | — | — | 3,244,559 | |
| Total | $58,827,113,645 | $266,633,858 | $— | $59,093,747,503 | |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $64,508,485) | | $174,668,806 |
| Investments in securities, at value - unaffiliated (cost $23,287,801,041) | | 58,915,834,138 |
| Deposit with broker for futures contracts | | 24,409,000 |
| Receivables: | | |
| Fund shares sold | | 81,621,157 |
| Dividends | | 41,456,779 |
| Interest | + | 111 |
| Total assets | | 59,237,989,991 |
| Liabilities |
| Payables: | | |
| Investment adviser fees | | 1,019,115 |
| Fund shares redeemed | | 50,511,134 |
| Variation margin on futures contracts | + | 2,147,364 |
| Total liabilities | | 53,677,613 |
| Net Assets |
| Total assets | | 59,237,989,991 |
| Total liabilities | – | 53,677,613 |
| Net assets | | $59,184,312,378 |
| Net Assets by Source | | |
| Capital received from investors | | 23,538,913,513 |
| Total distributable earnings | | 35,645,398,865 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $59,184,312,378 | | 921,690,192 | | $64.21 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $864,008 |
| Dividends received from securities - unaffiliated | | 430,643,450 |
| Interest received from securities - unaffiliated | | 7,477 |
| Securities on loan, net | + | 177,506 |
| Total investment income | | 431,692,441 |
| Expenses |
| Investment adviser fees | | 5,256,501 |
| Total expenses | – | 5,256,501 |
| Net investment income | | 426,435,940 |
| Realized and Unrealized Gains (Losses) |
| Net realized losses on sales of securities - affiliated | | (35,845) |
| Net realized gains on sales of securities - unaffiliated | | 52,858,759 |
| Net realized gains on futures contracts | + | 52,584,279 |
| Net realized gains | | 105,407,193 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 70,836,783 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 12,299,097,577 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 7,208,668 |
| Net change in unrealized appreciation (depreciation) | + | 12,377,143,028 |
| Net realized and unrealized gains | | 12,482,550,221 |
| Increase in net assets resulting from operations | | $12,908,986,161 |
Schwab Equity Index Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $426,435,940 | $893,349,734 |
| Net realized gains (losses) | | 105,407,193 | (291,792,502) |
| Net change in unrealized appreciation (depreciation) | + | 12,377,143,028 | 3,166,046,098 |
| Increase in net assets from operations | | 12,908,986,161 | 3,767,603,330 |
| Distributions to Shareholders | |
| Total distributions | | ($913,293,066) | ($829,255,576) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 113,675,296 | $6,703,746,934 | 236,073,289 | $11,084,108,165 |
| Shares reinvested | | 13,207,873 | 748,622,260 | 13,928,557 | 685,702,860 |
| Shares redeemed | + | (75,756,378) | (4,448,008,404) | (232,288,137) | (10,755,681,037) |
| Net transactions in fund shares | | 51,126,791 | $3,004,360,790 | 17,713,709 | $1,014,129,988 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 870,563,401 | $44,184,258,493 | 852,849,692 | $40,231,780,751 |
| Total increase | + | 51,126,791 | 15,000,053,885 | 17,713,709 | 3,952,477,742 |
| End of period | | 921,690,192 | $59,184,312,378 | 870,563,401 | $44,184,258,493 |
Schwab Equity Index Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $73.73 | $68.68 | $64.19 | $62.61 | $52.40 | $53.67 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.65 | 1.38 | 1.38 | 1.18 | 1.08 | 0.95 |
| Net realized and unrealized gains (losses) | 20.93 | 5.81 | 6.73 | 3.05 | 10.96 | 0.92 |
| Total from investment operations | 21.58 | 7.19 | 8.11 | 4.23 | 12.04 | 1.87 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (1.42) | (1.29) | (1.28) | (1.10) | (0.97) | (0.96) |
| Distributions from net realized gains | (0.88) | (0.85) | (2.34) | (1.55) | (0.86) | (2.18) |
| Total distributions | (2.30) | (2.14) | (3.62) | (2.65) | (1.83) | (3.14) |
| Net asset value at end of period | $93.01 | $73.73 | $68.68 | $64.19 | $62.61 | $52.40 |
| Total return | 29.67% 2 | 10.60% | 14.20% | 6.84% | 23.52% | 3.87% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.05% 3 | 0.05% | 0.05% | 0.05% | 0.14% 4 | 0.33% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.12% 4 | 0.29% |
| Net investment income (loss) | 1.51% 3 | 1.97% | 2.15% | 1.82% | 1.87% | 1.86% |
| Portfolio turnover rate | 3% 2 | 4% | 5% | 4% | 5% | 3% |
| Net assets, end of period (x 1,000,000) | $12,903 | $9,774 | $9,346 | $7,909 | $7,681 | $6,432 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.6% of net assets |
| |
| Automobiles & Components 1.9% |
| Aptiv plc * | 86,128 | 12,392,958 |
| Autoliv, Inc. * | 25,375 | 2,554,248 |
| BorgWarner, Inc. | 77,025 | 3,741,874 |
| Ford Motor Co. * | 1,250,757 | 14,433,736 |
| Fox Factory Holding Corp. * | 13,258 | 2,031,523 |
| General Motors Co. * | 405,079 | 23,178,620 |
| Gentex Corp. | 77,376 | 2,722,088 |
| Harley-Davidson, Inc. | 49,364 | 2,387,737 |
| Lear Corp. | 17,507 | 3,218,487 |
| Tesla, Inc. * | 245,345 | 174,057,557 |
| Thor Industries, Inc. | 17,763 | 2,515,063 |
| | | 243,233,891 |
| |
| Banks 4.3% |
| Bank of America Corp. | 2,427,127 | 98,371,457 |
| Bank OZK | 38,957 | 1,596,847 |
| BOK Financial Corp. | 9,479 | 833,583 |
| Citigroup, Inc. | 666,927 | 47,511,879 |
| Citizens Financial Group, Inc. | 135,791 | 6,284,407 |
| Comerica, Inc. | 44,761 | 3,364,237 |
| Commerce Bancshares, Inc. | 34,069 | 2,650,909 |
| Cullen/Frost Bankers, Inc. | 17,758 | 2,132,025 |
| East West Bancorp, Inc. | 45,460 | 3,461,779 |
| Essent Group Ltd. | 35,671 | 1,875,581 |
| Fifth Third Bancorp | 227,910 | 9,239,471 |
| First Citizens BancShares, Inc., Class A | 2,309 | 2,002,965 |
| First Financial Bankshares, Inc. | 45,728 | 2,244,330 |
| First Horizon Corp. | 176,241 | 3,223,448 |
| First Republic Bank | 56,216 | 10,301,020 |
| Glacier Bancorp, Inc. | 30,409 | 1,792,611 |
| Huntington Bancshares, Inc. | 322,903 | 4,946,874 |
| JPMorgan Chase & Co. | 974,914 | 149,951,522 |
| KeyCorp | 311,302 | 6,773,932 |
| M&T Bank Corp. | 41,304 | 6,513,228 |
| New York Community Bancorp, Inc. | 150,971 | 1,805,613 |
| People's United Financial, Inc. | 136,959 | 2,483,067 |
| Pinnacle Financial Partners, Inc. | 24,312 | 2,130,704 |
| Popular, Inc. | 26,787 | 1,981,167 |
| Prosperity Bancshares, Inc. | 29,802 | 2,186,275 |
| Regions Financial Corp. | 305,518 | 6,660,292 |
| Signature Bank | 18,107 | 4,554,092 |
| South State Corp. | 22,630 | 1,908,162 |
| SVB Financial Group * | 17,264 | 9,872,073 |
| Synovus Financial Corp. | 47,464 | 2,224,163 |
| TCF Financial Corp. | 48,422 | 2,204,169 |
| TFS Financial Corp. | 16,400 | 320,784 |
| The PNC Financial Services Group, Inc. | 135,527 | 25,336,773 |
| Truist Financial Corp. | 430,663 | 25,542,623 |
| U.S. Bancorp | 437,020 | 25,937,137 |
| United Bankshares, Inc. | 41,048 | 1,611,955 |
| Wells Fargo & Co. | 1,321,054 | 59,513,483 |
| Security | Number
of Shares | Value ($) |
| Western Alliance Bancorp | 32,835 | 3,449,973 |
| Zions Bancorp NA | 52,560 | 2,932,848 |
| | | 547,727,458 |
| |
| Capital Goods 6.0% |
| 3M Co. | 185,022 | 36,475,237 |
| A.O. Smith Corp. | 43,561 | 2,951,258 |
| Advanced Drainage Systems, Inc. | 15,735 | 1,756,970 |
| AECOM * | 46,716 | 3,103,344 |
| AGCO Corp. | 19,730 | 2,879,002 |
| Air Lease Corp. | 34,403 | 1,606,964 |
| Allegion plc | 28,787 | 3,868,397 |
| Allison Transmission Holdings, Inc. | 35,189 | 1,459,288 |
| AMETEK, Inc. | 73,567 | 9,926,395 |
| Axon Enterprise, Inc. * | 20,508 | 3,109,218 |
| Bloom Energy Corp., Class A * | 39,044 | 1,013,973 |
| Builders FirstSource, Inc. * | 65,248 | 3,175,620 |
| BWX Technologies, Inc. | 30,653 | 2,051,299 |
| Carlisle Cos., Inc. | 17,164 | 3,289,481 |
| Carrier Global Corp. | 261,537 | 11,397,782 |
| Caterpillar, Inc. | 174,249 | 39,747,939 |
| Chart Industries, Inc. * | 11,204 | 1,799,698 |
| Colfax Corp. * | 36,598 | 1,653,864 |
| Crane Co. | 15,943 | 1,499,599 |
| Cummins, Inc. | 47,190 | 11,893,768 |
| Curtiss-Wright Corp. | 12,887 | 1,648,247 |
| Deere & Co. | 100,146 | 37,139,144 |
| Donaldson Co., Inc. | 40,627 | 2,554,626 |
| Dover Corp. | 45,752 | 6,825,741 |
| Eaton Corp. plc | 127,397 | 18,208,853 |
| EMCOR Group, Inc. | 17,522 | 2,099,136 |
| Emerson Electric Co. | 191,505 | 17,329,287 |
| Fastenal Co. | 183,457 | 9,591,132 |
| Flowserve Corp. | 40,959 | 1,623,615 |
| Fortive Corp. | 107,869 | 7,639,283 |
| Fortune Brands Home & Security, Inc. | 44,568 | 4,678,749 |
| FuelCell Energy, Inc. * | 101,414 | 984,730 |
| Generac Holdings, Inc. * | 20,156 | 6,529,536 |
| General Dynamics Corp. | 74,157 | 14,106,886 |
| General Electric Co. | 2,802,211 | 36,765,008 |
| Graco, Inc. | 53,980 | 4,145,664 |
| HEICO Corp. | 13,578 | 1,911,782 |
| HEICO Corp., Class A | 23,421 | 2,957,604 |
| Honeywell International, Inc. | 222,168 | 49,552,351 |
| Howmet Aerospace, Inc. * | 125,093 | 3,997,972 |
| Hubbell, Inc. | 17,387 | 3,338,478 |
| Huntington Ingalls Industries, Inc. | 12,769 | 2,711,114 |
| IDEX Corp. | 24,343 | 5,457,701 |
| Illinois Tool Works, Inc. | 92,009 | 21,204,394 |
| Ingersoll Rand, Inc. * | 119,185 | 5,888,931 |
| ITT, Inc. | 27,742 | 2,616,348 |
| Johnson Controls International plc | 230,632 | 14,377,599 |
| L3Harris Technologies, Inc. | 65,668 | 13,739,716 |
| Lennox International, Inc. | 10,966 | 3,677,338 |
| Lincoln Electric Holdings, Inc. | 19,086 | 2,443,962 |
| Lockheed Martin Corp. | 78,688 | 29,945,505 |
| Masco Corp. | 81,800 | 5,225,384 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| MasTec, Inc. * | 17,744 | 1,851,764 |
| Nikola Corp. *(a) | 43,907 | 508,004 |
| Nordson Corp. | 17,400 | 3,678,534 |
| Northrop Grumman Corp. | 49,593 | 17,577,743 |
| Oshkosh Corp. | 21,835 | 2,716,929 |
| Otis Worldwide Corp. | 130,077 | 10,129,096 |
| Owens Corning | 33,352 | 3,228,807 |
| PACCAR, Inc. | 110,568 | 9,937,852 |
| Parker-Hannifin Corp. | 41,157 | 12,915,478 |
| Pentair plc | 52,755 | 3,403,225 |
| Plug Power, Inc. * | 159,449 | 4,545,891 |
| Proto Labs, Inc. * | 8,959 | 1,003,945 |
| Quanta Services, Inc. | 44,503 | 4,300,770 |
| Raytheon Technologies Corp. | 485,381 | 40,403,114 |
| RBC Bearings, Inc. * | 8,125 | 1,620,369 |
| Regal Beloit Corp. | 12,969 | 1,873,113 |
| Rexnord Corp. | 38,335 | 1,914,067 |
| Rockwell Automation, Inc. | 37,204 | 9,831,529 |
| Roper Technologies, Inc. | 33,589 | 14,995,473 |
| Sensata Technologies Holding plc * | 50,468 | 2,914,022 |
| SiteOne Landscape Supply, Inc. * | 14,031 | 2,516,881 |
| Snap-on, Inc. | 17,344 | 4,120,934 |
| Stanley Black & Decker, Inc. | 51,479 | 10,644,313 |
| Sunrun, Inc. * | 50,761 | 2,487,289 |
| Teledyne Technologies, Inc. * | 11,847 | 5,304,494 |
| Textron, Inc. | 72,311 | 4,645,259 |
| The AZEK Co., Inc. * | 39,973 | 1,929,896 |
| The Boeing Co. * | 175,351 | 41,086,493 |
| The Middleby Corp. * | 17,944 | 3,253,606 |
| The Timken Co. | 21,808 | 1,829,037 |
| The Toro Co. | 34,600 | 3,965,160 |
| Trane Technologies plc | 76,047 | 13,219,250 |
| TransDigm Group, Inc. * | 17,484 | 10,730,630 |
| Trex Co., Inc. * | 37,233 | 4,020,792 |
| United Rentals, Inc. * | 23,091 | 7,387,965 |
| Vertiv Holdings Co. | 78,015 | 1,770,940 |
| Virgin Galactic Holdings, Inc. *(a) | 40,939 | 906,799 |
| W.W. Grainger, Inc. | 13,990 | 6,065,225 |
| Watsco, Inc. | 10,409 | 3,048,380 |
| Westinghouse Air Brake Technologies Corp. | 56,814 | 4,662,725 |
| WillScot Mobile Mini Holdings Corp. * | 58,882 | 1,723,476 |
| Woodward, Inc. | 18,751 | 2,344,062 |
| Xylem, Inc. | 57,766 | 6,391,808 |
| | | 778,980,051 |
| |
| Commercial & Professional Services 1.1% |
| ADT, Inc. | 48,281 | 444,185 |
| ASGN, Inc. * | 17,098 | 1,798,368 |
| Booz Allen Hamilton Holding Corp. | 43,804 | 3,633,542 |
| CACI International, Inc., Class A * | 8,134 | 2,073,031 |
| Cintas Corp. | 28,262 | 9,754,347 |
| Clean Harbors, Inc. * | 15,849 | 1,409,927 |
| Copart, Inc. * | 66,517 | 8,282,032 |
| CoreLogic, Inc. | 23,195 | 1,848,642 |
| CoStar Group, Inc. * | 12,580 | 10,748,729 |
| Dun & Bradstreet Holdings, Inc. * | 43,190 | 1,026,194 |
| Equifax, Inc. | 38,949 | 8,928,279 |
| Exponent, Inc. | 16,491 | 1,588,578 |
| IAA, Inc. * | 43,379 | 2,724,635 |
| IHS Markit Ltd. | 118,932 | 12,794,705 |
| Jacobs Engineering Group, Inc. | 41,608 | 5,559,245 |
| Leidos Holdings, Inc. | 42,446 | 4,298,931 |
| ManpowerGroup, Inc. | 17,414 | 2,105,178 |
| MSA Safety, Inc. | 11,664 | 1,875,105 |
| Nielsen Holdings plc | 115,046 | 2,950,930 |
| Republic Services, Inc. | 67,520 | 7,177,376 |
| Security | Number
of Shares | Value ($) |
| Robert Half International, Inc. | 36,215 | 3,172,796 |
| Rollins, Inc. | 70,025 | 2,610,532 |
| Science Applications International Corp. | 18,491 | 1,653,465 |
| Stericycle, Inc. * | 29,291 | 2,234,318 |
| Tetra Tech, Inc. | 17,303 | 2,208,382 |
| TransUnion | 61,071 | 6,387,416 |
| TriNet Group, Inc. * | 12,768 | 1,004,969 |
| Upwork, Inc. * | 29,536 | 1,360,428 |
| Verisk Analytics, Inc. | 51,935 | 9,774,167 |
| Waste Management, Inc. | 124,390 | 17,162,088 |
| | | 138,590,520 |
| |
| Consumer Durables & Apparel 1.4% |
| Brunswick Corp. | 24,806 | 2,657,467 |
| Capri Holdings Ltd. * | 48,244 | 2,657,280 |
| Carter's, Inc. * | 13,909 | 1,513,160 |
| Columbia Sportswear Co. | 9,701 | 1,057,506 |
| Crocs, Inc. * | 20,747 | 2,077,190 |
| D.R. Horton, Inc. | 105,528 | 10,372,347 |
| Deckers Outdoor Corp. * | 9,014 | 3,048,535 |
| Garmin Ltd. | 47,849 | 6,566,797 |
| Hanesbrands, Inc. | 112,874 | 2,377,126 |
| Hasbro, Inc. | 40,945 | 4,071,980 |
| Helen of Troy Ltd. * | 7,691 | 1,624,416 |
| Leggett & Platt, Inc. | 42,925 | 2,132,085 |
| Lennar Corp., Class A | 87,430 | 9,057,748 |
| Lululemon Athletica, Inc. * | 37,856 | 12,691,981 |
| Mattel, Inc. * | 111,642 | 2,395,837 |
| Mohawk Industries, Inc. * | 18,820 | 3,867,510 |
| Newell Brands, Inc. | 120,077 | 3,237,276 |
| NIKE, Inc., Class B | 406,263 | 53,878,599 |
| NVR, Inc. * | 1,111 | 5,575,109 |
| Peloton Interactive, Inc., Class A * | 84,191 | 8,280,185 |
| Polaris, Inc. | 18,621 | 2,607,499 |
| PulteGroup, Inc. | 85,120 | 5,032,294 |
| PVH Corp. * | 22,544 | 2,551,530 |
| Ralph Lauren Corp. * | 15,438 | 2,057,731 |
| Skechers U.S.A., Inc., Class A * | 44,019 | 2,134,481 |
| Tapestry, Inc. * | 89,131 | 4,264,918 |
| Tempur Sealy International, Inc. | 61,000 | 2,326,540 |
| Toll Brothers, Inc. | 35,310 | 2,213,937 |
| TopBuild Corp. * | 10,524 | 2,340,327 |
| VF Corp. | 102,514 | 8,986,377 |
| Whirlpool Corp. | 20,068 | 4,745,079 |
| YETI Holdings, Inc. * | 23,883 | 2,040,086 |
| | | 180,440,933 |
| |
| Consumer Services 2.2% |
| Airbnb, Inc., Class A * | 23,384 | 4,038,651 |
| Aramark | 81,526 | 3,168,916 |
| Booking Holdings, Inc. * | 13,091 | 32,283,453 |
| Boyd Gaming Corp. * | 25,658 | 1,697,277 |
| Bright Horizons Family Solutions, Inc. * | 19,517 | 2,826,647 |
| Caesars Entertainment, Inc. * | 66,760 | 6,531,798 |
| Carnival Corp. * | 255,514 | 7,144,171 |
| Chegg, Inc. * | 44,808 | 4,047,507 |
| Chipotle Mexican Grill, Inc. * | 8,976 | 13,392,461 |
| Choice Hotels International, Inc. * | 9,153 | 1,041,611 |
| Churchill Downs, Inc. | 10,997 | 2,325,866 |
| Darden Restaurants, Inc. | 41,833 | 6,137,738 |
| Domino's Pizza, Inc. | 12,328 | 5,206,608 |
| DraftKings, Inc., Class A * | 103,307 | 5,853,375 |
| Expedia Group, Inc. * | 44,210 | 7,791,128 |
| Hilton Worldwide Holdings, Inc. * | 88,656 | 11,410,027 |
| Las Vegas Sands Corp. * | 105,400 | 6,456,804 |
| Marriott International, Inc., Class A * | 84,884 | 12,606,972 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Marriott Vacations Worldwide Corp. * | 13,042 | 2,316,650 |
| McDonald's Corp. | 238,161 | 56,225,049 |
| MGM Resorts International | 131,489 | 5,354,232 |
| Norwegian Cruise Line Holdings Ltd. * | 115,274 | 3,579,258 |
| Penn National Gaming, Inc. * | 47,319 | 4,217,069 |
| Planet Fitness, Inc., Class A * | 26,319 | 2,210,533 |
| Royal Caribbean Cruises Ltd. * | 70,197 | 6,103,629 |
| Service Corp. International | 53,650 | 2,867,056 |
| Starbucks Corp. | 376,159 | 43,066,444 |
| Terminix Global Holdings, Inc. * | 42,618 | 2,168,830 |
| Texas Roadhouse, Inc. | 21,017 | 2,249,239 |
| The Wendy's Co. | 57,183 | 1,290,620 |
| Vail Resorts, Inc. * | 12,915 | 4,199,441 |
| Vivint Smart Home, Inc. * | 13,952 | 167,145 |
| Wyndham Hotels & Resorts, Inc. | 29,566 | 2,161,570 |
| Wynn Resorts Ltd. * | 33,464 | 4,296,778 |
| Yum! Brands, Inc. | 95,735 | 11,442,247 |
| | | 287,876,800 |
| |
| Diversified Financials 5.2% |
| Affiliated Managers Group, Inc. | 13,551 | 2,184,015 |
| AGNC Investment Corp. | 171,831 | 3,080,930 |
| Ally Financial, Inc. | 118,778 | 6,111,128 |
| American Express Co. | 208,630 | 31,993,411 |
| Ameriprise Financial, Inc. | 37,316 | 9,642,454 |
| Annaly Capital Management, Inc. | 442,229 | 4,015,439 |
| Apollo Global Management, Inc. | 67,447 | 3,734,540 |
| Ares Management Corp., Class A | 34,339 | 1,803,484 |
| Berkshire Hathaway, Inc., Class B * | 609,074 | 167,464,896 |
| BlackRock, Inc. | 45,374 | 37,174,918 |
| Capital One Financial Corp. | 146,878 | 21,896,572 |
| Cboe Global Markets, Inc. | 34,146 | 3,563,818 |
| CME Group, Inc. | 114,774 | 23,183,200 |
| Credit Acceptance Corp. * | 3,689 | 1,456,380 |
| Discover Financial Services | 97,686 | 11,136,204 |
| Equitable Holdings, Inc. | 124,270 | 4,253,762 |
| Evercore, Inc., Class A | 13,378 | 1,874,659 |
| FactSet Research Systems, Inc. | 12,052 | 4,052,123 |
| Franklin Resources, Inc. | 87,375 | 2,621,250 |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 25,111 | 1,315,816 |
| Interactive Brokers Group, Inc., Class A | 26,085 | 1,865,599 |
| Intercontinental Exchange, Inc. | 179,464 | 21,124,708 |
| Invesco Ltd. | 119,698 | 3,231,846 |
| Janus Henderson Group plc | 54,453 | 1,872,639 |
| Jefferies Financial Group, Inc. | 65,560 | 2,131,356 |
| KKR & Co., Inc. | 184,147 | 10,419,037 |
| Lazard Ltd., Class A | 36,647 | 1,648,749 |
| LPL Financial Holdings, Inc. | 25,415 | 3,982,531 |
| MarketAxess Holdings, Inc. | 12,178 | 5,948,466 |
| Moody's Corp. | 51,434 | 16,804,002 |
| Morgan Stanley | 479,538 | 39,585,862 |
| Morningstar, Inc. | 6,820 | 1,807,368 |
| MSCI, Inc. | 26,448 | 12,847,645 |
| Nasdaq, Inc. | 36,859 | 5,954,203 |
| Northern Trust Corp. | 66,757 | 7,596,947 |
| OneMain Holdings, Inc. | 26,615 | 1,513,595 |
| Open Lending Corp., Class A * | 31,321 | 1,223,085 |
| Raymond James Financial, Inc. | 39,198 | 5,126,315 |
| S&P Global, Inc. | 76,879 | 30,012,793 |
| Santander Consumer USA Holdings, Inc. | 23,104 | 784,150 |
| SEI Investments Co. | 37,651 | 2,313,277 |
| SLM Corp. | 106,317 | 2,090,192 |
| Starwood Property Trust, Inc. | 91,257 | 2,356,256 |
| State Street Corp. | 112,763 | 9,466,454 |
| Stifel Financial Corp. | 34,046 | 2,355,643 |
| Synchrony Financial | 174,562 | 7,635,342 |
| Security | Number
of Shares | Value ($) |
| T. Rowe Price Group, Inc. | 72,712 | 13,029,990 |
| The Bank of New York Mellon Corp. | 257,300 | 12,834,124 |
| The Blackstone Group, Inc., Class A | 218,547 | 19,339,224 |
| The Carlyle Group, Inc. | 37,228 | 1,588,147 |
| The Charles Schwab Corp. (b) | 476,486 | 33,544,614 |
| The Goldman Sachs Group, Inc. | 109,947 | 38,311,032 |
| Tradeweb Markets, Inc., Class A | 32,339 | 2,628,514 |
| Voya Financial, Inc. | 39,670 | 2,690,419 |
| | | 668,223,123 |
| |
| Energy 2.4% |
| APA Corp. | 119,366 | 2,387,320 |
| Baker Hughes Co. | 231,978 | 4,658,118 |
| Cabot Oil & Gas Corp. | 126,555 | 2,109,672 |
| Cheniere Energy, Inc. * | 73,723 | 5,715,007 |
| Chevron Corp. | 615,358 | 63,424,949 |
| Cimarex Energy Co. | 33,342 | 2,207,240 |
| ConocoPhillips | 433,007 | 22,143,978 |
| Continental Resources, Inc. * | 19,852 | 540,768 |
| Devon Energy Corp. | 189,698 | 4,435,139 |
| Diamondback Energy, Inc. | 58,051 | 4,744,508 |
| EOG Resources, Inc. | 186,819 | 13,757,351 |
| Exxon Mobil Corp. | 1,352,769 | 77,432,498 |
| Halliburton Co. | 284,209 | 5,559,128 |
| Hess Corp. | 87,621 | 6,528,641 |
| Kinder Morgan, Inc. | 621,588 | 10,598,075 |
| Marathon Oil Corp. | 253,416 | 2,853,464 |
| Marathon Petroleum Corp. | 207,613 | 11,553,663 |
| NOV, Inc. * | 123,569 | 1,847,357 |
| Occidental Petroleum Corp. | 268,632 | 6,812,508 |
| ONEOK, Inc. | 142,290 | 7,447,459 |
| Ovintiv, Inc. | 82,564 | 1,975,757 |
| Phillips 66 | 139,368 | 11,276,265 |
| Pioneer Natural Resources Co. | 65,842 | 10,128,475 |
| Schlumberger N.V. | 447,624 | 12,108,229 |
| Targa Resources Corp. | 73,044 | 2,533,896 |
| TechnipFMC plc * | 131,578 | 973,677 |
| The Williams Cos., Inc. | 387,658 | 9,443,349 |
| Valero Energy Corp. | 130,251 | 9,633,364 |
| | | 314,829,855 |
| |
| Food & Staples Retailing 1.2% |
| Albertsons Cos., Inc., Class A (a) | 15,416 | 286,275 |
| BJ's Wholesale Club Holdings, Inc. * | 43,664 | 1,950,471 |
| Casey's General Stores, Inc. | 11,925 | 2,649,616 |
| Costco Wholesale Corp. | 141,429 | 52,624,317 |
| Performance Food Group Co. * | 42,287 | 2,482,247 |
| Sysco Corp. | 162,788 | 13,793,027 |
| The Kroger Co. | 243,956 | 8,914,152 |
| U.S. Foods Holding Corp. * | 70,940 | 2,941,173 |
| Walgreens Boots Alliance, Inc. | 228,773 | 12,147,846 |
| Walmart, Inc. | 442,888 | 61,964,460 |
| | | 159,753,584 |
| |
| Food, Beverage & Tobacco 2.9% |
| Altria Group, Inc. | 594,001 | 28,363,548 |
| Archer-Daniels-Midland Co. | 178,623 | 11,276,470 |
| Beyond Meat, Inc. * | 15,715 | 2,069,351 |
| Brown-Forman Corp., Class B | 58,599 | 4,469,932 |
| Bunge Ltd. | 44,781 | 3,780,412 |
| Campbell Soup Co. | 64,230 | 3,066,983 |
| Conagra Brands, Inc. | 155,180 | 5,755,626 |
| Constellation Brands, Inc., Class A | 54,351 | 13,061,632 |
| Darling Ingredients, Inc. * | 52,331 | 3,634,388 |
| Flowers Foods, Inc. | 61,589 | 1,475,672 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Freshpet, Inc. * | 13,951 | 2,578,424 |
| General Mills, Inc. | 195,056 | 11,871,108 |
| Hormel Foods Corp. | 89,022 | 4,112,816 |
| Ingredion, Inc. | 21,710 | 2,027,931 |
| Kellogg Co. | 81,754 | 5,103,085 |
| Keurig Dr Pepper, Inc. | 185,031 | 6,633,361 |
| Lamb Weston Holdings, Inc. | 47,067 | 3,788,894 |
| Lancaster Colony Corp. | 6,287 | 1,161,272 |
| McCormick & Co., Inc. - Non Voting Shares | 79,620 | 7,194,463 |
| Molson Coors Beverage Co., Class B * | 60,438 | 3,321,068 |
| Mondelez International, Inc., Class A | 450,597 | 27,400,804 |
| Monster Beverage Corp. * | 117,946 | 11,446,659 |
| PepsiCo, Inc. | 440,535 | 63,507,526 |
| Philip Morris International, Inc. | 497,421 | 47,254,995 |
| Pilgrim's Pride Corp. * | 16,389 | 392,680 |
| Post Holdings, Inc. * | 19,372 | 2,204,146 |
| The Boston Beer Co., Inc., Class A * | 2,954 | 3,593,511 |
| The Coca-Cola Co. | 1,238,873 | 66,874,365 |
| The Hershey Co. | 46,816 | 7,691,869 |
| The JM Smucker Co. | 34,914 | 4,573,385 |
| The Kraft Heinz Co. | 207,156 | 8,553,471 |
| Tyson Foods, Inc., Class A | 94,203 | 7,296,022 |
| | | 375,535,869 |
| |
| Health Care Equipment & Services 6.3% |
| 1Life Healthcare, Inc. * | 24,083 | 1,047,851 |
| Abbott Laboratories | 565,953 | 67,959,636 |
| ABIOMED, Inc. * | 14,525 | 4,658,603 |
| Acadia Healthcare Co., Inc. * | 28,278 | 1,722,696 |
| Align Technology, Inc. * | 22,986 | 13,688,853 |
| Amedisys, Inc. * | 10,599 | 2,860,140 |
| AmerisourceBergen Corp. | 47,218 | 5,703,934 |
| Anthem, Inc. | 78,244 | 29,684,991 |
| Baxter International, Inc. | 161,070 | 13,802,088 |
| Becton, Dickinson & Co. | 92,828 | 23,096,535 |
| Boston Scientific Corp. * | 452,923 | 19,747,443 |
| Cardinal Health, Inc. | 93,202 | 5,623,809 |
| Centene Corp. * | 186,032 | 11,485,616 |
| Cerner Corp. | 98,194 | 7,369,460 |
| Change Healthcare, Inc. * | 72,713 | 1,668,763 |
| Chemed Corp. | 5,168 | 2,463,120 |
| Cigna Corp. | 112,405 | 27,989,969 |
| CVS Health Corp. | 418,940 | 32,007,016 |
| Danaher Corp. | 202,521 | 51,428,183 |
| DaVita, Inc. * | 23,338 | 2,719,577 |
| DENTSPLY SIRONA, Inc. | 69,465 | 4,689,582 |
| DexCom, Inc. * | 30,795 | 11,889,949 |
| Edwards Lifesciences Corp. * | 199,211 | 19,028,635 |
| Encompass Health Corp. | 31,426 | 2,666,810 |
| Envista Holdings Corp. * | 50,823 | 2,199,619 |
| Globus Medical, Inc., Class A * | 24,436 | 1,753,772 |
| Guardant Health, Inc. * | 27,349 | 4,347,944 |
| Haemonetics Corp. * | 16,463 | 1,107,301 |
| HCA Healthcare, Inc. | 84,813 | 17,052,502 |
| HealthEquity, Inc. * | 26,878 | 2,041,922 |
| Henry Schein, Inc. * | 45,429 | 3,293,603 |
| Hill-Rom Holdings, Inc. | 21,219 | 2,338,758 |
| Hologic, Inc. * | 82,376 | 5,399,747 |
| Humana, Inc. | 41,217 | 18,351,457 |
| IDEXX Laboratories, Inc. * | 27,313 | 14,994,564 |
| Inspire Medical Systems, Inc. * | 8,557 | 2,026,469 |
| Insulet Corp. * | 21,155 | 6,245,379 |
| Integra LifeSciences Holdings Corp. * | 22,791 | 1,688,357 |
| Intuitive Surgical, Inc. * | 37,618 | 32,539,570 |
| iRhythm Technologies, Inc. * | 9,165 | 713,587 |
| Laboratory Corp. of America Holdings * | 31,155 | 8,283,180 |
| Security | Number
of Shares | Value ($) |
| LHC Group, Inc. * | 10,032 | 2,089,365 |
| Masimo Corp. * | 16,322 | 3,797,640 |
| McKesson Corp. | 50,861 | 9,539,489 |
| Medtronic plc | 430,638 | 56,379,127 |
| Molina Healthcare, Inc. * | 18,438 | 4,703,534 |
| Nevro Corp. * | 10,972 | 1,896,071 |
| Novocure Ltd. * | 27,275 | 5,566,827 |
| Oak Street Health, Inc. * | 5,360 | 330,337 |
| Omnicell, Inc. * | 13,935 | 2,020,854 |
| Penumbra, Inc. * | 10,735 | 3,284,803 |
| Quest Diagnostics, Inc. | 42,766 | 5,639,980 |
| Quidel Corp. * | 12,149 | 1,273,094 |
| ResMed, Inc. | 46,594 | 8,758,274 |
| Schrodinger, Inc. * | 11,621 | 885,985 |
| STERIS plc | 27,399 | 5,781,737 |
| Stryker Corp. | 104,525 | 27,451,401 |
| Tandem Diabetes Care, Inc. * | 19,929 | 1,831,475 |
| Teladoc Health, Inc. * | 41,589 | 7,167,864 |
| Teleflex, Inc. | 14,930 | 6,307,626 |
| Tenet Healthcare Corp. * | 34,039 | 2,017,151 |
| The Cooper Cos., Inc. | 15,726 | 6,461,656 |
| UnitedHealth Group, Inc. | 301,979 | 120,429,225 |
| Universal Health Services, Inc., Class B | 24,632 | 3,655,635 |
| Veeva Systems, Inc., Class A * | 43,555 | 12,302,110 |
| West Pharmaceutical Services, Inc. | 23,664 | 7,774,097 |
| Zimmer Biomet Holdings, Inc. | 66,529 | 11,786,278 |
| | | 808,512,625 |
| |
| Household & Personal Products 1.4% |
| Church & Dwight Co., Inc. | 78,641 | 6,742,679 |
| Colgate-Palmolive Co. | 270,836 | 21,856,465 |
| Coty, Inc., Class A * | 92,347 | 924,393 |
| Herbalife Nutrition Ltd. * | 27,733 | 1,269,339 |
| Kimberly-Clark Corp. | 108,214 | 14,427,091 |
| Reynolds Consumer Products, Inc. | 17,599 | 516,003 |
| The Clorox Co. | 40,055 | 7,310,038 |
| The Estee Lauder Cos., Inc., Class A | 73,377 | 23,025,703 |
| The Procter & Gamble Co. | 786,770 | 104,970,853 |
| | | 181,042,564 |
| |
| Insurance 2.1% |
| Aflac, Inc. | 204,378 | 10,981,230 |
| Alleghany Corp. * | 4,448 | 3,020,059 |
| American Financial Group, Inc. | 22,384 | 2,750,098 |
| American International Group, Inc. | 276,125 | 13,378,256 |
| Aon plc, Class A | 72,272 | 18,172,072 |
| Arch Capital Group Ltd. * | 128,692 | 5,110,359 |
| Arthur J. Gallagher & Co. | 61,999 | 8,986,755 |
| Assurant, Inc. | 18,426 | 2,867,086 |
| Athene Holding Ltd., Class A * | 40,153 | 2,395,929 |
| Brown & Brown, Inc. | 74,443 | 3,958,879 |
| Chubb Ltd. | 143,856 | 24,684,251 |
| Cincinnati Financial Corp. | 48,089 | 5,418,668 |
| CNA Financial Corp. | 8,422 | 395,244 |
| Erie Indemnity Co., Class A | 7,915 | 1,693,968 |
| Everest Re Group Ltd. | 12,662 | 3,506,741 |
| Fidelity National Financial, Inc. | 93,127 | 4,248,454 |
| First American Financial Corp. | 35,382 | 2,282,139 |
| Globe Life, Inc. | 30,423 | 3,118,053 |
| Kemper Corp. | 19,642 | 1,533,255 |
| Kinsale Capital Group, Inc. | 6,790 | 1,181,528 |
| Lemonade, Inc. * | 5,521 | 499,098 |
| Lincoln National Corp. | 57,618 | 3,695,042 |
| Loews Corp. | 72,105 | 4,019,854 |
| Markel Corp. * | 4,425 | 5,205,658 |
| Marsh & McLennan Cos., Inc. | 162,418 | 22,040,123 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| MetLife, Inc. | 240,440 | 15,299,197 |
| Old Republic International Corp. | 89,629 | 2,206,666 |
| Primerica, Inc. | 12,550 | 2,005,113 |
| Principal Financial Group, Inc. | 81,205 | 5,186,563 |
| Prudential Financial, Inc. | 127,071 | 12,752,846 |
| Reinsurance Group of America, Inc. | 21,947 | 2,864,742 |
| RenaissanceRe Holdings Ltd. | 16,326 | 2,755,992 |
| RLI Corp. | 12,510 | 1,394,365 |
| The Allstate Corp. | 97,052 | 12,306,194 |
| The Hartford Financial Services Group, Inc. | 113,828 | 7,508,095 |
| The Progressive Corp. | 187,166 | 18,855,103 |
| The Travelers Cos., Inc. | 80,418 | 12,437,448 |
| Unum Group | 64,056 | 1,810,223 |
| W.R. Berkley Corp. | 44,593 | 3,554,954 |
| Willis Towers Watson plc | 41,195 | 10,663,738 |
| | | 266,744,038 |
| |
| Materials 2.7% |
| Air Products & Chemicals, Inc. | 70,742 | 20,407,652 |
| Albemarle Corp. | 37,401 | 6,289,726 |
| Alcoa Corp. * | 59,778 | 2,190,266 |
| Amcor plc | 497,827 | 5,849,467 |
| AptarGroup, Inc. | 20,939 | 3,157,811 |
| Ashland Global Holdings, Inc. | 17,332 | 1,494,192 |
| Avery Dennison Corp. | 26,399 | 5,653,874 |
| Axalta Coating Systems Ltd. * | 65,639 | 2,093,228 |
| Ball Corp. | 104,506 | 9,785,942 |
| Berry Global Group, Inc. * | 42,832 | 2,724,972 |
| Celanese Corp. | 36,669 | 5,744,199 |
| CF Industries Holdings, Inc. | 67,984 | 3,306,062 |
| Cleveland-Cliffs, Inc. * | 145,708 | 2,602,345 |
| Corteva, Inc. | 237,697 | 11,590,106 |
| Crown Holdings, Inc. | 43,368 | 4,761,806 |
| Dow, Inc. | 237,861 | 14,866,312 |
| DuPont de Nemours, Inc. | 172,196 | 13,278,034 |
| Eagle Materials, Inc. * | 13,568 | 1,874,283 |
| Eastman Chemical Co. | 43,483 | 5,017,503 |
| Ecolab, Inc. | 79,493 | 17,815,971 |
| Element Solutions, Inc. | 69,280 | 1,515,846 |
| FMC Corp. | 41,171 | 4,868,059 |
| Freeport-McMoRan, Inc. | 466,827 | 17,604,046 |
| Graphic Packaging Holding Co. | 86,503 | 1,604,631 |
| Huntsman Corp. | 62,571 | 1,793,911 |
| International Flavors & Fragrances, Inc. | 79,421 | 11,291,284 |
| International Paper Co. | 125,977 | 7,306,666 |
| Linde plc | 167,014 | 47,739,282 |
| LyondellBasell Industries N.V., Class A | 82,195 | 8,526,909 |
| Martin Marietta Materials, Inc. | 19,977 | 7,054,278 |
| NewMarket Corp. | 2,325 | 805,822 |
| Newmont Corp. | 255,994 | 15,976,586 |
| Nucor Corp. | 95,262 | 7,836,252 |
| Packaging Corp. of America | 30,458 | 4,497,124 |
| PPG Industries, Inc. | 75,752 | 12,971,772 |
| Quaker Chemical Corp. | 4,203 | 1,018,597 |
| Reliance Steel & Aluminum Co. | 20,118 | 3,225,117 |
| Royal Gold, Inc. | 20,934 | 2,341,677 |
| RPM International, Inc. | 41,281 | 3,915,090 |
| Sealed Air Corp. | 49,091 | 2,425,095 |
| Sonoco Products Co. | 32,550 | 2,130,723 |
| Steel Dynamics, Inc. | 63,501 | 3,443,024 |
| The Mosaic Co. | 110,707 | 3,894,672 |
| The Scotts Miracle-Gro Co. | 12,918 | 2,986,125 |
| The Sherwin-Williams Co. | 77,291 | 21,167,686 |
| United States Steel Corp. | 83,258 | 1,915,767 |
| Vulcan Materials Co. | 42,450 | 7,566,288 |
| Security | Number
of Shares | Value ($) |
| Westlake Chemical Corp. | 11,139 | 1,045,841 |
| WestRock Co. | 84,402 | 4,705,411 |
| | | 353,677,332 |
| |
| Media & Entertainment 9.2% |
| Activision Blizzard, Inc. | 247,597 | 22,578,370 |
| Alphabet, Inc., Class A * | 96,087 | 226,140,754 |
| Alphabet, Inc., Class C * | 92,097 | 221,964,822 |
| Altice USA, Inc., Class A * | 78,894 | 2,864,641 |
| Cable One, Inc. | 1,751 | 3,134,290 |
| Charter Communications, Inc., Class A * | 45,175 | 30,423,104 |
| Comcast Corp., Class A | 1,460,153 | 81,987,591 |
| Discovery, Inc., Class A * | 52,698 | 1,984,607 |
| Discovery, Inc., Class C * | 91,915 | 2,969,774 |
| DISH Network Corp., Class A * | 79,868 | 3,577,288 |
| Electronic Arts, Inc. | 91,735 | 13,033,709 |
| Facebook, Inc., Class A * | 768,572 | 249,847,386 |
| Fox Corp., Class A | 107,298 | 4,015,091 |
| Fox Corp., Class B | 48,913 | 1,779,455 |
| IAC/InterActiveCorp * | 26,565 | 6,733,430 |
| Liberty Broadband Corp., Class C * | 67,656 | 11,008,984 |
| Liberty Media Corp. - Liberty Formula One, Class C * | 64,447 | 3,025,142 |
| Liberty Media Corp. - Liberty SiriusXM, Class C * | 54,487 | 2,464,447 |
| Live Nation Entertainment, Inc. * | 45,809 | 3,750,841 |
| Match Group, Inc. * | 85,779 | 13,349,786 |
| Netflix, Inc. * | 141,514 | 72,663,194 |
| News Corp., Class A | 124,961 | 3,273,353 |
| Nexstar Media Group, Inc., Class A | 13,897 | 2,048,557 |
| Omnicom Group, Inc. | 69,021 | 5,677,667 |
| Pinterest, Inc., Class A * | 169,779 | 11,268,232 |
| Roku, Inc. * | 35,436 | 12,153,485 |
| Sirius XM Holdings, Inc. | 366,079 | 2,233,082 |
| Snap, Inc., Class A * | 296,609 | 18,336,368 |
| Take-Two Interactive Software, Inc. * | 36,853 | 6,463,279 |
| The Interpublic Group of Cos., Inc. | 123,829 | 3,931,571 |
| The New York Times Co., Class A | 45,853 | 2,082,185 |
| The Walt Disney Co. * | 579,949 | 107,882,113 |
| Twitter, Inc. * | 255,396 | 14,102,967 |
| ViacomCBS, Inc., Class B | 186,952 | 7,668,771 |
| Zillow Group, Inc., Class A * | 11,796 | 1,572,997 |
| Zillow Group, Inc., Class C * | 49,085 | 6,386,940 |
| Zynga, Inc., Class A * | 323,361 | 3,498,766 |
| | | 1,187,877,039 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 6.8% |
| 10X Genomics, Inc., Class A * | 23,240 | 4,596,872 |
| AbbVie, Inc. | 564,296 | 62,919,004 |
| ACADIA Pharmaceuticals, Inc. * | 36,819 | 756,999 |
| Acceleron Pharma, Inc. * | 16,680 | 2,084,500 |
| Adaptive Biotechnologies Corp. * | 26,071 | 1,084,554 |
| Agilent Technologies, Inc. | 97,579 | 13,040,458 |
| Alexion Pharmaceuticals, Inc. * | 70,238 | 11,847,746 |
| Allakos, Inc. * | 10,330 | 1,127,210 |
| Alnylam Pharmaceuticals, Inc. * | 37,317 | 5,248,263 |
| Amgen, Inc. | 184,556 | 44,227,000 |
| Amicus Therapeutics, Inc. * | 82,869 | 815,431 |
| Arrowhead Pharmaceuticals, Inc. * | 32,794 | 2,386,091 |
| Avantor, Inc. * | 165,464 | 5,301,467 |
| Beam Therapeutics, Inc. * | 8,469 | 694,458 |
| Berkeley Lights, Inc. * | 2,690 | 132,106 |
| Bio-Rad Laboratories, Inc., Class A * | 6,835 | 4,306,939 |
| Bio-Techne Corp. | 12,415 | 5,307,288 |
| Biogen, Inc. * | 48,593 | 12,990,367 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Biohaven Pharmaceutical Holding Co., Ltd. * | 17,010 | 1,277,451 |
| BioMarin Pharmaceutical, Inc. * | 58,484 | 4,557,073 |
| Blueprint Medicines Corp. * | 18,476 | 1,779,608 |
| Bridgebio Pharma, Inc. * | 31,067 | 1,737,267 |
| Bristol-Myers Squibb Co. | 715,804 | 44,680,486 |
| Bruker Corp. | 32,108 | 2,200,040 |
| Catalent, Inc. * | 54,634 | 6,144,686 |
| Charles River Laboratories International, Inc. * | 15,998 | 5,318,535 |
| Denali Therapeutics, Inc. * | 25,502 | 1,541,341 |
| Editas Medicine, Inc. * | 20,903 | 773,620 |
| Elanco Animal Health, Inc. * | 151,782 | 4,813,007 |
| Eli Lilly & Co. | 254,195 | 46,459,220 |
| Emergent BioSolutions, Inc. * | 14,319 | 873,173 |
| Exact Sciences Corp. * | 54,160 | 7,139,371 |
| Exelixis, Inc. * | 100,412 | 2,472,143 |
| Fate Therapeutics, Inc. * | 25,409 | 2,220,492 |
| Gilead Sciences, Inc. | 401,754 | 25,499,326 |
| Halozyme Therapeutics, Inc. * | 40,394 | 2,017,680 |
| Horizon Therapeutics plc * | 71,818 | 6,795,419 |
| Illumina, Inc. * | 46,659 | 18,329,522 |
| Immunovant, Inc. * | 15,864 | 248,748 |
| Incyte Corp. * | 59,846 | 5,109,651 |
| Intellia Therapeutics, Inc. * | 19,807 | 1,520,583 |
| Invitae Corp. * | 55,117 | 1,923,583 |
| Ionis Pharmaceuticals, Inc. * | 44,386 | 1,900,608 |
| Iovance Biotherapeutics, Inc. * | 43,800 | 1,377,072 |
| IQVIA Holdings, Inc. * | 61,138 | 14,348,477 |
| Jazz Pharmaceuticals plc * | 17,918 | 2,945,719 |
| Johnson & Johnson | 839,764 | 136,654,796 |
| Kodiak Sciences, Inc. * | 9,997 | 1,208,037 |
| Medpace Holdings, Inc. * | 8,782 | 1,490,130 |
| Merck & Co., Inc. | 808,268 | 60,215,966 |
| Mettler-Toledo International, Inc. * | 7,487 | 9,832,827 |
| Mirati Therapeutics, Inc. * | 14,580 | 2,423,488 |
| Moderna, Inc. * | 97,240 | 17,388,457 |
| Natera, Inc. * | 25,254 | 2,778,445 |
| NeoGenomics, Inc. * | 37,251 | 1,824,926 |
| Neurocrine Biosciences, Inc. * | 30,228 | 2,856,244 |
| Novavax, Inc. * | 21,829 | 5,171,945 |
| Pacific Biosciences of California, Inc. * | 61,305 | 1,829,954 |
| PerkinElmer, Inc. | 35,574 | 4,611,458 |
| Perrigo Co., plc | 42,834 | 1,783,179 |
| Pfizer, Inc. | 1,782,252 | 68,884,040 |
| PPD, Inc. * | 34,504 | 1,594,085 |
| PRA Health Sciences, Inc. * | 20,557 | 3,430,758 |
| Regeneron Pharmaceuticals, Inc. * | 33,571 | 16,157,722 |
| Repligen Corp. * | 16,222 | 3,434,360 |
| Royalty Pharma plc, Class A | 27,177 | 1,195,788 |
| Sage Therapeutics, Inc. * | 16,220 | 1,277,487 |
| Sarepta Therapeutics, Inc. * | 25,457 | 1,803,374 |
| Seagen, Inc. * | 40,483 | 5,819,836 |
| Syneos Health, Inc. * | 26,242 | 2,226,634 |
| TG Therapeutics, Inc. * | 36,602 | 1,636,475 |
| Thermo Fisher Scientific, Inc. | 125,877 | 59,191,142 |
| Turning Point Therapeutics, Inc. * | 13,470 | 1,026,818 |
| Twist Bioscience Corp. * | 13,574 | 1,821,495 |
| Ultragenyx Pharmaceutical, Inc. * | 20,294 | 2,265,622 |
| United Therapeutics Corp. * | 14,140 | 2,850,058 |
| Vertex Pharmaceuticals, Inc. * | 83,123 | 18,137,439 |
| Viatris, Inc. * | 383,169 | 5,096,148 |
| Waters Corp. * | 19,931 | 5,976,709 |
| Zoetis, Inc. | 151,745 | 26,256,437 |
| | | 875,022,933 |
| |
| Security | Number
of Shares | Value ($) |
| Real Estate 2.9% |
| Alexandria Real Estate Equities, Inc. | 40,736 | 7,377,290 |
| American Campus Communities, Inc. | 44,609 | 2,016,773 |
| American Homes 4 Rent, Class A | 86,502 | 3,204,034 |
| American Tower Corp. | 141,976 | 36,171,226 |
| Americold Realty Trust | 80,291 | 3,242,954 |
| Apartment Income REIT Corp. | 47,778 | 2,157,177 |
| AvalonBay Communities, Inc. | 44,690 | 8,580,480 |
| Boston Properties, Inc. | 45,542 | 4,980,018 |
| Brixmor Property Group, Inc. | 96,266 | 2,150,582 |
| Camden Property Trust | 30,969 | 3,731,145 |
| CBRE Group, Inc., Class A * | 107,623 | 9,169,480 |
| CoreSite Realty Corp. | 13,509 | 1,641,208 |
| Cousins Properties, Inc. | 47,237 | 1,732,181 |
| Crown Castle International Corp. | 137,826 | 26,057,384 |
| CubeSmart | 63,457 | 2,686,769 |
| CyrusOne, Inc. | 38,093 | 2,774,313 |
| Digital Realty Trust, Inc. | 89,785 | 13,854,723 |
| Douglas Emmett, Inc. | 52,267 | 1,753,035 |
| Duke Realty Corp. | 119,662 | 5,566,676 |
| EastGroup Properties, Inc. | 12,718 | 2,017,838 |
| Equinix, Inc. | 28,543 | 20,572,653 |
| Equity LifeStyle Properties, Inc. | 53,793 | 3,733,234 |
| Equity Residential | 109,854 | 8,154,462 |
| Essex Property Trust, Inc. | 20,729 | 6,022,189 |
| eXp World Holdings, Inc. * | 17,764 | 610,371 |
| Extra Space Storage, Inc. | 42,354 | 6,297,616 |
| Federal Realty Investment Trust | 22,481 | 2,536,756 |
| First Industrial Realty Trust, Inc. | 41,572 | 2,069,038 |
| Gaming & Leisure Properties, Inc. | 70,087 | 3,258,345 |
| Healthcare Trust of America, Inc., Class A | 71,037 | 2,086,357 |
| Healthpeak Properties, Inc. | 173,123 | 5,945,044 |
| Host Hotels & Resorts, Inc. * | 223,910 | 4,066,206 |
| Invitation Homes, Inc. | 182,132 | 6,385,548 |
| Iron Mountain, Inc. | 91,794 | 3,682,775 |
| Jones Lang LaSalle, Inc. * | 16,242 | 3,052,034 |
| Kilroy Realty Corp. | 34,249 | 2,347,426 |
| Kimco Realty Corp. | 136,756 | 2,871,876 |
| Lamar Advertising Co., Class A | 27,843 | 2,757,571 |
| Life Storage, Inc. | 24,002 | 2,305,632 |
| Medical Properties Trust, Inc. | 184,230 | 4,062,272 |
| Mid-America Apartment Communities, Inc. | 36,325 | 5,715,012 |
| National Retail Properties, Inc. | 56,375 | 2,616,928 |
| Omega Healthcare Investors, Inc. | 73,576 | 2,795,888 |
| Prologis, Inc. | 236,216 | 27,526,251 |
| Public Storage | 48,513 | 13,639,915 |
| Realty Income Corp. | 119,461 | 8,260,728 |
| Redfin Corp. * | 32,516 | 2,301,482 |
| Regency Centers Corp. | 50,129 | 3,191,212 |
| Rexford Industrial Realty, Inc. | 42,433 | 2,357,153 |
| SBA Communications Corp. | 34,932 | 10,469,819 |
| Simon Property Group, Inc. | 104,664 | 12,741,795 |
| STORE Capital Corp. | 76,362 | 2,732,996 |
| Sun Communities, Inc. | 35,858 | 5,982,190 |
| UDR, Inc. | 94,512 | 4,390,082 |
| Ventas, Inc. | 120,082 | 6,659,748 |
| VEREIT, Inc. | 72,773 | 3,481,460 |
| VICI Properties, Inc. | 172,368 | 5,464,066 |
| Vornado Realty Trust | 50,165 | 2,295,049 |
| Welltower, Inc. | 133,308 | 10,002,099 |
| Weyerhaeuser Co. | 238,561 | 9,249,010 |
| WP Carey, Inc. | 55,762 | 4,176,016 |
| | | 379,731,590 |
| |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Retailing 6.9% |
| Advance Auto Parts, Inc. | 20,819 | 4,167,131 |
| Amazon.com, Inc. * | 136,754 | 474,183,555 |
| AutoNation, Inc. * | 17,506 | 1,794,015 |
| AutoZone, Inc. * | 7,086 | 10,374,754 |
| Best Buy Co., Inc. | 73,748 | 8,574,680 |
| Burlington Stores, Inc. * | 21,250 | 6,934,513 |
| CarMax, Inc. * | 52,067 | 6,937,407 |
| Carvana Co. * | 20,103 | 5,734,582 |
| Chewy, Inc., Class A * | 24,720 | 1,970,678 |
| Dollar General Corp. | 78,138 | 16,780,136 |
| Dollar Tree, Inc. * | 75,256 | 8,646,914 |
| DoorDash, Inc., Class A * | 10,914 | 1,562,557 |
| eBay, Inc. | 206,028 | 11,494,302 |
| Etsy, Inc. * | 40,336 | 8,018,393 |
| Five Below, Inc. * | 18,011 | 3,625,074 |
| Floor & Decor Holdings, Inc., Class A * | 33,540 | 3,720,257 |
| Foot Locker, Inc. | 33,076 | 1,950,823 |
| Genuine Parts Co. | 46,339 | 5,790,985 |
| GrubHub, Inc. * | 30,030 | 2,043,241 |
| Kohl's Corp. | 50,681 | 2,972,948 |
| L Brands, Inc. * | 75,099 | 4,949,024 |
| Lithia Motors, Inc., Class A | 8,452 | 3,248,780 |
| LKQ Corp. * | 88,903 | 4,152,659 |
| Lowe's Cos., Inc. | 233,489 | 45,822,216 |
| Nordstrom, Inc. * | 34,533 | 1,266,670 |
| O'Reilly Automotive, Inc. * | 22,407 | 12,388,382 |
| Ollie's Bargain Outlet Holdings, Inc. * | 18,129 | 1,672,763 |
| Penske Automotive Group, Inc. | 9,959 | 873,305 |
| Pool Corp. | 12,910 | 5,454,733 |
| Qurate Retail, Inc. Class A | 123,218 | 1,466,294 |
| RH * | 5,180 | 3,563,944 |
| Ross Stores, Inc. | 114,016 | 14,929,255 |
| Target Corp. | 160,040 | 33,169,890 |
| The Gap, Inc. | 65,314 | 2,161,893 |
| The Home Depot, Inc. | 343,884 | 111,304,934 |
| The TJX Cos., Inc. | 383,556 | 27,232,476 |
| Tractor Supply Co. | 37,341 | 7,042,513 |
| Ulta Beauty, Inc. * | 18,104 | 5,962,552 |
| Vroom, Inc. * | 10,850 | 502,030 |
| Wayfair, Inc., Class A * | 23,296 | 6,885,599 |
| Williams-Sonoma, Inc. | 24,297 | 4,148,713 |
| | | 885,475,570 |
| |
| Semiconductors & Semiconductor Equipment 5.1% |
| Advanced Micro Devices, Inc. * | 387,276 | 31,609,467 |
| Analog Devices, Inc. | 117,984 | 18,070,429 |
| Applied Materials, Inc. | 293,349 | 38,930,346 |
| Broadcom, Inc. | 130,451 | 59,511,746 |
| Brooks Automation, Inc. | 23,498 | 2,381,052 |
| Cirrus Logic, Inc. * | 18,245 | 1,357,611 |
| CMC Materials, Inc. | 9,158 | 1,679,852 |
| Cree, Inc. * | 36,619 | 3,640,661 |
| Enphase Energy, Inc. * | 41,397 | 5,764,532 |
| Entegris, Inc. | 43,333 | 4,878,429 |
| First Solar, Inc. * | 26,836 | 2,053,759 |
| Intel Corp. | 1,298,324 | 74,692,580 |
| KLA Corp. | 49,298 | 15,546,124 |
| Lam Research Corp. | 45,686 | 28,345,879 |
| Lattice Semiconductor Corp. * | 43,280 | 2,177,417 |
| Marvell Technology, Inc. | 253,602 | 11,465,346 |
| Maxim Integrated Products, Inc. | 85,516 | 8,038,504 |
| Microchip Technology, Inc. | 85,923 | 12,913,368 |
| Micron Technology, Inc. * | 357,571 | 30,776,136 |
| MKS Instruments, Inc. | 17,685 | 3,167,560 |
| Monolithic Power Systems, Inc. | 13,658 | 4,935,728 |
| Security | Number
of Shares | Value ($) |
| NVIDIA Corp. | 198,107 | 118,939,481 |
| NXP Semiconductors N.V. | 88,572 | 17,050,996 |
| ON Semiconductor Corp. * | 132,106 | 5,152,134 |
| Power Integrations, Inc. | 19,071 | 1,579,270 |
| Qorvo, Inc. * | 36,190 | 6,809,872 |
| QUALCOMM, Inc. | 363,009 | 50,385,649 |
| Semtech Corp. * | 20,752 | 1,405,741 |
| Silicon Laboratories, Inc. * | 14,193 | 2,000,503 |
| Skyworks Solutions, Inc. | 52,769 | 9,568,603 |
| SolarEdge Technologies, Inc. * | 16,466 | 4,339,450 |
| SunPower Corp. * | 25,387 | 652,192 |
| Teradyne, Inc. | 53,181 | 6,651,880 |
| Texas Instruments, Inc. | 293,981 | 53,066,510 |
| Universal Display Corp. | 13,786 | 3,083,790 |
| Xilinx, Inc. | 78,318 | 10,021,571 |
| | | 652,644,168 |
| |
| Software & Services 14.6% |
| Accenture plc, Class A | 202,555 | 58,734,873 |
| Adobe, Inc. * | 153,129 | 77,841,596 |
| Akamai Technologies, Inc. * | 52,279 | 5,682,727 |
| Alarm.com Holdings, Inc. * | 14,206 | 1,275,131 |
| Alteryx, Inc., Class A * | 18,730 | 1,531,178 |
| Amdocs Ltd. | 42,064 | 3,227,991 |
| Anaplan, Inc. * | 45,866 | 2,735,907 |
| ANSYS, Inc. * | 27,713 | 10,133,536 |
| Appian Corp. * | 12,377 | 1,499,845 |
| Aspen Technology, Inc. * | 21,830 | 2,856,237 |
| Autodesk, Inc. * | 70,233 | 20,501,715 |
| Automatic Data Processing, Inc. | 136,707 | 25,562,842 |
| Avalara, Inc. * | 27,248 | 3,861,314 |
| Bill.com Holdings, Inc. * | 19,584 | 3,028,274 |
| Black Knight, Inc. * | 49,810 | 3,607,240 |
| Blackline, Inc. * | 16,207 | 1,880,984 |
| Broadridge Financial Solutions, Inc. | 37,088 | 5,883,269 |
| Cadence Design Systems, Inc. * | 88,938 | 11,719,360 |
| CDK Global, Inc. | 38,436 | 2,059,785 |
| Ceridian HCM Holding, Inc. * | 41,952 | 3,963,625 |
| Citrix Systems, Inc. | 39,121 | 4,845,136 |
| Cloudflare, Inc., Class A * | 60,338 | 5,113,042 |
| Cognizant Technology Solutions Corp., Class A | 169,941 | 13,663,256 |
| Concentrix Corp. * | 13,404 | 2,082,714 |
| Coupa Software, Inc. * | 23,146 | 6,227,200 |
| Crowdstrike Holdings, Inc., Class A * | 60,076 | 12,526,447 |
| Datadog, Inc., Class A * | 66,129 | 5,671,884 |
| Digital Turbine, Inc. * | 23,652 | 1,784,070 |
| DocuSign, Inc. * | 59,517 | 13,268,720 |
| Dolby Laboratories, Inc., Class A | 20,670 | 2,097,385 |
| Dropbox, Inc., Class A * | 95,110 | 2,444,327 |
| Duck Creek Technologies, Inc. * | 10,470 | 435,343 |
| DXC Technology Co. * | 81,117 | 2,669,560 |
| Dynatrace, Inc. * | 58,720 | 3,055,789 |
| Elastic N.V. * | 19,963 | 2,407,937 |
| Envestnet, Inc. * | 17,203 | 1,270,097 |
| EPAM Systems, Inc. * | 17,917 | 8,201,507 |
| Euronet Worldwide, Inc. * | 17,044 | 2,444,621 |
| Everbridge, Inc. * | 11,549 | 1,532,668 |
| Fair Isaac Corp. * | 9,346 | 4,873,098 |
| Fastly, Inc., Class A * | 27,469 | 1,754,445 |
| Fidelity National Information Services, Inc. | 198,355 | 30,328,479 |
| FireEye, Inc. * | 75,871 | 1,507,936 |
| Fiserv, Inc. * | 183,816 | 22,079,978 |
| Five9, Inc. * | 21,225 | 3,989,663 |
| FleetCor Technologies, Inc. * | 26,698 | 7,681,549 |
| Fortinet, Inc. * | 43,427 | 8,869,096 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Gartner, Inc. * | 28,329 | 5,549,085 |
| Genpact Ltd. | 56,524 | 2,686,586 |
| Global Payments, Inc. | 94,285 | 20,236,390 |
| GoDaddy, Inc., Class A * | 54,128 | 4,699,393 |
| Guidewire Software, Inc. * | 27,055 | 2,854,573 |
| HubSpot, Inc. * | 13,939 | 7,338,187 |
| International Business Machines Corp. | 285,551 | 40,513,976 |
| Intuit, Inc. | 87,509 | 36,067,709 |
| Jack Henry & Associates, Inc. | 24,244 | 3,947,651 |
| LiveRamp Holdings, Inc. * | 21,061 | 1,031,568 |
| Manhattan Associates, Inc. * | 20,211 | 2,773,758 |
| Mastercard, Inc., Class A | 280,108 | 107,018,062 |
| MAXIMUS, Inc. | 19,808 | 1,815,205 |
| Medallia, Inc. * | 26,254 | 774,230 |
| Microsoft Corp. | 2,409,700 | 607,678,146 |
| MongoDB, Inc. * | 16,651 | 4,953,006 |
| nCino, Inc. * | 4,708 | 307,856 |
| New Relic, Inc. * | 17,475 | 1,123,643 |
| NortonLifeLock, Inc. | 184,729 | 3,991,994 |
| Nuance Communications, Inc. * | 91,023 | 4,839,693 |
| Nutanix, Inc., Class A * | 62,597 | 1,692,623 |
| Okta, Inc. * | 39,330 | 10,607,301 |
| Oracle Corp. | 592,510 | 44,906,333 |
| Palo Alto Networks, Inc. * | 31,053 | 10,973,820 |
| Paychex, Inc. | 102,824 | 10,024,312 |
| Paycom Software, Inc. * | 15,714 | 6,040,619 |
| Paylocity Holding Corp. * | 12,103 | 2,338,784 |
| PayPal Holdings, Inc. * | 374,235 | 98,158,098 |
| Pegasystems, Inc. | 12,737 | 1,616,835 |
| Proofpoint, Inc. * | 18,267 | 3,143,933 |
| PTC, Inc. * | 33,736 | 4,417,392 |
| Q2 Holdings, Inc. * | 16,612 | 1,727,980 |
| Qualys, Inc. * | 10,691 | 1,083,640 |
| Rapid7, Inc. * | 16,537 | 1,343,631 |
| RingCentral, Inc., Class A * | 25,695 | 8,195,420 |
| SailPoint Technologies Holding, Inc. * | 28,916 | 1,411,968 |
| salesforce.com, Inc. * | 293,225 | 67,535,582 |
| ServiceNow, Inc. * | 62,681 | 31,739,778 |
| Slack Technologies, Inc., Class A * | 160,663 | 6,812,111 |
| Smartsheet, Inc., Class A * | 36,540 | 2,166,822 |
| Snowflake, Inc., Class A * | 18,879 | 4,372,188 |
| SolarWinds Corp. * | 24,225 | 408,434 |
| Splunk, Inc. * | 51,878 | 6,558,417 |
| Square, Inc., Class A * | 124,587 | 30,501,389 |
| SS&C Technologies Holdings, Inc. | 71,575 | 5,312,296 |
| Synopsys, Inc. * | 48,734 | 12,040,222 |
| Tenable Holdings, Inc. * | 21,355 | 800,706 |
| The Trade Desk, Inc., Class A * | 13,613 | 9,928,097 |
| The Western Union Co. | 130,451 | 3,360,418 |
| Twilio, Inc., Class A * | 51,190 | 18,827,682 |
| Tyler Technologies, Inc. * | 12,954 | 5,503,636 |
| Varonis Systems, Inc. * | 32,394 | 1,715,262 |
| Verint Systems, Inc. * | 20,699 | 1,005,350 |
| VeriSign, Inc. * | 31,841 | 6,965,856 |
| Visa, Inc., Class A | 541,839 | 126,551,917 |
| VMware, Inc., Class A *(a) | 25,827 | 4,153,756 |
| WEX, Inc. * | 14,080 | 2,889,357 |
| Workday, Inc., Class A * | 58,902 | 14,548,794 |
| Zendesk, Inc. * | 37,514 | 5,482,671 |
| Zoom Video Communications, Inc., Class A * | 65,407 | 20,902,115 |
| Zscaler, Inc. * | 23,744 | 4,455,324 |
| | | 1,882,834,956 |
| |
| Technology Hardware & Equipment 7.0% |
| Amphenol Corp., Class A | 191,789 | 12,915,071 |
| Apple Inc. | 5,042,098 | 662,834,203 |
| Security | Number
of Shares | Value ($) |
| Arista Networks, Inc. * | 17,503 | 5,516,421 |
| Arrow Electronics, Inc. * | 23,914 | 2,727,870 |
| CDW Corp. | 45,136 | 8,049,103 |
| Ciena Corp. * | 49,095 | 2,477,825 |
| Cisco Systems, Inc. | 1,348,961 | 68,675,604 |
| Cognex Corp. | 56,199 | 4,839,858 |
| Corning, Inc. | 245,664 | 10,860,805 |
| Dell Technologies, Inc., Class C * | 75,917 | 7,464,919 |
| F5 Networks, Inc. * | 19,583 | 3,657,321 |
| FLIR Systems, Inc. | 41,443 | 2,485,337 |
| Hewlett Packard Enterprise Co. | 417,205 | 6,683,624 |
| HP, Inc. | 399,339 | 13,621,453 |
| II-VI, Inc. * | 33,796 | 2,269,063 |
| IPG Photonics Corp. * | 11,535 | 2,504,364 |
| Jabil, Inc. | 43,563 | 2,283,572 |
| Juniper Networks, Inc. | 105,316 | 2,673,973 |
| Keysight Technologies, Inc. * | 59,262 | 8,554,470 |
| Littelfuse, Inc. | 7,876 | 2,089,030 |
| Lumentum Holdings, Inc. * | 24,456 | 2,079,983 |
| Motorola Solutions, Inc. | 54,155 | 10,197,386 |
| National Instruments Corp. | 41,806 | 1,731,186 |
| NCR Corp. * | 41,039 | 1,877,534 |
| NetApp, Inc. | 71,008 | 5,303,588 |
| Novanta, Inc. * | 11,214 | 1,476,996 |
| Pure Storage, Inc., Class A * | 78,397 | 1,585,187 |
| Seagate Technology plc | 64,494 | 5,987,623 |
| TE Connectivity Ltd. | 105,925 | 14,243,735 |
| Trimble, Inc. * | 80,227 | 6,578,614 |
| Ubiquiti, Inc. | 2,431 | 693,637 |
| Vontier Corp. * | 54,184 | 1,698,127 |
| Western Digital Corp. * | 97,520 | 6,887,838 |
| Xerox Holdings Corp. | 52,699 | 1,272,154 |
| Zebra Technologies Corp., Class A * | 17,048 | 8,314,992 |
| | | 903,112,466 |
| |
| Telecommunication Services 1.4% |
| AT&T, Inc. | 2,278,596 | 71,570,701 |
| Iridium Communications, Inc. * | 37,366 | 1,419,534 |
| Liberty Global plc, Class A * | 45,207 | 1,216,068 |
| Liberty Global plc, Class C * | 114,375 | 3,094,988 |
| Lumen Technologies, Inc. | 317,046 | 4,067,700 |
| T-Mobile US, Inc. * | 186,537 | 24,647,134 |
| Verizon Communications, Inc. | 1,321,646 | 76,377,922 |
| | | 182,394,047 |
| |
| Transportation 2.1% |
| Alaska Air Group, Inc. * | 39,246 | 2,713,468 |
| AMERCO | 2,866 | 1,709,942 |
| American Airlines Group, Inc. * | 205,783 | 4,469,607 |
| C.H. Robinson Worldwide, Inc. | 42,402 | 4,116,386 |
| CSX Corp. | 243,562 | 24,538,872 |
| Delta Air Lines, Inc. * | 204,323 | 9,586,835 |
| Expeditors International of Washington, Inc. | 54,365 | 5,972,539 |
| FedEx Corp. | 77,968 | 22,634,890 |
| JB Hunt Transport Services, Inc. | 26,828 | 4,579,808 |
| JetBlue Airways Corp. * | 100,730 | 2,050,863 |
| Kansas City Southern | 29,076 | 8,496,298 |
| Knight-Swift Transportation Holdings, Inc. | 38,637 | 1,820,575 |
| Landstar System, Inc. | 12,380 | 2,132,826 |
| Lyft, Inc., Class A * | 82,337 | 4,582,877 |
| Norfolk Southern Corp. | 80,505 | 22,480,216 |
| Old Dominion Freight Line, Inc. | 30,561 | 7,878,931 |
| Saia, Inc. * | 8,339 | 1,955,496 |
| Southwest Airlines Co. * | 188,575 | 11,838,739 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Uber Technologies, Inc. * | 469,267 | 25,701,754 |
| Union Pacific Corp. | 213,975 | 47,521,708 |
| United Airlines Holdings, Inc. * | 102,071 | 5,552,662 |
| United Parcel Service, Inc., Class B | 229,899 | 46,867,210 |
| XPO Logistics, Inc. * | 32,457 | 4,515,418 |
| | | 273,717,920 |
| |
| Utilities 2.5% |
| Alliant Energy Corp. | 80,085 | 4,498,374 |
| Ameren Corp. | 81,377 | 6,904,025 |
| American Electric Power Co., Inc. | 158,332 | 14,045,632 |
| American Water Works Co., Inc. | 57,839 | 9,022,306 |
| Atmos Energy Corp. | 40,832 | 4,229,787 |
| Avangrid, Inc. | 17,935 | 912,891 |
| CenterPoint Energy, Inc. | 175,419 | 4,296,011 |
| CMS Energy Corp. | 92,075 | 5,928,709 |
| Consolidated Edison, Inc. | 109,512 | 8,477,324 |
| Dominion Energy, Inc. | 257,506 | 20,574,729 |
| DTE Energy Co. | 61,899 | 8,667,098 |
| Duke Energy Corp. | 245,420 | 24,711,340 |
| Edison International | 121,273 | 7,209,680 |
| Entergy Corp. | 64,277 | 7,024,833 |
| Essential Utilities, Inc. | 70,923 | 3,342,601 |
| Evergy, Inc. | 72,754 | 4,654,073 |
| Eversource Energy | 109,518 | 9,442,642 |
| Exelon Corp. | 312,513 | 14,044,334 |
| FirstEnergy Corp. | 174,168 | 6,604,451 |
| MDU Resources Group, Inc. | 65,040 | 2,176,238 |
| NextEra Energy, Inc. | 626,215 | 48,537,925 |
| NiSource, Inc. | 125,076 | 3,254,478 |
| NRG Energy, Inc. | 77,606 | 2,779,847 |
| OGE Energy Corp. | 62,875 | 2,110,085 |
| Ormat Technologies, Inc. | 13,981 | 1,012,224 |
| PG&E Corp. * | 472,440 | 5,348,021 |
| Pinnacle West Capital Corp. | 36,199 | 3,064,245 |
| PPL Corp. | 246,574 | 7,182,701 |
| Public Service Enterprise Group, Inc. | 161,502 | 10,200,466 |
| Sempra Energy | 96,555 | 13,283,071 |
| Sunnova Energy International, Inc. * | 20,047 | 708,060 |
| The AES Corp. | 213,400 | 5,936,788 |
| The Southern Co. | 337,415 | 22,326,751 |
| Security | Number
of Shares | Value ($) |
| UGI Corp. | 66,381 | 2,901,514 |
| Vistra Corp. | 155,506 | 2,623,386 |
| WEC Energy Group, Inc. | 100,720 | 9,786,962 |
| Xcel Energy, Inc. | 171,956 | 12,260,463 |
| | | 320,084,065 |
| Total Common Stock |
| (Cost $2,870,723,437) | | 12,848,063,397 |
|
| Investment Companies 0.6% of net assets |
| |
| Money Market Fund 0.6% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (c) | 79,530,329 | 79,530,329 |
| |
| Securities Lending Collateral 0.0% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 5,758,575 | 5,758,575 |
| Total Investment Companies |
| (Cost $85,288,904) | | 85,288,904 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
($) |
| Futures Contracts | |
| Long | |
| S&P 500 Index, e-mini, expires 06/18/21 | 250 | 52,180,000 | 700,003 |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $5,553,346. |
| (b) | Issuer is affiliated with the fund's investment adviser. |
| (c) | The rate shown is the 7-day yield. |
| | |
| REIT — | Real Estate Investment Trust |
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, 2021:
| |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Dividends
Received |
| The Charles Schwab Corp. | $19,174,156 | $957,061 | ($358,124) | $7,329 | $13,764,192 | $33,544,614 | 476,486 | $168,826 |
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $12,848,063,397 | $— | $— | $12,848,063,397 | |
| Investment Companies1 | 85,288,904 | — | — | 85,288,904 | |
| Futures Contracts2 | 700,003 | — | — | 700,003 | |
| Total | $12,934,052,304 | $— | $— | $12,934,052,304 | |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $3,900,311) | | $33,544,614 |
| Investments in securities, at value - unaffiliated (cost $2,946,353,455) including securities on loan of $5,553,346 | | 12,894,049,112 |
| Collateral invested for securities on loan, at value (cost $5,758,575) | | 5,758,575 |
| Deposit with broker for futures contracts | | 4,950,000 |
| Receivables: | | |
| Dividends | | 8,341,824 |
| Fund shares sold | | 7,550,156 |
| Income from securities on loan | + | 2,585 |
| Total assets | | 12,954,196,866 |
| Liabilities |
| Collateral held for securities on loan | | 5,758,575 |
| Payables: | | |
| Investments bought | | 40,143,596 |
| Investment adviser fees | | 556,881 |
| Fund shares redeemed | | 3,908,334 |
| Variation margin on futures contracts | + | 355,882 |
| Total liabilities | | 50,723,268 |
| Net Assets |
| Total assets | | 12,954,196,866 |
| Total liabilities | – | 50,723,268 |
| Net assets | | $12,903,473,598 |
| Net Assets by Source | | |
| Capital received from investors | | 2,797,862,097 |
| Total distributable earnings | | 10,105,611,501 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $12,903,473,598 | | 138,735,305 | | $93.01 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $168,826 |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $9,634) | | 91,014,034 |
| Securities on loan, net | + | 40,995 |
| Total investment income | | 91,223,855 |
| Expenses |
| Investment adviser fees | | 2,921,178 |
| Total expenses | – | 2,921,178 |
| Net investment income | | 88,302,677 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - affiliated | | 7,329 |
| Net realized gains on sales of securities - unaffiliated | | 41,833,212 |
| Net realized gains on futures contracts | + | 12,542,449 |
| Net realized gains | | 54,382,990 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 13,764,192 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 2,763,096,153 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 2,023,656 |
| Net change in unrealized appreciation (depreciation) | + | 2,778,884,001 |
| Net realized and unrealized gains | | 2,833,266,991 |
| Increase in net assets resulting from operations | | $2,921,569,668 |
Schwab Equity Index Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $88,302,677 | $187,130,898 |
| Net realized gains | | 54,382,990 | 117,738,056 |
| Net change in unrealized appreciation (depreciation) | + | 2,778,884,001 | 641,934,662 |
| Increase in net assets from operations | | 2,921,569,668 | 946,803,616 |
| Distributions to Shareholders | |
| Total distributions | | ($306,286,999) | ($290,754,043) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 9,621,482 | $818,287,634 | 13,800,508 | $925,426,862 |
| Shares reinvested | | 3,026,807 | 250,256,414 | 3,367,064 | 238,859,473 |
| Shares redeemed | + | (6,481,007) | (554,293,534) | (20,677,471) | (1,392,525,764) |
| Net transactions in fund shares | | 6,167,282 | $514,250,514 | (3,509,899) | ($228,239,429) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 132,568,023 | $9,773,940,415 | 136,077,922 | $9,346,130,271 |
| Total increase (decrease) | + | 6,167,282 | 3,129,533,183 | (3,509,899) | 427,810,144 |
| End of period | | 138,735,305 | $12,903,473,598 | 132,568,023 | $9,773,940,415 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $27.18 | $28.84 | $30.48 | $31.45 | $25.60 | $26.29 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.20 | 0.35 | 0.40 | 0.43 | 0.38 | 0.39 |
| Net realized and unrealized gains (losses) | 12.73 | (0.23) | 0.54 | 0.20 | 6.62 | 0.59 |
| Total from investment operations | 12.93 | 0.12 | 0.94 | 0.63 | 7.00 | 0.98 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.38) | (0.42) | (0.40) | (0.39) | (0.39) | (0.36) |
| Distributions from net realized gains | (0.49) | (1.36) | (2.18) | (1.21) | (0.76) | (1.31) |
| Total distributions | (0.87) | (1.78) | (2.58) | (1.60) | (1.15) | (1.67) |
| Net asset value at end of period | $39.24 | $27.18 | $28.84 | $30.48 | $31.45 | $25.60 |
| Total return | 48.07% 2 | 0.00% | 4.95% | 1.93% | 27.84% | 4.17% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.04% 3 | 0.04% | 0.04% 4 | 0.05% | 0.10% 5 | 0.20% |
| Net operating expenses | N/A | N/A | N/A | N/A 6 | 0.09% 5 | 0.17% |
| Net investment income (loss) | 1.12% 3 | 1.31% | 1.43% | 1.33% | 1.31% | 1.60% |
| Portfolio turnover rate | 3% 2 | 21% | 14% | 17% | 11% | 17% |
| Net assets, end of period (x 1,000,000) | $6,272 | $3,988 | $4,187 | $3,874 | $3,531 | $2,619 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended 10/31/19 is a blended ratio.
5
Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
6
Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.5% of net assets |
| |
| Automobiles & Components 1.6% |
| Adient plc * | 205,063 | 9,502,619 |
| American Axle & Manufacturing Holdings, Inc. * | 242,868 | 2,253,815 |
| Cooper Tire & Rubber Co. | 109,673 | 6,250,264 |
| Cooper-Standard Holdings, Inc. * | 36,693 | 1,065,565 |
| Dana, Inc. | 314,216 | 7,949,665 |
| Dorman Products, Inc. * | 57,797 | 5,732,306 |
| Fox Factory Holding Corp. * | 89,815 | 13,762,352 |
| Gentherm, Inc. * | 71,282 | 5,075,278 |
| LCI Industries | 53,517 | 7,840,241 |
| Modine Manufacturing Co. * | 108,213 | 1,761,708 |
| Motorcar Parts of America, Inc. * | 40,488 | 874,541 |
| Patrick Industries, Inc. | 48,375 | 4,334,400 |
| Standard Motor Products, Inc. | 46,070 | 1,973,178 |
| Stoneridge, Inc. * | 56,177 | 1,867,885 |
| Tenneco, Inc., Class A * | 111,015 | 1,117,921 |
| The Goodyear Tire & Rubber Co. * | 502,128 | 8,641,623 |
| Visteon Corp. * | 60,186 | 7,331,257 |
| Winnebago Industries, Inc. | 67,788 | 5,419,651 |
| Workhorse Group, Inc. *(a) | 205,606 | 2,547,458 |
| XPEL, Inc. * | 36,089 | 2,313,305 |
| | | 97,615,032 |
| |
| Banks 10.3% |
| 1st Constitution Bancorp | 18,970 | 363,845 |
| 1st Source Corp. | 35,526 | 1,690,682 |
| ACNB Corp. | 18,382 | 505,505 |
| Allegiance Bancshares, Inc. | 40,910 | 1,620,036 |
| Altabancorp | 34,630 | 1,445,802 |
| Amalgamated Financial Corp. | 29,248 | 472,355 |
| Amerant Bancorp, Inc. * | 49,217 | 932,662 |
| American National Bankshares, Inc. | 23,592 | 802,836 |
| Ameris Bancorp | 143,987 | 7,788,257 |
| Ames National Corp. | 18,809 | 475,492 |
| Arrow Financial Corp. | 29,291 | 1,035,437 |
| Atlantic Capital Bancshares, Inc. * | 44,540 | 1,191,445 |
| Atlantic Union Bankshares Corp. | 169,493 | 6,554,294 |
| Auburn National Bancorp, Inc. | 5,043 | 179,027 |
| Axos Financial, Inc. * | 124,294 | 5,611,874 |
| Banc of California, Inc. | 96,240 | 1,722,696 |
| BancFirst Corp. | 40,957 | 2,846,921 |
| BancorpSouth Bank | 215,205 | 6,367,916 |
| Bank First Corp. | 13,679 | 989,265 |
| Bank of Commerce Holdings | 33,703 | 435,106 |
| Bank of Marin Bancorp | 29,154 | 1,032,635 |
| Bank7 Corp. | 6,103 | 108,084 |
| BankFinancial Corp. | 30,051 | 313,131 |
| BankUnited, Inc. | 199,291 | 9,288,954 |
| Bankwell Financial Group, Inc. | 14,019 | 378,653 |
| Banner Corp. | 75,648 | 4,299,832 |
| Bar Harbor Bankshares | 31,981 | 916,575 |
| Baycom Corp. * | 23,099 | 417,861 |
| BCB Bancorp, Inc. | 31,711 | 436,660 |
| Security | Number
of Shares | Value ($) |
| Berkshire Hills Bancorp, Inc. | 98,367 | 2,182,764 |
| Bogota Financial Corp. * | 12,447 | 123,350 |
| Boston Private Financial Holdings, Inc. | 176,999 | 2,605,425 |
| Bridgewater Bancshares, Inc. * | 46,831 | 791,912 |
| Brookline Bancorp, Inc. | 167,514 | 2,696,975 |
| Bryn Mawr Bank Corp. | 42,598 | 1,957,804 |
| Business First Bancshares, Inc. | 41,251 | 980,536 |
| Byline Bancorp, Inc. | 53,466 | 1,213,678 |
| C&F Financial Corp. | 7,989 | 336,976 |
| Cadence BanCorp | 267,810 | 5,958,772 |
| California BanCorp * | 16,339 | 285,933 |
| Cambridge Bancorp | 13,682 | 1,197,859 |
| Camden National Corp. | 32,160 | 1,534,675 |
| Capital Bancorp, Inc. * | 17,893 | 393,109 |
| Capital City Bank Group, Inc. | 29,761 | 752,060 |
| Capitol Federal Financial, Inc. | 282,798 | 3,655,164 |
| Capstar Financial Holdings, Inc. | 34,479 | 661,652 |
| Carter Bankshares, Inc. * | 48,178 | 623,905 |
| Cathay General Bancorp | 165,046 | 6,681,062 |
| CB Financial Services, Inc. | 10,651 | 228,997 |
| CBTX, Inc. | 38,285 | 1,197,172 |
| Central Pacific Financial Corp. | 59,691 | 1,608,672 |
| Central Valley Community Bancorp | 22,606 | 443,982 |
| Century Bancorp, Inc., Class A | 5,956 | 680,473 |
| Chemung Financial Corp. | 7,551 | 320,918 |
| ChoiceOne Financial Services, Inc. | 15,620 | 383,315 |
| CIT Group, Inc. | 214,197 | 11,414,558 |
| Citizens & Northern Corp. | 29,146 | 719,906 |
| Citizens Holdings Co. | 10,094 | 192,795 |
| City Holding Co. | 33,642 | 2,603,891 |
| Civista Bancshares, Inc. | 34,079 | 788,247 |
| CNB Financial Corp. | 31,894 | 812,021 |
| Coastal Financial Corp. * | 19,422 | 578,193 |
| Codorus Valley Bancorp, Inc. | 20,002 | 368,037 |
| Colony Bankcorp, Inc. | 15,908 | 248,006 |
| Columbia Banking System, Inc. | 155,986 | 6,790,071 |
| Columbia Financial, Inc. * | 102,453 | 1,871,816 |
| Community Bank System, Inc. | 114,827 | 8,914,020 |
| Community Bankers Trust Corp. | 46,562 | 390,190 |
| Community Trust Bancorp, Inc. | 33,708 | 1,502,028 |
| ConnectOne Bancorp, Inc. | 80,003 | 2,172,081 |
| County Bancorp, Inc. | 9,816 | 232,050 |
| CrossFirst Bankshares, Inc. * | 103,910 | 1,531,633 |
| Customers Bancorp, Inc. * | 62,191 | 2,146,833 |
| CVB Financial Corp. | 281,327 | 5,966,946 |
| Dime Community Bancshares, Inc. | 76,103 | 2,520,531 |
| Eagle Bancorp Montana, Inc. | 13,628 | 318,759 |
| Eagle Bancorp, Inc. | 68,714 | 3,670,015 |
| Eastern Bankshares, Inc. | 360,152 | 7,682,042 |
| Enterprise Bancorp, Inc. | 19,005 | 661,944 |
| Enterprise Financial Services Corp. | 52,624 | 2,585,417 |
| Equity Bancshares, Inc., Class A * | 31,162 | 911,800 |
| Esquire Financial Holdings, Inc. * | 14,578 | 334,565 |
| ESSA Bancorp, Inc. | 18,811 | 291,947 |
| Essent Group Ltd. | 239,436 | 12,589,545 |
| Evans Bancorp, Inc. | 10,141 | 374,811 |
| Farmers & Merchants Bancorp, Inc. | 21,811 | 512,559 |
| Farmers National Banc Corp. | 56,902 | 943,435 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| FB Financial Corp. | 68,890 | 2,890,624 |
| Federal Agricultural Mortgage Corp., Class C | 19,636 | 2,019,759 |
| Fidelity D&D Bancorp, Inc. | 8,679 | 488,281 |
| Financial Institutions, Inc. | 34,438 | 1,099,605 |
| First BanCorp | 468,314 | 5,886,707 |
| First BanCorp (North Carolina) | 61,792 | 2,619,981 |
| First Bank | 35,711 | 453,173 |
| First Busey Corp. | 108,897 | 2,720,247 |
| First Business Financial Services, Inc. | 17,558 | 464,585 |
| First Capital, Inc. (a) | 7,021 | 316,507 |
| First Choice Bancorp | 22,141 | 708,955 |
| First Commonwealth Financial Corp. | 208,401 | 3,019,730 |
| First Community Bankshares, Inc. | 37,903 | 1,107,526 |
| First Community Corp. | 15,682 | 288,549 |
| First Financial Bancorp | 209,983 | 5,146,683 |
| First Financial Bankshares, Inc. | 280,110 | 13,747,799 |
| First Financial Corp. | 28,486 | 1,260,221 |
| First Foundation, Inc. | 85,520 | 2,035,376 |
| First Guaranty Bancshares, Inc. | 7,821 | 135,851 |
| First Internet Bancorp | 21,011 | 721,728 |
| First Interstate BancSystem, Inc., Class A | 87,805 | 4,124,201 |
| First Merchants Corp. | 117,464 | 5,428,011 |
| First Mid Bancshares, Inc. | 32,064 | 1,396,067 |
| First Midwest Bancorp, Inc. | 247,956 | 5,199,637 |
| First Northwest Bancorp | 18,771 | 314,977 |
| First Savings Financial Group, Inc. | 4,032 | 277,402 |
| First United Corp. | 14,491 | 245,188 |
| First Western Financial, Inc. * | 13,490 | 346,288 |
| Flagstar Bancorp, Inc. | 104,760 | 4,875,530 |
| Flushing Financial Corp. | 64,178 | 1,493,422 |
| FNCB Bancorp, Inc. | 36,944 | 256,022 |
| Franklin Financial Services Corp. | 8,719 | 262,878 |
| FS Bancorp, Inc. | 7,930 | 542,016 |
| Fulton Financial Corp. | 345,202 | 5,885,694 |
| FVCBankcorp, Inc. * | 25,088 | 441,298 |
| German American Bancorp, Inc. | 53,159 | 2,303,379 |
| Glacier Bancorp, Inc. | 208,000 | 12,261,600 |
| Great Southern Bancorp, Inc. | 23,564 | 1,329,245 |
| Great Western Bancorp, Inc. | 120,370 | 3,978,228 |
| Greene County Bancorp, Inc. | 6,540 | 166,181 |
| Guaranty Bancshares, Inc. | 16,663 | 648,191 |
| Hancock Whitney Corp. | 187,360 | 8,663,526 |
| Hanmi Financial Corp. | 65,735 | 1,334,421 |
| HarborOne Bancorp, Inc. | 113,051 | 1,617,760 |
| Hawthorn Bancshares, Inc. | 12,308 | 265,114 |
| HBT Financial, Inc. | 21,177 | 385,421 |
| Heartland Financial USA, Inc. | 75,514 | 3,796,089 |
| Heritage Commerce Corp. | 126,748 | 1,529,848 |
| Heritage Financial Corp. | 78,131 | 2,195,481 |
| Hilltop Holdings, Inc. | 142,961 | 5,032,227 |
| Home Bancorp, Inc. | 16,260 | 616,904 |
| Home BancShares, Inc. | 332,044 | 9,240,785 |
| Home Point Capital, Inc. * | 15,618 | 152,276 |
| HomeStreet, Inc. | 46,018 | 1,879,375 |
| HomeTrust Bancshares, Inc. | 32,818 | 899,213 |
| Hope Bancorp, Inc. | 255,791 | 3,839,423 |
| Horizon Bancorp, Inc. | 91,930 | 1,685,996 |
| Howard Bancorp, Inc. * | 27,434 | 461,989 |
| Independent Bank Corp. | 71,454 | 5,852,083 |
| Independent Bank Corp., Michigan | 46,694 | 1,100,111 |
| Independent Bank Group, Inc. | 80,388 | 6,070,098 |
| International Bancshares Corp. | 116,010 | 5,497,714 |
| Investar Holding Corp. | 22,001 | 486,442 |
| Investors Bancorp, Inc. | 501,253 | 7,338,344 |
| Kearny Financial Corp. | 163,122 | 2,084,699 |
| Lakeland Bancorp, Inc. | 105,914 | 1,920,221 |
| Lakeland Financial Corp. | 52,750 | 3,440,882 |
| Security | Number
of Shares | Value ($) |
| Landmark Bancorp, Inc. | 8,521 | 204,930 |
| LCNB Corp. | 26,202 | 474,780 |
| Level One Bancorp, Inc. | 11,014 | 297,708 |
| Limestone Bancorp, Inc. * | 10,875 | 172,043 |
| Live Oak Bancshares, Inc. | 61,386 | 3,926,249 |
| Luther Burbank Corp. | 40,621 | 452,518 |
| Macatawa Bank Corp. | 58,514 | 559,979 |
| Mackinac Financial Corp. | 19,127 | 415,056 |
| MainStreet Bancshares, Inc. * | 14,402 | 305,322 |
| Mercantile Bank Corp. | 33,764 | 1,089,902 |
| Merchants Bancorp | 19,115 | 779,701 |
| Meridian Bancorp, Inc. | 101,153 | 2,236,493 |
| Meridian Corp. | 11,580 | 305,712 |
| Meta Financial Group, Inc. | 67,569 | 3,328,449 |
| Metrocity Bankshares, Inc. | 37,798 | 605,146 |
| Metropolitan Bank Holding Corp. * | 15,466 | 972,038 |
| Mid Penn Bancorp, Inc. | 14,734 | 397,671 |
| Middlefield Banc Corp. | 12,908 | 288,881 |
| Midland States Bancorp, Inc. | 45,898 | 1,293,406 |
| MidWestOne Financial Group, Inc. | 31,529 | 995,055 |
| MMA Capital Holdings, Inc. * | 10,011 | 170,988 |
| Mr Cooper Group, Inc. * | 164,066 | 5,656,996 |
| MVB Financial Corp. | 19,775 | 796,537 |
| National Bank Holdings Corp., Class A | 64,316 | 2,566,208 |
| National Bankshares, Inc. | 14,192 | 509,351 |
| NBT Bancorp, Inc. | 92,596 | 3,508,462 |
| Nicolet Bankshares, Inc. * | 19,673 | 1,569,118 |
| NMI Holdings, Inc., Class A * | 178,150 | 4,603,396 |
| Northeast Bank | 16,409 | 462,242 |
| Northfield Bancorp, Inc. | 102,139 | 1,652,609 |
| Northrim BanCorp, Inc. | 13,048 | 556,497 |
| Northwest Bancshares, Inc. | 255,095 | 3,581,534 |
| Norwood Financial Corp. | 12,153 | 309,780 |
| Oak Valley Bancorp | 14,367 | 254,871 |
| OceanFirst Financial Corp. | 129,254 | 2,954,746 |
| Oconee Federal Financial Corp. | 2,234 | 52,454 |
| OFG Bancorp | 109,392 | 2,591,496 |
| Ohio Valley Banc Corp. | 9,204 | 205,986 |
| Old National Bancorp | 356,370 | 6,735,393 |
| Old Second Bancorp, Inc. | 61,650 | 814,397 |
| OP Bancorp | 26,741 | 290,942 |
| Origin Bancorp, Inc. | 47,472 | 2,075,951 |
| Orrstown Financial Services, Inc. | 23,415 | 555,170 |
| Pacific Premier Bancorp, Inc. | 173,564 | 7,642,023 |
| Park National Corp. | 31,173 | 3,899,431 |
| Parke Bancorp, Inc. | 22,777 | 481,050 |
| Partners Bancorp | 21,396 | 162,610 |
| PCB Bancorp | 26,504 | 418,763 |
| PCSB Financial Corp. | 31,434 | 549,781 |
| Peapack-Gladstone Financial Corp. | 39,912 | 1,277,184 |
| Penns Woods Bancorp, Inc. | 14,533 | 348,792 |
| PennyMac Financial Services, Inc. | 90,274 | 5,435,398 |
| Peoples Bancorp of North Carolina, Inc. | 9,505 | 222,132 |
| Peoples Bancorp, Inc. | 39,650 | 1,325,500 |
| Peoples Financial Services Corp. | 15,235 | 649,773 |
| Pioneer Bancorp, Inc. * | 24,794 | 291,577 |
| Plumas Bancorp | 10,030 | 266,297 |
| Ponce de Leon Federal Bank * | 15,660 | 173,513 |
| Preferred Bank | 29,732 | 1,948,635 |
| Premier Financial Bancorp, Inc. | 28,536 | 540,472 |
| Premier Financial Corp. | 79,933 | 2,525,083 |
| Primis Financial Corp. | 43,710 | 627,239 |
| Professional Holding Corp., Class A * | 25,221 | 434,810 |
| Provident Bancorp, Inc. | 35,186 | 575,995 |
| Provident Financial Holdings, Inc. | 12,133 | 197,283 |
| Provident Financial Services, Inc. | 154,330 | 3,637,558 |
| Prudential Bancorp, Inc. | 14,360 | 198,886 |
| QCR Holdings, Inc. | 32,041 | 1,545,017 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Radian Group, Inc. | 415,574 | 10,239,743 |
| RBB Bancorp | 35,801 | 754,685 |
| Red River Bancshares, Inc. | 10,608 | 590,229 |
| Reliant Bancorp, Inc. | 33,592 | 928,147 |
| Renasant Corp. | 118,552 | 4,994,596 |
| Republic Bancorp, Inc., Class A | 20,963 | 941,868 |
| Republic First Bancorp, Inc. * | 97,048 | 387,222 |
| Richmond Mutual BanCorp., Inc. | 27,410 | 374,695 |
| Riverview Bancorp, Inc. | 44,326 | 305,406 |
| S&T Bancorp, Inc. | 83,495 | 2,751,160 |
| Salisbury Bancorp, Inc. | 5,473 | 254,330 |
| Sandy Spring Bancorp, Inc. | 99,838 | 4,528,652 |
| SB Financial Group, Inc. | 15,740 | 281,116 |
| Seacoast Banking Corp. of Florida * | 111,933 | 4,068,765 |
| Security National Financial Corp., Class A * | 20,464 | 172,716 |
| Select Bancorp, Inc. * | 33,714 | 397,488 |
| ServisFirst Bancshares, Inc. | 105,936 | 6,699,393 |
| Shore Bancshares, Inc. | 24,806 | 417,733 |
| Sierra Bancorp | 30,164 | 816,539 |
| Silvergate Capital Corp., Class A * | 42,129 | 4,517,071 |
| Simmons First National Corp., Class A | 235,161 | 6,702,088 |
| SmartFinancial, Inc. | 30,170 | 714,727 |
| South Plains Financial, Inc. | 23,187 | 529,591 |
| South State Corp. | 151,948 | 12,812,255 |
| Southern First Bancshares, Inc. * | 15,576 | 802,164 |
| Southern Missouri Bancorp, Inc. | 16,428 | 688,169 |
| Southside Bancshares, Inc. | 68,291 | 2,741,884 |
| Spirit of Texas Bancshares, Inc. | 27,355 | 633,815 |
| Standard AVB Financial Corp. | 8,374 | 275,337 |
| Sterling Bancorp, Inc. * | 35,705 | 176,740 |
| Stock Yards Bancorp, Inc. | 44,281 | 2,265,416 |
| Summit Financial Group, Inc. | 24,809 | 646,274 |
| Territorial Bancorp, Inc. | 17,211 | 432,857 |
| Texas Capital Bancshares, Inc. * | 109,842 | 7,538,456 |
| The Bancorp, Inc. * | 111,425 | 2,474,192 |
| The Bank of N.T. Butterfield & Son Ltd. | 109,008 | 4,275,294 |
| The Bank of Princeton | 12,068 | 360,230 |
| The Community Financial Corp. | 11,703 | 422,712 |
| The First BanCorp, Inc. | 21,526 | 608,971 |
| The First Bancshares, Inc. | 44,431 | 1,738,141 |
| The First of Long Island Corp. | 48,798 | 1,038,909 |
| The Hingham Institution For Savings | 3,077 | 935,839 |
| Timberland Bancorp, Inc. | 15,866 | 446,469 |
| Tompkins Financial Corp. | 31,009 | 2,423,353 |
| Towne Bank | 145,669 | 4,512,826 |
| TriCo Bancshares | 57,077 | 2,641,524 |
| TriState Capital Holdings, Inc. * | 59,642 | 1,423,655 |
| Triumph Bancorp, Inc. * | 49,443 | 4,382,133 |
| TrustCo Bank Corp. | 206,051 | 1,507,263 |
| Trustmark Corp. | 136,506 | 4,424,159 |
| UMB Financial Corp. | 94,674 | 9,186,218 |
| United Bankshares, Inc. | 268,860 | 10,558,132 |
| United Community Banks, Inc. | 169,700 | 5,552,584 |
| United Security Bancshares | 28,174 | 233,281 |
| Unity Bancorp, Inc. | 16,042 | 353,726 |
| Univest Financial Corp. | 62,453 | 1,744,312 |
| Valley National Bancorp | 866,053 | 11,925,550 |
| Veritex Holdings, Inc. | 103,277 | 3,488,697 |
| Walker & Dunlop, Inc. | 61,501 | 6,817,386 |
| Washington Federal, Inc. | 164,051 | 5,339,860 |
| Washington Trust Bancorp, Inc. | 36,993 | 1,888,493 |
| Waterstone Financial, Inc. | 46,539 | 916,818 |
| WesBanco, Inc. | 141,206 | 5,124,366 |
| West Bancorp, Inc. | 35,170 | 923,564 |
| Westamerica Bancorp | 56,826 | 3,602,768 |
| Security | Number
of Shares | Value ($) |
| Western New England Bancorp, Inc. | 47,185 | 382,199 |
| WSFS Financial Corp. | 102,987 | 5,261,606 |
| | | 643,902,976 |
| |
| Capital Goods 11.0% |
| AAON, Inc. | 88,996 | 5,821,228 |
| AAR Corp. * | 73,066 | 2,940,176 |
| Advanced Drainage Systems, Inc. | 122,259 | 13,651,440 |
| Aegion Corp. * | 65,427 | 1,969,353 |
| Aerojet Rocketdyne Holdings, Inc. | 156,632 | 7,317,847 |
| Aerovironment, Inc. * | 47,121 | 5,200,745 |
| Agrify Corp. * | 13,341 | 144,083 |
| Alamo Group, Inc. | 21,498 | 3,380,561 |
| Albany International Corp., Class A | 66,852 | 5,965,872 |
| Allied Motion Technologies, Inc. | 15,799 | 822,338 |
| Alpha Pro Tech Ltd. *(a) | 26,907 | 241,087 |
| Alta Equipment Group, Inc. * | 36,802 | 472,906 |
| Altra Industrial Motion Corp. | 140,052 | 8,264,469 |
| Ameresco, Inc., Class A * | 53,800 | 2,840,102 |
| American Superconductor Corp. * | 58,961 | 971,088 |
| American Woodmark Corp. * | 36,739 | 3,654,061 |
| API Group Corp. * | 304,073 | 6,464,592 |
| Apogee Enterprises, Inc. | 56,267 | 1,976,660 |
| Applied Industrial Technologies, Inc. | 83,868 | 8,022,813 |
| Arcosa, Inc. | 105,523 | 6,361,982 |
| Argan, Inc. | 31,893 | 1,599,434 |
| Astec Industries, Inc. | 48,750 | 3,656,738 |
| Astronics Corp. * | 52,047 | 906,138 |
| Atkore, Inc. * | 101,567 | 7,950,665 |
| AZZ, Inc. | 55,087 | 2,899,780 |
| Barnes Group, Inc. | 101,706 | 5,077,164 |
| Beacon Roofing Supply, Inc. * | 118,784 | 6,691,103 |
| Bloom Energy Corp., Class A * | 192,014 | 4,986,604 |
| Blue Bird Corp. * | 33,472 | 901,736 |
| Boise Cascade Co. | 84,967 | 5,668,998 |
| Builders FirstSource, Inc. * | 442,595 | 21,541,099 |
| Caesarstone Ltd. | 49,251 | 687,544 |
| CAI International, Inc. | 36,394 | 1,548,565 |
| Chart Industries, Inc. * | 78,391 | 12,591,946 |
| CIRCOR International, Inc. * | 43,243 | 1,486,262 |
| Columbus McKinnon Corp. | 50,641 | 2,507,236 |
| Comfort Systems USA, Inc. | 78,021 | 6,425,810 |
| Concrete Pumping Holdings, Inc. * | 56,380 | 458,369 |
| Construction Partners, Inc., Class A * | 60,966 | 1,934,451 |
| Cornerstone Building Brands, Inc. * | 95,505 | 1,342,800 |
| CSW Industrials, Inc. | 29,694 | 4,020,865 |
| Cubic Corp. | 69,499 | 5,201,305 |
| Custom Truck One Source, Inc. * | 28,555 | 292,974 |
| Douglas Dynamics, Inc. | 48,746 | 2,180,409 |
| Ducommun, Inc. * | 23,268 | 1,371,183 |
| DXP Enterprises, Inc. * | 35,669 | 1,044,032 |
| Dycom Industries, Inc. * | 66,794 | 6,265,945 |
| EMCOR Group, Inc. | 118,005 | 14,136,999 |
| Encore Wire Corp. | 44,337 | 3,311,087 |
| Energy Recovery, Inc. * | 87,237 | 1,849,424 |
| Enerpac Tool Group Corp. | 130,584 | 3,473,534 |
| EnerSys | 92,293 | 8,452,193 |
| EnPro Industries, Inc. | 44,948 | 3,849,796 |
| ESCO Technologies, Inc. | 55,526 | 6,039,008 |
| EVI Industries, Inc. * | 11,436 | 305,799 |
| Evoqua Water Technologies Corp. * | 250,607 | 7,162,348 |
| Federal Signal Corp. | 130,161 | 5,392,570 |
| Fluor Corp. * | 306,119 | 7,034,615 |
| Franklin Electric Co., Inc. | 99,813 | 8,111,803 |
| FuelCell Energy, Inc. * | 684,051 | 6,642,135 |
| GATX Corp. | 75,630 | 7,389,807 |
| Gencor Industries, Inc. * | 22,475 | 269,475 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| General Finance Corp. * | 23,239 | 441,076 |
| Gibraltar Industries, Inc. * | 70,892 | 6,512,139 |
| GMS, Inc. * | 90,274 | 3,945,877 |
| Graham Corp. | 20,244 | 277,545 |
| Granite Construction, Inc. | 102,032 | 3,887,419 |
| Great Lakes Dredge & Dock Corp. * | 137,930 | 2,165,501 |
| Griffon Corp. | 100,470 | 2,724,746 |
| H&E Equipment Services, Inc. | 69,137 | 2,689,429 |
| HC2 Holdings, Inc. * | 105,714 | 443,999 |
| Helios Technologies, Inc. | 67,261 | 4,861,625 |
| Herc Holdings, Inc. * | 52,898 | 5,586,029 |
| Hillenbrand, Inc. | 160,759 | 7,891,659 |
| Hurco Cos., Inc. | 13,597 | 467,057 |
| Hydrofarm Holdings Group, Inc. * | 21,056 | 1,383,379 |
| Hyster-Yale Materials Handling, Inc. | 21,672 | 1,752,181 |
| IES Holdings, Inc. * | 17,383 | 917,649 |
| Insteel Industries, Inc. | 40,314 | 1,537,173 |
| JELD-WEN Holding, Inc. * | 147,032 | 4,288,923 |
| John Bean Technologies Corp. | 67,999 | 9,885,695 |
| Kadant, Inc. | 24,747 | 4,405,708 |
| Kaman Corp. | 60,164 | 3,209,749 |
| Kennametal, Inc. | 180,433 | 7,246,189 |
| Kratos Defense & Security Solutions, Inc. * | 263,584 | 7,048,236 |
| L.B. Foster Co., Class A * | 21,470 | 346,526 |
| Lawson Products, Inc. * | 9,631 | 504,953 |
| Lindsay Corp. | 23,495 | 3,895,001 |
| LSI Industries, Inc. | 55,139 | 453,243 |
| Luxfer Holdings plc | 58,996 | 1,304,402 |
| Lydall, Inc. * | 37,399 | 1,378,153 |
| Masonite International Corp. * | 52,988 | 6,691,855 |
| MasTec, Inc. * | 123,075 | 12,844,107 |
| Matrix Service Co. * | 56,149 | 741,728 |
| Maxar Technologies, Inc. | 154,607 | 6,000,298 |
| Mayville Engineering Co., Inc. * | 15,611 | 243,688 |
| McGrath RentCorp | 52,280 | 4,285,914 |
| Meritor, Inc. * | 150,249 | 4,061,230 |
| Miller Industries, Inc. | 24,004 | 1,032,652 |
| Moog, Inc., Class A | 63,291 | 5,477,836 |
| MRC Global, Inc. * | 170,057 | 1,601,937 |
| Mueller Industries, Inc. | 121,524 | 5,452,782 |
| Mueller Water Products, Inc., Class A | 341,179 | 4,899,330 |
| MYR Group, Inc. * | 35,165 | 2,739,354 |
| National Presto Industries, Inc. | 11,080 | 1,139,910 |
| Navistar International Corp. * | 108,584 | 4,804,842 |
| NN, Inc. * | 93,174 | 680,170 |
| Northwest Pipe Co. * | 21,061 | 700,699 |
| NOW, Inc. * | 239,510 | 2,351,988 |
| NV5 Global, Inc. * | 23,792 | 2,144,373 |
| Omega Flex, Inc. | 6,325 | 1,005,675 |
| Orion Energy Systems, Inc. * | 57,930 | 348,739 |
| PAE, Inc. * | 129,830 | 1,164,575 |
| Park Aerospace Corp. | 41,667 | 562,088 |
| Park-Ohio Holdings Corp. | 19,394 | 704,196 |
| Parsons Corp. * | 49,268 | 2,184,050 |
| PGT Innovations, Inc. * | 124,112 | 3,267,869 |
| Plug Power, Inc. * | 894,889 | 25,513,285 |
| Powell Industries, Inc. | 19,863 | 699,972 |
| Preformed Line Products Co. | 6,572 | 435,066 |
| Primoris Services Corp. | 104,378 | 3,408,985 |
| Proto Labs, Inc. * | 58,083 | 6,508,781 |
| Quanex Building Products Corp. | 72,024 | 1,965,535 |
| Raven Industries, Inc. | 77,585 | 3,151,503 |
| RBC Bearings, Inc. * | 53,481 | 10,665,716 |
| Resideo Technologies, Inc. * | 312,363 | 9,374,014 |
| REV Group, Inc. * | 60,067 | 1,095,622 |
| Rexnord Corp. | 261,424 | 13,052,900 |
| Rush Enterprises, Inc., Class A | 89,642 | 4,424,729 |
| Rush Enterprises, Inc., Class B | 14,466 | 633,466 |
| Security | Number
of Shares | Value ($) |
| Simpson Manufacturing Co., Inc. | 94,516 | 10,651,953 |
| SiteOne Landscape Supply, Inc. * | 95,354 | 17,104,601 |
| SPX Corp. * | 93,462 | 5,669,405 |
| SPX FLOW, Inc. | 92,412 | 6,153,715 |
| Standex International Corp. | 26,534 | 2,515,954 |
| Sterling Construction Co., Inc. * | 59,552 | 1,241,659 |
| Sunrun, Inc. * | 344,787 | 16,894,563 |
| Systemax, Inc. | 27,309 | 1,166,640 |
| Tennant Co. | 39,779 | 3,138,961 |
| Terex Corp. | 146,264 | 6,872,945 |
| Textainer Group Holdings Ltd. * | 107,505 | 2,754,278 |
| The Eastern Co. | 11,372 | 321,486 |
| The ExOne Co. * | 30,650 | 712,613 |
| The Gorman-Rupp Co. | 38,455 | 1,327,467 |
| The Greenbrier Cos., Inc. | 70,058 | 3,309,540 |
| The Manitowoc Co., Inc. * | 73,878 | 1,690,329 |
| The Shyft Group, Inc. | 75,198 | 2,663,513 |
| Thermon Group Holdings, Inc. * | 71,096 | 1,357,934 |
| Titan Machinery, Inc. * | 41,192 | 1,075,523 |
| TPI Composites, Inc. * | 66,683 | 3,544,201 |
| Transcat, Inc. * | 14,973 | 748,650 |
| TriMas Corp. * | 88,704 | 2,824,335 |
| Triton International Ltd. | 131,197 | 6,582,153 |
| Triumph Group, Inc. * | 111,488 | 1,886,377 |
| Tutor Perini Corp. * | 88,262 | 1,421,018 |
| UFP Industries, Inc. | 129,681 | 10,898,391 |
| Ultralife Corp. * | 19,577 | 154,658 |
| Vectrus, Inc. * | 24,897 | 1,303,358 |
| Veritiv Corp. * | 31,196 | 1,306,488 |
| Vicor Corp. * | 41,900 | 3,864,437 |
| Wabash National Corp. | 114,465 | 2,015,729 |
| Watts Water Technologies, Inc., Class A | 59,482 | 7,408,483 |
| Welbilt, Inc. * | 282,384 | 6,308,459 |
| WESCO International, Inc. * | 106,516 | 9,769,648 |
| Willis Lease Finance Corp. * | 6,012 | 257,434 |
| WillScot Mobile Mini Holdings Corp. * | 376,117 | 11,008,945 |
| | | 688,581,714 |
| |
| Commercial & Professional Services 3.4% |
| ABM Industries, Inc. | 145,545 | 7,482,468 |
| Acacia Research Corp. * | 103,432 | 628,867 |
| ACCO Brands Corp. | 200,588 | 1,721,045 |
| Akerna Corp. *(a) | 42,219 | 178,164 |
| ASGN, Inc. * | 110,409 | 11,612,819 |
| Barrett Business Services, Inc. | 16,544 | 1,213,171 |
| BGSF, Inc. | 20,590 | 288,466 |
| Brady Corp., Class A | 102,523 | 5,594,680 |
| BrightView Holdings, Inc. * | 88,256 | 1,582,430 |
| Casella Waste Systems, Inc., Class A * | 105,866 | 7,104,667 |
| CBIZ, Inc. * | 110,741 | 3,719,790 |
| CECO Environmental Corp. * | 68,923 | 503,138 |
| Cimpress plc * | 38,541 | 3,671,416 |
| CompX International, Inc. | 3,395 | 65,320 |
| CoreCivic, Inc. * | 258,408 | 2,007,830 |
| Covanta Holding Corp. | 257,699 | 3,875,793 |
| CRA International, Inc. | 16,483 | 1,322,926 |
| Deluxe Corp. | 90,753 | 3,994,947 |
| Ennis, Inc. | 56,260 | 1,166,270 |
| Exponent, Inc. | 111,352 | 10,726,538 |
| Forrester Research, Inc. * | 24,007 | 1,043,104 |
| Franklin Covey Co. * | 27,102 | 827,695 |
| GP Strategies Corp. * | 28,794 | 453,505 |
| Harsco Corp. * | 170,214 | 3,051,937 |
| Healthcare Services Group, Inc. | 161,804 | 4,846,030 |
| Heidrick & Struggles International, Inc. | 41,375 | 1,750,162 |
| Heritage-Crystal Clean, Inc. * | 34,062 | 978,261 |
| Herman Miller, Inc. | 128,156 | 5,318,474 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| HNI Corp. | 92,745 | 3,926,823 |
| Huron Consulting Group, Inc. * | 48,902 | 2,751,226 |
| ICF International, Inc. | 39,516 | 3,598,327 |
| Insperity, Inc. | 78,014 | 6,829,346 |
| Interface, Inc. | 126,408 | 1,623,079 |
| KAR Auction Services, Inc. * | 279,831 | 4,194,667 |
| KBR, Inc. | 309,080 | 12,227,205 |
| Kelly Services, Inc., Class A * | 72,538 | 1,817,077 |
| Kforce, Inc. | 43,014 | 2,410,505 |
| Kimball International, Inc., Class B | 77,463 | 1,129,411 |
| Knoll, Inc. | 108,260 | 2,587,414 |
| Korn Ferry | 116,648 | 7,919,233 |
| ManTech International Corp., Class A | 59,081 | 5,042,563 |
| Mastech Digital, Inc. * | 8,387 | 132,431 |
| Matthews International Corp., Class A | 66,983 | 2,771,757 |
| Mistras Group, Inc. * | 40,904 | 455,261 |
| Montrose Environmental Group, Inc. * | 46,339 | 2,512,037 |
| NL Industries, Inc. | 18,784 | 133,366 |
| Pitney Bowes, Inc. | 376,917 | 2,815,570 |
| Quad Graphics, Inc. * | 73,058 | 263,009 |
| Red Violet, Inc. *(a) | 15,191 | 315,973 |
| Resources Connection, Inc. | 67,607 | 953,935 |
| SP Plus Corp. * | 50,081 | 1,719,281 |
| Steelcase, Inc., Class A | 188,379 | 2,599,630 |
| Team, Inc. * | 65,162 | 643,149 |
| Tetra Tech, Inc. | 116,988 | 14,931,178 |
| The Brink's Co. | 106,858 | 8,540,091 |
| TriNet Group, Inc. * | 89,424 | 7,038,563 |
| TrueBlue, Inc. * | 76,037 | 2,151,847 |
| U.S. Ecology, Inc. * | 68,785 | 2,920,611 |
| UniFirst Corp. | 32,740 | 7,339,981 |
| Upwork, Inc. * | 201,407 | 9,276,806 |
| Viad Corp. * | 43,513 | 1,812,752 |
| Vidler Water Resouces, Inc. * | 34,905 | 315,890 |
| VSE Corp. | 22,157 | 956,075 |
| Willdan Group, Inc. * | 22,773 | 869,245 |
| | | 214,255,227 |
| |
| Consumer Durables & Apparel 4.0% |
| Acushnet Holdings Corp. | 74,517 | 3,152,814 |
| American Outdoor Brands, Inc. * | 30,359 | 784,780 |
| Beazer Homes USA, Inc. * | 61,536 | 1,372,868 |
| Callaway Golf Co. | 202,907 | 5,874,158 |
| Casper Sleep, Inc. * | 55,331 | 473,080 |
| Cavco Industries, Inc. * | 19,948 | 4,177,710 |
| Century Communities, Inc. * | 63,461 | 4,692,306 |
| Clarus Corp. | 51,684 | 961,839 |
| Crocs, Inc. * | 144,927 | 14,510,091 |
| Deckers Outdoor Corp. * | 60,742 | 20,542,944 |
| Escalade, Inc. | 22,929 | 504,897 |
| Ethan Allen Interiors, Inc. | 49,355 | 1,416,982 |
| Fossil Group, Inc. * | 102,031 | 1,316,200 |
| G-III Apparel Group Ltd. * | 95,878 | 3,115,076 |
| GoPro, Inc., Class A * | 266,077 | 2,988,045 |
| Green Brick Partners, Inc. * | 66,542 | 1,717,449 |
| Hamilton Beach Brands Holding Co., Class A | 15,673 | 305,624 |
| Helen of Troy Ltd. * | 53,067 | 11,208,281 |
| Hooker Furniture Corp. | 25,837 | 969,146 |
| Installed Building Products, Inc. | 49,628 | 6,682,410 |
| iRobot Corp. * | 59,915 | 6,518,752 |
| Johnson Outdoors, Inc., Class A | 11,337 | 1,607,700 |
| KB Home | 193,477 | 9,331,396 |
| Kontoor Brands, Inc. | 111,828 | 7,026,153 |
| La-Z-Boy, Inc. | 96,530 | 4,291,724 |
| Lakeland Industries, Inc. * | 16,673 | 470,345 |
| Legacy Housing Corp. * | 17,890 | 319,515 |
| Security | Number
of Shares | Value ($) |
| LGI Homes, Inc. * | 48,361 | 8,017,287 |
| Lifetime Brands, Inc. | 27,293 | 395,749 |
| M.D.C. Holdings, Inc. | 122,559 | 7,189,311 |
| M/I Homes, Inc. * | 60,532 | 4,220,291 |
| Malibu Boats, Inc., Class A * | 45,109 | 3,760,286 |
| Marine Products Corp. | 15,704 | 272,621 |
| MasterCraft Boat Holdings, Inc. * | 40,020 | 1,134,967 |
| Meritage Homes Corp. * | 80,728 | 8,588,652 |
| Movado Group, Inc. | 33,606 | 1,054,220 |
| Nautilus, Inc. * | 64,674 | 1,083,936 |
| Oxford Industries, Inc. | 35,687 | 3,255,725 |
| Purple Innovation, Inc. * | 70,154 | 2,390,848 |
| Rocky Brands, Inc. | 14,960 | 787,644 |
| Skyline Champion Corp. * | 114,476 | 5,086,169 |
| Smith & Wesson Brands, Inc. | 119,602 | 2,081,075 |
| Sonos, Inc. * | 261,154 | 10,453,995 |
| Steven Madden Ltd. | 178,882 | 7,275,131 |
| Sturm, Ruger & Co., Inc. | 36,825 | 2,391,415 |
| Superior Group of Cos., Inc. | 23,691 | 597,487 |
| Taylor Morrison Home Corp. * | 274,001 | 8,551,571 |
| The Lovesac Co. * | 21,441 | 1,570,982 |
| TopBuild Corp. * | 71,820 | 15,971,332 |
| Tri Pointe Homes, Inc. * | 274,148 | 6,530,205 |
| Tupperware Brands Corp. * | 106,973 | 2,606,932 |
| Unifi, Inc. * | 30,090 | 813,333 |
| Universal Electronics, Inc. * | 28,823 | 1,638,588 |
| Vera Bradley, Inc. * | 45,612 | 506,293 |
| Vista Outdoor, Inc. * | 126,398 | 4,121,839 |
| VOXX International Corp. * | 43,815 | 747,046 |
| Wolverine World Wide, Inc. | 175,340 | 7,315,185 |
| YETI Holdings, Inc. * | 173,686 | 14,836,258 |
| | | 251,578,658 |
| |
| Consumer Services 4.5% |
| Accel Entertainment, Inc. * | 109,969 | 1,425,198 |
| Adtalem Global Education, Inc. * | 109,112 | 3,743,633 |
| American Public Education, Inc. * | 31,648 | 963,998 |
| Aspen Group, Inc. * | 51,847 | 247,310 |
| Bally's Corp. * | 53,210 | 3,084,052 |
| Biglari Holdings, Inc., Class A * | 151 | 97,425 |
| Biglari Holdings, Inc., Class B * | 1,935 | 257,471 |
| BJ's Restaurants, Inc. * | 48,130 | 2,935,449 |
| Bloomin' Brands, Inc. * | 190,259 | 6,012,184 |
| Bluegreen Vacations Corp. | 11,032 | 102,377 |
| Bluegreen Vacations Holding Corp. * | 27,840 | 515,597 |
| Boyd Gaming Corp. * | 176,402 | 11,668,992 |
| Brinker International, Inc. * | 98,485 | 6,611,298 |
| Caesars Entertainment, Inc. * | 390,965 | 38,252,016 |
| Carriage Services, Inc. | 35,508 | 1,320,187 |
| Carrols Restaurant Group, Inc. * | 76,027 | 447,799 |
| Century Casinos, Inc. * | 60,276 | 792,629 |
| Churchill Downs, Inc. | 82,507 | 17,450,230 |
| Chuy's Holdings, Inc. * | 42,287 | 2,066,143 |
| Cracker Barrel Old Country Store, Inc. | 51,466 | 8,619,011 |
| Dave & Buster's Entertainment, Inc. * | 95,727 | 4,370,895 |
| Del Taco Restaurants, Inc. | 64,793 | 738,640 |
| Denny's Corp. * | 134,059 | 2,539,077 |
| Dine Brands Global, Inc. * | 33,858 | 3,272,376 |
| El Pollo Loco Holdings, Inc. * | 40,371 | 683,885 |
| Everi Holdings, Inc. * | 179,203 | 3,168,309 |
| Fiesta Restaurant Group, Inc. * | 38,977 | 574,521 |
| GAN Ltd. * | 69,823 | 1,287,536 |
| Golden Entertainment, Inc. * | 36,008 | 1,241,196 |
| Hilton Grand Vacations, Inc. * | 184,957 | 8,241,684 |
| Houghton Mifflin Harcourt Co. * | 228,409 | 2,073,954 |
| International Game Technology plc * | 216,082 | 3,720,932 |
| Jack in the Box, Inc. | 49,701 | 5,996,426 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Kura Sushi USA, Inc., Class A * | 7,069 | 254,555 |
| Laureate Education, Inc., Class A * | 234,438 | 3,223,523 |
| Lindblad Expeditions Holdings, Inc. * | 55,138 | 903,712 |
| Marriott Vacations Worldwide Corp. * | 87,904 | 15,614,388 |
| Monarch Casino & Resort, Inc. * | 27,597 | 2,081,090 |
| Nathan's Famous, Inc. | 6,326 | 401,258 |
| NEOGAMES S.A. * | 11,889 | 583,631 |
| Noodles & Co. * | 67,928 | 820,910 |
| OneSpaWorld Holdings Ltd. * | 97,176 | 1,035,410 |
| Papa John's International, Inc. | 71,116 | 6,878,340 |
| Penn National Gaming, Inc. * | 338,297 | 30,149,029 |
| Perdoceo Education Corp. * | 149,219 | 1,739,894 |
| PlayAGS, Inc. * | 59,898 | 536,087 |
| RCI Hospitality Holdings, Inc. | 18,287 | 1,331,476 |
| Red Robin Gourmet Burgers, Inc. * | 33,283 | 1,210,170 |
| Red Rock Resorts, Inc., Class A * | 143,241 | 5,246,918 |
| Regis Corp. * | 51,564 | 667,238 |
| Ruth's Hospitality Group, Inc. * | 70,074 | 1,829,632 |
| Scientific Games Corp., Class A * | 124,056 | 7,259,757 |
| SeaWorld Entertainment, Inc. * | 110,475 | 6,049,611 |
| Shake Shack, Inc., Class A * | 76,194 | 8,286,098 |
| Strategic Education, Inc. | 52,266 | 3,923,086 |
| Stride, Inc. * | 88,254 | 2,526,712 |
| Target Hospitality Corp. * | 67,155 | 187,362 |
| Texas Roadhouse, Inc. | 142,571 | 15,257,948 |
| The Cheesecake Factory, Inc. * | 92,149 | 5,767,606 |
| Universal Technical Institute, Inc. * | 69,002 | 388,481 |
| Vivint Smart Home, Inc. * | 172,613 | 2,067,904 |
| Wingstop, Inc. | 64,357 | 10,194,792 |
| WW International, Inc. * | 102,702 | 2,848,953 |
| | | 283,788,001 |
| |
| Diversified Financials 3.7% |
| A-Mark Precious Metals, Inc. | 10,596 | 394,913 |
| Alerus Financial Corp. | 31,762 | 913,158 |
| Apollo Commercial Real Estate Finance, Inc. | 305,429 | 4,645,575 |
| Arbor Realty Trust, Inc. | 249,843 | 4,417,224 |
| Ares Commercial Real Estate Corp. | 66,628 | 983,429 |
| Arlington Asset Investment Corp., Class A * | 70,121 | 287,496 |
| ARMOUR Residential REIT, Inc. | 140,425 | 1,745,483 |
| Artisan Partners Asset Management, Inc., Class A | 122,914 | 6,258,781 |
| Assetmark Financial Holdings, Inc. * | 35,152 | 791,623 |
| Associated Capital Group, Inc., Class A | 3,502 | 125,126 |
| Atlanticus Holdings Corp. * | 10,849 | 339,140 |
| B. Riley Financial, Inc. | 43,657 | 3,112,308 |
| Banco Latinoamericano de Comercio Exterior, S.A., Class E | 67,106 | 990,485 |
| BGC Partners, Inc., Class A | 672,794 | 3,565,808 |
| Blackstone Mortgage Trust, Inc., Class A | 302,200 | 9,818,478 |
| Blucora, Inc. * | 104,010 | 1,497,224 |
| Brightsphere Investment Group, Inc. | 133,737 | 3,010,420 |
| Broadmark Realty Capital, Inc. | 280,208 | 3,020,642 |
| Cannae Holdings, Inc. * | 187,067 | 7,426,560 |
| Capstead Mortgage Corp. | 208,725 | 1,352,538 |
| Cherry Hill Mortgage Investment Corp. | 34,388 | 348,007 |
| Chimera Investment Corp. | 416,637 | 5,474,610 |
| Cohen & Steers, Inc. | 53,092 | 3,611,318 |
| Colony Credit Real Estate, Inc. | 181,212 | 1,574,732 |
| Cowen, Inc., Class A | 55,371 | 2,186,601 |
| Curo Group Holdings Corp. | 39,199 | 561,330 |
| Diamond Hill Investment Group, Inc. | 6,506 | 1,112,526 |
| Donnelley Financial Solutions, Inc. * | 64,472 | 1,970,264 |
| Dynex Capital, Inc. | 55,649 | 1,124,110 |
| Ellington Financial, Inc. | 89,505 | 1,605,720 |
| Security | Number
of Shares | Value ($) |
| Ellington Residential Mortgage REIT | 19,467 | 242,169 |
| Encore Capital Group, Inc. * | 68,119 | 2,679,801 |
| Enova International, Inc. * | 75,540 | 2,586,490 |
| EZCORP, Inc., Class A * | 105,205 | 592,304 |
| Federated Hermes, Inc. | 206,759 | 5,954,659 |
| FirstCash, Inc. | 88,295 | 6,359,889 |
| Focus Financial Partners, Inc., Class A * | 83,454 | 3,927,345 |
| GAMCO Investors, Inc., Class A | 11,191 | 220,239 |
| Granite Point Mortgage Trust, Inc. | 119,754 | 1,585,543 |
| Great Ajax Corp. | 45,201 | 551,904 |
| Green Dot Corp., Class A * | 112,024 | 5,126,218 |
| Greenhill & Co., Inc. | 30,560 | 463,901 |
| GWG Holdings, Inc. * | 6,185 | 43,914 |
| Hamilton Lane, Inc., Class A | 69,663 | 6,301,018 |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 159,456 | 8,355,494 |
| Houlihan Lokey, Inc. | 112,235 | 7,437,813 |
| Invesco Mortgage Capital, Inc. | 503,100 | 1,962,090 |
| KKR Real Estate Finance Trust, Inc. | 62,350 | 1,315,585 |
| Ladder Capital Corp. REIT | 230,671 | 2,742,678 |
| LendingClub Corp. * | 152,307 | 2,344,005 |
| Marlin Business Services Corp. | 18,213 | 410,703 |
| MFA Financial, Inc. | 982,862 | 4,324,593 |
| Moelis & Co., Class A | 114,914 | 6,237,532 |
| Navient Corp. | 399,255 | 6,719,462 |
| Nelnet, Inc., Class A | 37,639 | 2,793,943 |
| New York Mortgage Trust, Inc. | 822,853 | 3,776,895 |
| Oportun Financial Corp. * | 43,682 | 948,336 |
| Oppenheimer Holdings, Inc., Class A | 20,037 | 1,025,293 |
| Orchid Island Capital, Inc. (a) | 186,620 | 1,026,410 |
| PennyMac Mortgage Investment Trust | 212,470 | 4,260,023 |
| Piper Sandler Cos. | 37,716 | 4,374,679 |
| PJT Partners, Inc., Class A | 50,499 | 3,713,191 |
| PRA Group, Inc. * | 97,894 | 3,688,646 |
| PROG Holdings, Inc. | 146,538 | 7,464,646 |
| Pzena Investment Management, Inc., Class A | 35,617 | 375,047 |
| Ready Capital Corp. | 126,184 | 1,830,930 |
| Redwood Trust, Inc. | 241,961 | 2,688,187 |
| Regional Management Corp. | 17,602 | 681,725 |
| Safeguard Scientifics, Inc. * | 43,841 | 270,061 |
| Sculptor Capital Management, Inc. | 40,427 | 919,310 |
| Siebert Financial Corp. *(a) | 25,352 | 101,662 |
| Silvercrest Asset Management Group, Inc., Class A | 20,498 | 285,127 |
| StepStone Group, Inc. | 41,932 | 1,396,336 |
| Stifel Financial Corp. | 216,812 | 15,001,222 |
| StoneX Group, Inc. * | 36,323 | 2,307,237 |
| SWK Holdings Corp. * | 7,615 | 119,441 |
| TPG RE Finance Trust, Inc. | 129,181 | 1,609,595 |
| Two Harbors Investment Corp. | 596,867 | 4,655,563 |
| Value Line, Inc. | 2,468 | 75,373 |
| Virtus Investment Partners, Inc. | 15,799 | 4,320,395 |
| Waddell & Reed Financial, Inc., Class A | 132,192 | 3,302,156 |
| Western Asset Mortgage Capital Corp. | 133,665 | 422,381 |
| Westwood Holdings Group, Inc. | 17,292 | 312,812 |
| WisdomTree Investments, Inc. | 300,390 | 2,038,146 |
| World Acceptance Corp. * | 9,540 | 1,247,260 |
| | | 229,783,006 |
| |
| Energy 2.5% |
| Adams Resources & Energy, Inc. | 4,755 | 126,007 |
| Antero Resources Corp. * | 528,266 | 4,764,959 |
| Arch Resources, Inc. * | 32,749 | 1,454,383 |
| Archrock, Inc. | 283,164 | 2,644,752 |
| Ardmore Shipping Corp. * | 70,613 | 276,803 |
| Aspen Aerogels, Inc. * | 44,909 | 818,691 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Berry Corp. | 148,692 | 908,508 |
| Bonanza Creek Energy, Inc. * | 46,017 | 1,522,703 |
| Brigham Minerals, Inc., Class A | 92,402 | 1,583,770 |
| Bristow Group, Inc. * | 13,692 | 362,290 |
| Cactus, Inc., Class A | 103,661 | 3,090,134 |
| ChampionX Corp. * | 403,782 | 8,483,460 |
| Clean Energy Fuels Corp. * | 282,275 | 3,105,025 |
| CNX Resources Corp. * | 474,043 | 6,361,657 |
| Comstock Resources, Inc. * | 50,543 | 277,481 |
| CONSOL Energy, Inc. * | 65,167 | 572,166 |
| Contango Oil & Gas Co. * | 247,059 | 924,001 |
| CVR Energy, Inc. | 64,635 | 1,376,079 |
| Delek US Holdings, Inc. | 135,952 | 3,226,141 |
| DHT Holdings, Inc. | 242,551 | 1,431,051 |
| Diamond S Shipping, Inc. * | 57,939 | 570,699 |
| DMC Global, Inc. * | 31,421 | 1,696,734 |
| Dorian LPG Ltd. * | 81,056 | 1,077,234 |
| Dril-Quip, Inc. * | 75,743 | 2,321,523 |
| Earthstone Energy, Inc., Class A * | 50,385 | 353,703 |
| Energy Fuels, Inc. *(a) | 288,994 | 1,592,357 |
| Evolution Petroleum Corp. | 66,219 | 219,185 |
| Exterran Corp. * | 58,438 | 191,677 |
| Falcon Minerals Corp. | 84,378 | 374,638 |
| Frank's International N.V. * | 340,403 | 1,106,310 |
| Frontline Ltd. (a) | 258,338 | 1,973,702 |
| Golar LNG Ltd. * | 221,092 | 2,538,136 |
| Goodrich Petroleum Corp. * | 21,834 | 219,432 |
| Green Plains, Inc. * | 73,601 | 2,193,310 |
| Helix Energy Solutions Group, Inc. * | 310,285 | 1,331,123 |
| International Seaways, Inc. | 51,785 | 915,559 |
| Kosmos Energy Ltd. * | 880,585 | 2,518,473 |
| Liberty Oilfield Services, Inc., Class A * | 179,537 | 2,100,583 |
| Magnolia Oil & Gas Corp., Class A * | 269,860 | 3,038,624 |
| Matador Resources Co. | 239,772 | 6,308,401 |
| Nabors Industries Ltd. * | 15,379 | 1,243,392 |
| NACCO Industries, Inc., Class A | 7,792 | 180,229 |
| National Energy Services Reunited Corp. * | 44,432 | 563,842 |
| Newpark Resources, Inc. * | 196,243 | 557,330 |
| NextDecade Corp. * | 45,447 | 100,438 |
| NexTier Oilfield Solutions, Inc. * | 350,697 | 1,259,002 |
| Nordic American Tankers Ltd. | 316,597 | 1,047,936 |
| Oceaneering International, Inc. * | 214,365 | 2,304,424 |
| Oil States International, Inc. * | 131,977 | 740,391 |
| Overseas Shipholding Group, Inc., Class A * | 146,591 | 323,966 |
| Ovintiv, Inc. | 568,509 | 13,604,420 |
| Par Pacific Holdings, Inc. * | 86,652 | 1,316,244 |
| Patterson-UTI Energy, Inc. | 395,220 | 2,671,687 |
| PBF Energy, Inc., Class A * | 210,255 | 2,981,416 |
| PDC Energy, Inc. * | 216,710 | 7,912,082 |
| Peabody Energy Corp. * | 135,967 | 503,078 |
| Penn Virginia Corp. * | 32,611 | 444,488 |
| PrimeEnergy Resources Corp. * | 1,079 | 45,609 |
| ProPetro Holding Corp. * | 172,961 | 1,665,614 |
| Range Resources Corp. * | 463,494 | 4,551,511 |
| Renewable Energy Group, Inc. * | 93,869 | 5,211,607 |
| REX American Resources Corp. * | 11,817 | 953,986 |
| RPC, Inc. * | 124,658 | 605,838 |
| Scorpio Tankers, Inc. | 109,511 | 1,986,530 |
| Select Energy Services, Inc., Class A * | 126,573 | 611,348 |
| SFL Corp., Ltd. | 206,635 | 1,603,488 |
| SM Energy Co. | 247,076 | 3,903,801 |
| Solaris Oilfield Infrastructure, Inc., Class A | 62,053 | 678,860 |
| Southwestern Energy Co. * | 1,406,673 | 6,006,494 |
| Talos Energy, Inc. * | 29,317 | 328,057 |
| Tellurian, Inc. * | 359,900 | 797,178 |
| Tidewater, Inc. * | 88,182 | 1,081,111 |
| Transocean Ltd. * | 1,265,912 | 4,076,237 |
| Security | Number
of Shares | Value ($) |
| Uranium Energy Corp. * | 420,497 | 1,219,441 |
| US Silica Holdings, Inc. * | 159,702 | 1,700,826 |
| W&T Offshore, Inc. * | 204,649 | 673,295 |
| Whiting Petroleum Corp. * | 2,611 | 104,623 |
| World Fuel Services Corp. | 135,990 | 4,206,171 |
| | | 155,717,454 |
| |
| Food & Staples Retailing 0.8% |
| BJ's Wholesale Club Holdings, Inc. * | 297,454 | 13,287,270 |
| HF Foods Group, Inc. * | 77,262 | 481,342 |
| Ingles Markets, Inc., Class A | 30,893 | 1,893,432 |
| Natural Grocers by Vitamin Cottage, Inc. | 19,294 | 303,302 |
| Performance Food Group Co. * | 284,514 | 16,700,972 |
| PriceSmart, Inc. | 49,251 | 4,139,054 |
| Rite Aid Corp. * | 118,187 | 2,070,636 |
| SpartanNash, Co. | 76,696 | 1,485,602 |
| The Andersons, Inc. | 67,999 | 1,952,931 |
| The Chefs' Warehouse, Inc. * | 65,381 | 2,107,230 |
| United Natural Foods, Inc. * | 121,274 | 4,470,160 |
| Village Super Market, Inc., Class A | 18,142 | 442,302 |
| Weis Markets, Inc. | 21,044 | 1,091,131 |
| | | 50,425,364 |
| |
| Food, Beverage & Tobacco 1.8% |
| Alico, Inc. | 11,041 | 330,899 |
| B&G Foods, Inc. (a) | 138,641 | 4,045,544 |
| Bridgford Foods Corp. * | 3,608 | 51,378 |
| Cal-Maine Foods, Inc. | 80,661 | 3,013,495 |
| Calavo Growers, Inc. | 35,944 | 2,808,305 |
| Celsius Holdings, Inc. * | 77,954 | 4,466,764 |
| Coca-Cola Consolidated, Inc. | 10,245 | 3,004,346 |
| Darling Ingredients, Inc. * | 349,289 | 24,258,121 |
| Farmer Brothers Co. * | 34,576 | 352,675 |
| Fresh Del Monte Produce, Inc. | 67,952 | 1,916,246 |
| Freshpet, Inc. * | 88,453 | 16,347,884 |
| Hostess Brands, Inc. * | 271,655 | 4,153,605 |
| J&J Snack Foods Corp. | 32,577 | 5,362,500 |
| John B. Sanfilippo & Son, Inc. | 18,797 | 1,652,256 |
| Laird Superfood, Inc. *(a) | 6,491 | 236,986 |
| Lancaster Colony Corp. | 41,131 | 7,597,307 |
| Landec Corp. * | 57,287 | 648,489 |
| Limoneira Co. | 32,460 | 586,228 |
| MGP Ingredients, Inc. | 28,182 | 1,693,738 |
| Mission Produce, Inc. * | 16,635 | 336,027 |
| National Beverage Corp. | 50,999 | 2,478,041 |
| NewAge, Inc. * | 200,205 | 438,449 |
| Primo Water Corp. | 339,357 | 5,680,836 |
| Sanderson Farms, Inc. | 43,761 | 7,199,997 |
| Seneca Foods Corp., Class A * | 14,345 | 660,731 |
| The Simply Good Foods Co. * | 184,989 | 6,391,370 |
| Tootsie Roll Industries, Inc. | 35,123 | 1,108,833 |
| Turning Point Brands, Inc. | 25,852 | 1,262,095 |
| Universal Corp. | 52,549 | 2,954,830 |
| Vector Group Ltd. | 302,692 | 3,950,131 |
| Vital Farms, Inc. * | 52,274 | 1,271,304 |
| | | 116,259,410 |
| |
| Health Care Equipment & Services 7.2% |
| 1Life Healthcare, Inc. * | 170,753 | 7,429,463 |
| Accelerate Diagnostics, Inc. *(a) | 71,070 | 519,522 |
| Accolade, Inc. * | 69,614 | 3,491,142 |
| Accuray, Inc. * | 199,702 | 938,599 |
| Acutus Medical, Inc. * | 30,711 | 419,205 |
| AdaptHealth Corp. * | 163,534 | 4,752,298 |
| Addus HomeCare Corp. * | 32,261 | 3,413,214 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Allscripts Healthcare Solutions, Inc. * | 341,528 | 5,314,176 |
| Alphatec Holdings, Inc. * | 120,258 | 1,922,925 |
| AMN Healthcare Services, Inc. * | 101,319 | 8,034,597 |
| AngioDynamics, Inc. * | 79,578 | 1,933,745 |
| Apollo Medical Holdings, Inc. * | 43,626 | 1,295,256 |
| Apria, Inc. * | 16,149 | 483,663 |
| Apyx Medical Corp. * | 71,644 | 725,754 |
| Aspira Women's Health, Inc. *(a) | 186,963 | 1,069,428 |
| AtriCure, Inc. * | 95,005 | 7,322,035 |
| Atrion Corp. | 3,043 | 1,943,260 |
| Avalon GloboCare Corp. *(a) | 44,971 | 45,870 |
| Avanos Medical, Inc. * | 103,082 | 4,454,173 |
| AxoGen, Inc. * | 81,051 | 1,517,275 |
| Axonics, Inc. * | 65,582 | 4,127,075 |
| Bellerophon Therapeutics, Inc. *(a) | 9,386 | 41,205 |
| Beyond Air, Inc. *(a) | 35,111 | 215,582 |
| Biodesix, Inc. *(a) | 6,260 | 102,414 |
| BioLife Solutions, Inc. * | 30,621 | 1,068,673 |
| BioSig Technologies, Inc. *(a) | 56,668 | 193,805 |
| Bioventus, Inc., Class A * | 16,373 | 235,771 |
| Brookdale Senior Living, Inc. * | 401,290 | 2,624,437 |
| Cantel Medical Corp. * | 82,391 | 7,242,993 |
| Cardiovascular Systems, Inc. * | 85,444 | 3,445,102 |
| Castle Biosciences, Inc. * | 31,474 | 2,172,650 |
| Cerus Corp. * | 354,996 | 2,165,476 |
| Chembio Diagnostics, Inc. *(a) | 41,983 | 167,512 |
| Co-Diagnostics, Inc. *(a) | 57,263 | 507,350 |
| Community Health Systems, Inc. * | 183,671 | 2,047,932 |
| Computer Programs & Systems, Inc. | 27,640 | 829,753 |
| CONMED Corp. | 59,010 | 8,317,459 |
| CorVel Corp. * | 19,175 | 2,243,667 |
| Covetrus, Inc. * | 252,401 | 7,231,289 |
| Cross Country Healthcare, Inc. * | 77,977 | 1,038,654 |
| CryoLife, Inc. * | 81,689 | 2,383,685 |
| CryoPort, Inc. * | 86,433 | 4,889,515 |
| Cutera, Inc. * | 37,242 | 1,118,377 |
| CytoSorbents Corp. * | 88,398 | 817,681 |
| Eargo, Inc. * | 17,843 | 1,021,333 |
| Electromed, Inc. * | 14,954 | 146,101 |
| Enzo Biochem, Inc. * | 92,538 | 284,092 |
| Evolent Health, Inc., Class A * | 164,053 | 3,553,388 |
| Exagen, Inc. * | 10,253 | 172,866 |
| Five Star Senior Living, Inc. * | 40,592 | 211,484 |
| FONAR Corp. * | 14,264 | 244,628 |
| Fulgent Genetics, Inc. * | 29,569 | 2,277,404 |
| Glaukos Corp. * | 92,741 | 8,732,493 |
| Hanger, Inc. * | 80,412 | 2,004,671 |
| Health Catalyst, Inc. * | 73,141 | 4,234,864 |
| HealthEquity, Inc. * | 174,291 | 13,240,887 |
| HealthStream, Inc. * | 56,089 | 1,355,110 |
| Heska Corp. * | 15,030 | 2,745,229 |
| ICAD, Inc. * | 43,349 | 782,016 |
| Inari Medical, Inc. * | 35,897 | 4,102,668 |
| InfuSystem Holdings, Inc. * | 32,566 | 736,643 |
| Inogen, Inc. * | 39,877 | 2,607,557 |
| Inovalon Holdings, Inc., Class A * | 162,539 | 4,910,303 |
| Inspire Medical Systems, Inc. * | 56,841 | 13,461,086 |
| Integer Holdings Corp. * | 71,131 | 6,677,778 |
| Intersect ENT, Inc. * | 70,217 | 1,531,433 |
| IntriCon Corp. * | 18,287 | 422,978 |
| Invacare Corp. * | 74,622 | 673,837 |
| iRadimed Corp. * | 12,445 | 344,602 |
| iRhythm Technologies, Inc. * | 62,878 | 4,895,681 |
| Lantheus Holdings, Inc. * | 144,460 | 3,423,702 |
| LeMaitre Vascular, Inc. | 36,056 | 1,891,858 |
| LENSAR, Inc. * | 14,647 | 101,211 |
| LHC Group, Inc. * | 65,907 | 13,726,451 |
| LivaNova plc * | 106,116 | 9,006,065 |
| Security | Number
of Shares | Value ($) |
| Lucira Health, Inc. *(a) | 22,278 | 139,460 |
| Magellan Health, Inc. * | 52,737 | 4,967,825 |
| MEDNAX, Inc. * | 161,540 | 4,251,733 |
| Meridian Bioscience, Inc. * | 91,350 | 1,788,633 |
| Merit Medical Systems, Inc. * | 117,645 | 7,482,222 |
| Mesa Laboratories, Inc. | 10,234 | 2,544,684 |
| Milestone Scientific, Inc. * | 101,576 | 255,972 |
| Misonix, Inc. * | 26,613 | 494,203 |
| ModivCare, Inc. * | 26,211 | 3,671,637 |
| NantHealth, Inc. * | 58,065 | 147,485 |
| National HealthCare Corp. | 27,077 | 1,903,784 |
| National Research Corp. | 29,859 | 1,531,767 |
| Natus Medical, Inc. * | 72,917 | 1,863,029 |
| Nemaura Medical, Inc. *(a) | 14,458 | 69,398 |
| Neogen Corp. * | 114,514 | 10,994,489 |
| Nevro Corp. * | 73,847 | 12,761,500 |
| NextGen Healthcare, Inc. * | 120,598 | 2,208,149 |
| NuVasive, Inc. * | 111,607 | 7,974,320 |
| Omnicell, Inc. * | 92,205 | 13,371,569 |
| Ontrak, Inc. *(a) | 16,994 | 554,684 |
| OptimizeRx Corp. * | 35,355 | 1,784,013 |
| Option Care Health, Inc. * | 186,061 | 3,550,044 |
| OraSure Technologies, Inc. * | 154,172 | 1,410,674 |
| Ortho Clinical Diagnostics Holdings plc * | 191,632 | 3,773,234 |
| Orthofix Medical, Inc. * | 40,386 | 1,791,119 |
| OrthoPediatrics Corp. * | 28,338 | 1,657,773 |
| Outset Medical, Inc. * | 22,615 | 1,355,091 |
| Owens & Minor, Inc. | 157,843 | 5,696,554 |
| Patterson Cos., Inc. | 184,308 | 5,923,659 |
| PAVmed, Inc. *(a) | 133,001 | 607,815 |
| PetIQ, Inc. * | 46,205 | 1,968,333 |
| Phreesia, Inc. * | 72,964 | 3,775,887 |
| Progenity, Inc. *(a) | 37,975 | 120,001 |
| Progyny, Inc. * | 58,151 | 3,309,373 |
| Pulmonx Corp. * | 25,380 | 1,193,114 |
| Pulse Biosciences, Inc. * | 30,312 | 583,809 |
| Quotient Ltd. * | 155,802 | 610,744 |
| R1 RCM, Inc. * | 235,520 | 6,424,986 |
| RadNet, Inc. * | 94,038 | 2,100,809 |
| Repro-Med Systems, Inc. * | 55,928 | 210,849 |
| Retractable Technologies, Inc. * | 28,557 | 277,288 |
| Rockwell Medical, Inc. * | 148,170 | 142,925 |
| Schrodinger, Inc. * | 65,530 | 4,996,007 |
| SeaSpine Holdings Corp. * | 58,152 | 1,210,143 |
| Select Medical Holdings Corp. * | 235,821 | 8,895,168 |
| Sharps Compliance Corp. * | 30,750 | 537,818 |
| Shockwave Medical, Inc. * | 61,777 | 10,098,068 |
| SI-BONE, Inc. * | 63,172 | 2,242,606 |
| Sientra, Inc. * | 110,454 | 757,714 |
| Silk Road Medical, Inc. * | 59,393 | 3,631,288 |
| Simulations Plus, Inc. | 32,855 | 2,074,465 |
| Soliton, Inc. *(a) | 15,611 | 279,593 |
| STAAR Surgical Co. * | 99,477 | 13,629,344 |
| Stereotaxis, Inc. * | 95,096 | 684,691 |
| Surgalign Holdings, Inc. * | 211,626 | 383,043 |
| Surgery Partners, Inc. * | 55,846 | 2,691,777 |
| Surmodics, Inc. * | 29,267 | 1,565,492 |
| Tabula Rasa HealthCare, Inc. * | 46,192 | 2,196,892 |
| Tactile Systems Technology, Inc. * | 39,696 | 2,274,581 |
| Talis Biomedical Corp. *(a) | 28,221 | 338,652 |
| Tela Bio, Inc. * | 14,201 | 194,270 |
| Tenet Healthcare Corp. * | 226,871 | 13,444,375 |
| The Ensign Group, Inc. | 112,232 | 9,635,117 |
| The Joint Corp. * | 29,061 | 1,612,304 |
| The Pennant Group, Inc. * | 55,036 | 2,224,555 |
| Tivity Health, Inc. * | 93,788 | 2,267,794 |
| TransMedics Group, Inc. * | 54,287 | 1,558,580 |
| Triple-S Management Corp., Class B * | 49,453 | 1,172,531 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| U.S. Physical Therapy, Inc. | 27,602 | 3,103,845 |
| Utah Medical Products, Inc. | 7,425 | 647,905 |
| Vapotherm, Inc. * | 42,060 | 925,320 |
| Varex Imaging Corp. * | 82,785 | 1,965,316 |
| Venus Concept, Inc. *(a) | 54,022 | 102,642 |
| Viemed Healthcare, Inc. * | 74,966 | 754,158 |
| ViewRay, Inc. * | 264,127 | 1,270,451 |
| Vocera Communications, Inc. * | 70,066 | 2,534,287 |
| VolitionRX Ltd. *(a) | 64,947 | 217,572 |
| Zynex, Inc. *(a) | 40,247 | 594,448 |
| | | 451,731,525 |
| |
| Household & Personal Products 0.6% |
| BellRing Brands, Inc., Class A * | 86,892 | 2,240,945 |
| Central Garden & Pet Co. * | 20,944 | 1,133,908 |
| Central Garden & Pet Co., Class A * | 86,993 | 4,286,145 |
| Edgewell Personal Care Co. | 117,962 | 4,506,148 |
| elf Beauty, Inc. * | 99,348 | 3,005,277 |
| Inter Parfums, Inc. | 38,755 | 2,852,368 |
| Lifevantage Corp. * | 28,113 | 228,559 |
| Medifast, Inc. | 24,540 | 5,572,789 |
| Nature's Sunshine Products, Inc. | 19,778 | 411,580 |
| Oil-Dri Corp. of America | 11,364 | 396,944 |
| Revlon, Inc., Class A *(a) | 14,442 | 171,427 |
| USANA Health Sciences, Inc. * | 25,205 | 2,268,198 |
| Veru, Inc. * | 120,011 | 1,060,897 |
| WD-40 Co. | 29,614 | 7,366,186 |
| | | 35,501,371 |
| |
| Insurance 1.9% |
| Ambac Financial Group, Inc. * | 98,164 | 1,683,513 |
| American Equity Investment Life Holding Co. | 196,862 | 6,098,785 |
| AMERISAFE, Inc. | 41,356 | 2,567,380 |
| Argo Group International Holdings Ltd. | 70,500 | 3,678,690 |
| BRP Group, Inc., Class A * | 92,577 | 2,686,585 |
| Citizens, Inc. * | 109,504 | 639,503 |
| CNO Financial Group, Inc. | 293,026 | 7,480,954 |
| Crawford & Co., Class A | 34,321 | 360,027 |
| Donegal Group, Inc., Class A | 23,768 | 366,740 |
| eHealth, Inc. * | 55,871 | 3,952,315 |
| Employers Holdings, Inc. | 62,714 | 2,538,663 |
| Enstar Group Ltd. * | 26,168 | 6,572,878 |
| FBL Financial Group, Inc., Class A | 20,958 | 1,188,109 |
| FedNat Holding Co. | 26,577 | 135,277 |
| Genworth Financial, Inc., Class A * | 1,093,938 | 4,725,812 |
| Goosehead Insurance, Inc., Class A | 28,684 | 3,153,519 |
| Greenlight Capital Re Ltd., Class A * | 57,682 | 532,405 |
| HCI Group, Inc. | 13,674 | 1,003,945 |
| Heritage Insurance Holdings, Inc. | 55,133 | 502,262 |
| Horace Mann Educators Corp. | 89,907 | 3,605,271 |
| Independence Holding Co. | 9,712 | 427,328 |
| Investors Title Co. | 2,770 | 488,711 |
| James River Group Holdings Ltd. | 65,064 | 3,065,165 |
| Kinsale Capital Group, Inc. | 45,929 | 7,992,105 |
| MBIA, Inc. * | 108,065 | 1,082,811 |
| Midwest Holding, Inc. * | 2,049 | 98,393 |
| National Western Life Group, Inc., Class A | 5,620 | 1,288,666 |
| NI Holdings, Inc. * | 19,067 | 365,133 |
| Palomar Holdings, Inc. * | 44,087 | 3,101,961 |
| ProAssurance Corp. | 116,748 | 2,918,700 |
| ProSight Global, Inc. * | 21,014 | 267,298 |
| Protective Insurance Corp., Class B | 19,116 | 439,668 |
| RLI Corp. | 85,827 | 9,566,277 |
| Safety Insurance Group, Inc. | 30,838 | 2,529,641 |
| Selective Insurance Group, Inc. | 128,218 | 9,762,518 |
| Security | Number
of Shares | Value ($) |
| Selectquote, Inc. * | 283,745 | 8,832,982 |
| SiriusPoint Ltd. * | 183,239 | 1,938,669 |
| State Auto Financial Corp. | 38,965 | 735,659 |
| Stewart Information Services Corp. | 57,314 | 3,361,466 |
| Tiptree, Inc. | 54,132 | 541,861 |
| Trean Insurance Group, Inc. * | 24,794 | 433,647 |
| Trupanion, Inc. * | 65,557 | 5,316,673 |
| United Fire Group, Inc. | 45,624 | 1,380,582 |
| United Insurance Holdings Corp. | 46,554 | 260,237 |
| Universal Insurance Holdings, Inc. | 58,948 | 822,325 |
| Vericity, Inc. * | 3,971 | 44,118 |
| Watford Holdings Ltd. * | 37,194 | 1,296,583 |
| | | 121,831,810 |
| |
| Materials 4.4% |
| Advanced Emissions Solutions, Inc. * | 34,706 | 163,118 |
| AdvanSix, Inc. * | 59,312 | 1,724,793 |
| AgroFresh Solutions, Inc. * | 63,989 | 135,657 |
| Alcoa Corp. * | 406,709 | 14,901,818 |
| Allegheny Technologies, Inc. * | 275,807 | 6,415,271 |
| American Vanguard Corp. | 62,513 | 1,236,507 |
| Amyris, Inc. * | 231,554 | 3,371,426 |
| Arconic Corp. * | 216,264 | 6,185,150 |
| Avient Corp. | 198,427 | 10,074,139 |
| Balchem Corp. | 69,817 | 8,880,024 |
| Caledonia Mining Corp. plc | 24,601 | 342,200 |
| Carpenter Technology Corp. | 103,192 | 3,907,881 |
| Century Aluminum Co. * | 109,639 | 1,716,947 |
| Chase Corp. | 15,927 | 1,886,394 |
| Clearwater Paper Corp. * | 34,881 | 1,167,118 |
| Cleveland-Cliffs, Inc. * | 974,935 | 17,412,339 |
| Coeur Mining, Inc. * | 524,227 | 4,235,754 |
| Commercial Metals Co. | 258,157 | 7,543,348 |
| Compass Minerals International, Inc. | 74,378 | 5,051,754 |
| Domtar Corp. * | 119,760 | 4,720,939 |
| Ferro Corp. * | 178,311 | 2,970,661 |
| Ferroglobe Representation and Warranty Insurance Trust *(b) | 108,500 | — |
| Forterra, Inc. * | 63,179 | 1,482,179 |
| FutureFuel Corp. | 57,251 | 727,088 |
| Gatos Silver, Inc. * | 51,183 | 587,581 |
| GCP Applied Technologies, Inc. * | 105,508 | 2,710,501 |
| Glatfelter Corp. | 94,486 | 1,390,834 |
| Gold Resource Corp. | 143,162 | 385,106 |
| Greif, Inc., Class A | 56,023 | 3,389,952 |
| Greif, Inc., Class B | 12,740 | 761,979 |
| H.B. Fuller Co. | 112,953 | 7,547,519 |
| Hawkins, Inc. | 42,238 | 1,408,637 |
| Haynes International, Inc. | 26,653 | 779,334 |
| Hecla Mining Co. | 1,133,528 | 6,699,151 |
| Ingevity Corp. * | 90,229 | 7,045,080 |
| Innospec, Inc. | 53,262 | 5,188,251 |
| Intrepid Potash, Inc. * | 20,463 | 658,090 |
| Kaiser Aluminum Corp. | 34,157 | 4,114,894 |
| Koppers Holdings, Inc. * | 44,338 | 1,473,795 |
| Kraton Corp. * | 67,380 | 2,409,509 |
| Kronos Worldwide, Inc. | 47,916 | 814,572 |
| Livent Corp. * | 319,049 | 5,749,263 |
| Louisiana-Pacific Corp. | 238,392 | 15,705,265 |
| Marrone Bio Innovations, Inc. * | 144,843 | 244,785 |
| Materion Corp. | 44,246 | 3,133,059 |
| Minerals Technologies, Inc. | 74,046 | 5,785,954 |
| Myers Industries, Inc. | 77,319 | 1,744,317 |
| Neenah, Inc. | 36,702 | 1,951,445 |
| Novagold Resources, Inc. * | 514,924 | 4,629,167 |
| O-I Glass, Inc. * | 340,952 | 5,622,298 |
| Olympic Steel, Inc. | 19,559 | 568,189 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Orion Engineered Carbons S.A. * | 130,082 | 2,583,429 |
| Pactiv Evergreen, Inc. | 86,576 | 1,274,399 |
| PQ Group Holdings, Inc. | 83,714 | 1,171,996 |
| Quaker Chemical Corp. | 28,863 | 6,994,948 |
| Ranpak Holdings Corp. * | 61,992 | 1,192,106 |
| Rayonier Advanced Materials, Inc. * | 135,542 | 1,232,077 |
| Ryerson Holding Corp. * | 33,866 | 537,792 |
| Schnitzer Steel Industries, Inc., Class A | 57,000 | 2,690,970 |
| Schweitzer-Mauduit International, Inc. | 67,622 | 3,088,297 |
| Sensient Technologies Corp. | 92,055 | 7,570,603 |
| Stepan Co. | 46,800 | 6,114,888 |
| Summit Materials, Inc., Class A * | 248,882 | 7,165,313 |
| SunCoke Energy, Inc. | 182,655 | 1,232,921 |
| TimkenSteel Corp. * | 97,139 | 1,167,611 |
| Trecora Resources * | 52,180 | 396,046 |
| Tredegar Corp. | 56,465 | 825,518 |
| Trinseo S.A. | 83,103 | 5,144,907 |
| Tronox Holdings plc, Class A | 251,748 | 5,337,058 |
| UFP Technologies, Inc. * | 14,880 | 744,893 |
| United States Lime & Minerals, Inc. | 4,273 | 590,443 |
| United States Steel Corp. | 566,539 | 13,036,062 |
| US Concrete, Inc. * | 34,869 | 2,211,043 |
| Verso Corp., Class A | 67,254 | 1,038,402 |
| Warrior Met Coal, Inc. | 112,523 | 1,783,490 |
| Worthington Industries, Inc. | 75,990 | 4,959,107 |
| | | 278,835,351 |
| |
| Media & Entertainment 1.7% |
| AMC Entertainment Holdings, Inc., Class A *(a) | 823,090 | 8,255,593 |
| AMC Networks, Inc., Class A * | 61,772 | 3,105,896 |
| Boston Omaha Corp., Class A * | 29,117 | 815,858 |
| Cardlytics, Inc. * | 64,851 | 8,918,958 |
| Cargurus, Inc. * | 190,072 | 4,690,977 |
| Cars.com, Inc. * | 145,405 | 1,920,800 |
| Cinemark Holdings, Inc. * | 232,800 | 4,935,360 |
| comScore, Inc. * | 133,799 | 493,718 |
| Daily Journal Corp. * | 2,591 | 790,747 |
| DHI Group, Inc. * | 108,747 | 317,541 |
| Emerald Holding, Inc. * | 53,276 | 298,878 |
| Entercom Communications Corp. * | 255,984 | 1,238,963 |
| Entravision Communications Corp., Class A | 124,684 | 480,033 |
| Eros STX Global Corp. * | 352,577 | 458,350 |
| Eventbrite, Inc., Class A * | 139,805 | 3,295,204 |
| EverQuote, Inc., Class A * | 30,365 | 1,028,463 |
| Fluent, Inc. * | 88,752 | 330,157 |
| Gaia, Inc. * | 25,331 | 266,989 |
| Gannett Co., Inc. * | 286,135 | 1,299,053 |
| Gray Television, Inc. | 188,581 | 3,831,966 |
| Hemisphere Media Group, Inc. * | 34,931 | 426,857 |
| iHeartMedia, Inc., Class A * | 132,003 | 2,526,537 |
| IMAX Corp. * | 106,938 | 2,205,062 |
| Liberty Media Corp. - Liberty Braves, Class A * | 21,816 | 610,630 |
| Liberty Media Corp. - Liberty Braves, Class C * | 78,840 | 2,183,080 |
| Liberty TripAdvisor Holdings, Inc., Class A * | 156,320 | 790,979 |
| LiveXLive Media, Inc. * | 109,827 | 471,158 |
| Loral Space & Communications, Inc. | 28,300 | 1,135,679 |
| Magnite, Inc. * | 240,010 | 9,612,400 |
| MediaAlpha, Inc. * | 38,854 | 1,719,289 |
| Meredith Corp. * | 86,548 | 2,691,643 |
| MSG Networks, Inc., Class A * | 66,273 | 1,051,753 |
| National CineMedia, Inc. | 135,081 | 576,796 |
| Security | Number
of Shares | Value ($) |
| QuinStreet, Inc. * | 104,271 | 2,113,573 |
| Saga Communications, Inc., Class A * | 8,051 | 181,389 |
| Scholastic Corp. | 62,723 | 1,902,389 |
| Sinclair Broadcast Group, Inc., Class A | 96,140 | 3,121,666 |
| TechTarget, Inc. * | 51,624 | 3,959,561 |
| TEGNA, Inc. | 476,215 | 9,552,873 |
| The E.W. Scripps Co., Class A | 121,075 | 2,617,641 |
| The Marcus Corp. * | 48,986 | 977,761 |
| Tribune Publishing Co. * | 33,939 | 591,896 |
| TrueCar, Inc. * | 220,561 | 1,014,581 |
| WideOpenWest, Inc. * | 113,850 | 1,601,869 |
| Yelp, Inc. * | 156,708 | 6,158,624 |
| | | 106,569,190 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 12.0% |
| 4D Molecular Therapeutics, Inc. * | 16,607 | 642,691 |
| 89bio, Inc. * | 18,253 | 479,871 |
| Abeona Therapeutics, Inc. * | 128,511 | 227,464 |
| AcelRx Pharmaceuticals, Inc. *(a) | 213,639 | 277,731 |
| ADMA Biologics, Inc. *(a) | 145,274 | 284,737 |
| Adverum Biotechnologies, Inc. * | 192,918 | 752,380 |
| Aeglea BioTherapeutics, Inc. * | 98,068 | 762,969 |
| Aerie Pharmaceuticals, Inc. * | 79,380 | 1,359,779 |
| Affimed N.V. * | 244,565 | 2,614,400 |
| Agenus, Inc. * | 336,945 | 1,041,160 |
| Agile Therapeutics, Inc. *(a) | 149,341 | 276,281 |
| Akebia Therapeutics, Inc. * | 314,839 | 1,004,336 |
| Akero Therapeutics, Inc. * | 29,038 | 894,370 |
| Akouos, Inc. * | 52,238 | 742,824 |
| Albireo Pharma, Inc. * | 37,211 | 1,194,473 |
| Alector, Inc. * | 99,972 | 1,949,454 |
| Aligos Therapeutics, Inc. * | 23,285 | 598,890 |
| Allakos, Inc. * | 57,041 | 6,224,314 |
| Allogene Therapeutics, Inc. * | 117,163 | 3,622,680 |
| Allovir, Inc. * | 64,449 | 1,522,930 |
| ALX Oncology Holdings, Inc. * | 38,101 | 2,387,409 |
| Amicus Therapeutics, Inc. * | 557,155 | 5,482,405 |
| Amneal Pharmaceuticals, Inc. * | 216,691 | 1,193,967 |
| Amphastar Pharmaceuticals, Inc. * | 78,186 | 1,360,436 |
| AnaptysBio, Inc. * | 46,601 | 1,088,133 |
| Anavex Life Sciences Corp. *(a) | 126,504 | 1,528,168 |
| Angion Biomedica Corp. * | 12,375 | 174,859 |
| ANI Pharmaceuticals, Inc. * | 20,646 | 687,099 |
| Anika Therapeutics, Inc. * | 30,248 | 1,215,365 |
| Annexon, Inc. * | 58,207 | 1,160,066 |
| Antares Pharma, Inc. * | 355,896 | 1,348,846 |
| Apellis Pharmaceuticals, Inc. * | 130,065 | 6,590,394 |
| Applied Genetic Technologies Corp. * | 91,310 | 386,241 |
| Applied Molecular Transport, Inc. * | 48,437 | 2,784,643 |
| Applied Therapeutics, Inc. * | 33,035 | 611,808 |
| Aprea Therapeutics, Inc. * | 14,777 | 69,304 |
| Aptinyx, Inc. * | 71,316 | 191,127 |
| Aquestive Therapeutics, Inc. *(a) | 40,688 | 165,600 |
| Aravive, Inc. * | 26,214 | 137,624 |
| Arcturus Therapeutics Holdings, Inc. * | 43,706 | 1,602,262 |
| Arcus Biosciences, Inc. * | 91,868 | 3,100,545 |
| Arcutis Biotherapeutics, Inc. * | 50,401 | 1,688,433 |
| Ardelyx, Inc. * | 162,547 | 1,188,219 |
| Arena Pharmaceuticals, Inc. * | 126,400 | 8,674,832 |
| Arrowhead Pharmaceuticals, Inc. * | 222,286 | 16,173,529 |
| Arvinas, Inc. * | 78,323 | 5,399,588 |
| Assembly Biosciences, Inc. * | 63,817 | 273,137 |
| Atara Biotherapeutics, Inc. * | 173,086 | 2,433,589 |
| Atea Pharmaceuticals, Inc. * | 31,490 | 778,118 |
| Athenex, Inc. * | 152,753 | 612,540 |
| Athersys, Inc. * | 368,298 | 615,058 |
| Athira Pharma, Inc. * | 29,741 | 585,303 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Atreca, Inc. Class A * | 61,829 | 738,238 |
| Avenue Therapeutics, Inc. * | 14,314 | 73,288 |
| AVEO Pharmaceuticals, Inc. * | 46,292 | 326,359 |
| Avid Bioservices, Inc. * | 130,504 | 2,793,438 |
| Avidity Biosciences, Inc. * | 66,476 | 1,558,197 |
| Avrobio, Inc. * | 78,514 | 917,044 |
| Axcella Health, Inc. * | 31,128 | 128,870 |
| Axsome Therapeutics, Inc. * | 60,291 | 3,645,194 |
| Aytu BioPharma, Inc. *(a) | 46,536 | 308,068 |
| Aziyo Biologics, Inc. * | 4,654 | 45,470 |
| Beam Therapeutics, Inc. * | 86,649 | 7,105,218 |
| Beyondspring, Inc. * | 40,546 | 437,491 |
| BioAtla, Inc. * | 25,297 | 1,254,478 |
| BioCryst Pharmaceuticals, Inc. * | 383,084 | 4,457,182 |
| BioDelivery Sciences International, Inc. * | 194,410 | 672,659 |
| Biohaven Pharmaceutical Holding Co., Ltd. * | 104,532 | 7,850,353 |
| Bioxcel Therapeutics, Inc. * | 27,991 | 950,854 |
| Black Diamond Therapeutics, Inc. * | 39,729 | 1,058,381 |
| Blueprint Medicines Corp. * | 120,163 | 11,574,100 |
| Bolt Biotherapeutics, Inc. * | 27,064 | 605,151 |
| BrainStorm Cell Therapeutics, Inc. *(a) | 66,828 | 231,893 |
| Bridgebio Pharma, Inc. * | 204,330 | 11,426,134 |
| C4 Therapeutics, Inc. * | 23,045 | 762,790 |
| Cabaletta Bio, Inc. * | 27,690 | 308,190 |
| Calithera Biosciences, Inc. * | 145,690 | 316,147 |
| Calyxt, Inc. * | 23,499 | 117,025 |
| Cara Therapeutics, Inc. * | 88,922 | 1,151,540 |
| CareDx, Inc. * | 109,050 | 8,622,583 |
| CASI Pharmaceuticals, Inc. * | 144,695 | 259,004 |
| Cassava Sciences, Inc. * | 71,075 | 3,326,310 |
| Catabasis Pharmaceuticals, Inc. * | 45,613 | 102,629 |
| Catalyst Biosciences, Inc. * | 65,628 | 330,765 |
| Catalyst Pharmaceuticals, Inc. * | 209,875 | 961,228 |
| CEL-SCI Corp. *(a) | 77,281 | 1,864,791 |
| Centogene N.V. * | 17,635 | 191,692 |
| Cerecor, Inc. * | 91,510 | 287,341 |
| Champions Oncology, Inc. * | 15,613 | 167,527 |
| Checkmate Pharmaceuticals, Inc. * | 19,146 | 138,617 |
| Checkpoint Therapeutics, Inc. * | 107,961 | 313,087 |
| ChemoCentryx, Inc. * | 107,740 | 5,207,074 |
| Chiasma, Inc. * | 110,879 | 330,419 |
| Chimerix, Inc. * | 130,578 | 1,137,334 |
| Chinook Therapeutics, Inc. * | 27,886 | 500,554 |
| ChromaDex Corp. * | 88,383 | 784,841 |
| Cidara Therapeutics, Inc. * | 83,343 | 185,021 |
| Clovis Oncology, Inc. *(a) | 180,321 | 1,071,107 |
| Codexis, Inc. * | 125,580 | 2,910,944 |
| Codiak Biosciences, Inc. * | 13,720 | 271,656 |
| Cohbar, Inc. * | 72,401 | 97,017 |
| Coherus Biosciences, Inc. * | 127,378 | 1,885,194 |
| Collegium Pharmaceutical, Inc. * | 75,197 | 1,676,893 |
| Concert Pharmaceuticals, Inc. * | 65,111 | 270,211 |
| Constellation Pharmaceuticals, Inc. * | 66,790 | 1,444,000 |
| ContraFect Corp. * | 50,703 | 224,614 |
| Corbus Pharmaceuticals Holdings, Inc. * | 169,769 | 305,584 |
| Corcept Therapeutics, Inc. * | 210,732 | 4,802,582 |
| CorMedix, Inc. * | 72,405 | 625,579 |
| Cortexyme, Inc. * | 33,867 | 1,326,570 |
| Crinetics Pharmaceuticals, Inc. * | 59,536 | 1,030,568 |
| Cue Biopharma, Inc. * | 63,342 | 768,338 |
| Cullinan Oncology, Inc. *(a) | 28,913 | 938,516 |
| Cyclerion Therapeutics, Inc. * | 45,202 | 98,540 |
| Cymabay Therapeutics, Inc. * | 148,549 | 643,217 |
| Cytokinetics, Inc. * | 144,222 | 3,669,008 |
| CytomX Therapeutics, Inc. * | 134,665 | 1,260,464 |
| Decibel Therapeutics, Inc. * | 15,239 | 138,980 |
| Deciphera Pharmaceuticals, Inc. * | 83,986 | 3,894,431 |
| Security | Number
of Shares | Value ($) |
| Denali Therapeutics, Inc. * | 136,555 | 8,253,384 |
| DermTech, Inc. * | 22,507 | 946,419 |
| Dicerna Pharmaceuticals, Inc. * | 143,389 | 4,472,303 |
| Durect Corp. * | 492,520 | 935,788 |
| Dyadic International, Inc. * | 44,403 | 200,258 |
| Dynavax Technologies Corp. * | 229,657 | 2,291,977 |
| Dyne Therapeutics, Inc. * | 34,384 | 676,677 |
| Eagle Pharmaceuticals, Inc. * | 22,287 | 909,978 |
| Editas Medicine, Inc. * | 145,332 | 5,378,737 |
| Eiger BioPharmaceuticals, Inc. * | 66,554 | 565,043 |
| Eloxx Pharmaceuticals, Inc. *(a) | 56,093 | 122,283 |
| Emergent BioSolutions, Inc. * | 98,096 | 5,981,894 |
| Enanta Pharmaceuticals, Inc. * | 41,638 | 2,112,712 |
| Endo International plc * | 492,705 | 2,823,200 |
| Enochian Biosciences, Inc. *(a) | 29,338 | 99,162 |
| Epizyme, Inc. * | 192,061 | 1,499,996 |
| Esperion Therapeutics, Inc. *(a) | 56,047 | 1,510,467 |
| Eton Pharmaceuticals, Inc. *(a) | 35,654 | 309,477 |
| Evelo Biosciences, Inc. * | 49,123 | 645,967 |
| Evofem Biosciences, Inc. *(a) | 167,751 | 248,271 |
| Evolus, Inc. * | 46,888 | 427,150 |
| Exicure, Inc. * | 130,353 | 256,795 |
| Fate Therapeutics, Inc. * | 165,354 | 14,450,286 |
| Fennec Pharmaceuticals, Inc. * | 45,870 | 286,688 |
| FibroGen, Inc. * | 183,124 | 4,087,328 |
| Flexion Therapeutics, Inc. * | 96,951 | 752,340 |
| Fluidigm Corp. * | 158,521 | 794,190 |
| Foghorn Therapeutics, Inc. * | 15,003 | 164,733 |
| Forma Therapeutics Holdings, Inc. * | 65,564 | 1,766,950 |
| Fortress Biotech, Inc. * | 147,759 | 638,319 |
| Frequency Therapeutics, Inc. * | 53,563 | 621,866 |
| Fulcrum Therapeutics, Inc. * | 36,295 | 408,319 |
| G1 Therapeutics, Inc. * | 73,418 | 1,546,917 |
| Galectin Therapeutics, Inc. *(a) | 77,488 | 342,497 |
| Galera Therapeutics, Inc. * | 18,833 | 153,489 |
| Generation Bio Co. * | 87,812 | 3,201,626 |
| Genprex, Inc. *(a) | 61,485 | 233,643 |
| Geron Corp. * | 627,246 | 909,507 |
| GlycoMimetics, Inc. * | 76,245 | 182,988 |
| Gossamer Bio, Inc. * | 124,833 | 1,078,557 |
| Graybug Vision, Inc. *(a) | 13,607 | 64,497 |
| Gritstone Oncology, Inc. * | 63,905 | 578,340 |
| Halozyme Therapeutics, Inc. * | 288,717 | 14,421,414 |
| Harmony Biosciences Holdings, Inc. * | 13,767 | 403,373 |
| Harpoon Therapeutics, Inc. * | 28,875 | 653,730 |
| Harrow Health, Inc. * | 48,818 | 374,434 |
| Harvard Bioscience, Inc. * | 81,212 | 562,799 |
| Heron Therapeutics, Inc. * | 190,675 | 3,332,999 |
| Homology Medicines, Inc. * | 74,689 | 505,645 |
| Hookipa Pharma, Inc. * | 30,735 | 416,152 |
| iBio, Inc. *(a) | 456,189 | 624,979 |
| Ideaya Biosciences, Inc. * | 37,683 | 774,386 |
| IGM Biosciences, Inc. * | 16,435 | 1,162,283 |
| IMARA, Inc. * | 15,946 | 118,000 |
| Immunic, Inc. * | 11,550 | 177,408 |
| ImmunityBio, Inc. *(a) | 67,762 | 1,202,776 |
| ImmunoGen, Inc. * | 417,123 | 3,362,011 |
| Immunome, Inc. * | 4,317 | 114,660 |
| Immunovant, Inc. * | 81,159 | 1,272,573 |
| Inhibrx, Inc. * | 17,704 | 377,626 |
| Innoviva, Inc. * | 138,950 | 1,590,978 |
| Inovio Pharmaceuticals, Inc. *(a) | 402,941 | 2,744,028 |
| Inozyme Pharma, Inc. * | 25,680 | 474,566 |
| Insmed, Inc. * | 220,083 | 7,423,400 |
| Intellia Therapeutics, Inc. * | 119,124 | 9,145,149 |
| Intercept Pharmaceuticals, Inc. * | 56,949 | 1,126,451 |
| Intra-Cellular Therapies, Inc. * | 143,742 | 4,949,037 |
| Invitae Corp. * | 263,342 | 9,190,636 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Ironwood Pharmaceuticals, Inc. * | 346,834 | 3,829,047 |
| iTeos Therapeutics, Inc. * | 43,449 | 1,021,486 |
| IVERIC bio, Inc. * | 176,685 | 1,236,795 |
| Jounce Therapeutics, Inc. * | 37,339 | 352,107 |
| Kadmon Holdings, Inc. * | 378,061 | 1,534,928 |
| Kala Pharmaceuticals, Inc. *(a) | 86,271 | 666,875 |
| Kaleido Biosciences, Inc. *(a) | 29,093 | 229,544 |
| KalVista Pharmaceuticals, Inc. * | 41,887 | 1,045,918 |
| Karuna Therapeutics, Inc. * | 34,324 | 3,810,307 |
| Karyopharm Therapeutics, Inc. * | 153,676 | 1,435,334 |
| Keros Therapeutics, Inc. * | 28,999 | 1,705,141 |
| Kezar Life Sciences, Inc. * | 70,231 | 409,447 |
| Kindred Biosciences, Inc. * | 83,881 | 419,405 |
| Kiniksa Pharmaceuticals Ltd., Class A * | 58,853 | 968,720 |
| Kinnate Biopharma, Inc. * | 28,850 | 773,757 |
| Kodiak Sciences, Inc. * | 71,514 | 8,641,752 |
| Kronos Bio, Inc. * | 32,481 | 879,261 |
| Krystal Biotech, Inc. * | 32,556 | 2,586,249 |
| Kura Oncology, Inc. * | 135,643 | 3,652,866 |
| Kymera Therapeutics, Inc. * | 22,192 | 1,010,846 |
| La Jolla Pharmaceutical Co. *(a) | 38,945 | 172,916 |
| Landos Biopharma, Inc. * | 13,442 | 148,131 |
| Lannett Co., Inc. * | 69,554 | 303,951 |
| Lexicon Pharmaceuticals, Inc. * | 105,997 | 515,145 |
| Ligand Pharmaceuticals, Inc. * | 31,249 | 4,558,917 |
| Liquidia Corp. * | 56,162 | 159,500 |
| LogicBio Therapeutics, Inc. * | 34,198 | 188,773 |
| Luminex Corp. | 93,488 | 3,430,075 |
| Lyra Therapeutics, Inc. * | 14,177 | 142,762 |
| MacroGenics, Inc. * | 119,148 | 3,855,629 |
| Madrigal Pharmaceuticals, Inc. * | 19,052 | 2,592,977 |
| Magenta Therapeutics, Inc. * | 45,699 | 532,393 |
| MannKind Corp. * | 494,663 | 2,260,610 |
| Marinus Pharmaceuticals, Inc. * | 64,252 | 945,147 |
| Marker Therapeutics, Inc. * | 65,513 | 167,713 |
| MediciNova, Inc. *(a) | 93,762 | 411,615 |
| Medpace Holdings, Inc. * | 59,924 | 10,167,904 |
| MEI Pharma, Inc. * | 237,241 | 865,930 |
| MeiraGTx Holdings plc * | 50,906 | 762,572 |
| Mersana Therapeutics, Inc. * | 114,677 | 1,826,805 |
| Metacrine, Inc. * | 13,800 | 53,544 |
| Minerva Neurosciences, Inc. * | 78,969 | 187,946 |
| Mirati Therapeutics, Inc. * | 92,914 | 15,444,165 |
| Mirum Pharmaceuticals, Inc. * | 12,788 | 249,878 |
| Molecular Templates, Inc. * | 57,339 | 536,693 |
| Morphic Holding, Inc. * | 30,172 | 1,671,529 |
| Mustang Bio, Inc. * | 105,190 | 339,764 |
| Myriad Genetics, Inc. * | 154,412 | 4,666,331 |
| NanoString Technologies, Inc. * | 95,893 | 7,639,795 |
| Natera, Inc. * | 164,258 | 18,071,665 |
| NeoGenomics, Inc. * | 235,926 | 11,558,015 |
| Neoleukin Therapeutics, Inc. * | 68,875 | 860,249 |
| Neubase Therapeutics, Inc. * | 34,924 | 210,592 |
| NeuroBo Pharmaceuticals, Inc. *(a) | 16,028 | 57,541 |
| NexImmune, Inc. *(a) | 13,672 | 264,006 |
| NextCure, Inc. * | 35,743 | 313,466 |
| NGM Biopharmaceuticals, Inc. * | 56,372 | 1,550,230 |
| Nkarta, Inc. * | 44,272 | 1,410,063 |
| Novavax, Inc. * | 133,832 | 31,708,816 |
| Nurix Therapeutics, Inc. * | 52,082 | 1,813,495 |
| Nymox Pharmaceutical Corp. *(a) | 94,996 | 189,042 |
| Ocular Therapeutix, Inc. * | 159,127 | 2,924,754 |
| Odonate Therapeutics, Inc. * | 33,930 | 113,666 |
| Olema Pharmaceuticals, Inc. * | 25,890 | 726,215 |
| Omeros Corp. * | 127,664 | 2,254,546 |
| Oncocyte Corp. * | 151,954 | 781,044 |
| Oncorus, Inc. * | 16,021 | 257,137 |
| OPKO Health, Inc. * | 864,121 | 3,542,896 |
| Security | Number
of Shares | Value ($) |
| Optinose, Inc. * | 80,896 | 288,799 |
| Organogenesis Holdings, Inc. * | 53,790 | 1,202,744 |
| Orgenesis, Inc. * | 38,955 | 182,699 |
| ORIC Pharmaceuticals, Inc. * | 49,281 | 1,189,151 |
| Osmotica Pharmaceuticals plc *(a) | 25,694 | 73,999 |
| Ovid therapeutics, Inc. * | 107,575 | 394,800 |
| Oyster Point Pharma, Inc. * | 12,531 | 258,765 |
| Pacific Biosciences of California, Inc. * | 395,992 | 11,820,361 |
| Pacira BioSciences, Inc. * | 92,755 | 5,860,261 |
| Paratek Pharmaceuticals, Inc. * | 94,548 | 723,292 |
| Passage Bio, Inc. * | 63,084 | 1,183,456 |
| Personalis, Inc. * | 57,495 | 1,416,677 |
| PhaseBio Pharmaceuticals, Inc. * | 32,407 | 98,193 |
| Phathom Pharmaceuticals, Inc. * | 25,474 | 981,258 |
| Phibro Animal Health Corp., Class A | 44,755 | 1,097,393 |
| Pieris Pharmaceuticals, Inc. * | 117,796 | 254,439 |
| Pliant Therapeutics, Inc. * | 52,064 | 1,744,144 |
| PMV Pharmaceuticals, Inc. * | 30,081 | 1,014,632 |
| Poseida Therapeutics, Inc. * | 70,628 | 661,078 |
| Praxis Precision Medicines, Inc. * | 23,507 | 720,725 |
| Precigen, Inc. * | 153,229 | 1,185,226 |
| Precision BioSciences, Inc. * | 100,168 | 930,561 |
| Prelude Therapeutics, Inc. *(a) | 21,137 | 875,917 |
| Prestige Consumer Healthcare, Inc. * | 109,118 | 4,753,180 |
| Protagonist Therapeutics, Inc. * | 76,272 | 2,207,312 |
| Protara Therapeutics, Inc. * | 8,070 | 90,303 |
| Prothena Corp. plc * | 66,520 | 1,765,441 |
| Provention Bio, Inc. * | 117,166 | 842,424 |
| PTC Therapeutics, Inc. * | 133,984 | 5,521,481 |
| Puma Biotechnology, Inc. * | 68,591 | 676,307 |
| Quanterix Corp. * | 52,270 | 3,195,788 |
| Radius Health, Inc. * | 98,425 | 2,194,877 |
| RAPT Therapeutics, Inc. * | 24,475 | 536,982 |
| Recro Pharma, Inc. * | 43,109 | 115,101 |
| REGENXBIO, Inc. * | 84,296 | 2,924,228 |
| Relay Therapeutics, Inc. * | 99,660 | 3,160,219 |
| Relmada Therapeutics, Inc. * | 32,238 | 1,243,097 |
| Replimune Group, Inc. * | 52,044 | 1,904,290 |
| Revance Therapeutics, Inc. * | 136,889 | 3,986,208 |
| REVOLUTION Medicines, Inc. * | 92,820 | 3,080,696 |
| Rhythm Pharmaceuticals, Inc. * | 82,665 | 1,782,257 |
| Rigel Pharmaceuticals, Inc. * | 365,791 | 1,360,743 |
| Rocket Pharmaceuticals, Inc. * | 81,280 | 3,725,875 |
| Rubius Therapeutics, Inc. * | 78,116 | 1,954,462 |
| Sangamo Therapeutics, Inc. * | 250,676 | 2,952,963 |
| Satsuma Pharmaceuticals, Inc. * | 19,799 | 105,133 |
| Savara, Inc. * | 100,055 | 190,105 |
| Scholar Rock Holding Corp. * | 55,203 | 1,785,817 |
| Scopus Biopharma, Inc. *(a) | 11,810 | 86,567 |
| scPharmaceuticals, Inc. * | 14,397 | 93,149 |
| Seer, Inc. * | 31,445 | 1,601,494 |
| Selecta Biosciences, Inc. * | 145,230 | 435,690 |
| Sensei Biotherapeutics, Inc. * | 16,278 | 215,521 |
| Seres Therapeutics, Inc. * | 119,302 | 2,482,675 |
| Shattuck Labs, Inc. * | 28,726 | 1,082,396 |
| SIGA Technologies, Inc. * | 112,387 | 805,815 |
| Sigilon Therapeutics, Inc. * | 16,478 | 229,044 |
| Silverback Therapeutics, Inc. *(a) | 27,965 | 896,278 |
| Soleno Therapeutics, Inc. * | 123,492 | 149,425 |
| Solid Biosciences, Inc. * | 59,084 | 300,738 |
| Sorrento Therapeutics, Inc. *(a) | 542,657 | 4,466,067 |
| Spectrum Pharmaceuticals, Inc. * | 317,655 | 987,907 |
| Spero Therapeutics, Inc. * | 44,152 | 607,532 |
| SpringWorks Therapeutics, Inc. * | 52,215 | 3,752,170 |
| Spruce Biosciences, Inc. *(a) | 14,527 | 235,337 |
| SQZ Biotechnologies Co. * | 11,380 | 139,746 |
| Stoke Therapeutics, Inc. * | 29,917 | 966,319 |
| Strongbridge Biopharma plc * | 91,727 | 232,987 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Supernus Pharmaceuticals, Inc. * | 106,116 | 3,231,232 |
| Sutro Biopharma, Inc. * | 70,869 | 1,453,523 |
| Syndax Pharmaceuticals, Inc. * | 67,784 | 1,080,477 |
| Syros Pharmaceuticals, Inc. * | 100,558 | 607,370 |
| Tarsus Pharmaceuticals, Inc. * | 13,597 | 417,700 |
| Taysha Gene Therapies, Inc. * | 19,357 | 499,604 |
| TCR2 Therapeutics, Inc. * | 63,068 | 1,432,274 |
| Terns Pharmaceuticals, Inc. * | 18,562 | 408,364 |
| TG Therapeutics, Inc. * | 264,179 | 11,811,443 |
| TherapeuticsMD, Inc. *(a) | 745,746 | 902,353 |
| Theravance Biopharma, Inc. * | 100,813 | 1,990,049 |
| Translate Bio, Inc. * | 148,595 | 3,450,376 |
| Travere Therapeutics, Inc. * | 120,510 | 2,979,007 |
| Tricida, Inc. * | 60,754 | 282,506 |
| Turning Point Therapeutics, Inc. * | 80,869 | 6,164,644 |
| Twist Bioscience Corp. * | 101,983 | 13,685,099 |
| Tyme Technologies, Inc. * | 153,809 | 238,404 |
| Ultragenyx Pharmaceutical, Inc. * | 138,021 | 15,408,664 |
| UNITY Biotechnology, Inc. * | 75,065 | 373,073 |
| UroGen Pharma Ltd. * | 42,424 | 825,147 |
| Vanda Pharmaceuticals, Inc. * | 115,826 | 1,922,712 |
| Vaxart, Inc. *(a) | 112,568 | 1,213,483 |
| Vaxcyte, Inc. * | 63,378 | 1,176,929 |
| VBI Vaccines, Inc. * | 394,784 | 1,243,570 |
| Veracyte, Inc. * | 143,948 | 7,161,413 |
| Verastem, Inc. * | 367,065 | 1,126,890 |
| Vericel Corp. * | 98,881 | 6,172,152 |
| Verrica Pharmaceuticals, Inc. *(a) | 27,045 | 356,994 |
| Viking Therapeutics, Inc. * | 144,858 | 925,643 |
| Vir Biotechnology, Inc. * | 116,367 | 5,555,361 |
| Vor BioPharma, Inc. *(a) | 24,340 | 685,901 |
| Voyager Therapeutics, Inc. * | 53,791 | 259,273 |
| vTv Therapeutics, Inc., Class A *(a) | 30,946 | 79,222 |
| VYNE Therapeutics, Inc. * | 78,840 | 389,470 |
| WaVe Life Sciences Ltd. * | 70,964 | 436,429 |
| X4 Pharmaceuticals, Inc. * | 35,114 | 294,255 |
| XBiotech, Inc. *(a) | 31,436 | 536,927 |
| Xencor, Inc. * | 120,527 | 5,129,629 |
| Xeris Pharmaceuticals, Inc. *(a) | 99,459 | 380,928 |
| XOMA Corp. *(a) | 12,952 | 492,953 |
| Y-mAbs Therapeutics, Inc. * | 66,106 | 1,987,807 |
| Zentalis Pharmaceuticals, Inc. * | 62,533 | 3,709,458 |
| ZIOPHARM Oncology, Inc. * | 460,879 | 1,594,641 |
| Zogenix, Inc. * | 121,487 | 2,294,889 |
| | | 750,438,761 |
| |
| Real Estate 6.1% |
| Acadia Realty Trust | 184,385 | 3,851,803 |
| Agree Realty Corp. | 135,156 | 9,509,576 |
| Alexander & Baldwin, Inc. | 156,984 | 2,877,517 |
| Alexander's, Inc. | 4,680 | 1,297,483 |
| Alpine Income Property Trust, Inc. | 14,957 | 272,367 |
| Alset EHome International, Inc. *(a) | 4,627 | 49,278 |
| Altisource Portfolio Solutions S.A. * | 9,847 | 62,036 |
| American Assets Trust, Inc. | 109,436 | 3,835,732 |
| American Finance Trust, Inc. | 235,889 | 2,361,249 |
| American Realty Investors, Inc. * | 2,246 | 17,474 |
| Armada Hoffler Properties, Inc. | 123,686 | 1,685,840 |
| Bluerock Residential Growth REIT, Inc. | 46,942 | 445,010 |
| Broadstone Net Lease, Inc. | 77,074 | 1,555,353 |
| BRT Apartments Corp. | 22,911 | 431,414 |
| CareTrust REIT, Inc. | 207,789 | 5,024,338 |
| CatchMark Timber Trust, Inc., Class A | 106,916 | 1,243,433 |
| Centerspace | 28,164 | 1,982,464 |
| Chatham Lodging Trust * | 99,788 | 1,384,060 |
| CIM Commercial Trust Corp. | 23,639 | 264,757 |
| City Office REIT, Inc. | 92,479 | 1,010,795 |
| Security | Number
of Shares | Value ($) |
| Clipper Realty, Inc. | 32,974 | 271,376 |
| Colony Capital, Inc. * | 1,043,036 | 7,301,252 |
| Columbia Property Trust, Inc. | 248,911 | 4,482,887 |
| Community Healthcare Trust, Inc. | 48,084 | 2,448,437 |
| CorEnergy Infrastructure Trust, Inc. | 30,232 | 183,206 |
| CorePoint Lodging, Inc. * | 85,901 | 858,151 |
| CTO Realty Growth, Inc. | 12,887 | 683,011 |
| Cushman & Wakefield plc * | 239,774 | 4,076,158 |
| DiamondRock Hospitality Co. * | 432,750 | 4,509,255 |
| Diversified Healthcare Trust | 512,505 | 2,262,710 |
| Easterly Government Properties, Inc. | 176,632 | 3,785,224 |
| EastGroup Properties, Inc. | 84,900 | 13,470,234 |
| Essential Properties Realty Trust, Inc. | 225,915 | 5,916,714 |
| eXp World Holdings, Inc. * | 107,792 | 3,703,733 |
| Farmland Partners, Inc. | 55,674 | 742,134 |
| Fathom Holdings, Inc. * | 10,542 | 361,591 |
| Forestar Group, Inc. * | 36,757 | 931,422 |
| Four Corners Property Trust, Inc. | 160,047 | 4,620,557 |
| Franklin Street Properties Corp. | 226,717 | 1,197,066 |
| FRP Holdings, Inc. * | 14,335 | 727,645 |
| Getty Realty Corp. | 75,400 | 2,381,132 |
| Gladstone Commercial Corp. | 73,074 | 1,537,477 |
| Gladstone Land Corp. | 46,374 | 973,390 |
| Global Medical REIT, Inc. | 95,663 | 1,373,721 |
| Global Net Lease, Inc. | 195,615 | 3,755,808 |
| Healthcare Realty Trust, Inc. | 303,644 | 9,765,191 |
| Hersha Hospitality Trust * | 72,659 | 839,938 |
| Independence Realty Trust, Inc. | 221,021 | 3,721,994 |
| Indus Realty Trust, Inc. | 7,287 | 455,437 |
| Industrial Logistics Properties Trust | 141,052 | 3,498,090 |
| Innovative Industrial Properties, Inc. | 50,910 | 9,323,148 |
| iStar, Inc. (a) | 156,481 | 2,896,463 |
| Kennedy-Wilson Holdings, Inc. | 263,014 | 5,404,938 |
| Kite Realty Group Trust | 180,518 | 3,756,580 |
| Lexington Realty Trust | 593,757 | 7,267,586 |
| LTC Properties, Inc. | 84,340 | 3,586,980 |
| Mack-Cali Realty Corp. | 189,048 | 3,092,825 |
| Marcus & Millichap, Inc. * | 50,541 | 1,785,108 |
| Maui Land & Pineapple Co., Inc. * | 14,430 | 162,770 |
| Monmouth Real Estate Investment Corp. | 205,807 | 3,803,313 |
| National Health Investors, Inc. | 94,556 | 6,941,356 |
| National Storage Affiliates Trust | 135,919 | 6,176,159 |
| NETSTREIT Corp. | 48,763 | 1,015,733 |
| New Senior Investment Group, Inc. | 179,454 | 1,187,985 |
| Newmark Group, Inc., Class A | 314,866 | 3,384,809 |
| NexPoint Residential Trust, Inc. | 47,890 | 2,402,162 |
| Office Properties Income Trust | 104,292 | 2,894,103 |
| One Liberty Properties, Inc. | 34,630 | 861,248 |
| Pebblebrook Hotel Trust | 282,926 | 6,756,273 |
| Physicians Realty Trust | 452,928 | 8,483,341 |
| Piedmont Office Realty Trust, Inc., Class A | 269,798 | 5,023,639 |
| Plymouth Industrial REIT, Inc. | 53,018 | 988,256 |
| PotlatchDeltic Corp. | 142,232 | 8,442,892 |
| Preferred Apartment Communities, Inc., Class A | 102,516 | 1,045,663 |
| PS Business Parks, Inc. | 43,648 | 7,087,126 |
| QTS Realty Trust, Inc., Class A | 139,159 | 9,252,682 |
| Rafael Holdings, Inc., Class B * | 20,385 | 842,716 |
| RE/MAX Holdings, Inc., Class A | 39,267 | 1,442,277 |
| Realogy Holdings Corp. * | 248,622 | 4,296,188 |
| Redfin Corp. * | 216,514 | 15,324,861 |
| Retail Opportunity Investments Corp. | 250,619 | 4,410,894 |
| Retail Properties of America, Inc., Class A | 466,766 | 5,475,165 |
| Retail Value, Inc. | 35,633 | 663,843 |
| RLJ Lodging Trust | 357,028 | 5,762,432 |
| RPT Realty | 174,314 | 2,215,531 |
| Ryman Hospitality Properties, Inc. * | 109,585 | 8,618,860 |
| Sabra Health Care REIT, Inc. | 446,202 | 8,107,490 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Safehold, Inc. | 39,225 | 2,773,600 |
| Saul Centers, Inc. | 26,251 | 1,133,518 |
| Seritage Growth Properties, Class A * | 73,579 | 1,265,559 |
| Service Properties Trust | 355,163 | 4,373,832 |
| SITE Centers Corp. | 333,492 | 4,919,007 |
| STAG Industrial, Inc. | 346,201 | 12,639,798 |
| Stratus Properties, Inc. * | 12,527 | 440,324 |
| Summit Hotel Properties, Inc. * | 223,450 | 2,272,486 |
| Sunstone Hotel Investors, Inc. * | 467,526 | 6,152,642 |
| Tanger Factory Outlet Centers, Inc. | 196,891 | 3,435,748 |
| Tejon Ranch Co. * | 46,463 | 735,045 |
| Terreno Realty Corp. | 146,682 | 9,463,923 |
| The GEO Group, Inc. (a) | 258,625 | 1,425,024 |
| The Macerich Co. | 325,702 | 4,491,431 |
| The RMR Group, Inc., Class A | 33,031 | 1,307,367 |
| The St. Joe Co. | 71,468 | 3,272,520 |
| Transcontinental Realty Investors, Inc. * | 2,895 | 58,508 |
| UMH Properties, Inc. | 81,067 | 1,745,373 |
| Uniti Group, Inc. | 418,395 | 4,769,703 |
| Universal Health Realty Income Trust | 27,742 | 1,857,327 |
| Urban Edge Properties | 251,455 | 4,739,927 |
| Urstadt Biddle Properties, Inc., Class A | 65,262 | 1,185,811 |
| Washington Real Estate Investment Trust | 183,352 | 4,257,433 |
| Whitestone REIT | 86,025 | 840,464 |
| Xenia Hotels & Resorts, Inc. * | 246,192 | 4,783,511 |
| | | 384,520,196 |
| |
| Retailing 4.6% |
| 1-800-Flowers.com, Inc., Class A * | 56,044 | 1,792,007 |
| Abercrombie & Fitch Co., Class A * | 135,617 | 5,084,281 |
| Academy Sports & Outdoors, Inc. * | 65,099 | 2,005,700 |
| America's Car-Mart, Inc. * | 13,272 | 2,001,816 |
| American Eagle Outfitters, Inc. | 327,483 | 11,321,087 |
| Asbury Automotive Group, Inc. * | 41,838 | 8,309,445 |
| At Home Group, Inc. * | 117,329 | 3,705,250 |
| Bed Bath & Beyond, Inc. * | 263,822 | 6,679,973 |
| Big Lots, Inc. | 80,797 | 5,570,145 |
| Boot Barn Holdings, Inc. * | 61,865 | 4,363,957 |
| Caleres, Inc. | 78,451 | 1,828,693 |
| Camping World Holdings, Inc., Class A | 71,493 | 3,112,805 |
| CarParts.com, Inc. * | 74,446 | 1,286,427 |
| Chico's FAS, Inc. * | 257,839 | 773,517 |
| Citi Trends, Inc. * | 20,588 | 2,153,505 |
| Conn's, Inc. * | 37,891 | 766,914 |
| Core-Mark Holding Co., Inc. | 96,806 | 4,120,063 |
| Designer Brands, Inc., Class A * | 134,582 | 2,382,101 |
| Dillard’s, Inc., Class A | 15,401 | 1,523,313 |
| Duluth Holdings, Inc., Class B * | 24,031 | 371,760 |
| Envela Corp. * | 16,555 | 64,233 |
| Express, Inc. * | 134,160 | 409,188 |
| Franchise Group, Inc. | 47,081 | 1,814,031 |
| Funko, Inc., Class A * | 53,275 | 1,147,544 |
| GameStop Corp., Class A * | 124,187 | 21,557,621 |
| Genesco, Inc. * | 31,471 | 1,573,550 |
| Greenlane Holdings, Inc., Class A * | 21,662 | 95,313 |
| Group 1 Automotive, Inc. | 37,826 | 6,209,516 |
| Groupon, Inc. * | 50,215 | 2,542,385 |
| GrowGeneration Corp. * | 88,153 | 3,843,471 |
| Guess?, Inc. | 85,928 | 2,323,493 |
| Haverty Furniture Cos., Inc. | 35,834 | 1,665,206 |
| Hibbett Sports, Inc. * | 36,025 | 2,862,186 |
| Lands' End, Inc. * | 24,813 | 571,692 |
| Liquidity Services, Inc. * | 57,921 | 1,038,524 |
| Lithia Motors, Inc., Class A | 56,449 | 21,697,867 |
| Lumber Liquidators Holdings, Inc. * | 62,459 | 1,497,142 |
| Macy's, Inc. * | 678,470 | 11,249,033 |
| MarineMax, Inc. * | 45,952 | 2,610,074 |
| Security | Number
of Shares | Value ($) |
| Monro, Inc. | 71,398 | 5,039,985 |
| Murphy USA, Inc. | 55,917 | 7,794,830 |
| National Vision Holdings, Inc. * | 174,761 | 8,809,702 |
| OneWater Marine, Inc., Class A * | 22,317 | 1,143,300 |
| Overstock.com, Inc. * | 92,688 | 7,554,072 |
| PetMed Express, Inc. | 42,410 | 1,247,914 |
| Quotient Technology, Inc. * | 189,034 | 3,088,816 |
| Rent-A-Center, Inc. | 105,280 | 6,058,864 |
| RH * | 34,245 | 23,561,245 |
| Sally Beauty Holdings, Inc. * | 244,190 | 4,900,893 |
| Shoe Carnival, Inc. | 20,045 | 1,201,698 |
| Shutterstock, Inc. | 47,385 | 4,131,024 |
| Signet Jewelers Ltd. * | 113,277 | 6,768,301 |
| Sleep Number Corp. * | 58,802 | 6,579,356 |
| Sonic Automotive, Inc., Class A | 50,439 | 2,488,660 |
| Sportsman's Warehouse Holdings, Inc. * | 92,900 | 1,631,324 |
| Stamps.com, Inc. * | 36,921 | 7,582,466 |
| Stitch Fix, Inc., Class A * | 128,478 | 5,565,667 |
| The Aaron's Co., Inc. | 73,021 | 2,255,619 |
| The Buckle, Inc. | 63,310 | 2,655,221 |
| The Cato Corp., Class A * | 43,134 | 577,996 |
| The Children's Place, Inc. * | 30,594 | 2,397,040 |
| The Container Store Group, Inc. * | 69,781 | 983,214 |
| The ODP Corp. * | 115,000 | 4,649,450 |
| The RealReall, Inc. * | 138,249 | 3,424,428 |
| Tilly's, Inc., Class A * | 47,154 | 568,677 |
| Urban Outfitters, Inc. * | 150,045 | 5,386,615 |
| Waitr Holdings, Inc. * | 181,316 | 446,037 |
| Weyco Group, Inc. | 12,841 | 252,582 |
| Winmark Corp. | 6,513 | 1,254,208 |
| Zumiez, Inc. * | 45,298 | 1,946,455 |
| | | 285,870,487 |
| |
| Semiconductors & Semiconductor Equipment 2.9% |
| Advanced Energy Industries, Inc. | 82,470 | 9,097,266 |
| Alpha & Omega Semiconductor Ltd. * | 45,821 | 1,425,033 |
| Ambarella, Inc. * | 73,605 | 7,175,751 |
| Amkor Technology, Inc. | 217,350 | 4,394,817 |
| Atomera, Inc. * | 38,604 | 642,371 |
| Axcelis Technologies, Inc. * | 72,346 | 3,004,529 |
| AXT, Inc. * | 85,696 | 844,963 |
| Brooks Automation, Inc. | 157,728 | 15,982,578 |
| CEVA, Inc. * | 47,874 | 2,654,135 |
| CMC Materials, Inc. | 63,036 | 11,562,693 |
| Cohu, Inc. * | 91,208 | 3,649,232 |
| CyberOptics Corp. * | 15,573 | 513,753 |
| Diodes, Inc. * | 93,026 | 7,145,327 |
| DSP Group, Inc. * | 49,203 | 683,430 |
| FormFactor, Inc. * | 167,617 | 6,562,205 |
| GSI Technology, Inc. * | 34,625 | 204,287 |
| Ichor Holdings Ltd. * | 58,789 | 3,278,662 |
| Impinj, Inc. * | 37,080 | 1,759,817 |
| Lattice Semiconductor Corp. * | 295,231 | 14,853,072 |
| MACOM Technology Solutions Holdings, Inc. * | 104,599 | 5,921,349 |
| Maxeon Solar Technologies Ltd. * | 22,618 | 407,124 |
| MaxLinear, Inc. * | 149,132 | 5,367,261 |
| NeoPhotonics Corp. * | 108,681 | 1,017,254 |
| NVE Corp. | 10,164 | 777,851 |
| Onto Innovation, Inc. * | 102,998 | 7,057,423 |
| PDF Solutions, Inc. * | 62,873 | 1,114,738 |
| Photronics, Inc. * | 134,880 | 1,712,976 |
| Pixelworks, Inc. * | 100,009 | 295,027 |
| Power Integrations, Inc. | 127,968 | 10,597,030 |
| Rambus, Inc. * | 246,908 | 4,686,314 |
| Semtech Corp. * | 140,166 | 9,494,845 |
| Silicon Laboratories, Inc. * | 94,075 | 13,259,871 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| SiTime Corp. * | 25,563 | 2,365,856 |
| SMART Global Holdings, Inc. * | 31,634 | 1,459,909 |
| SunPower Corp. * | 165,624 | 4,254,881 |
| Synaptics, Inc. * | 75,864 | 10,611,098 |
| Ultra Clean Holdings, Inc. * | 86,826 | 4,434,204 |
| Veeco Instruments, Inc. * | 105,192 | 2,420,468 |
| | | 182,689,400 |
| |
| Software & Services 6.5% |
| 8x8, Inc. * | 231,475 | 7,613,213 |
| A10 Networks, Inc. * | 130,952 | 1,136,663 |
| ACI Worldwide, Inc. * | 248,512 | 9,388,783 |
| Agilysys, Inc. * | 41,271 | 2,080,471 |
| Alarm.com Holdings, Inc. * | 103,158 | 9,259,462 |
| Altair Engineering, Inc., Class A * | 94,303 | 6,129,695 |
| American Software, Inc., Class A | 66,149 | 1,368,623 |
| Appfolio, Inc., Class A * | 35,310 | 5,106,885 |
| Appian Corp. * | 77,268 | 9,363,336 |
| Asure Software, Inc. * | 34,485 | 276,225 |
| Avaya Holdings Corp. * | 181,967 | 5,235,191 |
| Benefitfocus, Inc. * | 63,727 | 861,589 |
| Blackbaud, Inc. * | 105,575 | 7,508,494 |
| Blackline, Inc. * | 110,597 | 12,835,888 |
| BM Technologies, Inc. *(b) | 9,231 | 74,806 |
| Bottomline Technologies (DE), Inc. * | 96,041 | 4,663,751 |
| Box, Inc., Class A * | 311,310 | 6,630,903 |
| Brightcove, Inc. * | 85,577 | 1,242,578 |
| Cardtronics plc, Class A * | 78,332 | 3,042,415 |
| Cass Information Systems, Inc. | 30,972 | 1,421,305 |
| Cerence, Inc. * | 82,560 | 7,959,610 |
| ChannelAdvisor Corp. * | 60,481 | 1,279,173 |
| Cloudera, Inc. * | 445,461 | 5,652,900 |
| Cognyte Software Ltd. * | 141,014 | 3,684,696 |
| CommVault Systems, Inc. * | 91,786 | 6,380,045 |
| Conduent, Inc. * | 359,660 | 2,445,688 |
| Cornerstone OnDemand, Inc. * | 133,449 | 5,907,120 |
| CSG Systems International, Inc. | 70,317 | 3,233,879 |
| Digimarc Corp. *(a) | 25,750 | 868,547 |
| Digital Turbine, Inc. * | 182,862 | 13,793,281 |
| Domo, Inc., Class B * | 57,865 | 3,720,141 |
| Ebix, Inc. | 58,405 | 1,758,575 |
| eGain Corp. * | 46,200 | 454,146 |
| Envestnet, Inc. * | 115,238 | 8,508,022 |
| EVERTEC, Inc. | 130,913 | 5,223,429 |
| Evo Payments, Inc., Class A * | 99,625 | 2,840,309 |
| ExlService Holdings, Inc. * | 71,945 | 6,646,279 |
| GreenSky, Inc., Class A * | 134,614 | 819,799 |
| Grid Dynamics Holdings, Inc. * | 58,851 | 848,043 |
| GTT Communications, Inc. *(a) | 65,068 | 104,759 |
| GTY Technology Holdings, Inc. * | 99,635 | 508,138 |
| I3 Verticals, Inc., Class A * | 40,448 | 1,343,683 |
| IBEX Holdings Ltd. * | 12,767 | 294,918 |
| Information Services Group, Inc. * | 74,878 | 340,695 |
| Intelligent Systems Corp. * | 16,266 | 623,313 |
| InterDigital, Inc. | 66,696 | 4,630,036 |
| International Money Express, Inc. * | 61,460 | 969,839 |
| j2 Global, Inc. * | 94,098 | 11,385,858 |
| Limelight Networks, Inc. * | 258,570 | 809,324 |
| LivePerson, Inc. * | 135,387 | 7,398,900 |
| LiveRamp Holdings, Inc. * | 141,480 | 6,929,690 |
| MAXIMUS, Inc. | 132,589 | 12,150,456 |
| MicroStrategy, Inc., Class A * | 15,884 | 10,438,329 |
| Mimecast Ltd. * | 126,497 | 5,492,500 |
| Mitek Systems, Inc. * | 90,539 | 1,467,637 |
| Model N, Inc. * | 75,758 | 3,013,653 |
| MoneyGram International, Inc. * | 133,761 | 922,951 |
| ON24, Inc. * | 18,415 | 810,260 |
| Security | Number
of Shares | Value ($) |
| OneSpan, Inc. * | 72,939 | 1,955,495 |
| Park City Group, Inc. *(a) | 26,481 | 140,084 |
| Paysign, Inc. * | 68,794 | 262,793 |
| Perficient, Inc. * | 70,940 | 4,654,373 |
| Perspecta, Inc. | 302,070 | 8,841,589 |
| PFSweb, Inc. * | 33,104 | 241,659 |
| Ping Identity Holding Corp. * | 81,052 | 1,967,943 |
| Priority Technology Holdings, Inc. *(a) | 17,854 | 124,085 |
| Progress Software Corp. | 95,906 | 4,187,256 |
| PROS Holdings, Inc. * | 87,151 | 3,745,750 |
| Q2 Holdings, Inc. * | 109,254 | 11,364,601 |
| QAD, Inc., Class A | 25,619 | 1,811,007 |
| Qualys, Inc. * | 73,916 | 7,492,126 |
| Rackspace Technology, Inc. * | 74,195 | 1,845,230 |
| Rapid7, Inc. * | 112,252 | 9,120,475 |
| Repay Holdings Corp. * | 144,799 | 3,308,657 |
| Rimini Street, Inc. * | 50,677 | 398,828 |
| SailPoint Technologies Holding, Inc. * | 191,128 | 9,332,780 |
| Sapiens International Corp. N.V. | 59,969 | 1,940,597 |
| Seachange International, Inc. *(a) | 64,744 | 72,513 |
| SecureWorks Corp., Class A * | 19,635 | 255,451 |
| ServiceSource International, Inc. * | 183,912 | 272,190 |
| ShotSpotter, Inc. * | 17,238 | 602,296 |
| Smith Micro Software, Inc. * | 76,883 | 432,082 |
| Sprout Social, Inc., Class A * | 60,535 | 4,012,865 |
| SPS Commerce, Inc. * | 77,057 | 7,893,719 |
| StarTek, Inc. * | 37,837 | 307,615 |
| Sumo Logic, Inc. * | 32,037 | 624,401 |
| SVMK, Inc. * | 267,223 | 4,807,342 |
| Sykes Enterprises, Inc. * | 82,891 | 3,633,113 |
| Synchronoss Technologies, Inc. * | 85,994 | 287,220 |
| Telos Corp. * | 36,010 | 1,194,812 |
| Tenable Holdings, Inc. * | 154,593 | 5,796,465 |
| The Hackett Group, Inc. | 54,034 | 898,585 |
| TTEC Holdings, Inc. | 39,301 | 3,998,091 |
| Tucows, Inc., Class A * | 20,162 | 1,584,935 |
| Unisys Corp. * | 134,477 | 3,227,448 |
| Upland Software, Inc. * | 57,895 | 2,869,276 |
| Varonis Systems, Inc. * | 220,234 | 11,661,390 |
| Verint Systems, Inc. * | 141,039 | 6,850,264 |
| Veritone, Inc. * | 57,465 | 1,386,056 |
| Verra Mobility Corp. * | 290,450 | 3,903,648 |
| Viant Technology, Inc., Class A * | 22,886 | 751,576 |
| VirnetX Holding Corp. | 136,102 | 634,235 |
| Workiva, Inc. * | 86,217 | 8,104,398 |
| Xperi Holding Corp. | 227,059 | 4,666,062 |
| Yext, Inc. * | 228,793 | 3,191,662 |
| Zix Corp. * | 116,950 | 922,151 |
| Zuora, Inc., Class A * | 224,298 | 3,633,628 |
| | | 408,109,714 |
| |
| Technology Hardware & Equipment 3.0% |
| 3D Systems Corp. * | 262,985 | 5,664,697 |
| 908 Devices, Inc. * | 15,958 | 845,614 |
| ADTRAN, Inc. | 103,327 | 1,765,858 |
| Akoustis Technologies, Inc. * | 79,517 | 892,976 |
| Applied Optoelectronics, Inc. * | 47,288 | 350,404 |
| Arlo Technologies, Inc. * | 173,773 | 1,065,229 |
| Avid Technology, Inc. * | 68,052 | 1,547,502 |
| Badger Meter, Inc. | 63,312 | 5,912,708 |
| Bel Fuse, Inc., Class B | 22,512 | 448,664 |
| Belden, Inc. | 95,632 | 4,138,953 |
| Benchmark Electronics, Inc. | 78,841 | 2,366,807 |
| CalAmp Corp. * | 73,631 | 1,012,426 |
| Calix, Inc. * | 113,922 | 4,817,761 |
| Cambium Networks Corp. * | 17,789 | 1,067,340 |
| Casa Systems, Inc. * | 69,616 | 546,138 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Clearfield, Inc. * | 23,974 | 823,507 |
| Comtech Telecommunications Corp. | 52,913 | 1,268,854 |
| Corsair Gaming, Inc. *(a) | 49,987 | 1,658,569 |
| CTS Corp. | 68,743 | 2,235,522 |
| Daktronics, Inc. * | 77,921 | 480,773 |
| Diebold Nixdorf, Inc. * | 151,805 | 2,278,593 |
| Digi International, Inc. * | 63,971 | 1,143,162 |
| DZS, Inc. * | 30,998 | 465,590 |
| Eastman Kodak Co. *(a) | 33,674 | 251,208 |
| ePlus, Inc. * | 28,968 | 2,907,228 |
| Extreme Networks, Inc. * | 261,407 | 2,974,812 |
| Fabrinet * | 79,700 | 6,823,914 |
| FARO Technologies, Inc. * | 38,590 | 2,926,859 |
| Genasys, Inc. * | 70,921 | 443,256 |
| Harmonic, Inc. * | 207,995 | 1,626,521 |
| II-VI, Inc. * | 222,862 | 14,962,955 |
| Immersion Corp. * | 37,718 | 323,243 |
| Infinera Corp. * | 356,819 | 3,289,871 |
| Inseego Corp. *(a) | 152,446 | 1,353,720 |
| Insight Enterprises, Inc. * | 75,174 | 7,545,214 |
| Intellicheck, Inc. * | 40,705 | 405,829 |
| Intevac, Inc. * | 50,474 | 323,538 |
| Iteris, Inc. * | 88,739 | 598,988 |
| Itron, Inc. * | 95,552 | 8,593,947 |
| Kimball Electronics, Inc. * | 53,033 | 1,220,289 |
| Knowles Corp. * | 191,917 | 4,011,065 |
| KVH Industries, Inc. * | 36,946 | 494,707 |
| Luna Innovations, Inc. * | 62,468 | 708,387 |
| Methode Electronics, Inc. | 79,732 | 3,582,359 |
| Napco Security Technologies, Inc. * | 31,272 | 1,041,670 |
| NETGEAR, Inc. * | 65,450 | 2,435,395 |
| NetScout Systems, Inc. * | 152,891 | 4,004,980 |
| nLight, Inc. * | 76,166 | 2,234,710 |
| Novanta, Inc. * | 74,258 | 9,780,521 |
| OSI Systems, Inc. * | 36,758 | 3,549,720 |
| PAR Technology Corp. * | 41,487 | 3,407,742 |
| PC Connection, Inc. | 24,089 | 1,092,436 |
| PCTEL, Inc. * | 37,870 | 252,972 |
| Plantronics, Inc. * | 75,410 | 3,015,646 |
| Plexus Corp. * | 61,624 | 5,696,523 |
| Powerfleet, Inc. * | 69,223 | 523,326 |
| Quantum Corp. * | 92,140 | 785,033 |
| Research Frontiers, Inc. * | 57,115 | 146,214 |
| Resonant, Inc. *(a) | 113,758 | 371,989 |
| Ribbon Communications, Inc. * | 148,114 | 999,770 |
| Rogers Corp. * | 40,462 | 7,924,078 |
| Sanmina Corp. * | 139,288 | 5,688,522 |
| ScanSource, Inc. * | 54,758 | 1,655,334 |
| Super Micro Computer, Inc. * | 93,928 | 3,477,215 |
| TTM Technologies, Inc. * | 217,591 | 3,263,865 |
| Turtle Beach Corp. * | 30,122 | 837,090 |
| Viavi Solutions, Inc. * | 496,120 | 8,116,523 |
| Vishay Intertechnology, Inc. | 288,615 | 7,091,271 |
| Vishay Precision Group, Inc. * | 26,585 | 847,530 |
| Wrap Technologies, Inc. *(a) | 24,620 | 144,766 |
| | | 186,550,398 |
| |
| Telecommunication Services 0.8% |
| Alaska Communications Systems Group, Inc. * | 111,279 | 368,334 |
| Anterix, Inc. * | 24,416 | 1,155,365 |
| ATN International, Inc. | 24,490 | 1,116,254 |
| Bandwidth, Inc., Class A * | 41,747 | 5,518,953 |
| Boingo Wireless, Inc. * | 95,469 | 1,332,747 |
| Cincinnati Bell, Inc. * | 108,897 | 1,680,281 |
| Cogent Communications Holdings, Inc. | 92,284 | 6,968,365 |
| Security | Number
of Shares | Value ($) |
| Consolidated Communications Holdings, Inc. * | 155,811 | 1,121,839 |
| Gogo, Inc. * | 118,948 | 1,239,438 |
| IDT Corp., Class B * | 43,000 | 1,032,430 |
| Iridium Communications, Inc. * | 259,302 | 9,850,883 |
| Liberty Latin America Ltd., Class A * | 101,354 | 1,407,300 |
| Liberty Latin America Ltd., Class C * | 336,054 | 4,687,953 |
| Ooma, Inc. * | 46,341 | 766,017 |
| ORBCOMM, Inc. * | 161,658 | 1,852,601 |
| Shenandoah Telecommunications Co. | 104,892 | 4,957,196 |
| Spok Holdings, Inc. | 38,977 | 400,294 |
| Vonage Holdings Corp. * | 509,529 | 6,904,118 |
| | | 52,360,368 |
| |
| Transportation 1.5% |
| Air Transport Services Group, Inc. * | 127,878 | 3,365,749 |
| Allegiant Travel Co. * | 28,406 | 6,696,147 |
| ArcBest Corp. | 54,722 | 3,981,573 |
| Atlas Air Worldwide Holdings, Inc. * | 55,918 | 3,797,391 |
| Avis Budget Group, Inc. * | 114,326 | 10,244,753 |
| Costamare, Inc. | 108,832 | 1,144,913 |
| Covenant Logistics Group, Inc. * | 25,818 | 555,345 |
| Daseke, Inc. * | 100,175 | 760,328 |
| Eagle Bulk Shipping, Inc. * | 14,031 | 608,104 |
| Echo Global Logistics, Inc. * | 56,547 | 1,849,087 |
| Eneti, Inc. | 17,974 | 361,457 |
| Forward Air Corp. | 59,173 | 5,224,384 |
| Genco Shipping & Trading Ltd. | 38,004 | 582,981 |
| Hawaiian Holdings, Inc. * | 103,835 | 2,607,297 |
| Heartland Express, Inc. | 105,298 | 1,957,490 |
| Hub Group, Inc., Class A * | 70,874 | 4,657,839 |
| Marten Transport Ltd. | 128,325 | 2,145,594 |
| Matson, Inc. | 92,852 | 6,066,021 |
| Mesa Air Group, Inc. * | 72,867 | 820,483 |
| P.A.M. Transportation Services, Inc. * | 4,033 | 233,591 |
| Pangaea Logistics Solutions Ltd. | 23,042 | 88,942 |
| Radiant Logistics, Inc. * | 86,096 | 575,121 |
| Safe Bulkers, Inc. * | 110,082 | 395,194 |
| Saia, Inc. * | 57,045 | 13,377,053 |
| SkyWest, Inc. * | 107,260 | 5,326,532 |
| Spirit Airlines, Inc. * | 213,126 | 7,634,173 |
| Universal Logistics Holdings, Inc. | 16,120 | 403,161 |
| US Xpress Enterprises, Inc., Class A * | 46,884 | 480,092 |
| Werner Enterprises, Inc. | 130,159 | 6,017,251 |
| | | 91,958,046 |
| |
| Utilities 2.7% |
| ALLETE, Inc. | 113,176 | 7,963,063 |
| American States Water Co. | 79,918 | 6,328,706 |
| Artesian Resources Corp., Class A | 17,654 | 714,104 |
| Atlantic Power Corp. * | 191,190 | 579,306 |
| Avista Corp. | 149,332 | 6,872,259 |
| Black Hills Corp. | 136,521 | 9,417,219 |
| Brookfield Infrastructure Corp., Class A | 68,671 | 4,946,372 |
| Brookfield Renewable Corp., Class A | 279,486 | 11,593,079 |
| Cadiz, Inc. *(a) | 43,567 | 507,556 |
| California Water Service Group | 107,195 | 6,297,706 |
| Chesapeake Utilities Corp. | 37,153 | 4,403,374 |
| Clearway Energy, Inc., Class A | 75,529 | 2,007,561 |
| Clearway Energy, Inc., Class C | 178,029 | 5,107,652 |
| Consolidated Water Co., Ltd. | 32,432 | 381,725 |
| Genie Energy Ltd., Class B | 28,082 | 157,259 |
| Global Water Resources, Inc. | 28,113 | 479,327 |
| MGE Energy, Inc. | 79,262 | 5,929,590 |
| Middlesex Water Co. | 37,118 | 3,044,418 |
| New Jersey Resources Corp. | 207,010 | 8,684,070 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Northwest Natural Holding Co. | 66,422 | 3,581,474 |
| NorthWestern Corp. | 110,239 | 7,499,559 |
| ONE Gas, Inc. | 113,750 | 9,153,462 |
| Ormat Technologies, Inc. | 95,103 | 6,885,457 |
| Otter Tail Corp. | 88,122 | 4,162,002 |
| PNM Resources, Inc. | 185,901 | 9,176,073 |
| Portland General Electric Co. | 195,376 | 9,936,823 |
| Pure Cycle Corp. * | 42,222 | 644,730 |
| RGC Resources, Inc. | 17,143 | 371,832 |
| SJW Group | 57,315 | 3,756,998 |
| South Jersey Industries, Inc. | 219,527 | 5,433,293 |
| Southwest Gas Holdings, Inc. | 123,637 | 8,619,972 |
| Spark Energy, Inc., Class A | 24,901 | 263,453 |
| Spire, Inc. | 108,946 | 8,207,992 |
| Sunnova Energy International, Inc. * | 121,182 | 4,280,148 |
| The York Water Co. | 28,261 | 1,459,398 |
| Unitil Corp. | 32,063 | 1,847,791 |
| | | 170,694,803 |
| Total Common Stock |
| (Cost $3,585,508,872) | | 6,239,568,262 |
|
| Rights 0.0% of net assets |
| |
| Media & Entertainment 0.0% |
| Media General, Inc. CVR *(b) | 174,886 | 14,883 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
| Aduro Biotech, Inc. CVR *(b) | 27,867 | 83,601 |
| Omthera Pharmaceuticals, Inc. CVR *(b) | 8,400 | — |
| Oncternal Therapeutics, Inc. CVR *(a)(b) | 1,506 | 3,087 |
| Tobira Therapeutics, Inc. CVR *(b) | 14,029 | 167,575 |
| | | 254,263 |
| Total Rights |
| (Cost $3,929) | | 269,146 |
|
| Investment Company 0.8% of net assets |
| |
| Securities Lending Collateral 0.8% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 50,844,396 | 50,844,396 |
| Total Investment Company |
| (Cost $50,844,396) | | 50,844,396 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.4% of net assets |
| |
| Time Deposit 0.4% |
| Royal Bank of Canada |
| 0.01%, 05/03/21 (d) | 26,123,237 | 26,123,237 |
| Total Short-Term Investment |
| (Cost $26,123,237) | | 26,123,237 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
($) |
| Futures Contracts | |
| Long | |
| Russell 2000 Index, e-mini, expires 06/18/21 | 303 | 34,261,725 | 109,807 |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $48,664,909. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the 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 |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $5,552,623,197 | $— | $— | $5,552,623,197 | |
| Materials | 278,835,351 | — | — * | 278,835,351 | |
| Software & Services | 408,034,908 | — | 74,806 | 408,109,714 | |
| Rights 1 | | | | | |
| Media & Entertainment | — | — | 14,883 | 14,883 | |
| Pharmaceuticals, Biotechnology & Life Sciences | — | — | 254,263 * | 254,263 | |
| Investment Company1 | 50,844,396 | — | — | 50,844,396 | |
| Short-Term Investment1 | — | 26,123,237 | — | 26,123,237 | |
| Futures Contracts2 | 109,807 | — | — | 109,807 | |
| Total | $6,290,447,659 | $26,123,237 | $343,952 | $6,316,914,848 | |
| * | Level 3 amount shown includes securities determined to have no value at April 30, 2021. |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $3,611,636,038) including securities on loan of $48,664,909 | | $6,265,960,645 |
| Collateral invested for securities on loan, at value (cost $50,844,396) | | 50,844,396 |
| Deposit with broker for futures contracts | | 3,276,000 |
| Receivables: | | |
| Investments sold | | 125,311 |
| Fund shares sold | | 5,665,061 |
| Dividends | | 1,163,489 |
| Income from securities on loan | + | 102,184 |
| Total assets | | 6,327,137,086 |
| Liabilities |
| Collateral held for securities on loan | | 50,844,396 |
| Payables: | | |
| Investments bought | | 472,599 |
| Investment adviser fees | | 217,423 |
| Fund shares redeemed | | 3,051,575 |
| Variation margin on futures contracts | + | 408,757 |
| Total liabilities | | 54,994,750 |
| Net Assets |
| Total assets | | 6,327,137,086 |
| Total liabilities | – | 54,994,750 |
| Net assets | | $6,272,142,336 |
| Net Assets by Source | | |
| Capital received from investors | | 3,686,260,080 |
| Total distributable earnings | | 2,585,882,256 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $6,272,142,336 | | 159,831,050 | | $39.24 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $57,516) | | $30,897,594 |
| Interest received from securities - unaffiliated | | 914 |
| Securities on loan, net | + | 1,536,688 |
| Total investment income | | 32,435,196 |
| Expenses |
| Investment adviser fees | | 1,114,100 |
| Total expenses | – | 1,114,100 |
| Net investment income | | 31,321,096 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 32,012,835 |
| Net realized gains on futures contracts | + | 7,757,278 |
| Net realized gains | | 39,770,113 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 1,868,338,116 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 624,216 |
| Net change in unrealized appreciation (depreciation) | + | 1,868,962,332 |
| Net realized and unrealized gains | | 1,908,732,445 |
| Increase in net assets resulting from operations | | $1,940,053,541 |
Schwab Equity Index Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $31,321,096 | $52,110,703 |
| Net realized gains | | 39,770,113 | 16,309,735 |
| Net change in unrealized appreciation (depreciation) | + | 1,868,962,332 | (66,209,739) |
| Increase in net assets from operations | | 1,940,053,541 | 2,210,699 |
| Distributions to Shareholders | |
| Total distributions | | ($129,889,789) | ($258,984,423) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 26,448,614 | $962,246,001 | 42,497,497 | $1,056,026,388 |
| Shares reinvested | | 3,127,037 | 106,319,238 | 7,453,061 | 217,331,235 |
| Shares redeemed | + | (16,457,715) | (594,758,210) | (48,388,038) | (1,215,269,449) |
| Net transactions in fund shares | | 13,117,936 | $473,807,029 | 1,562,520 | $58,088,174 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 146,713,114 | $3,988,171,555 | 145,150,594 | $4,186,857,105 |
| Total increase (decrease) | + | 13,117,936 | 2,283,970,781 | 1,562,520 | (198,685,550) |
| End of period | | 159,831,050 | $6,272,142,336 | 146,713,114 | $3,988,171,555 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $57.62 | $53.42 | $48.38 | $46.25 | $38.19 | $37.69 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.51 | 1.07 | 0.99 | 0.88 | 0.80 | 0.75 |
| Net realized and unrealized gains (losses) | 17.32 | 4.21 | 5.18 | 2.12 | 8.19 | 0.75 |
| Total from investment operations | 17.83 | 5.28 | 6.17 | 3.00 | 8.99 | 1.50 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (1.08) | (0.94) | (0.90) | (0.76) | (0.74) | (0.70) |
| Distributions from net realized gains | — | (0.14) | (0.23) | (0.11) | (0.19) | (0.30) |
| Total distributions | (1.08) | (1.08) | (1.13) | (0.87) | (0.93) | (1.00) |
| Net asset value at end of period | $74.37 | $57.62 | $53.42 | $48.38 | $46.25 | $38.19 |
| Total return | 31.19% 2 | 9.94% | 13.37% | 6.51% | 23.89% | 4.19% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.03% 3 | 0.03% | 0.03% | 0.03% | 0.05% 4 | 0.10% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.05% 4 | 0.09% |
| Net investment income (loss) | 1.51% 3 | 1.96% | 1.99% | 1.80% | 1.89% | 2.03% |
| Portfolio turnover rate | 1% 2 | 4% | 3% | 4% | 2% | 1% |
| Net assets, end of period (x 1,000,000) | $15,930 | $11,487 | $10,220 | $8,410 | $6,720 | $4,850 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.5% of net assets |
| |
| Automobiles & Components 1.9% |
| Adient plc * | 34,040 | 1,577,414 |
| American Axle & Manufacturing Holdings, Inc. * | 41,671 | 386,707 |
| Aptiv plc * | 99,171 | 14,269,715 |
| Arcimoto, Inc. *(a) | 8,847 | 91,213 |
| Autoliv, Inc. * | 29,197 | 2,938,970 |
| AYRO, Inc. *(a) | 8,928 | 49,372 |
| BorgWarner, Inc. | 88,618 | 4,305,062 |
| Canoo, Inc. *(a) | 52,776 | 465,484 |
| Cooper Tire & Rubber Co. | 18,311 | 1,043,544 |
| Cooper-Standard Holdings, Inc. * | 6,229 | 180,890 |
| Dana, Inc. | 52,320 | 1,323,696 |
| Dorman Products, Inc. * | 11,083 | 1,099,212 |
| Fisker, Inc. *(a) | 52,230 | 685,258 |
| Ford Motor Co. * | 1,434,877 | 16,558,481 |
| Fox Factory Holding Corp. * | 15,225 | 2,332,927 |
| General Motors Co. * | 467,495 | 26,750,064 |
| Gentex Corp. | 89,440 | 3,146,499 |
| Gentherm, Inc. * | 12,094 | 861,093 |
| Harley-Davidson, Inc. | 57,260 | 2,769,666 |
| Horizon Global Corp. * | 7,908 | 63,738 |
| LCI Industries | 9,091 | 1,331,832 |
| Lear Corp. | 20,234 | 3,719,819 |
| Lordstown Motors Corp. *(a) | 36,061 | 357,365 |
| Luminar Technologies, Inc. *(a) | 68,172 | 1,550,913 |
| Modine Manufacturing Co. * | 17,500 | 284,900 |
| Motorcar Parts of America, Inc. * | 7,218 | 155,909 |
| NII Holdings, Inc. Escrow *(b) | 28,127 | 60,192 |
| Patrick Industries, Inc. | 8,185 | 733,376 |
| QuantumScape Corp. *(a) | 50,448 | 1,843,370 |
| Standard Motor Products, Inc. | 7,798 | 333,988 |
| Stoneridge, Inc. * | 10,196 | 339,017 |
| Strattec Security Corp. * | 1,500 | 65,850 |
| Superior Industries International, Inc. * | 10,350 | 51,957 |
| Tenneco, Inc., Class A * | 18,958 | 190,907 |
| Tesla, Inc. * | 282,421 | 200,360,754 |
| The Goodyear Tire & Rubber Co. * | 85,169 | 1,465,758 |
| Thor Industries, Inc. | 20,883 | 2,956,824 |
| Veoneer, Inc. *(a) | 34,040 | 779,516 |
| Visteon Corp. * | 10,098 | 1,230,037 |
| Winnebago Industries, Inc. | 12,256 | 979,867 |
| Workhorse Group, Inc. *(a) | 40,096 | 496,789 |
| XL Fleet Corp. *(a) | 35,638 | 242,338 |
| XPEL, Inc. * | 6,154 | 394,471 |
| | | 300,824,754 |
| |
| Banks 4.7% |
| 1st Constitution Bancorp | 4,287 | 82,225 |
| 1st Source Corp. | 6,601 | 314,142 |
| ACNB Corp. | 3,797 | 104,417 |
| Allegiance Bancshares, Inc. | 6,823 | 270,191 |
| Altabancorp | 5,381 | 224,657 |
| Amalgamated Financial Corp. | 10,926 | 176,455 |
| Security | Number
of Shares | Value ($) |
| Amerant Bancorp, Inc. * | 8,788 | 166,533 |
| American National Bankshares, Inc. | 4,310 | 146,669 |
| American River Bankshares | 3,244 | 64,004 |
| Ameris Bancorp | 25,209 | 1,363,555 |
| Ames National Corp. | 4,056 | 102,536 |
| Arrow Financial Corp. | 6,372 | 225,250 |
| Associated Banc-Corp. | 56,203 | 1,230,284 |
| Atlantic Capital Bancshares, Inc. * | 7,985 | 213,599 |
| Atlantic Union Bankshares Corp. | 28,947 | 1,119,380 |
| Axos Financial, Inc. * | 18,488 | 834,733 |
| Banc of California, Inc. | 15,821 | 283,196 |
| BancFirst Corp. | 6,788 | 471,834 |
| BancorpSouth Bank | 34,911 | 1,033,016 |
| Bank First Corp. | 2,265 | 163,805 |
| Bank of America Corp. | 2,793,387 | 113,215,975 |
| Bank of Commerce Holdings | 5,000 | 64,550 |
| Bank of Hawaii Corp. | 14,683 | 1,334,538 |
| Bank of Marin Bancorp | 4,818 | 170,654 |
| Bank OZK | 43,793 | 1,795,075 |
| BankFinancial Corp. | 4,321 | 45,025 |
| BankUnited, Inc. | 33,765 | 1,573,787 |
| Bankwell Financial Group, Inc. | 2,000 | 54,020 |
| Banner Corp. | 12,659 | 719,538 |
| Bar Harbor Bankshares | 5,502 | 157,687 |
| Baycom Corp. * | 4,870 | 88,098 |
| BCB Bancorp, Inc. | 7,033 | 96,844 |
| Berkshire Hills Bancorp, Inc. | 19,410 | 430,708 |
| Blue Ridge Bankshares, Inc. | 3,800 | 90,478 |
| BOK Financial Corp. | 10,775 | 947,553 |
| Boston Private Financial Holdings, Inc. | 31,230 | 459,706 |
| Bridgewater Bancshares, Inc. * | 9,163 | 154,946 |
| Brookline Bancorp, Inc. | 29,876 | 481,004 |
| Bryn Mawr Bank Corp. | 6,890 | 316,664 |
| Business First Bancshares, Inc. | 7,335 | 174,353 |
| Byline Bancorp, Inc. | 7,894 | 179,194 |
| C&F Financial Corp. | 1,200 | 50,616 |
| Cadence BanCorp | 44,744 | 995,554 |
| California BanCorp * | 2,455 | 42,962 |
| Cambridge Bancorp | 2,775 | 242,951 |
| Camden National Corp. | 5,912 | 282,121 |
| Capital Bancorp, Inc. * | 2,904 | 63,801 |
| Capital City Bank Group, Inc. | 5,225 | 132,036 |
| Capitol Federal Financial, Inc. | 48,563 | 627,677 |
| Capstar Financial Holdings, Inc. | 7,423 | 142,447 |
| Carter Bankshares, Inc. * | 8,134 | 105,335 |
| Cathay General Bancorp | 27,184 | 1,100,408 |
| CB Financial Services, Inc. | 1,482 | 31,863 |
| CBTX, Inc. | 7,451 | 232,993 |
| Central Pacific Financial Corp. | 10,865 | 292,812 |
| Central Valley Community Bancorp | 3,755 | 73,748 |
| Century Bancorp, Inc., Class A | 1,223 | 139,728 |
| Chemung Financial Corp. | 968 | 41,140 |
| ChoiceOne Financial Services, Inc. | 2,484 | 60,957 |
| CIT Group, Inc. | 37,415 | 1,993,845 |
| Citigroup, Inc. | 767,479 | 54,675,204 |
| Citizens & Northern Corp. | 5,947 | 146,891 |
| Citizens Community Bancorp, Inc. | 3,744 | 48,672 |
| Citizens Financial Group, Inc. | 158,016 | 7,312,980 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Citizens Holdings Co. | 2,747 | 52,468 |
| City Holding Co. | 5,897 | 456,428 |
| Civista Bancshares, Inc. | 5,755 | 133,113 |
| CNB Financial Corp. | 7,060 | 179,748 |
| Coastal Financial Corp. * | 3,019 | 89,876 |
| Codorus Valley Bancorp, Inc. | 2,828 | 52,035 |
| Columbia Banking System, Inc. | 26,218 | 1,141,270 |
| Columbia Financial, Inc. * | 17,088 | 312,198 |
| Comerica, Inc. | 51,810 | 3,894,040 |
| Commerce Bancshares, Inc. | 39,736 | 3,091,858 |
| Community Bank System, Inc. | 19,577 | 1,519,762 |
| Community Bankers Trust Corp. | 7,000 | 58,660 |
| Community Trust Bancorp, Inc. | 5,256 | 234,207 |
| ConnectOne Bancorp, Inc. | 13,027 | 353,683 |
| County Bancorp, Inc. | 2,567 | 60,684 |
| CrossFirst Bankshares, Inc. * | 16,020 | 236,135 |
| Cullen/Frost Bankers, Inc. | 21,012 | 2,522,701 |
| Customers Bancorp, Inc. * | 10,510 | 362,805 |
| CVB Financial Corp. | 47,022 | 997,337 |
| Dime Community Bancshares, Inc. | 13,235 | 438,343 |
| Eagle Bancorp Montana, Inc. | 2,558 | 59,832 |
| Eagle Bancorp, Inc. | 11,283 | 602,625 |
| East West Bancorp, Inc. | 52,675 | 4,011,201 |
| Eastern Bankshares, Inc. | 71,404 | 1,523,047 |
| Enterprise Bancorp, Inc. | 2,816 | 98,081 |
| Enterprise Financial Services Corp. | 11,421 | 561,114 |
| Equity Bancshares, Inc., Class A * | 5,288 | 154,727 |
| Esquire Financial Holdings, Inc. * | 3,488 | 80,050 |
| ESSA Bancorp, Inc. | 2,841 | 44,092 |
| Essent Group Ltd. | 40,952 | 2,153,256 |
| Evans Bancorp, Inc. | 2,622 | 96,909 |
| F.N.B. Corp. | 115,217 | 1,485,147 |
| Farmers & Merchants Bancorp, Inc. | 4,577 | 107,559 |
| Farmers National Banc Corp. | 9,537 | 158,123 |
| FB Financial Corp. | 11,393 | 478,050 |
| Federal Agricultural Mortgage Corp., Class C | 4,549 | 467,910 |
| Fidelity D&D Bancorp, Inc. | 1,520 | 85,515 |
| Fifth Third Bancorp | 262,897 | 10,657,844 |
| Financial Institutions, Inc. | 6,134 | 195,859 |
| First BanCorp | 79,325 | 997,115 |
| First BanCorp (North Carolina) | 10,445 | 442,868 |
| First Bank | 6,451 | 81,863 |
| First Busey Corp. | 18,639 | 465,602 |
| First Business Financial Services, Inc. | 2,369 | 62,684 |
| First Capital, Inc. (a) | 1,074 | 48,416 |
| First Choice Bancorp | 4,227 | 135,349 |
| First Citizens BancShares, Inc., Class A | 2,611 | 2,264,938 |
| First Commonwealth Financial Corp. | 36,503 | 528,928 |
| First Community Bankshares, Inc. | 6,431 | 187,914 |
| First Community Corp. | 2,104 | 38,714 |
| First Financial Bancorp | 34,943 | 856,453 |
| First Financial Bankshares, Inc. | 51,647 | 2,534,835 |
| First Financial Corp. | 4,975 | 220,094 |
| First Financial Northwest, Inc. | 2,467 | 33,576 |
| First Foundation, Inc. | 14,350 | 341,530 |
| First Guaranty Bancshares, Inc. | 2,349 | 40,802 |
| First Hawaiian, Inc. | 47,715 | 1,310,254 |
| First Horizon Corp. | 206,686 | 3,780,287 |
| First Internet Bancorp | 3,435 | 117,992 |
| First Interstate BancSystem, Inc., Class A | 12,583 | 591,023 |
| First Merchants Corp. | 19,863 | 917,869 |
| First Mid Bancshares, Inc. | 5,493 | 239,165 |
| First Midwest Bancorp, Inc. | 42,502 | 891,267 |
| First Northwest Bancorp | 3,416 | 57,320 |
| First Republic Bank | 64,849 | 11,882,931 |
| First Savings Financial Group, Inc. | 860 | 59,168 |
| First United Corp. | 2,475 | 41,877 |
| Security | Number
of Shares | Value ($) |
| First Western Financial, Inc. * | 2,700 | 69,309 |
| Flagstar Bancorp, Inc. | 16,984 | 790,435 |
| Flushing Financial Corp. | 11,960 | 278,309 |
| FNCB Bancorp, Inc. | 4,152 | 28,773 |
| Franklin Financial Services Corp. | 1,600 | 48,240 |
| FS Bancorp, Inc. | 1,625 | 111,069 |
| Fulton Financial Corp. | 59,859 | 1,020,596 |
| FVCBankcorp, Inc. * | 3,179 | 55,919 |
| German American Bancorp, Inc. | 8,940 | 387,370 |
| Glacier Bancorp, Inc. | 34,471 | 2,032,065 |
| Great Southern Bancorp, Inc. | 4,382 | 247,189 |
| Great Western Bancorp, Inc. | 20,561 | 679,541 |
| Greene County Bancorp, Inc. | 1,473 | 37,429 |
| Guaranty Bancshares, Inc. | 3,058 | 118,956 |
| Guaranty Federal Bancshares, Inc. | 1,961 | 47,260 |
| Hancock Whitney Corp. | 31,611 | 1,461,693 |
| Hanmi Financial Corp. | 10,693 | 217,068 |
| HarborOne Bancorp, Inc. | 19,941 | 285,356 |
| Hawthorn Bancshares, Inc. | 1,731 | 37,286 |
| HBT Financial, Inc. | 4,303 | 78,315 |
| Heartland Financial USA, Inc. | 14,339 | 720,822 |
| Heritage Commerce Corp. | 22,589 | 272,649 |
| Heritage Financial Corp. | 12,939 | 363,586 |
| Hilltop Holdings, Inc. | 23,952 | 843,110 |
| Home Bancorp, Inc. | 3,387 | 128,503 |
| Home BancShares, Inc. | 54,642 | 1,520,687 |
| HomeStreet, Inc. | 8,248 | 336,848 |
| HomeTrust Bancshares, Inc. | 6,004 | 164,510 |
| Hope Bancorp, Inc. | 44,555 | 668,771 |
| Horizon Bancorp, Inc. | 14,268 | 261,675 |
| Howard Bancorp, Inc. * | 4,800 | 80,832 |
| Huntington Bancshares, Inc. | 379,986 | 5,821,386 |
| Independent Bank Corp. | 12,109 | 991,727 |
| Independent Bank Corp., Michigan | 7,335 | 172,813 |
| Independent Bank Group, Inc. | 13,508 | 1,019,989 |
| International Bancshares Corp. | 20,561 | 974,386 |
| Investar Holding Corp. | 2,523 | 55,784 |
| Investors Bancorp, Inc. | 82,877 | 1,213,319 |
| JPMorgan Chase & Co. | 1,122,020 | 172,577,896 |
| Kearny Financial Corp. | 27,934 | 356,997 |
| KeyCorp | 355,019 | 7,725,213 |
| Lakeland Bancorp, Inc. | 20,073 | 363,923 |
| Lakeland Financial Corp. | 9,340 | 609,248 |
| Landmark Bancorp, Inc. | 2,860 | 68,783 |
| LCNB Corp. | 4,536 | 82,192 |
| Live Oak Bancshares, Inc. | 11,189 | 715,648 |
| Luther Burbank Corp. | 6,821 | 75,986 |
| M&T Bank Corp. | 47,137 | 7,433,034 |
| Macatawa Bank Corp. | 11,932 | 114,189 |
| Mackinac Financial Corp. | 2,963 | 64,297 |
| MainStreet Bancshares, Inc. * | 3,000 | 63,600 |
| Malvern Bancorp, Inc. * | 1,956 | 35,658 |
| Mercantile Bank Corp. | 5,614 | 181,220 |
| Merchants Bancorp | 5,609 | 228,791 |
| Meridian Bancorp, Inc. | 20,586 | 455,156 |
| Meridian Corp. | 2,531 | 66,818 |
| Meta Financial Group, Inc. | 11,933 | 587,820 |
| Metrocity Bankshares, Inc. | 7,254 | 116,137 |
| Metropolitan Bank Holding Corp. * | 3,233 | 203,194 |
| MGIC Investment Corp. | 123,330 | 1,879,549 |
| Mid Penn Bancorp, Inc. | 3,532 | 95,329 |
| Middlefield Banc Corp. | 1,808 | 40,463 |
| Midland States Bancorp, Inc. | 7,038 | 198,331 |
| MidWestOne Financial Group, Inc. | 5,588 | 176,357 |
| MMA Capital Holdings, Inc. * | 1,499 | 25,603 |
| Mr Cooper Group, Inc. * | 25,993 | 896,239 |
| MVB Financial Corp. | 3,423 | 137,878 |
| National Bank Holdings Corp., Class A | 11,252 | 448,955 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| National Bankshares, Inc. | 2,688 | 96,472 |
| NBT Bancorp, Inc. | 15,694 | 594,646 |
| New York Community Bancorp, Inc. | 170,528 | 2,039,515 |
| Nicolet Bankshares, Inc. * | 3,504 | 279,479 |
| NMI Holdings, Inc., Class A * | 34,756 | 898,095 |
| Northeast Bank | 3,473 | 97,834 |
| Northfield Bancorp, Inc. | 19,213 | 310,866 |
| Northrim BanCorp, Inc. | 2,596 | 110,719 |
| Northwest Bancshares, Inc. | 45,170 | 634,187 |
| Norwood Financial Corp. | 3,216 | 81,976 |
| Oak Valley Bancorp | 2,528 | 44,847 |
| OceanFirst Financial Corp. | 22,818 | 521,619 |
| Ocwen Financial Corp. * | 2,248 | 70,834 |
| OFG Bancorp | 18,500 | 438,265 |
| Ohio Valley Banc Corp. | 1,139 | 25,491 |
| Old National Bancorp | 59,649 | 1,127,366 |
| Old Second Bancorp, Inc. | 10,602 | 140,052 |
| OP Bancorp | 6,259 | 68,098 |
| Origin Bancorp, Inc. | 7,855 | 343,499 |
| Orrstown Financial Services, Inc. | 4,618 | 109,493 |
| Pacific Mercantile Bancorp * | 16,354 | 141,789 |
| Pacific Premier Bancorp, Inc. | 37,064 | 1,631,928 |
| PacWest Bancorp | 42,627 | 1,850,438 |
| Park National Corp. | 5,282 | 660,725 |
| Parke Bancorp, Inc. | 4,518 | 95,420 |
| PCB Bancorp | 6,102 | 96,412 |
| PCSB Financial Corp. | 6,385 | 111,674 |
| Peapack-Gladstone Financial Corp. | 6,653 | 212,896 |
| Penns Woods Bancorp, Inc. | 2,250 | 54,000 |
| PennyMac Financial Services, Inc. | 13,969 | 841,073 |
| People's United Financial, Inc. | 154,337 | 2,798,130 |
| Peoples Bancorp of North Carolina, Inc. | 1,427 | 33,349 |
| Peoples Bancorp, Inc. | 6,847 | 228,895 |
| Peoples Financial Services Corp. | 2,448 | 104,407 |
| Pinnacle Financial Partners, Inc. | 27,365 | 2,398,269 |
| Pioneer Bancorp, Inc. * | 5,272 | 61,999 |
| Plumas Bancorp | 1,860 | 49,383 |
| Ponce de Leon Federal Bank * | 3,464 | 38,381 |
| Popular, Inc. | 30,611 | 2,263,990 |
| Preferred Bank | 5,001 | 327,766 |
| Premier Financial Bancorp, Inc. | 5,305 | 100,477 |
| Premier Financial Corp. | 13,975 | 441,470 |
| Primis Financial Corp. | 6,730 | 96,575 |
| Professional Holding Corp., Class A * | 5,294 | 91,269 |
| Prosperity Bancshares, Inc. | 33,624 | 2,466,657 |
| Provident Bancorp, Inc. | 5,957 | 97,516 |
| Provident Financial Holdings, Inc. | 2,246 | 36,520 |
| Provident Financial Services, Inc. | 26,547 | 625,713 |
| QCR Holdings, Inc. | 5,706 | 275,143 |
| Radian Group, Inc. | 69,530 | 1,713,219 |
| RBB Bancorp | 4,010 | 84,531 |
| Red River Bancshares, Inc. | 1,976 | 109,945 |
| Regions Financial Corp. | 352,035 | 7,674,363 |
| Reliant Bancorp, Inc. | 5,236 | 144,671 |
| Renasant Corp. | 20,107 | 847,108 |
| Republic Bancorp, Inc., Class A | 3,903 | 175,362 |
| Republic First Bancorp, Inc. * | 17,184 | 68,564 |
| Richmond Mutual BanCorp., Inc. | 4,348 | 59,437 |
| Riverview Bancorp, Inc. | 11,437 | 78,801 |
| Rocket Cos., Inc., Class A | 41,033 | 921,191 |
| S&T Bancorp, Inc. | 13,976 | 460,509 |
| Sandy Spring Bancorp, Inc. | 17,363 | 787,586 |
| SB Financial Group, Inc. | 2,430 | 43,400 |
| Seacoast Banking Corp. of Florida * | 19,951 | 725,219 |
| Security National Financial Corp., Class A * | 6,093 | 51,425 |
| Select Bancorp, Inc. * | 5,100 | 60,129 |
| ServisFirst Bancshares, Inc. | 17,323 | 1,095,507 |
| Security | Number
of Shares | Value ($) |
| Shore Bancshares, Inc. | 4,629 | 77,952 |
| Sierra Bancorp | 5,893 | 159,523 |
| Signature Bank | 21,152 | 5,319,940 |
| Silvergate Capital Corp., Class A * | 6,858 | 735,315 |
| Simmons First National Corp., Class A | 38,643 | 1,101,325 |
| SmartFinancial, Inc. | 5,999 | 142,116 |
| South Plains Financial, Inc. | 3,800 | 86,792 |
| South State Corp. | 25,743 | 2,170,650 |
| Southern First Bancshares, Inc. * | 2,701 | 139,101 |
| Southern Missouri Bancorp, Inc. | 3,020 | 126,508 |
| Southside Bancshares, Inc. | 11,842 | 475,456 |
| Spirit of Texas Bancshares, Inc. | 5,614 | 130,076 |
| Standard AVB Financial Corp. | 1,872 | 61,551 |
| Sterling Bancorp | 69,690 | 1,751,310 |
| Sterling Bancorp, Inc. * | 7,691 | 38,070 |
| Stock Yards Bancorp, Inc. | 8,090 | 413,884 |
| Summit Financial Group, Inc. | 3,433 | 89,430 |
| SVB Financial Group * | 19,997 | 11,434,884 |
| Synovus Financial Corp. | 53,910 | 2,526,223 |
| TCF Financial Corp. | 55,303 | 2,517,393 |
| Territorial Bancorp, Inc. | 4,386 | 110,308 |
| Texas Capital Bancshares, Inc. * | 18,259 | 1,253,115 |
| TFS Financial Corp. | 17,443 | 341,185 |
| The Bancorp, Inc. * | 17,839 | 396,115 |
| The Bank of Princeton | 1,521 | 45,402 |
| The Community Financial Corp. | 1,476 | 53,313 |
| The First BanCorp, Inc. | 3,885 | 109,907 |
| The First Bancshares, Inc. | 7,804 | 305,292 |
| The First of Long Island Corp. | 9,143 | 194,654 |
| The Hingham Institution For Savings | 534 | 162,411 |
| The PNC Financial Services Group, Inc. | 156,252 | 29,211,311 |
| Timberland Bancorp, Inc. | 2,502 | 70,406 |
| Tompkins Financial Corp. | 4,546 | 355,270 |
| Towne Bank | 23,817 | 737,851 |
| TriCo Bancshares | 9,785 | 452,850 |
| TriState Capital Holdings, Inc. * | 10,371 | 247,556 |
| Triumph Bancorp, Inc. * | 8,044 | 712,940 |
| Truist Financial Corp. | 496,418 | 29,442,552 |
| TrustCo Bank Corp. | 36,703 | 268,482 |
| Trustmark Corp. | 23,087 | 748,250 |
| U.S. Bancorp | 503,404 | 29,877,027 |
| UMB Financial Corp. | 15,587 | 1,512,407 |
| Umpqua Holdings Corp. | 80,044 | 1,492,020 |
| Union Bankshares, Inc. | 1,200 | 39,600 |
| United Bankshares, Inc. | 46,871 | 1,840,624 |
| United Community Banks, Inc. | 31,722 | 1,037,944 |
| United Security Bancshares | 4,123 | 34,138 |
| Unity Bancorp, Inc. | 2,299 | 50,693 |
| Univest Financial Corp. | 11,205 | 312,956 |
| UWM Holdings Corp. (a) | 21,720 | 177,235 |
| Valley National Bancorp | 146,289 | 2,014,400 |
| Veritex Holdings, Inc. | 17,988 | 607,635 |
| Virginia National Bankshares Corp. | 1,407 | 45,390 |
| Walker & Dunlop, Inc. | 10,607 | 1,175,786 |
| Washington Federal, Inc. | 28,143 | 916,055 |
| Washington Trust Bancorp, Inc. | 6,472 | 330,396 |
| Waterstone Financial, Inc. | 7,535 | 148,439 |
| Webster Financial Corp. | 32,488 | 1,718,940 |
| Wells Fargo & Co. | 1,520,852 | 68,514,383 |
| WesBanco, Inc. | 25,094 | 910,661 |
| West Bancorp, Inc. | 6,313 | 165,779 |
| Westamerica Bancorp | 9,950 | 630,830 |
| Western Alliance Bancorp | 38,699 | 4,066,104 |
| Western New England Bancorp, Inc. | 10,349 | 83,827 |
| Wintrust Financial Corp. | 20,500 | 1,580,550 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| WSFS Financial Corp. | 17,604 | 899,388 |
| Zions Bancorp NA | 59,426 | 3,315,971 |
| | | 747,607,255 |
| |
| Capital Goods 6.3% |
| 3M Co. | 212,791 | 41,949,618 |
| A.O. Smith Corp. | 51,213 | 3,469,681 |
| AAON, Inc. | 14,695 | 961,200 |
| AAR Corp. * | 12,256 | 493,181 |
| Acuity Brands, Inc. | 13,134 | 2,436,620 |
| Advanced Drainage Systems, Inc. | 19,154 | 2,138,736 |
| Advent Technologies Holdings, Inc. *(a) | 14,101 | 169,494 |
| AECOM * | 55,800 | 3,706,794 |
| Aegion Corp. * | 10,725 | 322,822 |
| Aerojet Rocketdyne Holdings, Inc. | 26,090 | 1,218,925 |
| Aerovironment, Inc. * | 9,028 | 996,420 |
| AGCO Corp. | 22,808 | 3,328,143 |
| AgEagle Aerial Systems, Inc. *(a) | 19,313 | 110,857 |
| Agrify Corp. * | 4,542 | 49,054 |
| Air Lease Corp. | 39,038 | 1,823,465 |
| Alamo Group, Inc. | 3,646 | 573,333 |
| Albany International Corp., Class A | 11,096 | 990,207 |
| Allegion plc | 33,383 | 4,486,008 |
| Allied Motion Technologies, Inc. | 2,595 | 135,070 |
| Allison Transmission Holdings, Inc. | 40,661 | 1,686,212 |
| Alpha Pro Tech Ltd. *(a) | 4,213 | 37,748 |
| Alta Equipment Group, Inc. * | 7,735 | 99,395 |
| Altra Industrial Motion Corp. | 22,417 | 1,322,827 |
| Ameresco, Inc., Class A * | 7,330 | 386,951 |
| American Superconductor Corp. * | 9,332 | 153,698 |
| American Woodmark Corp. * | 6,136 | 610,287 |
| AMETEK, Inc. | 85,400 | 11,523,022 |
| API Group Corp. * | 55,165 | 1,172,808 |
| Apogee Enterprises, Inc. | 9,481 | 333,068 |
| Applied Industrial Technologies, Inc. | 14,227 | 1,360,955 |
| Arcosa, Inc. | 17,207 | 1,037,410 |
| Argan, Inc. | 5,381 | 269,857 |
| Armstrong Flooring, Inc. * | 7,547 | 39,169 |
| Armstrong World Industries, Inc. | 17,407 | 1,804,236 |
| Array Technologies, Inc. * | 39,681 | 1,117,417 |
| Astec Industries, Inc. | 8,081 | 606,156 |
| Astronics Corp. * | 9,549 | 166,248 |
| Atkore, Inc. * | 18,491 | 1,447,475 |
| Ault Global Holdings, Inc. *(a) | 11,756 | 35,268 |
| Axon Enterprise, Inc. * | 23,862 | 3,617,718 |
| AZZ, Inc. | 9,021 | 474,865 |
| Babcock & Wilcox Enterprises, Inc. * | 21,467 | 193,632 |
| Barnes Group, Inc. | 16,937 | 845,495 |
| Beacon Roofing Supply, Inc. * | 19,813 | 1,116,066 |
| Beam Global *(a) | 2,100 | 72,303 |
| Bloom Energy Corp., Class A * | 43,958 | 1,141,589 |
| Blue Bird Corp. * | 6,024 | 162,287 |
| BlueLinx Holdings, Inc. * | 2,949 | 148,836 |
| Boise Cascade Co. | 14,067 | 938,550 |
| Broadwind, Inc. * | 7,421 | 38,367 |
| Builders FirstSource, Inc. * | 77,287 | 3,761,558 |
| BWX Technologies, Inc. | 34,510 | 2,309,409 |
| CAI International, Inc. | 5,566 | 236,833 |
| Capstone Green Energy Corp. * | 5,546 | 44,701 |
| Carlisle Cos., Inc. | 19,410 | 3,719,926 |
| Carrier Global Corp. | 300,344 | 13,088,992 |
| Caterpillar, Inc. | 200,747 | 45,792,398 |
| Chart Industries, Inc. * | 13,149 | 2,112,124 |
| CIRCOR International, Inc. * | 7,526 | 258,669 |
| Colfax Corp. * | 41,901 | 1,893,506 |
| Columbus McKinnon Corp. | 9,142 | 452,620 |
| Comfort Systems USA, Inc. | 12,917 | 1,063,844 |
| Security | Number
of Shares | Value ($) |
| Commercial Vehicle Group, Inc. * | 13,417 | 147,453 |
| Concrete Pumping Holdings, Inc. * | 7,078 | 57,544 |
| Construction Partners, Inc., Class A * | 12,670 | 402,019 |
| Cornerstone Building Brands, Inc. * | 14,252 | 200,383 |
| Crane Co. | 17,933 | 1,686,778 |
| CSW Industrials, Inc. | 4,946 | 669,738 |
| Cubic Corp. | 11,593 | 867,620 |
| Cummins, Inc. | 54,335 | 13,694,593 |
| Curtiss-Wright Corp. | 14,821 | 1,895,606 |
| Custom Truck One Source, Inc. * | 5,825 | 59,764 |
| Deere & Co. | 115,411 | 42,800,169 |
| Desktop Metal, Inc., Class A *(a) | 42,846 | 586,133 |
| Donaldson Co., Inc. | 46,739 | 2,938,948 |
| Douglas Dynamics, Inc. | 8,714 | 389,777 |
| Dover Corp. | 52,774 | 7,873,353 |
| Ducommun, Inc. * | 4,035 | 237,783 |
| DXP Enterprises, Inc. * | 6,112 | 178,898 |
| Dycom Industries, Inc. * | 11,033 | 1,035,006 |
| Eaton Corp. plc | 146,249 | 20,903,370 |
| EMCOR Group, Inc. | 19,756 | 2,366,769 |
| Emerson Electric Co. | 220,280 | 19,933,137 |
| Encore Wire Corp. | 7,393 | 552,109 |
| Energous Corp. * | 16,131 | 50,329 |
| Energy Recovery, Inc. * | 14,572 | 308,926 |
| Enerpac Tool Group Corp. | 21,715 | 577,619 |
| EnerSys | 15,369 | 1,407,493 |
| EnPro Industries, Inc. | 7,650 | 655,222 |
| Eos Energy Enterprises, Inc. *(a) | 12,644 | 166,269 |
| ESCO Technologies, Inc. | 9,634 | 1,047,794 |
| EVI Industries, Inc. * | 2,590 | 69,257 |
| Evoqua Water Technologies Corp. * | 46,598 | 1,331,771 |
| Fastenal Co. | 211,033 | 11,032,805 |
| Federal Signal Corp. | 21,858 | 905,577 |
| Flowserve Corp. | 47,362 | 1,877,430 |
| Fluor Corp. * | 45,052 | 1,035,295 |
| Fortive Corp. | 124,353 | 8,806,679 |
| Fortune Brands Home & Security, Inc. | 51,155 | 5,370,252 |
| Franklin Electric Co., Inc. | 14,084 | 1,144,607 |
| FuelCell Energy, Inc. * | 116,461 | 1,130,836 |
| Gates Industrial Corp. plc * | 24,109 | 415,880 |
| GATX Corp. | 12,831 | 1,253,717 |
| Gencor Industries, Inc. * | 3,540 | 42,445 |
| Generac Holdings, Inc. * | 23,105 | 7,484,865 |
| General Dynamics Corp. | 84,956 | 16,161,180 |
| General Electric Co. | 3,231,628 | 42,398,959 |
| General Finance Corp. * | 5,590 | 106,098 |
| Gibraltar Industries, Inc. * | 11,907 | 1,093,777 |
| GMS, Inc. * | 15,457 | 675,625 |
| Graco, Inc. | 62,013 | 4,762,598 |
| GrafTech International Ltd. | 50,252 | 639,205 |
| Graham Corp. | 5,460 | 74,857 |
| Granite Construction, Inc. | 17,068 | 650,291 |
| Great Lakes Dredge & Dock Corp. * | 23,180 | 363,926 |
| Griffon Corp. | 16,283 | 441,595 |
| H&E Equipment Services, Inc. | 11,492 | 447,039 |
| HC2 Holdings, Inc. * | 23,119 | 97,100 |
| HEICO Corp. | 15,627 | 2,200,282 |
| HEICO Corp., Class A | 26,896 | 3,396,427 |
| Helios Technologies, Inc. | 11,459 | 828,257 |
| Herc Holdings, Inc. * | 8,885 | 938,256 |
| Hexcel Corp. * | 32,171 | 1,814,766 |
| Hillenbrand, Inc. | 26,804 | 1,315,808 |
| Honeywell International, Inc. | 255,189 | 56,917,355 |
| Howmet Aerospace, Inc. * | 144,865 | 4,629,885 |
| Hubbell, Inc. | 20,176 | 3,873,994 |
| Hudson Technologies, Inc. * | 14,328 | 29,516 |
| Huntington Ingalls Industries, Inc. | 15,029 | 3,190,957 |
| Hurco Cos., Inc. | 2,000 | 68,700 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Hydrofarm Holdings Group, Inc. * | 5,007 | 328,960 |
| Hyliion Holdings Corp. *(a) | 36,265 | 378,244 |
| Hyster-Yale Materials Handling, Inc. | 3,600 | 291,060 |
| Ideal Power, Inc. * | 2,746 | 25,950 |
| IDEX Corp. | 27,831 | 6,239,710 |
| IES Holdings, Inc. * | 7,925 | 418,361 |
| Illinois Tool Works, Inc. | 105,961 | 24,419,772 |
| Infrastructure and Energy Alternatives, Inc. * | 3,618 | 47,685 |
| Ingersoll Rand, Inc. * | 137,234 | 6,780,732 |
| Insteel Industries, Inc. | 7,172 | 273,468 |
| ITT, Inc. | 32,792 | 3,092,614 |
| JELD-WEN Holding, Inc. * | 27,159 | 792,228 |
| John Bean Technologies Corp. | 11,510 | 1,673,324 |
| Johnson Controls International plc | 265,052 | 16,523,342 |
| Kadant, Inc. | 4,147 | 738,290 |
| Kaman Corp. | 10,367 | 553,079 |
| Kennametal, Inc. | 30,602 | 1,228,976 |
| Kratos Defense & Security Solutions, Inc. * | 45,370 | 1,213,194 |
| L.B. Foster Co., Class A * | 3,200 | 51,648 |
| L3Harris Technologies, Inc. | 75,563 | 15,810,046 |
| Lawson Products, Inc. * | 3,088 | 161,904 |
| Lennox International, Inc. | 12,502 | 4,192,421 |
| Limbach Holdings, Inc. * | 3,605 | 39,727 |
| Lincoln Electric Holdings, Inc. | 21,512 | 2,754,612 |
| Lindsay Corp. | 4,022 | 666,767 |
| LiqTech International, Inc. * | 5,399 | 42,166 |
| Lockheed Martin Corp. | 90,334 | 34,377,507 |
| LSI Industries, Inc. | 8,731 | 71,769 |
| Lydall, Inc. * | 6,617 | 243,836 |
| Manitex International, Inc. * | 4,549 | 32,980 |
| Masco Corp. | 94,160 | 6,014,941 |
| Masonite International Corp. * | 8,921 | 1,126,633 |
| MasTec, Inc. * | 20,353 | 2,124,039 |
| Matrix Service Co. * | 10,847 | 143,289 |
| Maxar Technologies, Inc. | 25,917 | 1,005,839 |
| Mayville Engineering Co., Inc. * | 7,805 | 121,836 |
| McGrath RentCorp | 9,056 | 742,411 |
| Mercury Systems, Inc. * | 20,364 | 1,532,187 |
| Meritor, Inc. * | 26,438 | 714,619 |
| Miller Industries, Inc. | 4,490 | 193,160 |
| Moog, Inc., Class A | 10,511 | 909,727 |
| MRC Global, Inc. * | 22,113 | 208,304 |
| MSC Industrial Direct Co., Inc., Class A | 16,929 | 1,526,319 |
| Mueller Industries, Inc. | 20,469 | 918,444 |
| Mueller Water Products, Inc., Class A | 58,841 | 844,957 |
| MYR Group, Inc. * | 5,984 | 466,154 |
| National Presto Industries, Inc. | 2,089 | 214,916 |
| Navistar International Corp. * | 18,365 | 812,651 |
| Nikola Corp. *(a) | 50,355 | 582,607 |
| NN, Inc. * | 15,065 | 109,974 |
| Nordson Corp. | 19,876 | 4,201,985 |
| Northrop Grumman Corp. | 57,066 | 20,226,473 |
| Northwest Pipe Co. * | 4,179 | 139,035 |
| NOW, Inc. * | 38,877 | 381,772 |
| NV5 Global, Inc. * | 3,797 | 342,224 |
| nVent Electric plc | 61,711 | 1,879,100 |
| Ocean Power Technologies, Inc. *(a) | 12,445 | 31,237 |
| Omega Flex, Inc. | 1,070 | 170,130 |
| Orbital Energy Group, Inc. *(a) | 9,840 | 41,426 |
| Orion Energy Systems, Inc. * | 9,048 | 54,469 |
| Orion Group Holdings, Inc. * | 8,139 | 43,869 |
| Oshkosh Corp. | 24,918 | 3,100,547 |
| Otis Worldwide Corp. | 149,557 | 11,646,004 |
| Owens Corning | 38,807 | 3,756,906 |
| PACCAR, Inc. | 127,192 | 11,432,017 |
| PAE, Inc. * | 24,377 | 218,662 |
| Security | Number
of Shares | Value ($) |
| Park Aerospace Corp. | 6,594 | 88,953 |
| Park-Ohio Holdings Corp. | 3,600 | 130,716 |
| Parker-Hannifin Corp. | 47,364 | 14,863,297 |
| Parsons Corp. * | 8,744 | 387,622 |
| Pentair plc | 62,182 | 4,011,361 |
| PGT Innovations, Inc. * | 21,819 | 574,494 |
| Plug Power, Inc. * | 185,399 | 5,285,725 |
| Polar Power, Inc. * | 3,170 | 35,504 |
| Powell Industries, Inc. | 2,862 | 100,857 |
| Preformed Line Products Co. | 1,000 | 66,200 |
| Primoris Services Corp. | 21,602 | 705,521 |
| Proto Labs, Inc. * | 10,033 | 1,124,298 |
| Quanex Building Products Corp. | 12,035 | 328,435 |
| Quanta Services, Inc. | 51,734 | 4,999,574 |
| Raven Industries, Inc. | 13,105 | 532,325 |
| Raytheon Technologies Corp. | 557,891 | 46,438,847 |
| RBC Bearings, Inc. * | 9,158 | 1,826,380 |
| Regal Beloit Corp. | 14,828 | 2,141,608 |
| Resideo Technologies, Inc. * | 51,979 | 1,559,890 |
| REV Group, Inc. * | 10,004 | 182,473 |
| Rexnord Corp. | 43,260 | 2,159,972 |
| Rockwell Automation, Inc. | 43,090 | 11,386,963 |
| Romeo Power, Inc. *(a) | 33,185 | 285,723 |
| Roper Technologies, Inc. | 38,578 | 17,222,762 |
| Rush Enterprises, Inc., Class A | 16,089 | 794,153 |
| Rush Enterprises, Inc., Class B | 2,625 | 114,949 |
| Sensata Technologies Holding plc * | 58,444 | 3,374,557 |
| Shoals Technologies Group, Inc., Class A * | 27,688 | 887,954 |
| Simpson Manufacturing Co., Inc. | 15,749 | 1,774,912 |
| SiteOne Landscape Supply, Inc. * | 16,523 | 2,963,896 |
| Snap-on, Inc. | 19,962 | 4,742,971 |
| Spirit AeroSystems Holdings, Inc., Class A | 41,194 | 1,882,154 |
| SPX Corp. * | 16,602 | 1,007,077 |
| SPX FLOW, Inc. | 15,093 | 1,005,043 |
| Standex International Corp. | 4,408 | 417,967 |
| Stanley Black & Decker, Inc. | 58,939 | 12,186,817 |
| Sterling Construction Co., Inc. * | 9,417 | 196,344 |
| Sunrun, Inc. * | 60,168 | 2,948,232 |
| Sunworks, Inc. *(a) | 8,821 | 98,707 |
| Systemax, Inc. | 5,824 | 248,801 |
| Tecnoglass, Inc. | 9,487 | 113,465 |
| Teledyne Technologies, Inc. * | 13,653 | 6,113,131 |
| Tennant Co. | 7,027 | 554,501 |
| Terex Corp. | 25,371 | 1,192,183 |
| Textron, Inc. | 84,216 | 5,410,036 |
| The AZEK Co., Inc. * | 45,599 | 2,201,520 |
| The Boeing Co. * | 201,793 | 47,282,118 |
| The Eastern Co. | 1,864 | 52,695 |
| The ExOne Co. * | 4,754 | 110,530 |
| The Gorman-Rupp Co. | 7,392 | 255,172 |
| The Greenbrier Cos., Inc. | 12,151 | 574,013 |
| The Manitowoc Co., Inc. * | 12,331 | 282,133 |
| The Middleby Corp. * | 20,592 | 3,733,741 |
| The Shyft Group, Inc. | 11,994 | 424,827 |
| The Timken Co. | 25,810 | 2,164,685 |
| The Toro Co. | 39,755 | 4,555,923 |
| Thermon Group Holdings, Inc. * | 11,438 | 218,466 |
| Titan International, Inc. * | 18,640 | 201,126 |
| Titan Machinery, Inc. * | 7,620 | 198,958 |
| TPI Composites, Inc. * | 11,618 | 617,497 |
| Trane Technologies plc | 87,798 | 15,261,926 |
| Transcat, Inc. * | 2,925 | 146,250 |
| TransDigm Group, Inc. * | 20,226 | 12,413,505 |
| Trex Co., Inc. * | 42,811 | 4,623,160 |
| TriMas Corp. * | 15,539 | 494,762 |
| Trinity Industries, Inc. | 29,987 | 828,841 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Triton International Ltd. | 24,306 | 1,219,432 |
| Triumph Group, Inc. * | 19,374 | 327,808 |
| Tutor Perini Corp. * | 16,006 | 257,697 |
| Twin Disc, Inc. * | 3,405 | 35,923 |
| UFP Industries, Inc. | 22,141 | 1,860,730 |
| Ultralife Corp. * | 4,422 | 34,934 |
| United Rentals, Inc. * | 26,572 | 8,501,711 |
| Univar Solutions, Inc. * | 61,617 | 1,438,757 |
| Valmont Industries, Inc. | 7,722 | 1,906,176 |
| Vectrus, Inc. * | 4,452 | 233,062 |
| Veritiv Corp. * | 4,535 | 189,926 |
| Vertiv Holdings Co. | 89,388 | 2,029,108 |
| Vicor Corp. * | 7,784 | 717,918 |
| Virgin Galactic Holdings, Inc. *(a) | 47,482 | 1,051,726 |
| W.W. Grainger, Inc. | 16,381 | 7,101,819 |
| Wabash National Corp. | 19,725 | 347,357 |
| Watsco, Inc. | 11,985 | 3,509,927 |
| Watts Water Technologies, Inc., Class A | 9,898 | 1,232,796 |
| Welbilt, Inc. * | 46,762 | 1,044,663 |
| WESCO International, Inc. * | 16,037 | 1,470,914 |
| Westinghouse Air Brake Technologies Corp. | 65,100 | 5,342,757 |
| Westwater Resources, Inc. * | 9,561 | 42,355 |
| Willis Lease Finance Corp. * | 1,177 | 50,399 |
| WillScot Mobile Mini Holdings Corp. * | 71,066 | 2,080,102 |
| Woodward, Inc. | 21,285 | 2,660,838 |
| Xylem, Inc. | 66,954 | 7,408,460 |
| | | 1,005,412,322 |
| |
| Commercial & Professional Services 1.2% |
| ABM Industries, Inc. | 26,991 | 1,387,607 |
| Acacia Research Corp. * | 15,357 | 93,371 |
| ACCO Brands Corp. | 34,735 | 298,026 |
| Acme United Corp. | 1,454 | 64,994 |
| ADT, Inc. | 52,827 | 486,008 |
| Akerna Corp. *(a) | 7,702 | 32,502 |
| Aqua Metals, Inc. * | 23,651 | 70,243 |
| ARC Document Solutions, Inc. | 18,086 | 39,428 |
| ASGN, Inc. * | 19,323 | 2,032,393 |
| Atlas Technical Consultants, Inc. * | 4,620 | 53,222 |
| Barrett Business Services, Inc. | 3,084 | 226,150 |
| BGSF, Inc. | 4,582 | 64,194 |
| Booz Allen Hamilton Holding Corp. | 50,570 | 4,194,782 |
| Brady Corp., Class A | 18,031 | 983,952 |
| BrightView Holdings, Inc. * | 11,485 | 205,926 |
| CACI International, Inc., Class A * | 9,420 | 2,400,781 |
| Casella Waste Systems, Inc., Class A * | 17,623 | 1,182,680 |
| CBIZ, Inc. * | 19,217 | 645,499 |
| CECO Environmental Corp. * | 14,190 | 103,587 |
| Cimpress plc * | 7,264 | 691,969 |
| Cintas Corp. | 32,342 | 11,162,518 |
| Clarivate plc * | 95,073 | 2,655,389 |
| Clean Harbors, Inc. * | 18,336 | 1,631,171 |
| Copart, Inc. * | 77,351 | 9,630,973 |
| CoreCivic, Inc. * | 45,253 | 351,616 |
| CoreLogic, Inc. | 27,420 | 2,185,374 |
| CoStar Group, Inc. * | 14,477 | 12,369,583 |
| Covanta Holding Corp. | 44,230 | 665,219 |
| CRA International, Inc. | 3,170 | 254,424 |
| Deluxe Corp. | 15,345 | 675,487 |
| DLH Holdings Corp. * | 7,975 | 81,265 |
| Document Security Systems, Inc. *(a) | 11,913 | 36,930 |
| Driven Brands Holdings, Inc. * | 11,512 | 328,322 |
| Dun & Bradstreet Holdings, Inc. * | 49,744 | 1,181,917 |
| Ennis, Inc. | 10,997 | 227,968 |
| Equifax, Inc. | 44,977 | 10,310,078 |
| Exponent, Inc. | 18,952 | 1,825,646 |
| Security | Number
of Shares | Value ($) |
| Forrester Research, Inc. * | 4,362 | 189,529 |
| Franklin Covey Co. * | 2,861 | 87,375 |
| FTI Consulting, Inc. * | 12,484 | 1,733,403 |
| Fuel Tech, Inc. *(a) | 11,818 | 26,945 |
| GP Strategies Corp. * | 5,086 | 80,105 |
| Harsco Corp. * | 28,455 | 510,198 |
| Healthcare Services Group, Inc. | 26,959 | 807,422 |
| Heidrick & Struggles International, Inc. | 7,278 | 307,859 |
| Heritage-Crystal Clean, Inc. * | 5,207 | 149,545 |
| Herman Miller, Inc. | 21,749 | 902,584 |
| Hill International, Inc. * | 13,292 | 35,756 |
| HNI Corp. | 16,018 | 678,202 |
| Huron Consulting Group, Inc. * | 8,402 | 472,697 |
| IAA, Inc. * | 49,073 | 3,082,275 |
| ICF International, Inc. | 6,209 | 565,392 |
| IHS Markit Ltd. | 136,735 | 14,709,951 |
| Insperity, Inc. | 12,806 | 1,121,037 |
| Interface, Inc. | 23,118 | 296,835 |
| Jacobs Engineering Group, Inc. | 47,645 | 6,365,848 |
| KAR Auction Services, Inc. * | 48,222 | 722,848 |
| KBR, Inc. | 53,411 | 2,112,939 |
| Kelly Services, Inc., Class A * | 11,798 | 295,540 |
| Kforce, Inc. | 6,775 | 379,671 |
| Kimball International, Inc., Class B | 14,978 | 218,379 |
| Knoll, Inc. | 21,199 | 506,656 |
| Korn Ferry | 19,742 | 1,340,284 |
| Leidos Holdings, Inc. | 49,015 | 4,964,239 |
| ManpowerGroup, Inc. | 19,883 | 2,403,656 |
| ManTech International Corp., Class A | 10,166 | 867,668 |
| Matthews International Corp., Class A | 11,787 | 487,746 |
| Mistras Group, Inc. * | 7,028 | 78,222 |
| Montrose Environmental Group, Inc. * | 5,179 | 280,754 |
| MSA Safety, Inc. | 13,105 | 2,106,760 |
| Nielsen Holdings plc | 133,380 | 3,421,197 |
| Pitney Bowes, Inc. | 62,577 | 467,450 |
| Quad Graphics, Inc. * | 9,800 | 35,280 |
| Red Violet, Inc. *(a) | 3,264 | 67,891 |
| Rekor Systems, Inc. * | 11,734 | 275,162 |
| Republic Services, Inc. | 77,721 | 8,261,742 |
| Resources Connection, Inc. | 11,300 | 159,443 |
| Robert Half International, Inc. | 41,756 | 3,658,243 |
| Rollins, Inc. | 80,535 | 3,002,345 |
| RR Donnelley & Sons Co. * | 29,824 | 129,138 |
| Science Applications International Corp. | 21,816 | 1,950,787 |
| SP Plus Corp. * | 8,482 | 291,187 |
| Steelcase, Inc., Class A | 31,087 | 429,001 |
| Stericycle, Inc. * | 34,507 | 2,632,194 |
| Team, Inc. * | 12,824 | 126,573 |
| Tetra Tech, Inc. | 19,767 | 2,522,862 |
| The Brink's Co. | 18,105 | 1,446,952 |
| TransUnion | 69,603 | 7,279,778 |
| TriNet Group, Inc. * | 14,183 | 1,116,344 |
| TrueBlue, Inc. * | 12,555 | 355,307 |
| U.S. Ecology, Inc. * | 11,833 | 502,429 |
| UniFirst Corp. | 5,591 | 1,253,446 |
| Upwork, Inc. * | 32,903 | 1,515,512 |
| Verisk Analytics, Inc. | 59,825 | 11,259,065 |
| Viad Corp. * | 7,132 | 297,119 |
| Vidler Water Resouces, Inc. * | 7,559 | 68,409 |
| VSE Corp. | 3,389 | 146,235 |
| Waste Management, Inc. | 142,323 | 19,636,304 |
| Willdan Group, Inc. * | 4,309 | 164,475 |
| | | 192,191,384 |
| |
| Consumer Durables & Apparel 1.5% |
| Acushnet Holdings Corp. | 11,936 | 505,012 |
| American Outdoor Brands, Inc. * | 4,639 | 119,918 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| AMMO, Inc. *(a) | 19,995 | 147,763 |
| Aterian, Inc. * | 3,534 | 76,688 |
| Bassett Furniture Industries, Inc. | 3,697 | 126,807 |
| Beazer Homes USA, Inc. * | 9,996 | 223,011 |
| Brunswick Corp. | 28,770 | 3,082,130 |
| Callaway Golf Co. | 33,432 | 967,856 |
| Capri Holdings Ltd. * | 55,767 | 3,071,646 |
| Carter's, Inc. * | 17,205 | 1,871,732 |
| Casper Sleep, Inc. * | 8,500 | 72,675 |
| Cavco Industries, Inc. * | 3,109 | 651,118 |
| Century Communities, Inc. * | 10,686 | 790,123 |
| Clarus Corp. | 9,942 | 185,021 |
| Columbia Sportswear Co. | 10,979 | 1,196,821 |
| Crocs, Inc. * | 23,670 | 2,369,840 |
| Culp, Inc. | 5,320 | 75,278 |
| D.R. Horton, Inc. | 122,617 | 12,052,025 |
| Deckers Outdoor Corp. * | 10,251 | 3,466,888 |
| Delta Apparel, Inc. * | 1,907 | 64,857 |
| Dream Finders Homes, Inc., Class A *(a) | 3,907 | 98,769 |
| Escalade, Inc. | 3,955 | 87,089 |
| Ethan Allen Interiors, Inc. | 8,881 | 254,974 |
| Flexsteel Industries, Inc. | 2,656 | 115,616 |
| Fossil Group, Inc. * | 15,737 | 203,007 |
| G-III Apparel Group Ltd. * | 15,332 | 498,137 |
| Garmin Ltd. | 54,832 | 7,525,144 |
| Genius Brands International, Inc. *(a) | 106,285 | 188,124 |
| GoPro, Inc., Class A * | 44,091 | 495,142 |
| Green Brick Partners, Inc. * | 18,657 | 481,537 |
| Hamilton Beach Brands Holding Co., Class A | 1,750 | 34,125 |
| Hanesbrands, Inc. | 130,707 | 2,752,689 |
| Hasbro, Inc. | 47,098 | 4,683,896 |
| Helen of Troy Ltd. * | 8,916 | 1,883,148 |
| Hooker Furniture Corp. | 4,023 | 150,903 |
| Hovnanian Enterprises, Inc., Class A * | 1,584 | 210,023 |
| Installed Building Products, Inc. | 8,383 | 1,128,771 |
| iRobot Corp. * | 10,140 | 1,103,232 |
| Johnson Outdoors, Inc., Class A | 2,482 | 351,972 |
| KB Home | 32,809 | 1,582,378 |
| Kontoor Brands, Inc. | 16,976 | 1,066,602 |
| Koss Corp. * | 1,602 | 29,957 |
| La-Z-Boy, Inc. | 17,186 | 764,090 |
| Lakeland Industries, Inc. * | 3,608 | 101,782 |
| Landsea Homes Corp. * | 6,294 | 58,912 |
| Legacy Housing Corp. * | 2,843 | 50,776 |
| Leggett & Platt, Inc. | 48,431 | 2,405,568 |
| Lennar Corp., Class A | 105,125 | 10,890,950 |
| Levi Strauss & Co., Class A | 28,336 | 817,777 |
| LGI Homes, Inc. * | 8,060 | 1,336,187 |
| Lifetime Brands, Inc. | 5,000 | 72,500 |
| Lululemon Athletica, Inc. * | 43,519 | 14,590,615 |
| M.D.C. Holdings, Inc. | 20,394 | 1,196,312 |
| M/I Homes, Inc. * | 10,732 | 748,235 |
| Malibu Boats, Inc., Class A * | 7,676 | 639,871 |
| Marine Products Corp. | 11,785 | 204,588 |
| MasterCraft Boat Holdings, Inc. * | 6,845 | 194,124 |
| Mattel, Inc. * | 127,037 | 2,726,214 |
| Meritage Homes Corp. * | 13,811 | 1,469,352 |
| Mohawk Industries, Inc. * | 21,862 | 4,492,641 |
| Movado Group, Inc. | 6,936 | 217,582 |
| Nautilus, Inc. * | 11,457 | 192,019 |
| Newell Brands, Inc. | 138,079 | 3,722,610 |
| NIKE, Inc., Class B | 466,977 | 61,930,490 |
| NVR, Inc. * | 1,272 | 6,383,023 |
| Oxford Industries, Inc. | 6,022 | 549,387 |
| Peloton Interactive, Inc., Class A * | 97,028 | 9,542,704 |
| PLBY Group, Inc. *(a) | 6,367 | 316,822 |
| Polaris, Inc. | 21,558 | 3,018,767 |
| Security | Number
of Shares | Value ($) |
| PulteGroup, Inc. | 98,231 | 5,807,417 |
| Purple Innovation, Inc. * | 18,941 | 645,509 |
| PVH Corp. * | 25,843 | 2,924,911 |
| Ralph Lauren Corp. * | 17,626 | 2,349,370 |
| Rocky Brands, Inc. | 2,734 | 143,945 |
| Skechers U.S.A., Inc., Class A * | 49,994 | 2,424,209 |
| Skyline Champion Corp. * | 18,964 | 842,571 |
| Smith & Wesson Brands, Inc. | 19,783 | 344,224 |
| Sonos, Inc. * | 34,497 | 1,380,915 |
| Steven Madden Ltd. | 31,272 | 1,271,832 |
| Sturm, Ruger & Co., Inc. | 6,545 | 425,032 |
| Superior Group of Cos., Inc. | 3,200 | 80,704 |
| Tapestry, Inc. * | 102,855 | 4,921,612 |
| Taylor Morrison Home Corp. * | 47,340 | 1,477,481 |
| Tempur Sealy International, Inc. | 71,808 | 2,738,757 |
| The Lovesac Co. * | 3,565 | 261,208 |
| Toll Brothers, Inc. | 40,747 | 2,554,837 |
| TopBuild Corp. * | 11,987 | 2,665,669 |
| Tri Pointe Homes, Inc. * | 43,299 | 1,031,382 |
| Tupperware Brands Corp. * | 17,130 | 417,458 |
| Under Armour, Inc., Class A * | 66,741 | 1,622,474 |
| Under Armour, Inc., Class C * | 74,372 | 1,480,747 |
| Unifi, Inc. * | 5,771 | 155,990 |
| Universal Electronics, Inc. * | 5,443 | 309,435 |
| Vera Bradley, Inc. * | 9,821 | 109,013 |
| VF Corp. | 117,670 | 10,314,952 |
| Vista Outdoor, Inc. * | 20,869 | 680,538 |
| VOXX International Corp. * | 5,522 | 94,150 |
| Vuzix Corp. *(a) | 17,696 | 408,247 |
| Whirlpool Corp. | 23,141 | 5,471,689 |
| Wolverine World Wide, Inc. | 34,220 | 1,427,658 |
| YETI Holdings, Inc. * | 27,881 | 2,381,595 |
| | | 243,841,873 |
| |
| Consumer Services 2.3% |
| 2U, Inc. * | 27,036 | 1,061,163 |
| Accel Entertainment, Inc. * | 19,469 | 252,318 |
| Adtalem Global Education, Inc. * | 18,133 | 622,143 |
| Airbnb, Inc., Class A * | 27,382 | 4,729,145 |
| American Public Education, Inc. * | 7,053 | 214,834 |
| Aramark | 94,121 | 3,658,483 |
| Aspen Group, Inc. * | 9,929 | 47,361 |
| Bally's Corp. * | 10,641 | 616,752 |
| Biglari Holdings, Inc., Class B * | 387 | 51,494 |
| BJ's Restaurants, Inc. * | 8,683 | 529,576 |
| Bloomin' Brands, Inc. * | 28,402 | 897,503 |
| Bluegreen Vacations Holding Corp. * | 4,084 | 75,636 |
| Booking Holdings, Inc. * | 15,070 | 37,163,826 |
| Boyd Gaming Corp. * | 29,090 | 1,924,304 |
| Bright Horizons Family Solutions, Inc. * | 22,574 | 3,269,392 |
| Brinker International, Inc. * | 16,470 | 1,105,631 |
| BurgerFi International, Inc. *(a) | 5,156 | 67,389 |
| Caesars Entertainment, Inc. * | 76,162 | 7,451,690 |
| Carnival Corp. * | 293,789 | 8,214,340 |
| Carriage Services, Inc. | 5,675 | 210,997 |
| Carrols Restaurant Group, Inc. * | 16,141 | 95,071 |
| Century Casinos, Inc. * | 7,935 | 104,345 |
| Chegg, Inc. * | 53,000 | 4,787,490 |
| Chipotle Mexican Grill, Inc. * | 10,343 | 15,432,066 |
| Choice Hotels International, Inc. * | 10,596 | 1,205,825 |
| Churchill Downs, Inc. | 13,073 | 2,764,940 |
| Chuy's Holdings, Inc. * | 6,976 | 340,847 |
| Cracker Barrel Old Country Store, Inc. | 9,363 | 1,568,022 |
| Darden Restaurants, Inc. | 47,786 | 7,011,162 |
| Dave & Buster's Entertainment, Inc. * | 16,919 | 772,522 |
| Del Taco Restaurants, Inc. | 10,395 | 118,503 |
| Denny's Corp. * | 23,398 | 443,158 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Dine Brands Global, Inc. * | 6,065 | 586,182 |
| Domino's Pizza, Inc. | 14,275 | 6,028,904 |
| DraftKings, Inc., Class A * | 118,292 | 6,702,425 |
| Drive Shack, Inc. * | 31,442 | 107,217 |
| El Pollo Loco Holdings, Inc. * | 6,221 | 105,384 |
| Esports Entertainment Group, Inc. * | 4,741 | 58,314 |
| Everi Holdings, Inc. * | 31,907 | 564,116 |
| Expedia Group, Inc. * | 50,844 | 8,960,238 |
| Extended Stay America, Inc. | 57,909 | 1,151,810 |
| Fiesta Restaurant Group, Inc. * | 5,338 | 78,682 |
| frontdoor, Inc. * | 31,035 | 1,661,304 |
| Full House Resorts, Inc. * | 9,327 | 91,032 |
| Golden Entertainment, Inc. * | 6,136 | 211,508 |
| Golden Nugget Online Gaming, Inc. * | 13,009 | 191,492 |
| Graham Holdings Co., Class B | 1,482 | 941,974 |
| Grand Canyon Education, Inc. * | 17,138 | 1,855,874 |
| H&R Block, Inc. | 66,684 | 1,484,386 |
| Hall of Fame Resort & Entertainment Co. *(a) | 18,399 | 75,436 |
| Hilton Grand Vacations, Inc. * | 30,842 | 1,374,320 |
| Hilton Worldwide Holdings, Inc. * | 102,214 | 13,154,942 |
| Houghton Mifflin Harcourt Co. * | 44,064 | 400,101 |
| Hyatt Hotels Corp., Class A * | 13,369 | 1,100,670 |
| Inspired Entertainment, Inc. * | 6,626 | 54,665 |
| Jack in the Box, Inc. | 8,383 | 1,011,409 |
| Kura Sushi USA, Inc., Class A * | 1,489 | 53,619 |
| Las Vegas Sands Corp. * | 121,570 | 7,447,378 |
| Laureate Education, Inc., Class A * | 34,888 | 479,710 |
| Lincoln Educational Services Corp. * | 10,364 | 66,537 |
| Lindblad Expeditions Holdings, Inc. * | 10,375 | 170,046 |
| Marriott International, Inc., Class A * | 98,003 | 14,555,406 |
| Marriott Vacations Worldwide Corp. * | 15,576 | 2,766,765 |
| McDonald's Corp. | 274,126 | 64,715,666 |
| MGM Resorts International | 151,596 | 6,172,989 |
| Monarch Casino & Resort, Inc. * | 4,966 | 374,486 |
| Nathan's Famous, Inc. | 842 | 53,408 |
| Noodles & Co. * | 12,000 | 145,020 |
| Norwegian Cruise Line Holdings Ltd. * | 134,962 | 4,190,570 |
| OneSpaWorld Holdings Ltd. * | 17,293 | 184,257 |
| Papa John's International, Inc. | 12,230 | 1,182,886 |
| Penn National Gaming, Inc. * | 54,601 | 4,866,041 |
| Perdoceo Education Corp. * | 25,565 | 298,088 |
| Planet Fitness, Inc., Class A * | 31,265 | 2,625,947 |
| Playa Hotels & Resorts N.V. * | 35,237 | 259,344 |
| PlayAGS, Inc. * | 15,284 | 136,792 |
| Potbelly Corp. * | 7,813 | 47,737 |
| RCI Hospitality Holdings, Inc. | 3,130 | 227,895 |
| Red Robin Gourmet Burgers, Inc. * | 5,262 | 191,326 |
| Red Rock Resorts, Inc., Class A * | 26,631 | 975,494 |
| Regis Corp. * | 10,203 | 132,027 |
| Royal Caribbean Cruises Ltd. * | 81,032 | 7,045,732 |
| Rush Street Interactive, Inc. * | 17,116 | 229,183 |
| Ruth's Hospitality Group, Inc. * | 11,323 | 295,644 |
| Scientific Games Corp., Class A * | 20,658 | 1,208,906 |
| SeaWorld Entertainment, Inc. * | 18,180 | 995,537 |
| Select Interior Concepts, Inc., Class A * | 7,504 | 56,505 |
| Service Corp. International | 62,298 | 3,329,205 |
| Shake Shack, Inc., Class A * | 13,181 | 1,433,434 |
| Six Flags Entertainment Corp. * | 27,699 | 1,301,299 |
| Starbucks Corp. | 432,154 | 49,477,311 |
| StoneMor, Inc. * | 42,000 | 103,320 |
| Strategic Education, Inc. | 8,781 | 659,102 |
| Stride, Inc. * | 15,727 | 450,264 |
| Terminix Global Holdings, Inc. * | 48,241 | 2,454,985 |
| Texas Roadhouse, Inc. | 23,792 | 2,546,220 |
| The Cheesecake Factory, Inc. * | 15,575 | 974,839 |
| The ONE Group Hospitality, Inc. * | 8,160 | 75,888 |
| The Wendy's Co. | 65,797 | 1,485,038 |
| Security | Number
of Shares | Value ($) |
| Travel & Leisure Co. | 33,199 | 2,142,331 |
| Universal Technical Institute, Inc. * | 13,059 | 73,522 |
| Vail Resorts, Inc. * | 14,927 | 4,853,663 |
| Vivint Smart Home, Inc. * | 15,548 | 186,265 |
| Wingstop, Inc. | 10,855 | 1,719,541 |
| WW International, Inc. * | 17,768 | 492,884 |
| Wyndham Hotels & Resorts, Inc. | 33,788 | 2,470,241 |
| Wynn Resorts Ltd. * | 38,992 | 5,006,573 |
| XpresSpa Group, Inc. *(a) | 36,286 | 49,712 |
| Yum! Brands, Inc. | 109,958 | 13,142,180 |
| Zovio, Inc. * | 11,262 | 41,782 |
| | | 371,380,853 |
| |
| Diversified Financials 5.1% |
| A-Mark Precious Metals, Inc. | 1,600 | 59,632 |
| ACRES Commercial Realty Corp. * | 3,144 | 47,726 |
| Affiliated Managers Group, Inc. | 15,908 | 2,563,892 |
| AG Mortgage Investment Trust, Inc. | 14,385 | 56,821 |
| AGNC Investment Corp. | 201,584 | 3,614,401 |
| Alerus Financial Corp. | 5,969 | 171,609 |
| Ally Financial, Inc. | 137,807 | 7,090,170 |
| American Express Co. | 239,888 | 36,786,825 |
| Ameriprise Financial, Inc. | 42,820 | 11,064,688 |
| Annaly Capital Management, Inc. | 517,218 | 4,696,339 |
| Apollo Commercial Real Estate Finance, Inc. | 47,722 | 725,852 |
| Apollo Global Management, Inc. | 78,169 | 4,328,218 |
| Arbor Realty Trust, Inc. | 41,573 | 735,011 |
| Ares Commercial Real Estate Corp. | 13,779 | 203,378 |
| Ares Management Corp., Class A | 39,136 | 2,055,423 |
| Arlington Asset Investment Corp., Class A * | 11,092 | 45,477 |
| ARMOUR Residential REIT, Inc. | 25,687 | 319,289 |
| Artisan Partners Asset Management, Inc., Class A | 22,289 | 1,134,956 |
| Assetmark Financial Holdings, Inc. * | 6,380 | 143,678 |
| Associated Capital Group, Inc., Class A | 1,241 | 44,341 |
| Atlanticus Holdings Corp. * | 2,113 | 66,052 |
| B. Riley Financial, Inc. | 6,796 | 484,487 |
| Berkshire Hathaway, Inc., Class B * | 701,068 | 192,758,647 |
| BGC Partners, Inc., Class A | 122,289 | 648,132 |
| BlackRock, Inc. | 52,255 | 42,812,521 |
| Blackstone Mortgage Trust, Inc., Class A | 53,239 | 1,729,735 |
| Blucora, Inc. * | 18,439 | 265,429 |
| Brightsphere Investment Group, Inc. | 21,334 | 480,228 |
| Broadmark Realty Capital, Inc. | 52,453 | 565,443 |
| Cannae Holdings, Inc. * | 31,406 | 1,246,818 |
| Capital One Financial Corp. | 168,424 | 25,108,650 |
| Capstead Mortgage Corp. | 40,081 | 259,725 |
| Cboe Global Markets, Inc. | 39,899 | 4,164,259 |
| Cherry Hill Mortgage Investment Corp. | 7,830 | 79,240 |
| Chimera Investment Corp. | 83,239 | 1,093,760 |
| CME Group, Inc. | 132,285 | 26,720,247 |
| Cohen & Steers, Inc. | 8,521 | 579,598 |
| Coinbase Global, Inc., Class A * | 5,747 | 1,710,537 |
| Colony Credit Real Estate, Inc. | 30,690 | 266,696 |
| Cowen, Inc., Class A | 9,754 | 385,185 |
| Credit Acceptance Corp. * | 4,200 | 1,658,118 |
| Curo Group Holdings Corp. | 6,544 | 93,710 |
| Diamond Hill Investment Group, Inc. | 1,017 | 173,907 |
| Discover Financial Services | 112,888 | 12,869,232 |
| Donnelley Financial Solutions, Inc. * | 11,301 | 345,359 |
| Dynex Capital, Inc. | 10,145 | 204,929 |
| Elevate Credit, Inc. * | 5,396 | 18,131 |
| Ellington Financial, Inc. | 16,863 | 302,522 |
| Encore Capital Group, Inc. * | 11,135 | 438,051 |
| Enova International, Inc. * | 13,257 | 453,920 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Equitable Holdings, Inc. | 144,152 | 4,934,323 |
| Evercore, Inc., Class A | 15,808 | 2,215,175 |
| EZCORP, Inc., Class A * | 20,871 | 117,504 |
| FactSet Research Systems, Inc. | 13,967 | 4,695,985 |
| Federated Hermes, Inc. | 34,115 | 982,512 |
| FirstCash, Inc. | 16,815 | 1,211,184 |
| Focus Financial Partners, Inc., Class A * | 14,629 | 688,441 |
| Franklin Resources, Inc. | 99,402 | 2,982,060 |
| GCM Grosvenor, Inc., Class A (a) | 12,933 | 170,586 |
| Granite Point Mortgage Trust, Inc. | 19,886 | 263,291 |
| Great Ajax Corp. | 8,694 | 106,154 |
| Green Dot Corp., Class A * | 19,967 | 913,690 |
| Greenhill & Co., Inc. | 6,539 | 99,262 |
| Hamilton Lane, Inc., Class A | 11,791 | 1,066,496 |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 28,275 | 1,481,610 |
| Houlihan Lokey, Inc. | 18,562 | 1,230,104 |
| Interactive Brokers Group, Inc., Class A | 29,421 | 2,104,190 |
| Intercontinental Exchange, Inc. | 206,278 | 24,280,983 |
| Invesco Ltd. | 140,679 | 3,798,333 |
| Invesco Mortgage Capital, Inc. | 86,828 | 338,629 |
| Janus Henderson Group plc | 61,645 | 2,119,972 |
| Jefferies Financial Group, Inc. | 73,508 | 2,389,745 |
| KKR & Co., Inc. | 211,844 | 11,986,134 |
| KKR Real Estate Finance Trust, Inc. | 10,962 | 231,298 |
| Ladder Capital Corp. REIT | 46,541 | 553,372 |
| Lazard Ltd., Class A | 40,954 | 1,842,520 |
| LendingClub Corp. * | 28,496 | 438,553 |
| LendingTree, Inc. * | 4,018 | 829,677 |
| LPL Financial Holdings, Inc. | 29,559 | 4,631,895 |
| Lument Finance Trust, Inc. | 13,059 | 48,579 |
| Manning & Napier, Inc. * | 6,198 | 43,758 |
| MarketAxess Holdings, Inc. | 13,938 | 6,808,155 |
| Marlin Business Services Corp. | 4,000 | 90,200 |
| Medallion Financial Corp. * | 10,486 | 89,655 |
| MFA Financial, Inc. | 159,392 | 701,325 |
| Moelis & Co., Class A | 21,177 | 1,149,488 |
| Moody's Corp. | 58,869 | 19,233,091 |
| Morgan Stanley | 552,155 | 45,580,395 |
| Morningstar, Inc. | 7,765 | 2,057,803 |
| MSCI, Inc. | 30,411 | 14,772,751 |
| Nasdaq, Inc. | 42,496 | 6,864,804 |
| Navient Corp. | 70,402 | 1,184,866 |
| Nelnet, Inc., Class A | 7,909 | 587,085 |
| New Residential Investment Corp. | 168,418 | 1,805,441 |
| New York Mortgage Trust, Inc. | 139,831 | 641,824 |
| Northern Trust Corp. | 77,147 | 8,779,329 |
| OneMain Holdings, Inc. | 29,916 | 1,701,323 |
| Open Lending Corp., Class A * | 35,869 | 1,400,684 |
| Oportun Financial Corp. * | 7,448 | 161,696 |
| Oppenheimer Holdings, Inc., Class A | 3,500 | 179,095 |
| Orchid Island Capital, Inc. (a) | 30,714 | 168,927 |
| PennyMac Mortgage Investment Trust | 34,997 | 701,690 |
| Piper Sandler Cos. | 4,917 | 570,323 |
| PJT Partners, Inc., Class A | 8,497 | 624,784 |
| PRA Group, Inc. * | 17,027 | 641,577 |
| PROG Holdings, Inc. | 24,879 | 1,267,336 |
| Pzena Investment Management, Inc., Class A | 4,615 | 48,596 |
| Raymond James Financial, Inc. | 45,043 | 5,890,724 |
| Ready Capital Corp. | 21,462 | 311,414 |
| Redwood Trust, Inc. | 53,738 | 597,029 |
| Regional Management Corp. | 4,209 | 163,015 |
| S&P Global, Inc. | 88,208 | 34,435,521 |
| Safeguard Scientifics, Inc. * | 7,000 | 43,120 |
| Santander Consumer USA Holdings, Inc. | 25,968 | 881,354 |
| Sculptor Capital Management, Inc. | 7,668 | 174,370 |
| SEI Investments Co. | 44,409 | 2,728,489 |
| Security | Number
of Shares | Value ($) |
| Siebert Financial Corp. *(a) | 3,682 | 14,765 |
| Silvercrest Asset Management Group, Inc., Class A | 3,213 | 44,693 |
| SLM Corp. | 121,781 | 2,394,214 |
| Starwood Property Trust, Inc. | 103,216 | 2,665,037 |
| State Street Corp. | 128,883 | 10,819,728 |
| StepStone Group, Inc. | 11,582 | 385,681 |
| Stifel Financial Corp. | 38,132 | 2,638,353 |
| StoneX Group, Inc. * | 6,044 | 383,915 |
| SWK Holdings Corp. * | 4,879 | 76,527 |
| Synchrony Financial | 201,231 | 8,801,844 |
| T. Rowe Price Group, Inc. | 83,829 | 15,022,157 |
| The Bank of New York Mellon Corp. | 299,051 | 14,916,664 |
| The Blackstone Group, Inc., Class A | 251,508 | 22,255,943 |
| The Carlyle Group, Inc. | 42,138 | 1,797,607 |
| The Charles Schwab Corp. (c) | 548,003 | 38,579,411 |
| The Goldman Sachs Group, Inc. | 126,516 | 44,084,500 |
| TPG RE Finance Trust, Inc. | 20,845 | 259,729 |
| Tradeweb Markets, Inc., Class A | 38,109 | 3,097,500 |
| Two Harbors Investment Corp. | 102,603 | 800,303 |
| U.S. Global Investors, Inc., Class A | 6,319 | 47,013 |
| Upstart Holdings, Inc. *(a) | 4,507 | 491,353 |
| Victory Capital Holdings, Inc., Class A | 6,857 | 190,282 |
| Virtu Financial, Inc., Class A | 29,747 | 881,404 |
| Virtus Investment Partners, Inc. | 2,565 | 701,425 |
| Voya Financial, Inc. | 44,900 | 3,045,118 |
| Waddell & Reed Financial, Inc., Class A | 22,429 | 560,276 |
| Western Asset Mortgage Capital Corp. | 23,070 | 72,901 |
| Westwood Holdings Group, Inc. | 2,653 | 47,993 |
| WisdomTree Investments, Inc. | 63,388 | 430,088 |
| World Acceptance Corp. * | 1,492 | 195,064 |
| | | 811,405,776 |
| |
| Energy 2.5% |
| Aemetis, Inc. * | 5,972 | 108,870 |
| Alto Ingredients, Inc. * | 22,969 | 127,708 |
| Altus Midstream Co., Class A | 894 | 53,640 |
| Amplify Energy Corp. * | 11,998 | 32,035 |
| Antero Midstream Corp. | 105,956 | 915,460 |
| Antero Resources Corp. * | 100,934 | 910,425 |
| APA Corp. | 142,025 | 2,840,500 |
| Arch Resources, Inc. * | 5,290 | 234,929 |
| Archrock, Inc. | 48,281 | 450,945 |
| Aspen Aerogels, Inc. * | 9,323 | 169,958 |
| Baker Hughes Co. | 267,735 | 5,376,119 |
| Battalion Oil Corp. * | 4,955 | 59,460 |
| Berry Corp. | 29,940 | 182,933 |
| Bonanza Creek Energy, Inc. * | 6,585 | 217,898 |
| Brigham Minerals, Inc., Class A | 13,791 | 236,378 |
| Bristow Group, Inc. * | 7,852 | 207,764 |
| Cabot Oil & Gas Corp. | 150,407 | 2,507,285 |
| Cactus, Inc., Class A | 21,298 | 634,893 |
| Callon Petroleum Co. * | 16,866 | 630,620 |
| Centennial Resource Development, Inc., Class A * | 64,000 | 271,360 |
| Centrus Energy Corp., Class A * | 3,210 | 73,477 |
| ChampionX Corp. * | 68,223 | 1,433,365 |
| Cheniere Energy, Inc. * | 84,317 | 6,536,254 |
| Chevron Corp. | 707,163 | 72,887,290 |
| Cimarex Energy Co. | 37,310 | 2,469,922 |
| Clean Energy Fuels Corp. * | 41,831 | 460,141 |
| CNX Resources Corp. * | 80,161 | 1,075,761 |
| Comstock Resources, Inc. * | 20,824 | 114,324 |
| ConocoPhillips | 497,363 | 25,435,144 |
| CONSOL Energy, Inc. * | 12,234 | 107,415 |
| Contango Oil & Gas Co. * | 51,964 | 194,345 |
| Continental Resources, Inc. * | 22,953 | 625,240 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Core Laboratories N.V. | 16,569 | 466,914 |
| CVR Energy, Inc. | 10,411 | 221,650 |
| Delek US Holdings, Inc. | 22,137 | 525,311 |
| Denbury, Inc. * | 18,524 | 1,007,891 |
| Devon Energy Corp. | 219,987 | 5,143,296 |
| Diamond S Shipping, Inc. * | 8,382 | 82,563 |
| Diamondback Energy, Inc. | 66,958 | 5,472,477 |
| DMC Global, Inc. * | 5,933 | 320,382 |
| Dorian LPG Ltd. * | 10,750 | 142,867 |
| Dril-Quip, Inc. * | 13,098 | 401,454 |
| Earthstone Energy, Inc., Class A * | 13,685 | 96,069 |
| ENGlobal Corp. * | 7,533 | 25,763 |
| EOG Resources, Inc. | 214,840 | 15,820,818 |
| EQT Corp. * | 106,136 | 2,027,198 |
| Equitrans Midstream Corp. | 148,922 | 1,215,203 |
| Evolution Petroleum Corp. | 8,679 | 28,727 |
| Exterran Corp. * | 9,906 | 32,492 |
| Exxon Mobil Corp. | 1,557,666 | 89,160,802 |
| Falcon Minerals Corp. | 13,000 | 57,720 |
| Forum Energy Technologies, Inc. * | 1,677 | 30,488 |
| Frank's International N.V. * | 42,473 | 138,037 |
| FTS International, Inc., Class A * | 3,100 | 79,732 |
| Geospace Technologies Corp. * | 7,458 | 56,084 |
| Gevo, Inc. *(a) | 68,238 | 462,654 |
| Green Plains, Inc. * | 15,631 | 465,804 |
| Gulf Island Fabrication, Inc. * | 4,500 | 18,720 |
| Hallador Energy Co. * | 8,706 | 18,021 |
| Halliburton Co. | 328,449 | 6,424,462 |
| Helix Energy Solutions Group, Inc. * | 52,600 | 225,654 |
| Helmerich & Payne, Inc. | 39,011 | 999,852 |
| Hess Corp. | 100,971 | 7,523,349 |
| HollyFrontier Corp. | 54,701 | 1,914,535 |
| International Seaways, Inc. | 10,535 | 186,259 |
| Kinder Morgan, Inc. | 715,017 | 12,191,040 |
| Kosmos Energy Ltd. * | 152,905 | 437,308 |
| Laredo Petroleum, Inc. * | 3,233 | 131,066 |
| Liberty Oilfield Services, Inc., Class A * | 29,216 | 341,827 |
| Magnolia Oil & Gas Corp., Class A * | 48,445 | 545,491 |
| Mammoth Energy Services, Inc. * | 15,843 | 60,520 |
| Marathon Oil Corp. | 300,303 | 3,381,412 |
| Marathon Petroleum Corp. | 241,461 | 13,437,305 |
| Matador Resources Co. | 39,449 | 1,037,903 |
| Murphy Oil Corp. | 52,194 | 883,644 |
| Nabors Industries Ltd. * | 2,244 | 181,427 |
| Natural Gas Services Group, Inc. * | 4,213 | 37,917 |
| NCS Multistage Holdings, Inc. * | 200 | 4,808 |
| New Fortress Energy, Inc. | 6,146 | 261,328 |
| Newpark Resources, Inc. * | 39,958 | 113,481 |
| NextDecade Corp. * | 47,025 | 103,925 |
| NexTier Oilfield Solutions, Inc. * | 55,546 | 199,410 |
| Northern Oil and Gas, Inc. * | 17,510 | 253,545 |
| NOV, Inc. * | 141,946 | 2,122,093 |
| Oasis Petroleum, Inc. | 7,358 | 571,128 |
| Occidental Petroleum Corp. | 307,777 | 7,805,225 |
| Oceaneering International, Inc. * | 35,500 | 381,625 |
| Oil States International, Inc. * | 23,526 | 131,981 |
| ONEOK, Inc. | 163,325 | 8,548,430 |
| Overseas Shipholding Group, Inc., Class A * | 35,882 | 79,299 |
| Ovintiv, Inc. | 94,346 | 2,257,700 |
| Par Pacific Holdings, Inc. * | 15,179 | 230,569 |
| Patterson-UTI Energy, Inc. | 71,523 | 483,495 |
| PBF Energy, Inc., Class A * | 34,678 | 491,734 |
| PDC Energy, Inc. * | 36,454 | 1,330,936 |
| Peabody Energy Corp. * | 28,625 | 105,912 |
| Penn Virginia Corp. * | 6,227 | 84,874 |
| Phillips 66 | 162,485 | 13,146,661 |
| Pioneer Natural Resources Co. | 75,699 | 11,644,778 |
| Security | Number
of Shares | Value ($) |
| ProPetro Holding Corp. * | 28,649 | 275,890 |
| Range Resources Corp. * | 92,473 | 908,085 |
| Renewable Energy Group, Inc. * | 16,668 | 925,407 |
| REX American Resources Corp. * | 2,050 | 165,496 |
| RigNet, Inc. * | 5,617 | 53,923 |
| Ring Energy, Inc. * | 20,681 | 44,464 |
| RPC, Inc. * | 24,498 | 119,060 |
| SandRidge Energy, Inc. * | 8,633 | 35,050 |
| Schlumberger N.V. | 513,772 | 13,897,533 |
| SEACOR Marine Holdings, Inc. * | 10,065 | 46,400 |
| Select Energy Services, Inc., Class A * | 23,759 | 114,756 |
| SilverBow Resources, Inc. * | 1,839 | 17,857 |
| SM Energy Co. | 38,908 | 614,746 |
| Solaris Oilfield Infrastructure, Inc., Class A | 12,245 | 133,960 |
| Southwestern Energy Co. * | 233,485 | 996,981 |
| Talos Energy, Inc. * | 12,183 | 136,328 |
| Targa Resources Corp. | 85,365 | 2,961,312 |
| TechnipFMC plc * | 154,438 | 1,142,841 |
| Tellurian, Inc. * | 84,107 | 186,297 |
| TETRA Technologies, Inc. * | 48,014 | 120,515 |
| Texas Pacific Land Corp. | 2,849 | 4,387,887 |
| The Williams Cos., Inc. | 445,909 | 10,862,343 |
| Tidewater, Inc. * | 15,672 | 192,139 |
| Torchlight Energy Resources, Inc. *(a) | 48,543 | 102,668 |
| Transocean Ltd. * | 210,591 | 678,103 |
| Uranium Energy Corp. * | 77,227 | 223,958 |
| US Silica Holdings, Inc. * | 28,760 | 306,294 |
| VAALCO Energy, Inc. * | 20,055 | 48,132 |
| Valero Energy Corp. | 150,201 | 11,108,866 |
| W&T Offshore, Inc. * | 35,738 | 117,578 |
| Whiting Petroleum Corp. * | 14,719 | 589,790 |
| World Fuel Services Corp. | 22,400 | 692,832 |
| | | 403,602,394 |
| |
| Food & Staples Retailing 1.2% |
| Albertsons Cos., Inc., Class A (a) | 16,453 | 305,532 |
| BJ's Wholesale Club Holdings, Inc. * | 53,179 | 2,375,506 |
| Casey's General Stores, Inc. | 13,395 | 2,976,235 |
| Costco Wholesale Corp. | 162,831 | 60,587,787 |
| Grocery Outlet Holding Corp. * | 32,153 | 1,298,660 |
| HF Foods Group, Inc. * | 16,494 | 102,758 |
| Ingles Markets, Inc., Class A | 5,108 | 313,069 |
| Natural Grocers by Vitamin Cottage, Inc. | 4,797 | 75,409 |
| Performance Food Group Co. * | 48,634 | 2,854,816 |
| PriceSmart, Inc. | 8,304 | 697,868 |
| Rite Aid Corp. * | 19,716 | 345,424 |
| SpartanNash, Co. | 13,213 | 255,936 |
| Sprouts Farmers Market, Inc. * | 42,873 | 1,097,977 |
| Sysco Corp. | 187,385 | 15,877,131 |
| The Andersons, Inc. | 11,237 | 322,727 |
| The Chefs' Warehouse, Inc. * | 11,084 | 357,237 |
| The Kroger Co. | 283,157 | 10,346,557 |
| U.S. Foods Holding Corp. * | 83,016 | 3,441,843 |
| United Natural Foods, Inc. * | 20,214 | 745,088 |
| Village Super Market, Inc., Class A | 3,931 | 95,838 |
| Walgreens Boots Alliance, Inc. | 263,533 | 13,993,602 |
| Walmart, Inc. | 509,140 | 71,233,777 |
| Weis Markets, Inc. | 5,868 | 304,256 |
| | | 190,005,033 |
| |
| Food, Beverage & Tobacco 2.8% |
| 22nd Century Group, Inc. * | 52,951 | 247,811 |
| Alico, Inc. | 2,213 | 66,324 |
| Altria Group, Inc. | 682,733 | 32,600,501 |
| AppHarvest, Inc. *(a) | 22,343 | 382,289 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Archer-Daniels-Midland Co. | 204,466 | 12,907,939 |
| B&G Foods, Inc. (a) | 23,882 | 696,877 |
| Beyond Meat, Inc. * | 18,024 | 2,373,400 |
| Brown-Forman Corp., Class A | 20,210 | 1,441,983 |
| Brown-Forman Corp., Class B | 67,155 | 5,122,583 |
| Bunge Ltd. | 51,932 | 4,384,099 |
| Cal-Maine Foods, Inc. | 13,215 | 493,712 |
| Calavo Growers, Inc. | 6,100 | 476,593 |
| Campbell Soup Co. | 73,695 | 3,518,936 |
| Celsius Holdings, Inc. * | 9,441 | 540,969 |
| Coca-Cola Consolidated, Inc. | 1,696 | 497,352 |
| Conagra Brands, Inc. | 180,889 | 6,709,173 |
| Constellation Brands, Inc., Class A | 62,298 | 14,971,455 |
| Darling Ingredients, Inc. * | 60,399 | 4,194,711 |
| Farmer Brothers Co. * | 4,500 | 45,900 |
| Flowers Foods, Inc. | 71,736 | 1,718,795 |
| Fresh Del Monte Produce, Inc. | 11,734 | 330,899 |
| Freshpet, Inc. * | 15,628 | 2,888,367 |
| General Mills, Inc. | 224,235 | 13,646,942 |
| Hormel Foods Corp. | 105,004 | 4,851,185 |
| Hostess Brands, Inc. * | 48,698 | 744,592 |
| Ingredion, Inc. | 24,250 | 2,265,192 |
| J&J Snack Foods Corp. | 5,365 | 883,133 |
| John B. Sanfilippo & Son, Inc. | 3,129 | 275,039 |
| Kellogg Co. | 93,585 | 5,841,576 |
| Keurig Dr Pepper, Inc. | 213,568 | 7,656,413 |
| Laird Superfood, Inc. *(a) | 1,284 | 46,879 |
| Lamb Weston Holdings, Inc. | 53,688 | 4,321,884 |
| Lancaster Colony Corp. | 7,020 | 1,296,664 |
| Landec Corp. * | 9,100 | 103,012 |
| Limoneira Co. | 4,500 | 81,270 |
| McCormick & Co., Inc. - Non Voting Shares | 91,691 | 8,285,199 |
| MGP Ingredients, Inc. | 4,637 | 278,684 |
| Mission Produce, Inc. * | 3,494 | 70,579 |
| Molson Coors Beverage Co., Class B * | 68,775 | 3,779,186 |
| Mondelez International, Inc., Class A | 518,786 | 31,547,377 |
| Monster Beverage Corp. * | 136,561 | 13,253,245 |
| National Beverage Corp. | 8,887 | 431,819 |
| NewAge, Inc. * | 43,967 | 96,288 |
| PepsiCo, Inc. | 507,282 | 73,129,773 |
| Philip Morris International, Inc. | 573,437 | 54,476,515 |
| Pilgrim's Pride Corp. * | 17,681 | 423,637 |
| Post Holdings, Inc. * | 21,556 | 2,452,642 |
| S&W Seed Co. * | 15,994 | 60,457 |
| Sanderson Farms, Inc. | 7,306 | 1,202,056 |
| Seaboard Corp. | 95 | 339,909 |
| Seneca Foods Corp., Class A * | 2,612 | 120,309 |
| Tattooed Chef, Inc. *(a) | 11,315 | 200,275 |
| The Boston Beer Co., Inc., Class A * | 3,425 | 4,166,478 |
| The Coca-Cola Co. | 1,426,055 | 76,978,449 |
| The Hain Celestial Group, Inc. * | 30,287 | 1,242,070 |
| The Hershey Co. | 53,862 | 8,849,527 |
| The JM Smucker Co. | 40,357 | 5,286,363 |
| The Kraft Heinz Co. | 238,454 | 9,845,766 |
| The Simply Good Foods Co. * | 30,578 | 1,056,470 |
| Tootsie Roll Industries, Inc. | 6,293 | 198,670 |
| TreeHouse Foods, Inc. * | 20,033 | 953,571 |
| Turning Point Brands, Inc. | 4,660 | 227,501 |
| Tyson Foods, Inc., Class A | 108,461 | 8,400,304 |
| Universal Corp. | 9,019 | 507,138 |
| Utz Brands, Inc. | 19,007 | 556,905 |
| Vector Group Ltd. | 47,512 | 620,032 |
| Vital Farms, Inc. * | 5,325 | 129,504 |
| Whole Earth Brands, Inc. * | 13,486 | 182,061 |
| | | 447,973,208 |
| |
| Security | Number
of Shares | Value ($) |
| Health Care Equipment & Services 6.3% |
| 1Life Healthcare, Inc. * | 28,165 | 1,225,459 |
| Abbott Laboratories | 650,929 | 78,163,554 |
| ABIOMED, Inc. * | 16,627 | 5,332,778 |
| Acadia Healthcare Co., Inc. * | 32,581 | 1,984,835 |
| Accelerate Diagnostics, Inc. * | 10,300 | 75,293 |
| Accolade, Inc. * | 5,265 | 264,040 |
| Accuray, Inc. * | 36,635 | 172,185 |
| Acutus Medical, Inc. * | 4,525 | 61,766 |
| AdaptHealth Corp. * | 27,634 | 803,044 |
| Addus HomeCare Corp. * | 5,284 | 559,047 |
| Align Technology, Inc. * | 26,434 | 15,742,240 |
| Allscripts Healthcare Solutions, Inc. * | 51,178 | 796,330 |
| Alphatec Holdings, Inc. * | 21,811 | 348,758 |
| Amedisys, Inc. * | 11,929 | 3,219,041 |
| American Well Corp., Class A * | 19,735 | 303,722 |
| AmerisourceBergen Corp. | 54,438 | 6,576,110 |
| AMN Healthcare Services, Inc. * | 18,168 | 1,440,722 |
| AngioDynamics, Inc. * | 14,651 | 356,019 |
| Anthem, Inc. | 90,140 | 34,198,215 |
| Apollo Medical Holdings, Inc. * | 4,987 | 148,064 |
| Apria, Inc. * | 3,005 | 90,000 |
| Apyx Medical Corp. * | 12,488 | 126,503 |
| Asensus Surgical, Inc. *(a) | 51,242 | 107,608 |
| Aspira Women's Health, Inc. *(a) | 21,808 | 124,742 |
| AtriCure, Inc. * | 18,160 | 1,399,591 |
| Atrion Corp. | 528 | 337,181 |
| Avanos Medical, Inc. * | 17,115 | 739,539 |
| Avinger, Inc. * | 36,388 | 45,121 |
| AxoGen, Inc. * | 11,943 | 223,573 |
| Axonics, Inc. * | 11,332 | 713,123 |
| Baxter International, Inc. | 185,920 | 15,931,485 |
| Becton, Dickinson & Co. | 106,861 | 26,588,085 |
| Beyond Air, Inc. *(a) | 35,747 | 219,487 |
| Biodesix, Inc. *(a) | 1,959 | 32,049 |
| Biolase, Inc. * | 58,873 | 43,925 |
| BioLife Solutions, Inc. * | 9,942 | 346,976 |
| BioSig Technologies, Inc. *(a) | 8,008 | 27,387 |
| Bioventus, Inc., Class A * | 3,480 | 50,112 |
| Boston Scientific Corp. * | 521,456 | 22,735,482 |
| Brookdale Senior Living, Inc. * | 69,175 | 452,404 |
| Cantel Medical Corp. * | 14,258 | 1,253,421 |
| Cardinal Health, Inc. | 107,253 | 6,471,646 |
| Cardiovascular Systems, Inc. * | 14,153 | 570,649 |
| Castle Biosciences, Inc. * | 6,726 | 464,296 |
| Castlight Health, Inc., Class B * | 44,317 | 84,202 |
| Centene Corp. * | 213,624 | 13,189,146 |
| Cerner Corp. | 112,233 | 8,423,087 |
| Certara, Inc. * | 16,000 | 508,960 |
| Cerus Corp. * | 59,933 | 365,591 |
| Change Healthcare, Inc. * | 83,583 | 1,918,230 |
| Chemed Corp. | 5,950 | 2,835,829 |
| Cigna Corp. | 129,493 | 32,245,052 |
| ClearPoint Neuro, Inc. * | 6,306 | 131,354 |
| Clover Health Investments Corp. * | 41,322 | 407,022 |
| Co-Diagnostics, Inc. * | 11,070 | 98,080 |
| Community Health Systems, Inc. * | 42,476 | 473,607 |
| Computer Programs & Systems, Inc. | 5,037 | 151,211 |
| Conformis, Inc. * | 77,113 | 72,093 |
| CONMED Corp. | 10,602 | 1,494,352 |
| CorVel Corp. * | 3,409 | 398,887 |
| Covetrus, Inc. * | 36,319 | 1,040,539 |
| Cross Country Healthcare, Inc. * | 11,554 | 153,899 |
| CryoLife, Inc. * | 14,283 | 416,778 |
| CryoPort, Inc. * | 16,647 | 941,721 |
| Cutera, Inc. * | 5,876 | 176,456 |
| CVS Health Corp. | 482,788 | 36,885,003 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| CytoSorbents Corp. * | 15,994 | 147,945 |
| Danaher Corp. | 233,150 | 59,206,111 |
| Dare Bioscience, Inc. * | 20,123 | 30,386 |
| DarioHealth Corp. * | 2,210 | 47,913 |
| DaVita, Inc. * | 26,154 | 3,047,726 |
| Delcath Systems, Inc. * | 2,931 | 32,563 |
| DENTSPLY SIRONA, Inc. | 80,595 | 5,440,968 |
| DexCom, Inc. * | 35,535 | 13,720,063 |
| Eargo, Inc. * | 3,878 | 221,977 |
| Edwards Lifesciences Corp. * | 229,515 | 21,923,273 |
| Ekso Bionics Holdings, Inc. *(a) | 1,406 | 8,028 |
| ElectroCore, Inc. *(a) | 20,875 | 35,488 |
| Encompass Health Corp. | 36,220 | 3,073,629 |
| ENDRA Life Sciences, Inc. *(a) | 17,869 | 42,886 |
| Envista Holdings Corp. * | 59,452 | 2,573,083 |
| Enzo Biochem, Inc. * | 13,471 | 41,356 |
| Evolent Health, Inc., Class A * | 29,477 | 638,472 |
| Five Star Senior Living, Inc. * | 5,708 | 29,739 |
| FONAR Corp. * | 4,100 | 70,315 |
| Fulgent Genetics, Inc. * | 6,407 | 493,467 |
| Glaukos Corp. * | 16,497 | 1,553,358 |
| Globus Medical, Inc., Class A * | 27,757 | 1,992,120 |
| GoodRx Holdings, Inc. * | 14,111 | 564,581 |
| Guardant Health, Inc. * | 31,695 | 5,038,871 |
| Haemonetics Corp. * | 18,956 | 1,274,981 |
| Hanger, Inc. * | 13,820 | 344,533 |
| HCA Healthcare, Inc. | 97,656 | 19,634,715 |
| Health Catalyst, Inc. * | 12,286 | 711,359 |
| HealthEquity, Inc. * | 30,074 | 2,284,722 |
| HealthStream, Inc. * | 9,595 | 231,815 |
| Henry Schein, Inc. * | 53,200 | 3,857,000 |
| Heska Corp. * | 3,707 | 677,084 |
| Hill-Rom Holdings, Inc. | 24,681 | 2,720,340 |
| Hims & Hers Health, Inc. *(a) | 24,601 | 304,560 |
| Hologic, Inc. * | 94,973 | 6,225,480 |
| HTG Molecular Diagnostics, Inc. * | 1,242 | 5,527 |
| Humana, Inc. | 47,457 | 21,129,755 |
| ICAD, Inc. * | 9,349 | 168,656 |
| ICU Medical, Inc. * | 7,185 | 1,496,420 |
| IDEXX Laboratories, Inc. * | 31,383 | 17,228,953 |
| Inari Medical, Inc. * | 2,966 | 338,984 |
| InfuSystem Holdings, Inc. * | 7,155 | 161,846 |
| Inogen, Inc. * | 6,823 | 446,156 |
| Inovalon Holdings, Inc., Class A * | 27,266 | 823,706 |
| Inspire Medical Systems, Inc. * | 9,803 | 2,321,546 |
| Insulet Corp. * | 24,323 | 7,180,636 |
| Integer Holdings Corp. * | 12,056 | 1,131,817 |
| Integra LifeSciences Holdings Corp. * | 25,528 | 1,891,114 |
| Intersect ENT, Inc. * | 12,050 | 262,811 |
| IntriCon Corp. * | 2,619 | 60,577 |
| Intuitive Surgical, Inc. * | 43,318 | 37,470,070 |
| Invacare Corp. * | 11,433 | 103,240 |
| iRadimed Corp. * | 3,278 | 90,768 |
| iRhythm Technologies, Inc. * | 10,446 | 813,326 |
| IRIDEX Corp. * | 5,878 | 50,551 |
| Laboratory Corp. of America Holdings * | 36,176 | 9,618,113 |
| Lantheus Holdings, Inc. * | 23,570 | 558,609 |
| LeMaitre Vascular, Inc. | 6,402 | 335,913 |
| LHC Group, Inc. * | 11,891 | 2,476,539 |
| LivaNova plc * | 17,771 | 1,508,225 |
| Lucira Health, Inc. *(a) | 3,586 | 22,448 |
| Magellan Health, Inc. * | 8,637 | 813,605 |
| Masimo Corp. * | 18,796 | 4,373,265 |
| McKesson Corp. | 58,391 | 10,951,816 |
| MEDNAX, Inc. * | 31,341 | 824,895 |
| Medtronic plc | 494,693 | 64,765,208 |
| Meridian Bioscience, Inc. * | 16,420 | 321,504 |
| Merit Medical Systems, Inc. * | 19,199 | 1,221,056 |
| Security | Number
of Shares | Value ($) |
| Mesa Laboratories, Inc. | 1,775 | 441,354 |
| Milestone Scientific, Inc. * | 21,743 | 54,792 |
| Misonix, Inc. * | 4,709 | 87,446 |
| ModivCare, Inc. * | 4,403 | 616,772 |
| Molina Healthcare, Inc. * | 21,322 | 5,439,242 |
| Multiplan Corp. * | 92,854 | 689,905 |
| NantHealth, Inc. * | 15,421 | 39,169 |
| National HealthCare Corp. | 4,384 | 308,239 |
| National Research Corp. | 5,356 | 274,763 |
| Natus Medical, Inc. * | 13,282 | 339,355 |
| Neogen Corp. * | 20,319 | 1,950,827 |
| Neuronetics, Inc. * | 8,872 | 93,156 |
| Nevro Corp. * | 12,504 | 2,160,816 |
| NextGen Healthcare, Inc. * | 20,592 | 377,040 |
| Novocure Ltd. * | 31,564 | 6,442,212 |
| NuVasive, Inc. * | 18,975 | 1,355,764 |
| Omnicell, Inc. * | 15,531 | 2,252,306 |
| Ontrak, Inc. *(a) | 2,607 | 85,092 |
| OptimizeRx Corp. * | 4,843 | 244,378 |
| Option Care Health, Inc. * | 34,930 | 666,464 |
| OraSure Technologies, Inc. * | 25,771 | 235,805 |
| Ortho Clinical Diagnostics Holdings plc * | 29,325 | 577,409 |
| Orthofix Medical, Inc. * | 7,486 | 332,004 |
| OrthoPediatrics Corp. * | 4,524 | 264,654 |
| Outset Medical, Inc. * | 7,084 | 424,473 |
| Owens & Minor, Inc. | 26,279 | 948,409 |
| Patterson Cos., Inc. | 31,422 | 1,009,903 |
| PAVmed, Inc. * | 28,787 | 131,557 |
| Penumbra, Inc. * | 12,345 | 3,777,447 |
| PetIQ, Inc. * | 8,428 | 359,033 |
| Phreesia, Inc. * | 14,796 | 765,693 |
| Premier, Inc., Class A | 25,483 | 900,824 |
| Pro-Dex, Inc. * | 1,893 | 53,988 |
| Progenity, Inc. *(a) | 9,753 | 30,819 |
| Progyny, Inc. * | 13,435 | 764,586 |
| Pulmonx Corp. * | 3,922 | 184,373 |
| Pulse Biosciences, Inc. * | 5,314 | 102,348 |
| Quest Diagnostics, Inc. | 48,932 | 6,453,152 |
| Quidel Corp. * | 14,420 | 1,511,072 |
| Quotient Ltd. * | 33,853 | 132,704 |
| R1 RCM, Inc. * | 45,150 | 1,231,692 |
| RadNet, Inc. * | 15,988 | 357,172 |
| Repro-Med Systems, Inc. * | 13,520 | 50,970 |
| ResMed, Inc. | 53,403 | 10,038,162 |
| Retractable Technologies, Inc. * | 5,101 | 49,531 |
| Rockwell Medical, Inc. * | 29,801 | 28,746 |
| Sanara Medtech, Inc. * | 1,344 | 37,215 |
| Schrodinger, Inc. * | 13,306 | 1,014,449 |
| SeaSpine Holdings Corp. * | 7,349 | 152,933 |
| Second Sight Medical Products, Inc. *(a) | 5,017 | 34,567 |
| Select Medical Holdings Corp. * | 39,171 | 1,477,530 |
| Senseonics Holdings, Inc. * | 104,136 | 220,768 |
| Sharps Compliance Corp. * | 4,490 | 78,530 |
| Shockwave Medical, Inc. * | 11,577 | 1,892,376 |
| SI-BONE, Inc. * | 10,042 | 356,491 |
| Sientra, Inc. * | 21,118 | 144,869 |
| Signify Health, Inc., Class A * | 8,648 | 245,171 |
| Silk Road Medical, Inc. * | 12,749 | 779,474 |
| Simulations Plus, Inc. | 5,879 | 371,200 |
| SmileDirectClub, Inc. * | 32,360 | 344,149 |
| SOC Telemed, Inc. *(a) | 13,000 | 102,050 |
| Soliton, Inc. *(a) | 4,273 | 76,529 |
| STAAR Surgical Co. * | 17,088 | 2,341,227 |
| Stereotaxis, Inc. * | 20,338 | 146,434 |
| STERIS plc | 31,365 | 6,618,642 |
| Stryker Corp. | 120,033 | 31,524,267 |
| Surgalign Holdings, Inc. * | 41,383 | 74,903 |
| Surgery Partners, Inc. * | 10,174 | 490,387 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Surmodics, Inc. * | 5,273 | 282,053 |
| Tabula Rasa HealthCare, Inc. * | 7,830 | 372,395 |
| Tactile Systems Technology, Inc. * | 6,898 | 395,255 |
| Talis Biomedical Corp. * | 5,390 | 64,680 |
| Tandem Diabetes Care, Inc. * | 22,676 | 2,083,924 |
| Tela Bio, Inc. * | 4,346 | 59,453 |
| Teladoc Health, Inc. * | 48,035 | 8,278,835 |
| Teleflex, Inc. | 17,198 | 7,265,811 |
| Tenet Healthcare Corp. * | 38,611 | 2,288,088 |
| The Cooper Cos., Inc. | 18,004 | 7,397,664 |
| The Ensign Group, Inc. | 18,630 | 1,599,385 |
| The Joint Corp. * | 4,872 | 270,299 |
| The Pennant Group, Inc. * | 9,018 | 364,508 |
| Tivity Health, Inc. * | 13,578 | 328,316 |
| TransMedics Group, Inc. * | 8,450 | 242,600 |
| Triple-S Management Corp., Class B * | 9,507 | 225,411 |
| U.S. Physical Therapy, Inc. | 4,543 | 510,860 |
| UnitedHealth Group, Inc. | 347,210 | 138,467,348 |
| Universal Health Services, Inc., Class B | 28,290 | 4,198,519 |
| Utah Medical Products, Inc. | 1,365 | 119,110 |
| Vapotherm, Inc. * | 7,288 | 160,336 |
| Varex Imaging Corp. * | 14,217 | 337,512 |
| Veeva Systems, Inc., Class A * | 50,285 | 14,202,998 |
| ViewRay, Inc. * | 47,456 | 228,263 |
| Vocera Communications, Inc. * | 12,090 | 437,295 |
| VolitionRX Ltd. * | 15,384 | 51,536 |
| West Pharmaceutical Services, Inc. | 27,388 | 8,997,506 |
| Zimmer Biomet Holdings, Inc. | 76,436 | 13,541,402 |
| Zosano Pharma Corp. *(a) | 42,437 | 39,539 |
| Zynex, Inc. *(a) | 6,859 | 101,307 |
| | | 998,557,255 |
| |
| Household & Personal Products 1.4% |
| BellRing Brands, Inc., Class A * | 13,740 | 354,355 |
| Central Garden & Pet Co. * | 3,365 | 182,181 |
| Central Garden & Pet Co., Class A * | 14,806 | 729,492 |
| Church & Dwight Co., Inc. | 90,204 | 7,734,091 |
| Colgate-Palmolive Co. | 311,970 | 25,175,979 |
| Coty, Inc., Class A * | 105,208 | 1,053,132 |
| Edgewell Personal Care Co. | 19,971 | 762,892 |
| elf Beauty, Inc. * | 16,970 | 513,343 |
| Energizer Holdings, Inc. | 21,526 | 1,061,232 |
| Herbalife Nutrition Ltd. * | 31,735 | 1,452,511 |
| Inter Parfums, Inc. | 6,562 | 482,963 |
| Kimberly-Clark Corp. | 124,604 | 16,612,205 |
| LifeMD, Inc. * | 6,495 | 63,066 |
| Medifast, Inc. | 4,264 | 968,312 |
| Natural Alternatives International, Inc. * | 2,799 | 41,985 |
| Natural Health Trends Corp. | 2,166 | 15,768 |
| Nature's Sunshine Products, Inc. | 5,329 | 110,897 |
| Nu Skin Enterprises, Inc., Class A | 18,845 | 996,147 |
| Oil-Dri Corp. of America | 2,782 | 97,175 |
| Reynolds Consumer Products, Inc. | 19,506 | 571,916 |
| Spectrum Brands Holdings, Inc. | 14,158 | 1,247,886 |
| The Clorox Co. | 46,096 | 8,412,520 |
| The Estee Lauder Cos., Inc., Class A | 84,534 | 26,526,769 |
| The Procter & Gamble Co. | 905,409 | 120,799,669 |
| USANA Health Sciences, Inc. * | 4,282 | 385,337 |
| Veru, Inc. * | 22,412 | 198,122 |
| WD-40 Co. | 5,046 | 1,255,142 |
| | | 217,805,087 |
| |
| Insurance 2.1% |
| Aflac, Inc. | 235,579 | 12,657,660 |
| Alleghany Corp. * | 5,064 | 3,438,304 |
| Ambac Financial Group, Inc. * | 18,028 | 309,180 |
| Security | Number
of Shares | Value ($) |
| American Equity Investment Life Holding Co. | 30,980 | 959,760 |
| American Financial Group, Inc. | 26,260 | 3,226,304 |
| American International Group, Inc. | 318,457 | 15,429,242 |
| American National Group, Inc. | 3,603 | 408,400 |
| AMERISAFE, Inc. | 7,229 | 448,776 |
| Aon plc, Class A | 83,153 | 20,907,990 |
| Arch Capital Group Ltd. * | 147,520 | 5,858,019 |
| Argo Group International Holdings Ltd. | 12,407 | 647,397 |
| Arthur J. Gallagher & Co. | 71,334 | 10,339,863 |
| Assurant, Inc. | 21,017 | 3,270,245 |
| Assured Guaranty Ltd. | 28,008 | 1,424,207 |
| Athene Holding Ltd., Class A * | 46,068 | 2,748,878 |
| Axis Capital Holdings Ltd. | 29,533 | 1,647,941 |
| Brighthouse Financial, Inc. * | 34,704 | 1,623,800 |
| Brown & Brown, Inc. | 85,944 | 4,570,502 |
| BRP Group, Inc., Class A * | 16,233 | 471,082 |
| Chubb Ltd. | 165,456 | 28,390,595 |
| Cincinnati Financial Corp. | 55,058 | 6,203,935 |
| Citizens, Inc. * | 15,644 | 91,361 |
| CNA Financial Corp. | 9,550 | 448,182 |
| CNO Financial Group, Inc. | 48,217 | 1,230,980 |
| Crawford & Co., Class A | 4,938 | 51,800 |
| Crawford & Co., Class B | 5,800 | 55,216 |
| Donegal Group, Inc., Class A | 5,782 | 89,216 |
| eHealth, Inc. * | 9,731 | 688,371 |
| Employers Holdings, Inc. | 10,575 | 428,076 |
| Enstar Group Ltd. * | 4,865 | 1,221,991 |
| Erie Indemnity Co., Class A | 9,010 | 1,928,320 |
| Everest Re Group Ltd. | 14,690 | 4,068,396 |
| FBL Financial Group, Inc., Class A | 4,076 | 231,068 |
| FedNat Holding Co. | 4,085 | 20,793 |
| Fidelity National Financial, Inc. | 106,985 | 4,880,656 |
| First American Financial Corp. | 40,791 | 2,631,020 |
| Genworth Financial, Inc., Class A * | 187,366 | 809,421 |
| Globe Life, Inc. | 35,003 | 3,587,457 |
| GoHealth, Inc., Class A * | 15,915 | 189,866 |
| Goosehead Insurance, Inc., Class A | 6,197 | 681,298 |
| Greenlight Capital Re Ltd., Class A * | 12,115 | 111,821 |
| HCI Group, Inc. | 2,337 | 171,583 |
| Heritage Insurance Holdings, Inc. | 9,756 | 88,877 |
| Horace Mann Educators Corp. | 15,131 | 606,753 |
| Independence Holding Co. | 3,476 | 152,944 |
| Investors Title Co. | 416 | 73,395 |
| James River Group Holdings Ltd. | 11,384 | 536,300 |
| Kemper Corp. | 22,543 | 1,759,707 |
| Kingstone Cos., Inc. | 2,696 | 22,593 |
| Kinsale Capital Group, Inc. | 8,349 | 1,452,810 |
| Lemonade, Inc. * | 6,615 | 597,996 |
| Lincoln National Corp. | 66,991 | 4,296,133 |
| Loews Corp. | 83,599 | 4,660,644 |
| Maiden Holdings Ltd. * | 18,900 | 70,308 |
| Markel Corp. * | 5,087 | 5,984,449 |
| Marsh & McLennan Cos., Inc. | 185,656 | 25,193,519 |
| MBIA, Inc. * | 19,104 | 191,422 |
| Mercury General Corp. | 9,807 | 610,682 |
| MetLife, Inc. | 276,419 | 17,588,541 |
| MetroMile, Inc. * | 26,555 | 247,227 |
| National Western Life Group, Inc., Class A | 895 | 205,224 |
| NI Holdings, Inc. * | 2,860 | 54,769 |
| Old Republic International Corp. | 102,829 | 2,531,650 |
| Palomar Holdings, Inc. * | 7,766 | 546,416 |
| Primerica, Inc. | 14,326 | 2,288,865 |
| Principal Financial Group, Inc. | 92,593 | 5,913,915 |
| ProAssurance Corp. | 20,514 | 512,850 |
| Protective Insurance Corp., Class B | 4,607 | 105,961 |
| Prudential Financial, Inc. | 145,834 | 14,635,900 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Reinsurance Group of America, Inc. | 25,249 | 3,295,752 |
| RenaissanceRe Holdings Ltd. | 18,483 | 3,120,115 |
| RLI Corp. | 14,491 | 1,615,167 |
| Root, Inc., Class A *(a) | 9,300 | 100,161 |
| Safety Insurance Group, Inc. | 5,451 | 447,146 |
| Selective Insurance Group, Inc. | 21,881 | 1,666,019 |
| Selectquote, Inc. * | 16,218 | 504,866 |
| SiriusPoint Ltd. * | 32,236 | 341,057 |
| State Auto Financial Corp. | 7,642 | 144,281 |
| Stewart Information Services Corp. | 11,136 | 653,126 |
| The Allstate Corp. | 111,456 | 14,132,621 |
| The Hanover Insurance Group, Inc. | 13,210 | 1,827,075 |
| The Hartford Financial Services Group, Inc. | 133,206 | 8,786,268 |
| The Progressive Corp. | 215,161 | 21,675,319 |
| The Travelers Cos., Inc. | 92,884 | 14,365,439 |
| Tiptree, Inc. | 7,504 | 75,115 |
| Trean Insurance Group, Inc. * | 4,070 | 71,184 |
| Trupanion, Inc. * | 12,068 | 978,715 |
| United Fire Group, Inc. | 7,474 | 226,163 |
| United Insurance Holdings Corp. | 6,439 | 35,994 |
| Universal Insurance Holdings, Inc. | 9,563 | 133,404 |
| Unum Group | 73,812 | 2,085,927 |
| W.R. Berkley Corp. | 51,545 | 4,109,167 |
| Watford Holdings Ltd. * | 6,987 | 243,567 |
| White Mountains Insurance Group Ltd. | 1,145 | 1,334,417 |
| Willis Towers Watson plc | 47,658 | 12,336,750 |
| | | 333,833,637 |
| |
| Materials 2.9% |
| Advanced Emissions Solutions, Inc. * | 5,901 | 27,735 |
| AdvanSix, Inc. * | 10,189 | 296,296 |
| AgroFresh Solutions, Inc. * | 10,000 | 21,200 |
| Air Products & Chemicals, Inc. | 81,473 | 23,503,331 |
| Albemarle Corp. | 43,133 | 7,253,677 |
| Alcoa Corp. * | 68,221 | 2,499,617 |
| Allegheny Technologies, Inc. * | 46,176 | 1,074,054 |
| Alpha Metallurgical Resources, Inc. * | 6,988 | 84,485 |
| Amcor plc | 576,613 | 6,775,203 |
| American Vanguard Corp. | 9,646 | 190,798 |
| Ampco-Pittsburgh Corp. * | 5,583 | 42,263 |
| Amyris, Inc. * | 61,432 | 894,450 |
| AptarGroup, Inc. | 24,153 | 3,642,514 |
| Arconic Corp. * | 34,866 | 997,168 |
| Ashland Global Holdings, Inc. | 19,921 | 1,717,389 |
| Avery Dennison Corp. | 30,400 | 6,510,768 |
| Avient Corp. | 32,939 | 1,672,313 |
| Axalta Coating Systems Ltd. * | 75,482 | 2,407,121 |
| Balchem Corp. | 12,887 | 1,639,098 |
| Ball Corp. | 120,455 | 11,279,406 |
| Berry Global Group, Inc. * | 49,780 | 3,167,004 |
| Cabot Corp. | 20,323 | 1,115,326 |
| Carpenter Technology Corp. | 17,681 | 669,579 |
| Celanese Corp. | 41,721 | 6,535,595 |
| Century Aluminum Co. * | 17,399 | 272,468 |
| CF Industries Holdings, Inc. | 79,728 | 3,877,173 |
| Chase Corp. | 2,673 | 316,590 |
| Clearwater Paper Corp. * | 6,468 | 216,419 |
| Cleveland-Cliffs, Inc. * | 166,259 | 2,969,386 |
| Coeur Mining, Inc. * | 86,224 | 696,690 |
| Commercial Metals Co. | 44,264 | 1,293,394 |
| Compass Minerals International, Inc. | 12,596 | 855,520 |
| Comstock Mining, Inc. * | 30,049 | 118,093 |
| Core Molding Technologies, Inc. * | 3,757 | 41,365 |
| Corteva, Inc. | 273,252 | 13,323,768 |
| Crown Holdings, Inc. | 49,600 | 5,446,080 |
| Danimer Scientific, Inc. *(a) | 22,744 | 581,109 |
| Security | Number
of Shares | Value ($) |
| Domtar Corp. * | 20,508 | 808,425 |
| Dow, Inc. | 274,041 | 17,127,562 |
| DuPont de Nemours, Inc. | 198,186 | 15,282,122 |
| Eagle Materials, Inc. * | 15,653 | 2,162,305 |
| Eastman Chemical Co. | 50,254 | 5,798,809 |
| Ecolab, Inc. | 91,446 | 20,494,878 |
| Element Solutions, Inc. | 79,378 | 1,736,791 |
| Ferro Corp. * | 30,061 | 500,816 |
| Flotek Industries, Inc. * | 16,539 | 25,139 |
| FMC Corp. | 47,587 | 5,626,687 |
| Forterra, Inc. * | 6,950 | 163,047 |
| Freeport-McMoRan, Inc. | 539,135 | 20,330,781 |
| FutureFuel Corp. | 9,399 | 119,367 |
| Gatos Silver, Inc. * | 8,000 | 91,840 |
| GCP Applied Technologies, Inc. * | 17,552 | 450,911 |
| Glatfelter Corp. | 15,480 | 227,866 |
| Gold Resource Corp. | 34,097 | 91,721 |
| Graphic Packaging Holding Co. | 97,760 | 1,813,448 |
| Greif, Inc., Class A | 11,764 | 711,840 |
| H.B. Fuller Co. | 19,193 | 1,282,476 |
| Hawkins, Inc. | 7,358 | 245,389 |
| Haynes International, Inc. | 5,389 | 157,574 |
| Hecla Mining Co. | 191,761 | 1,133,308 |
| Huntsman Corp. | 72,081 | 2,066,562 |
| Hycroft Mining Holding Corp. *(a) | 14,727 | 51,692 |
| Ingevity Corp. * | 14,839 | 1,158,629 |
| Innospec, Inc. | 9,038 | 880,392 |
| International Flavors & Fragrances, Inc. | 91,942 | 13,071,394 |
| International Paper Co. | 145,924 | 8,463,592 |
| Intrepid Potash, Inc. * | 3,965 | 127,514 |
| Kaiser Aluminum Corp. | 5,719 | 688,968 |
| Koppers Holdings, Inc. * | 7,565 | 251,461 |
| Kraton Corp. * | 11,677 | 417,570 |
| Kronos Worldwide, Inc. | 9,190 | 156,230 |
| Linde plc | 192,233 | 54,947,881 |
| Livent Corp. * | 54,109 | 975,044 |
| Loop Industries, Inc. *(a) | 6,251 | 53,884 |
| Louisiana-Pacific Corp. | 39,297 | 2,588,886 |
| LSB Industries, Inc. * | 5,600 | 33,544 |
| LyondellBasell Industries N.V., Class A | 94,635 | 9,817,435 |
| Marrone Bio Innovations, Inc. * | 45,317 | 76,586 |
| Martin Marietta Materials, Inc. | 23,006 | 8,123,879 |
| Materion Corp. | 7,145 | 505,937 |
| McEwen Mining, Inc. * | 126,062 | 151,274 |
| Mercer International, Inc. | 14,607 | 240,869 |
| Minerals Technologies, Inc. | 12,150 | 949,401 |
| MP Materials Corp. *(a) | 22,260 | 668,690 |
| Myers Industries, Inc. | 14,310 | 322,834 |
| Neenah, Inc. | 6,513 | 346,296 |
| NewMarket Corp. | 2,644 | 916,384 |
| Newmont Corp. | 293,837 | 18,338,367 |
| Nucor Corp. | 109,879 | 9,038,647 |
| O-I Glass, Inc. * | 56,848 | 937,424 |
| Olin Corp. | 52,055 | 2,239,927 |
| Olympic Steel, Inc. | 4,090 | 118,815 |
| Orion Engineered Carbons S.A. * | 21,268 | 422,382 |
| Packaging Corp. of America | 34,742 | 5,129,656 |
| Pactiv Evergreen, Inc. | 14,353 | 211,276 |
| PPG Industries, Inc. | 87,249 | 14,940,519 |
| PQ Group Holdings, Inc. | 20,989 | 293,846 |
| Quaker Chemical Corp. | 5,137 | 1,244,952 |
| Ranpak Holdings Corp. * | 12,912 | 248,298 |
| Rayonier Advanced Materials, Inc. * | 21,499 | 195,426 |
| Reliance Steel & Aluminum Co. | 23,482 | 3,764,399 |
| Resolute Forest Products, Inc. * | 28,000 | 378,560 |
| Royal Gold, Inc. | 24,321 | 2,720,547 |
| RPM International, Inc. | 47,610 | 4,515,332 |
| Ryerson Holding Corp. * | 7,270 | 115,448 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Schnitzer Steel Industries, Inc., Class A | 10,249 | 483,855 |
| Schweitzer-Mauduit International, Inc. | 11,854 | 541,372 |
| Sealed Air Corp. | 56,576 | 2,794,854 |
| Sensient Technologies Corp. | 15,201 | 1,250,130 |
| Silgan Holdings, Inc. | 28,840 | 1,216,183 |
| Sonoco Products Co. | 36,364 | 2,380,387 |
| Steel Dynamics, Inc. | 74,800 | 4,055,656 |
| Stepan Co. | 7,892 | 1,031,169 |
| Summit Materials, Inc., Class A * | 41,095 | 1,183,125 |
| SunCoke Energy, Inc. | 29,816 | 201,258 |
| The Chemours Co. | 62,969 | 1,901,664 |
| The Mosaic Co. | 129,325 | 4,549,654 |
| The Scotts Miracle-Gro Co. | 14,823 | 3,426,485 |
| The Sherwin-Williams Co. | 88,733 | 24,301,307 |
| TimkenSteel Corp. * | 14,771 | 177,547 |
| Trecora Resources * | 10,224 | 77,600 |
| Tredegar Corp. | 10,770 | 157,457 |
| Trinseo S.A. | 14,067 | 870,888 |
| Tronox Holdings plc, Class A | 38,708 | 820,610 |
| UFP Technologies, Inc. * | 2,318 | 116,039 |
| United States Lime & Minerals, Inc. | 712 | 98,384 |
| United States Steel Corp. | 99,834 | 2,297,180 |
| US Antimony Corp. * | 33,337 | 31,187 |
| US Concrete, Inc. * | 5,537 | 351,101 |
| Valvoline, Inc. | 66,178 | 2,077,989 |
| Venator Materials plc * | 22,587 | 104,578 |
| Verso Corp., Class A | 12,685 | 195,856 |
| Vulcan Materials Co. | 48,956 | 8,725,917 |
| W.R. Grace & Co. | 22,788 | 1,566,219 |
| Warrior Met Coal, Inc. | 18,646 | 295,539 |
| Westlake Chemical Corp. | 12,426 | 1,166,677 |
| WestRock Co. | 97,021 | 5,408,921 |
| Worthington Industries, Inc. | 12,634 | 824,495 |
| | | 457,995,479 |
| |
| Media & Entertainment 8.8% |
| Activision Blizzard, Inc. | 285,276 | 26,014,318 |
| Advantage Solutions, Inc. * | 37,544 | 480,939 |
| Alphabet, Inc., Class A * | 110,586 | 260,264,151 |
| Alphabet, Inc., Class C * | 105,994 | 255,458,259 |
| Altice USA, Inc., Class A * | 88,959 | 3,230,101 |
| AMC Entertainment Holdings, Inc., Class A *(a) | 137,130 | 1,375,414 |
| AMC Networks, Inc., Class A * | 10,968 | 551,471 |
| Angi, Inc. * | 27,825 | 445,478 |
| Boston Omaha Corp., Class A * | 6,182 | 173,220 |
| Bumble, Inc., Class A * | 18,152 | 1,093,477 |
| Cable One, Inc. | 1,982 | 3,547,780 |
| Cardlytics, Inc. * | 11,490 | 1,580,220 |
| Cargurus, Inc. * | 33,107 | 817,081 |
| Cars.com, Inc. * | 24,524 | 323,962 |
| Charter Communications, Inc., Class A * | 51,999 | 35,018,727 |
| Chicken Soup For The Soul Entertainment, Inc. * | 2,657 | 80,985 |
| Cinedigm Corp., Class A *(a) | 23,490 | 33,826 |
| Cinemark Holdings, Inc. * | 38,799 | 822,539 |
| Clear Channel Outdoor Holdings, Inc. * | 176,155 | 442,149 |
| Comcast Corp., Class A | 1,679,121 | 94,282,644 |
| comScore, Inc. * | 18,690 | 68,966 |
| Cumulus Media, Inc., Class A * | 6,971 | 66,991 |
| CuriosityStream, Inc. *(a) | 8,090 | 123,696 |
| Daily Journal Corp. * | 289 | 88,200 |
| DHI Group, Inc. * | 17,016 | 49,687 |
| Digital Media Solutions, Inc., Class A *(a) | 5,686 | 68,573 |
| Discovery, Inc., Class A * | 59,882 | 2,255,156 |
| Discovery, Inc., Class C * | 106,521 | 3,441,694 |
| DISH Network Corp., Class A * | 91,545 | 4,100,301 |
| Security | Number
of Shares | Value ($) |
| Electronic Arts, Inc. | 105,938 | 15,051,671 |
| Emerald Holding, Inc. * | 7,527 | 42,226 |
| Entercom Communications Corp. * | 44,339 | 214,601 |
| Entravision Communications Corp., Class A | 23,831 | 91,749 |
| Eventbrite, Inc., Class A * | 25,100 | 591,607 |
| EverQuote, Inc., Class A * | 3,535 | 119,730 |
| Facebook, Inc., Class A * | 884,420 | 287,507,254 |
| Fluent, Inc. * | 13,431 | 49,963 |
| Fox Corp., Class A | 121,553 | 4,548,513 |
| Fox Corp., Class B | 58,958 | 2,144,892 |
| Gaia, Inc. * | 6,496 | 68,468 |
| Gannett Co., Inc. * | 47,234 | 214,442 |
| Gray Television, Inc. | 33,015 | 670,865 |
| Hemisphere Media Group, Inc. * | 8,047 | 98,334 |
| IAC/InterActiveCorp * | 30,603 | 7,756,942 |
| iHeartMedia, Inc., Class A * | 41,001 | 784,759 |
| IZEA Worldwide, Inc. * | 19,013 | 69,778 |
| John Wiley & Sons, Inc., Class A | 17,679 | 1,006,642 |
| Lee Enterprises, Inc. * | 1,545 | 46,196 |
| Liberty Broadband Corp., Class A * | 8,502 | 1,340,510 |
| Liberty Broadband Corp., Class C * | 78,031 | 12,697,204 |
| Liberty Media Corp. - Liberty Braves, Class A * | 2,953 | 82,654 |
| Liberty Media Corp. - Liberty Braves, Class C * | 18,075 | 500,497 |
| Liberty Media Corp. - Liberty Formula One, Class A * | 9,926 | 411,135 |
| Liberty Media Corp. - Liberty Formula One, Class C * | 74,843 | 3,513,130 |
| Liberty Media Corp. - Liberty SiriusXM, Class A * | 29,393 | 1,328,270 |
| Liberty Media Corp. - Liberty SiriusXM, Class C * | 63,426 | 2,868,758 |
| Liberty TripAdvisor Holdings, Inc., Class A * | 24,773 | 125,351 |
| Lions Gate Entertainment Corp., Class A * | 23,373 | 338,207 |
| Lions Gate Entertainment Corp., Class B * | 41,368 | 521,237 |
| Live Nation Entertainment, Inc. * | 54,294 | 4,445,593 |
| LiveXLive Media, Inc. * | 23,394 | 100,360 |
| Loral Space & Communications, Inc. | 4,480 | 179,782 |
| Madison Square Garden Entertainment Corp. * | 6,349 | 575,283 |
| Madison Square Garden Sports Corp. * | 6,349 | 1,173,549 |
| Magnite, Inc. * | 41,904 | 1,678,255 |
| Marchex, Inc., Class B * | 10,570 | 30,653 |
| Match Group, Inc. * | 98,973 | 15,403,168 |
| MDC Partners, Inc., Class A * | 22,872 | 102,009 |
| MediaAlpha, Inc. * | 7,123 | 315,193 |
| Meredith Corp. * | 14,298 | 444,668 |
| MSG Networks, Inc., Class A * | 16,477 | 261,490 |
| National CineMedia, Inc. | 26,005 | 111,041 |
| Netflix, Inc. * | 162,929 | 83,659,154 |
| News Corp., Class A | 143,308 | 3,753,953 |
| News Corp., Class B | 44,936 | 1,092,394 |
| Nexstar Media Group, Inc., Class A | 15,682 | 2,311,684 |
| Omnicom Group, Inc. | 79,204 | 6,515,321 |
| Pinterest, Inc., Class A * | 195,836 | 12,997,635 |
| Playtika Holding Corp. * | 24,929 | 692,528 |
| QuinStreet, Inc. * | 18,824 | 381,563 |
| Roku, Inc. * | 40,814 | 13,997,978 |
| Saga Communications, Inc., Class A * | 1,496 | 33,705 |
| Scholastic Corp. | 10,758 | 326,290 |
| Sciplay Corp., Class A * | 8,602 | 151,825 |
| Sinclair Broadcast Group, Inc., Class A | 17,522 | 568,939 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Sirius XM Holdings, Inc. | 420,731 | 2,566,459 |
| Skillz, Inc. *(a) | 86,387 | 1,513,500 |
| Snap, Inc., Class A * | 340,307 | 21,037,779 |
| Super League Gaming, Inc. * | 8,293 | 44,616 |
| Take-Two Interactive Software, Inc. * | 42,415 | 7,438,743 |
| TechTarget, Inc. * | 8,572 | 657,472 |
| TEGNA, Inc. | 80,268 | 1,610,176 |
| The E.W. Scripps Co., Class A | 20,761 | 448,853 |
| The Interpublic Group of Cos., Inc. | 145,510 | 4,619,943 |
| The Marcus Corp. * | 9,696 | 193,532 |
| The New York Times Co., Class A | 53,025 | 2,407,865 |
| The Walt Disney Co. * | 667,390 | 124,147,888 |
| Thryv Holdings, Inc. * | 2,234 | 62,083 |
| Townsquare Media, Inc., Class A * | 5,279 | 54,374 |
| Travelzoo * | 5,776 | 91,030 |
| Tribune Publishing Co. * | 10,353 | 180,556 |
| TripAdvisor, Inc. * | 35,012 | 1,650,116 |
| TrueCar, Inc. * | 39,721 | 182,717 |
| Twitter, Inc. * | 293,220 | 16,191,608 |
| ViacomCBS, Inc., Class B | 219,636 | 9,009,469 |
| Warner Music Group Corp., Class A | 35,586 | 1,350,845 |
| WideOpenWest, Inc. * | 18,912 | 266,092 |
| World Wrestling Entertainment, Inc., Class A | 17,363 | 956,875 |
| Yelp, Inc. * | 27,506 | 1,080,986 |
| Zedge, Inc., Class B * | 4,350 | 57,855 |
| Zillow Group, Inc., Class A * | 13,167 | 1,755,819 |
| Zillow Group, Inc., Class C * | 56,914 | 7,405,650 |
| ZoomInfo Technologies, Inc., Class A * | 34,158 | 1,771,434 |
| Zynga, Inc., Class A * | 374,926 | 4,056,699 |
| | | 1,405,220,637 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 6.9% |
| 10X Genomics, Inc., Class A * | 27,329 | 5,405,676 |
| 180 Life Sciences Corp. *(a) | 7,214 | 69,615 |
| 4D Molecular Therapeutics, Inc. * | 3,240 | 125,388 |
| 89bio, Inc. * | 4,146 | 108,998 |
| 9 Meters Biopharma, Inc. * | 68,039 | 83,008 |
| AbbVie, Inc. | 649,903 | 72,464,184 |
| Abeona Therapeutics, Inc. * | 35,285 | 62,454 |
| ACADIA Pharmaceuticals, Inc. * | 42,814 | 880,256 |
| Acceleron Pharma, Inc. * | 19,071 | 2,383,303 |
| AcelRx Pharmaceuticals, Inc. * | 48,560 | 63,128 |
| Acer Therapeutics, Inc. * | 1,495 | 4,365 |
| Aclaris Therapeutics, Inc. * | 15,789 | 376,568 |
| Actinium Pharmaceuticals, Inc. * | 7,539 | 57,749 |
| Adamas Pharmaceuticals, Inc. * | 17,873 | 100,804 |
| Adamis Pharmaceuticals Corp. * | 56,257 | 44,336 |
| Adaptive Biotechnologies Corp. * | 30,451 | 1,266,762 |
| Adicet Bio, Inc. * | 5,227 | 83,266 |
| ADMA Biologics, Inc. *(a) | 31,980 | 62,681 |
| Advaxis, Inc. * | 51,406 | 25,138 |
| Adverum Biotechnologies, Inc. * | 32,000 | 124,800 |
| Aeglea BioTherapeutics, Inc. * | 12,715 | 98,923 |
| Aerie Pharmaceuticals, Inc. * | 16,193 | 277,386 |
| Aerpio Pharmaceuticals, Inc. * | 12,835 | 15,145 |
| Agenus, Inc. * | 55,732 | 172,212 |
| Agile Therapeutics, Inc. * | 31,320 | 57,942 |
| Agilent Technologies, Inc. | 111,612 | 14,915,828 |
| Agios Pharmaceuticals, Inc. * | 21,377 | 1,192,837 |
| AIkido Pharma, Inc. * | 37,539 | 38,665 |
| Aileron Therapeutics, Inc. * | 27,406 | 32,613 |
| AIM ImmunoTech, Inc. * | 20,316 | 43,883 |
| Akebia Therapeutics, Inc. * | 51,571 | 164,511 |
| Akero Therapeutics, Inc. * | 6,447 | 198,568 |
| Akouos, Inc. * | 5,052 | 71,839 |
| Albireo Pharma, Inc. * | 6,742 | 216,418 |
| Security | Number
of Shares | Value ($) |
| Aldeyra Therapeutics, Inc. * | 18,127 | 227,856 |
| Alector, Inc. * | 19,546 | 381,147 |
| Alexion Pharmaceuticals, Inc. * | 81,065 | 13,674,044 |
| Aligos Therapeutics, Inc. * | 3,700 | 95,164 |
| Alkermes plc * | 56,934 | 1,252,833 |
| Allakos, Inc. * | 11,562 | 1,261,645 |
| Allogene Therapeutics, Inc. * | 23,660 | 731,567 |
| Allovir, Inc. * | 6,410 | 151,468 |
| Alnylam Pharmaceuticals, Inc. * | 43,873 | 6,170,299 |
| Alpine Immune Sciences, Inc. * | 4,137 | 54,898 |
| Altimmune, Inc. * | 11,098 | 160,588 |
| ALX Oncology Holdings, Inc. * | 4,331 | 271,380 |
| Amgen, Inc. | 212,506 | 50,924,938 |
| Amicus Therapeutics, Inc. * | 96,355 | 948,133 |
| Amneal Pharmaceuticals, Inc. * | 43,587 | 240,164 |
| Amphastar Pharmaceuticals, Inc. * | 14,857 | 258,512 |
| Ampio Pharmaceuticals, Inc. * | 73,284 | 135,575 |
| AnaptysBio, Inc. * | 7,720 | 180,262 |
| Anavex Life Sciences Corp. *(a) | 24,140 | 291,611 |
| Angion Biomedica Corp. * | 2,184 | 30,860 |
| ANI Pharmaceuticals, Inc. * | 3,733 | 124,234 |
| Anika Therapeutics, Inc. * | 5,811 | 233,486 |
| Anixa Biosciences, Inc. * | 9,149 | 44,647 |
| Annexon, Inc. * | 6,164 | 122,849 |
| Annovis Bio, Inc. *(a) | 1,522 | 33,697 |
| Antares Pharma, Inc. * | 52,467 | 198,850 |
| Apellis Pharmaceuticals, Inc. * | 21,537 | 1,091,280 |
| Applied Genetic Technologies Corp. * | 12,820 | 54,229 |
| Applied Molecular Transport, Inc. * | 5,257 | 302,225 |
| Applied Therapeutics, Inc. * | 6,111 | 113,176 |
| Aprea Therapeutics, Inc. * | 4,858 | 22,784 |
| Aptevo Therapeutics, Inc. * | 1,654 | 44,178 |
| Aptinyx, Inc. * | 17,590 | 47,141 |
| AquaBounty Technologies, Inc. * | 21,009 | 119,121 |
| Aquestive Therapeutics, Inc. *(a) | 2,664 | 10,842 |
| Aravive, Inc. * | 1,524 | 8,001 |
| Arbutus Biopharma Corp. * | 20,912 | 72,565 |
| Arcturus Therapeutics Holdings, Inc. * | 7,721 | 283,052 |
| Arcus Biosciences, Inc. * | 16,347 | 551,711 |
| Arcutis Biotherapeutics, Inc. * | 9,517 | 318,819 |
| Ardelyx, Inc. * | 23,062 | 168,583 |
| Arena Pharmaceuticals, Inc. * | 21,913 | 1,503,889 |
| Arrowhead Pharmaceuticals, Inc. * | 37,786 | 2,749,309 |
| Arvinas, Inc. * | 11,960 | 824,522 |
| Assembly Biosciences, Inc. * | 11,682 | 49,999 |
| Assertio Holdings, Inc. * | 64,230 | 35,333 |
| Atara Biotherapeutics, Inc. * | 30,986 | 435,663 |
| Atea Pharmaceuticals, Inc. * | 4,831 | 119,374 |
| Athenex, Inc. * | 26,881 | 107,793 |
| Athersys, Inc. * | 66,911 | 111,741 |
| Athira Pharma, Inc. * | 6,498 | 127,881 |
| Atossa Therapeutics, Inc. *(a) | 27,308 | 63,628 |
| Atreca, Inc. Class A * | 11,123 | 132,809 |
| Avantor, Inc. * | 190,302 | 6,097,276 |
| AVEO Pharmaceuticals, Inc. * | 8,990 | 63,380 |
| Avid Bioservices, Inc. * | 19,984 | 427,758 |
| Avidity Biosciences, Inc. * | 6,635 | 155,524 |
| Avita Medical, Inc. * | 7,464 | 154,057 |
| Avrobio, Inc. * | 13,368 | 156,138 |
| Axsome Therapeutics, Inc. * | 9,355 | 565,603 |
| Aytu BioPharma, Inc. *(a) | 8,368 | 55,396 |
| Baudax Bio, Inc. *(a) | 34,259 | 38,713 |
| Beam Therapeutics, Inc. * | 9,464 | 776,048 |
| Berkeley Lights, Inc. * | 2,802 | 137,606 |
| Bio-Rad Laboratories, Inc., Class A * | 7,951 | 5,010,164 |
| Bio-Techne Corp. | 14,392 | 6,152,436 |
| BioAtla, Inc. * | 4,007 | 198,707 |
| BioCryst Pharmaceuticals, Inc. * | 63,599 | 739,974 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| BioDelivery Sciences International, Inc. * | 35,519 | 122,896 |
| Biogen, Inc. * | 56,074 | 14,990,262 |
| Biohaven Pharmaceutical Holding Co., Ltd. * | 19,143 | 1,437,639 |
| BioMarin Pharmaceutical, Inc. * | 67,502 | 5,259,756 |
| BioNano Genomics, Inc. *(a) | 66,500 | 423,605 |
| Bioxcel Therapeutics, Inc. * | 5,384 | 182,894 |
| Black Diamond Therapeutics, Inc. * | 6,728 | 179,234 |
| Bluebird Bio, Inc. * | 25,155 | 754,650 |
| Blueprint Medicines Corp. * | 20,992 | 2,021,949 |
| Bolt Biotherapeutics, Inc. * | 4,158 | 92,973 |
| BrainStorm Cell Therapeutics, Inc. *(a) | 11,287 | 39,166 |
| Bridgebio Pharma, Inc. * | 35,256 | 1,971,516 |
| Bristol-Myers Squibb Co. | 824,722 | 51,479,147 |
| Bruker Corp. | 36,569 | 2,505,708 |
| C4 Therapeutics, Inc. * | 3,474 | 114,989 |
| Cabaletta Bio, Inc. * | 4,700 | 52,311 |
| Caladrius Biosciences, Inc. * | 20,586 | 33,555 |
| Calithera Biosciences, Inc. * | 23,390 | 50,756 |
| Calyxt, Inc. * | 5,672 | 28,247 |
| Capricor Therapeutics, Inc. * | 5,921 | 27,414 |
| Cara Therapeutics, Inc. * | 16,617 | 215,190 |
| Cardiff Oncology, Inc. *(a) | 8,961 | 88,983 |
| CareDx, Inc. * | 18,778 | 1,484,776 |
| CASI Pharmaceuticals, Inc. * | 25,215 | 45,135 |
| Cassava Sciences, Inc. * | 13,333 | 623,984 |
| Catalent, Inc. * | 62,873 | 7,071,326 |
| Catalyst Biosciences, Inc. * | 13,113 | 66,090 |
| Catalyst Pharmaceuticals, Inc. * | 39,688 | 181,771 |
| cbdMD, Inc. * | 14,316 | 55,117 |
| CEL-SCI Corp. *(a) | 14,273 | 344,407 |
| Celcuity, Inc. * | 2,500 | 69,150 |
| Celldex Therapeutics, Inc. * | 14,509 | 440,058 |
| Cellectar Biosciences, Inc. *(a) | 22,909 | 36,196 |
| Celsion Corp. * | 17,195 | 20,290 |
| Cerecor, Inc. * | 38,687 | 121,477 |
| Cerevel Therapeutics Holdings, Inc. * | 13,714 | 199,539 |
| Charles River Laboratories International, Inc. * | 18,293 | 6,081,508 |
| Checkpoint Therapeutics, Inc. * | 16,943 | 49,135 |
| ChemoCentryx, Inc. * | 18,466 | 892,462 |
| Chiasma, Inc. * | 22,407 | 66,773 |
| Chimerix, Inc. * | 25,859 | 225,232 |
| Chinook Therapeutics, Inc. * | 13,331 | 239,291 |
| ChromaDex Corp. * | 18,081 | 160,559 |
| Cidara Therapeutics, Inc. * | 84,261 | 187,059 |
| Citius Pharmaceuticals, Inc. *(a) | 43,030 | 94,666 |
| Clearside Biomedical, Inc. * | 11,928 | 36,619 |
| Clene, Inc. * | 7,741 | 69,669 |
| Clever Leaves Holdings, Inc. *(a) | 6,434 | 64,469 |
| Clovis Oncology, Inc. *(a) | 40,618 | 241,271 |
| Codexis, Inc. * | 20,702 | 479,872 |
| Codiak Biosciences, Inc. * | 3,360 | 66,528 |
| Cogent Biosciences, Inc. * | 9,159 | 79,592 |
| Cohbar, Inc. * | 14,681 | 19,673 |
| Coherus Biosciences, Inc. * | 23,029 | 340,829 |
| Collegium Pharmaceutical, Inc. * | 11,957 | 266,641 |
| Concert Pharmaceuticals, Inc. * | 10,357 | 42,982 |
| Constellation Pharmaceuticals, Inc. * | 11,201 | 242,166 |
| ContraFect Corp. * | 8,218 | 36,406 |
| Corbus Pharmaceuticals Holdings, Inc. * | 21,103 | 37,985 |
| Corcept Therapeutics, Inc. * | 37,867 | 862,989 |
| CorMedix, Inc. * | 13,948 | 120,511 |
| Cortexyme, Inc. * | 4,450 | 174,307 |
| Corvus Pharmaceuticals, Inc. *(a) | 13,830 | 39,001 |
| Crinetics Pharmaceuticals, Inc. * | 8,974 | 155,340 |
| CTI BioPharma Corp. * | 20,000 | 48,400 |
| Cue Biopharma, Inc. * | 8,970 | 108,806 |
| Security | Number
of Shares | Value ($) |
| Cullinan Oncology, Inc. *(a) | 4,528 | 146,979 |
| Curis, Inc. * | 27,613 | 298,773 |
| Cyclerion Therapeutics, Inc. * | 15,496 | 33,781 |
| Cymabay Therapeutics, Inc. * | 20,365 | 88,180 |
| Cytokinetics, Inc. * | 26,220 | 667,037 |
| CytomX Therapeutics, Inc. * | 24,803 | 232,156 |
| Decibel Therapeutics, Inc. * | 2,992 | 27,287 |
| Deciphera Pharmaceuticals, Inc. * | 14,854 | 688,780 |
| Denali Therapeutics, Inc. * | 31,296 | 1,891,530 |
| DermTech, Inc. * | 8,816 | 370,713 |
| DiaMedica Therapeutics, Inc. * | 6,742 | 63,375 |
| Dicerna Pharmaceuticals, Inc. * | 24,347 | 759,383 |
| Diffusion Pharmaceuticals, Inc. * | 44,230 | 33,195 |
| Durect Corp. * | 72,492 | 137,735 |
| Dynavax Technologies Corp. * | 38,144 | 380,677 |
| Dyne Therapeutics, Inc. * | 6,594 | 129,770 |
| Eagle Pharmaceuticals, Inc. * | 4,330 | 176,794 |
| Editas Medicine, Inc. * | 24,509 | 907,078 |
| Eiger BioPharmaceuticals, Inc. * | 10,377 | 88,101 |
| Elanco Animal Health, Inc. * | 174,564 | 5,535,424 |
| Eledon Pharmaceuticals, Inc. * | 5,554 | 55,540 |
| Eli Lilly & Co. | 292,960 | 53,544,299 |
| Emergent BioSolutions, Inc. * | 16,388 | 999,340 |
| Enanta Pharmaceuticals, Inc. * | 6,913 | 350,766 |
| Endo International plc * | 82,910 | 475,074 |
| Epizyme, Inc. * | 35,227 | 275,123 |
| Equillium, Inc. * | 6,993 | 45,315 |
| Esperion Therapeutics, Inc. *(a) | 10,670 | 287,556 |
| Eton Pharmaceuticals, Inc. *(a) | 5,755 | 49,953 |
| Evelo Biosciences, Inc. * | 10,700 | 140,705 |
| Evofem Biosciences, Inc. *(a) | 28,408 | 42,044 |
| Evolus, Inc. * | 7,220 | 65,774 |
| Exact Sciences Corp. * | 62,287 | 8,210,672 |
| Exelixis, Inc. * | 113,734 | 2,800,131 |
| Exicure, Inc. * | 35,031 | 69,011 |
| Eyenovia, Inc. * | 7,946 | 42,034 |
| EyePoint Pharmaceuticals, Inc. * | 7,477 | 79,929 |
| Fate Therapeutics, Inc. * | 30,072 | 2,627,992 |
| FibroGen, Inc. * | 29,930 | 668,038 |
| Flexion Therapeutics, Inc. * | 17,854 | 138,547 |
| Fluidigm Corp. * | 27,127 | 135,906 |
| Foghorn Therapeutics, Inc. * | 3,560 | 39,089 |
| Forma Therapeutics Holdings, Inc. * | 6,839 | 184,311 |
| Forte Biosciences, Inc. * | 3,571 | 129,234 |
| Fortress Biotech, Inc. * | 29,965 | 129,449 |
| Frequency Therapeutics, Inc. * | 11,156 | 129,521 |
| Fulcrum Therapeutics, Inc. * | 7,335 | 82,519 |
| G1 Therapeutics, Inc. * | 12,066 | 254,231 |
| Galectin Therapeutics, Inc. * | 17,413 | 76,965 |
| Galera Therapeutics, Inc. * | 4,061 | 33,097 |
| Gemini Therapeutics, Inc. * | 11,283 | 131,898 |
| Generation Bio Co. * | 7,378 | 269,002 |
| Genprex, Inc. * | 19,781 | 75,168 |
| Geron Corp. * | 124,831 | 181,005 |
| Gilead Sciences, Inc. | 461,178 | 29,270,968 |
| Global Blood Therapeutics, Inc. * | 22,908 | 934,188 |
| GlycoMimetics, Inc. * | 11,422 | 27,413 |
| Gossamer Bio, Inc. * | 19,746 | 170,605 |
| Gritstone Oncology, Inc. * | 7,741 | 70,056 |
| GT Biopharma, Inc. *(a) | 7,435 | 98,514 |
| Halozyme Therapeutics, Inc. * | 46,246 | 2,309,988 |
| Harpoon Therapeutics, Inc. * | 7,029 | 159,137 |
| Harrow Health, Inc. * | 6,848 | 52,524 |
| Harvard Bioscience, Inc. * | 14,274 | 98,919 |
| Heat Biologics, Inc. * | 9,763 | 67,072 |
| Hepion Pharmaceuticals, Inc. * | 31,535 | 54,556 |
| Heron Therapeutics, Inc. * | 28,819 | 503,756 |
| Homology Medicines, Inc. * | 11,461 | 77,591 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Hookipa Pharma, Inc. * | 7,000 | 94,780 |
| Horizon Therapeutics plc * | 82,576 | 7,813,341 |
| Humanigen, Inc. *(a) | 14,881 | 286,608 |
| iBio, Inc. *(a) | 74,003 | 101,384 |
| Ideaya Biosciences, Inc. * | 6,139 | 126,156 |
| Idera Pharmaceuticals, Inc. * | 18,451 | 21,772 |
| IGM Biosciences, Inc. * | 2,455 | 173,618 |
| Illumina, Inc. * | 53,814 | 21,140,292 |
| Immunic, Inc. * | 6,574 | 100,977 |
| ImmunityBio, Inc. *(a) | 14,977 | 265,842 |
| ImmunoGen, Inc. * | 73,335 | 591,080 |
| Immunome, Inc. *(a) | 1,530 | 40,637 |
| Immunovant, Inc. * | 17,821 | 279,433 |
| Incyte Corp. * | 69,631 | 5,945,095 |
| Infinity Pharmaceuticals, Inc. * | 29,948 | 99,727 |
| Inhibrx, Inc. * | 2,500 | 53,325 |
| Inmune Bio, Inc. * | 3,262 | 38,720 |
| Innoviva, Inc. * | 21,973 | 251,591 |
| Inotiv, Inc. * | 3,103 | 73,293 |
| Inovio Pharmaceuticals, Inc. *(a) | 75,678 | 515,367 |
| Inozyme Pharma, Inc. * | 2,857 | 52,797 |
| Insmed, Inc. * | 37,303 | 1,258,230 |
| Intellia Therapeutics, Inc. * | 22,663 | 1,739,839 |
| Intercept Pharmaceuticals, Inc. * | 8,908 | 176,200 |
| Intra-Cellular Therapies, Inc. * | 26,329 | 906,507 |
| Invitae Corp. * | 62,875 | 2,194,337 |
| Ionis Pharmaceuticals, Inc. * | 51,057 | 2,186,261 |
| Iovance Biotherapeutics, Inc. * | 53,942 | 1,695,936 |
| IQVIA Holdings, Inc. * | 70,205 | 16,476,411 |
| Ironwood Pharmaceuticals, Inc. * | 57,811 | 638,233 |
| IsoRay, Inc. * | 55,471 | 51,172 |
| iTeos Therapeutics, Inc. * | 4,423 | 103,985 |
| IVERIC bio, Inc. * | 34,399 | 240,793 |
| Jaguar Health, Inc. *(a) | 41,354 | 62,445 |
| Jazz Pharmaceuticals plc * | 20,983 | 3,449,605 |
| Johnson & Johnson | 965,967 | 157,191,810 |
| Jounce Therapeutics, Inc. * | 8,460 | 79,778 |
| Kadmon Holdings, Inc. * | 57,518 | 233,523 |
| Kala Pharmaceuticals, Inc. *(a) | 16,458 | 127,220 |
| Kaleido Biosciences, Inc. * | 8,510 | 67,144 |
| KalVista Pharmaceuticals, Inc. * | 6,274 | 156,662 |
| Karuna Therapeutics, Inc. * | 6,793 | 754,091 |
| Karyopharm Therapeutics, Inc. * | 23,124 | 215,978 |
| KemPharm, Inc. *(a) | 7,354 | 71,554 |
| Keros Therapeutics, Inc. * | 2,398 | 141,002 |
| Kezar Life Sciences, Inc. * | 11,085 | 64,626 |
| Kindred Biosciences, Inc. * | 18,803 | 94,015 |
| Kiniksa Pharmaceuticals Ltd., Class A * | 8,492 | 139,778 |
| Kinnate Biopharma, Inc. * | 4,673 | 125,330 |
| Kodiak Sciences, Inc. * | 11,509 | 1,390,748 |
| Kronos Bio, Inc. * | 5,130 | 138,869 |
| Krystal Biotech, Inc. * | 6,249 | 496,421 |
| Kura Oncology, Inc. * | 24,322 | 654,991 |
| Kymera Therapeutics, Inc. * | 3,390 | 154,415 |
| La Jolla Pharmaceutical Co. *(a) | 2,011 | 8,929 |
| Lannett Co., Inc. * | 15,487 | 67,678 |
| Lantern Pharma, Inc. * | 2,753 | 41,323 |
| Larimar Therapeutics, Inc. * | 4,106 | 54,651 |
| Leap Therapeutics, Inc. * | 18,733 | 32,033 |
| Lexicon Pharmaceuticals, Inc. * | 24,980 | 121,403 |
| Ligand Pharmaceuticals, Inc. * | 6,052 | 882,926 |
| Lineage Cell Therapeutics, Inc. * | 48,167 | 131,978 |
| Lipocine, Inc. *(a) | 36,595 | 51,599 |
| Liquidia Corp. * | 2,763 | 7,847 |
| LogicBio Therapeutics, Inc. * | 6,448 | 35,593 |
| Luminex Corp. | 15,988 | 586,600 |
| MacroGenics, Inc. * | 20,371 | 659,206 |
| Madrigal Pharmaceuticals, Inc. * | 3,520 | 479,072 |
| Security | Number
of Shares | Value ($) |
| Magenta Therapeutics, Inc. * | 11,356 | 132,297 |
| MannKind Corp. * | 94,496 | 431,847 |
| Maravai LifeSciences Holdings, Inc., Class A * | 31,583 | 1,228,895 |
| Marinus Pharmaceuticals, Inc. * | 12,748 | 187,523 |
| Marker Therapeutics, Inc. * | 8,200 | 20,992 |
| Matinas BioPharma Holdings, Inc. * | 78,387 | 68,981 |
| MediciNova, Inc. *(a) | 17,843 | 78,331 |
| Medpace Holdings, Inc. * | 9,907 | 1,681,020 |
| MEI Pharma, Inc. * | 32,178 | 117,450 |
| Merck & Co., Inc. | 929,232 | 69,227,784 |
| Mersana Therapeutics, Inc. * | 18,829 | 299,946 |
| Mettler-Toledo International, Inc. * | 8,589 | 11,280,105 |
| MiMedx Group, Inc. * | 35,795 | 347,211 |
| Mirati Therapeutics, Inc. * | 17,461 | 2,902,367 |
| Mirum Pharmaceuticals, Inc. * | 4,255 | 83,143 |
| Moderna, Inc. * | 111,614 | 19,958,815 |
| Molecular Templates, Inc. * | 15,226 | 142,515 |
| Moleculin Biotech, Inc. * | 12,167 | 42,706 |
| Morphic Holding, Inc. * | 5,534 | 306,584 |
| Mustang Bio, Inc. * | 12,479 | 40,307 |
| Myovant Sciences Ltd. * | 14,781 | 308,923 |
| Myriad Genetics, Inc. * | 26,809 | 810,168 |
| NanoString Technologies, Inc. * | 16,376 | 1,304,676 |
| Natera, Inc. * | 28,514 | 3,137,110 |
| Nektar Therapeutics * | 66,731 | 1,308,595 |
| NeoGenomics, Inc. * | 42,438 | 2,079,038 |
| Neoleukin Therapeutics, Inc. * | 13,687 | 170,951 |
| Neubase Therapeutics, Inc. * | 6,234 | 37,591 |
| Neurocrine Biosciences, Inc. * | 34,166 | 3,228,345 |
| NexImmune, Inc. * | 2,427 | 46,865 |
| NextCure, Inc. * | 4,590 | 40,254 |
| NGM Biopharmaceuticals, Inc. * | 8,651 | 237,902 |
| Nkarta, Inc. * | 5,850 | 186,323 |
| Novan, Inc. *(a) | 46,741 | 64,035 |
| Novavax, Inc. * | 25,057 | 5,936,755 |
| Nurix Therapeutics, Inc. * | 4,394 | 152,999 |
| Nuvation Bio, Inc. * | 23,071 | 258,164 |
| Ocugen, Inc. *(a) | 68,277 | 865,070 |
| Ocular Therapeutix, Inc. * | 27,841 | 511,718 |
| Odonate Therapeutics, Inc. * | 8,413 | 28,184 |
| Olema Pharmaceuticals, Inc. * | 4,124 | 115,678 |
| Omeros Corp. * | 23,071 | 407,434 |
| Oncocyte Corp. * | 30,590 | 157,233 |
| Onconova Therapeutics, Inc. * | 106,675 | 76,753 |
| Oncorus, Inc. * | 3,831 | 61,488 |
| OncoSec Medical, Inc. * | 9,259 | 44,999 |
| Oncternal Therapeutics, Inc. * | 15,853 | 99,715 |
| OPKO Health, Inc. * | 159,773 | 655,069 |
| Optinose, Inc. * | 18,689 | 66,720 |
| Oragenics, Inc. * | 42,545 | 34,223 |
| Organogenesis Holdings, Inc. * | 18,778 | 419,876 |
| Organovo Holdings, Inc. * | 1,687 | 14,407 |
| Orgenesis, Inc. * | 9,467 | 44,400 |
| ORIC Pharmaceuticals, Inc. * | 5,300 | 127,889 |
| Otonomy, Inc. * | 16,843 | 39,581 |
| Outlook Therapeutics, Inc. * | 34,436 | 81,958 |
| Ovid therapeutics, Inc. * | 19,452 | 71,389 |
| Oyster Point Pharma, Inc. * | 4,006 | 82,724 |
| Pacific Biosciences of California, Inc. * | 70,093 | 2,092,276 |
| Pacira BioSciences, Inc. * | 16,113 | 1,018,019 |
| Palatin Technologies, Inc. * | 56,900 | 35,449 |
| Paratek Pharmaceuticals, Inc. * | 17,405 | 133,148 |
| Passage Bio, Inc. * | 9,662 | 181,259 |
| PDL BioPharma, Inc. *(b) | 45,080 | 111,348 |
| PDS Biotechnology Corp. *(a) | 7,907 | 45,228 |
| PerkinElmer, Inc. | 41,689 | 5,404,145 |
| Perrigo Co., plc | 48,431 | 2,016,183 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Personalis, Inc. * | 9,671 | 238,293 |
| Pfizer, Inc. | 2,052,232 | 79,318,767 |
| Phathom Pharmaceuticals, Inc. * | 5,178 | 199,457 |
| Phibro Animal Health Corp., Class A | 8,185 | 200,696 |
| Pieris Pharmaceuticals, Inc. * | 19,437 | 41,984 |
| Pliant Therapeutics, Inc. * | 3,305 | 110,718 |
| PLx Pharma, Inc. * | 8,708 | 95,614 |
| PMV Pharmaceuticals, Inc. * | 4,528 | 152,729 |
| Poseida Therapeutics, Inc. * | 5,842 | 54,681 |
| PPD, Inc. * | 39,467 | 1,823,375 |
| PRA Health Sciences, Inc. * | 23,472 | 3,917,242 |
| Praxis Precision Medicines, Inc. * | 3,917 | 120,095 |
| Precigen, Inc. * | 33,799 | 261,435 |
| Precision BioSciences, Inc. * | 16,000 | 148,640 |
| Prelude Therapeutics, Inc. * | 3,994 | 165,511 |
| Prestige Consumer Healthcare, Inc. * | 18,007 | 784,385 |
| ProPhase Labs, Inc. * | 6,196 | 33,025 |
| Protagonist Therapeutics, Inc. * | 14,796 | 428,196 |
| Protara Therapeutics, Inc. * | 3,990 | 44,648 |
| Prothena Corp. plc * | 8,918 | 236,684 |
| Provention Bio, Inc. * | 21,027 | 151,184 |
| PTC Therapeutics, Inc. * | 25,641 | 1,056,666 |
| Pulmatrix, Inc. * | 29,584 | 28,105 |
| Puma Biotechnology, Inc. * | 12,061 | 118,921 |
| Quanterix Corp. * | 10,226 | 625,218 |
| Radius Health, Inc. * | 17,878 | 398,679 |
| RAPT Therapeutics, Inc. * | 4,080 | 89,515 |
| Reata Pharmaceuticals, Inc., Class A * | 9,741 | 987,737 |
| Recro Pharma, Inc. * | 5,876 | 15,689 |
| Regeneron Pharmaceuticals, Inc. * | 38,981 | 18,761,555 |
| REGENXBIO, Inc. * | 13,208 | 458,186 |
| Regulus Therapeutics, Inc. * | 26,759 | 37,195 |
| Relay Therapeutics, Inc. * | 7,956 | 252,285 |
| Relmada Therapeutics, Inc. * | 5,734 | 221,103 |
| Repligen Corp. * | 19,020 | 4,026,724 |
| Replimune Group, Inc. * | 10,062 | 368,169 |
| Revance Therapeutics, Inc. * | 24,469 | 712,537 |
| REVOLUTION Medicines, Inc. * | 17,602 | 584,210 |
| Rhythm Pharmaceuticals, Inc. * | 12,903 | 278,189 |
| Rigel Pharmaceuticals, Inc. * | 65,122 | 242,254 |
| Rocket Pharmaceuticals, Inc. * | 15,554 | 712,995 |
| Royalty Pharma plc, Class A | 31,369 | 1,380,236 |
| Rubius Therapeutics, Inc. * | 17,191 | 430,119 |
| Sage Therapeutics, Inc. * | 18,853 | 1,484,862 |
| Sana Biotechnology, Inc. * | 8,790 | 188,985 |
| Sangamo Therapeutics, Inc. * | 42,457 | 500,143 |
| Sarepta Therapeutics, Inc. * | 28,880 | 2,045,859 |
| Satsuma Pharmaceuticals, Inc. * | 2,719 | 14,438 |
| Scholar Rock Holding Corp. * | 7,793 | 252,104 |
| SCYNEXIS, Inc. * | 8,875 | 67,095 |
| Seagen, Inc. * | 46,831 | 6,732,425 |
| Seelos Therapeutics, Inc. * | 24,552 | 149,522 |
| Seer, Inc. * | 4,753 | 242,070 |
| Selecta Biosciences, Inc. * | 33,810 | 101,430 |
| SELLAS Life Sciences Group, Inc. * | 4,570 | 36,012 |
| Sensei Biotherapeutics, Inc. * | 2,714 | 35,933 |
| Seres Therapeutics, Inc. * | 19,616 | 408,209 |
| Sesen Bio, Inc. * | 56,356 | 162,305 |
| Shattuck Labs, Inc. * | 4,720 | 177,850 |
| SIGA Technologies, Inc. * | 17,097 | 122,585 |
| Sigilon Therapeutics, Inc. * | 2,630 | 36,557 |
| Silverback Therapeutics, Inc. *(a) | 4,467 | 143,167 |
| Solid Biosciences, Inc. * | 12,599 | 64,129 |
| Sorrento Therapeutics, Inc. *(a) | 85,700 | 705,311 |
| Sotera Health Co. * | 26,207 | 675,092 |
| Spectrum Pharmaceuticals, Inc. * | 58,461 | 181,814 |
| Spero Therapeutics, Inc. * | 9,206 | 126,675 |
| SpringWorks Therapeutics, Inc. * | 10,253 | 736,781 |
| Security | Number
of Shares | Value ($) |
| Spruce Biosciences, Inc. *(a) | 2,540 | 41,148 |
| SQZ Biotechnologies Co. * | 3,296 | 40,475 |
| Stoke Therapeutics, Inc. * | 7,275 | 234,983 |
| Strongbridge Biopharma plc * | 12,025 | 30,544 |
| Supernus Pharmaceuticals, Inc. * | 20,133 | 613,050 |
| Surface Oncology, Inc. * | 5,650 | 41,302 |
| Sutro Biopharma, Inc. * | 12,078 | 247,720 |
| Syndax Pharmaceuticals, Inc. * | 13,049 | 208,001 |
| Syneos Health, Inc. * | 31,153 | 2,643,332 |
| Synthetic Biologics, Inc. * | 52,313 | 29,975 |
| Syros Pharmaceuticals, Inc. * | 20,746 | 125,306 |
| T2 Biosystems, Inc. * | 47,515 | 65,571 |
| Tarsus Pharmaceuticals, Inc. * | 2,363 | 72,591 |
| Taysha Gene Therapies, Inc. * | 2,985 | 77,043 |
| TCR2 Therapeutics, Inc. * | 9,468 | 215,018 |
| Terns Pharmaceuticals, Inc. * | 2,797 | 61,534 |
| TFF Pharmaceuticals, Inc. * | 5,752 | 65,228 |
| TG Therapeutics, Inc. * | 41,805 | 1,869,102 |
| TherapeuticsMD, Inc. * | 137,891 | 166,848 |
| Theravance Biopharma, Inc. * | 19,208 | 379,166 |
| Thermo Fisher Scientific, Inc. | 144,935 | 68,152,785 |
| Tonix Pharmaceuticals Holding Corp. * | 126,272 | 143,950 |
| Tracon Pharmaceuticals, Inc. * | 6,423 | 48,108 |
| Translate Bio, Inc. * | 24,588 | 570,933 |
| Travere Therapeutics, Inc. * | 20,515 | 507,131 |
| Trevena, Inc. * | 52,797 | 90,811 |
| Tricida, Inc. * | 9,420 | 43,803 |
| Turning Point Therapeutics, Inc. * | 15,531 | 1,183,928 |
| Twist Bioscience Corp. * | 15,265 | 2,048,410 |
| Tyme Technologies, Inc. * | 42,998 | 66,647 |
| Ultragenyx Pharmaceutical, Inc. * | 22,809 | 2,546,397 |
| uniQure N.V. * | 14,271 | 460,525 |
| United Therapeutics Corp. * | 16,751 | 3,376,332 |
| UNITY Biotechnology, Inc. * | 12,594 | 62,592 |
| Vanda Pharmaceuticals, Inc. * | 20,728 | 344,085 |
| Vaxart, Inc. *(a) | 39,990 | 431,092 |
| Vaxcyte, Inc. * | 7,218 | 134,038 |
| VBI Vaccines, Inc. * | 82,952 | 261,299 |
| Veracyte, Inc. * | 24,317 | 1,209,771 |
| Verastem, Inc. * | 66,524 | 204,229 |
| Vericel Corp. * | 17,009 | 1,061,702 |
| Verrica Pharmaceuticals, Inc. * | 4,072 | 53,750 |
| Vertex Pharmaceuticals, Inc. * | 96,075 | 20,963,565 |
| Viatris, Inc. * | 443,675 | 5,900,877 |
| Viking Therapeutics, Inc. * | 26,681 | 170,492 |
| Vincerx Pharma, Inc. * | 3,540 | 56,640 |
| Vir Biotechnology, Inc. * | 23,840 | 1,138,122 |
| VistaGen Therapeutics, Inc. * | 49,777 | 125,936 |
| Vor BioPharma, Inc. * | 3,785 | 106,661 |
| Voyager Therapeutics, Inc. * | 7,809 | 37,639 |
| VYNE Therapeutics, Inc. * | 20,154 | 99,561 |
| Waters Corp. * | 22,784 | 6,832,238 |
| WaVe Life Sciences Ltd. * | 13,973 | 85,934 |
| X4 Pharmaceuticals, Inc. * | 6,559 | 54,964 |
| XBiotech, Inc. *(a) | 5,316 | 90,797 |
| Xencor, Inc. * | 21,116 | 898,697 |
| Xeris Pharmaceuticals, Inc. *(a) | 22,478 | 86,091 |
| XOMA Corp. *(a) | 4,338 | 165,104 |
| Y-mAbs Therapeutics, Inc. * | 10,029 | 301,572 |
| Zentalis Pharmaceuticals, Inc. * | 5,499 | 326,201 |
| ZIOPHARM Oncology, Inc. * | 82,975 | 287,093 |
| Zoetis, Inc. | 174,761 | 30,238,896 |
| Zogenix, Inc. * | 20,875 | 394,329 |
| Zomedica Corp. * | 343,967 | 364,605 |
| Zynerba Pharmaceuticals, Inc. * | 9,398 | 41,445 |
| | | 1,105,760,925 |
| |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Real Estate 3.3% |
| Acadia Realty Trust | 32,413 | 677,108 |
| Agree Realty Corp. | 23,231 | 1,634,533 |
| Alexander & Baldwin, Inc. | 25,298 | 463,712 |
| Alexander's, Inc. | 799 | 221,515 |
| Alexandria Real Estate Equities, Inc. | 46,958 | 8,504,094 |
| Alpine Income Property Trust, Inc. | 1,684 | 30,666 |
| Altisource Portfolio Solutions S.A. * | 3,227 | 20,330 |
| American Assets Trust, Inc. | 18,633 | 653,087 |
| American Campus Communities, Inc. | 51,481 | 2,327,456 |
| American Finance Trust, Inc. | 38,891 | 389,299 |
| American Homes 4 Rent, Class A | 99,148 | 3,672,442 |
| American Tower Corp. | 163,446 | 41,641,137 |
| Americold Realty Trust | 93,253 | 3,766,489 |
| Apartment Income REIT Corp. | 54,362 | 2,454,444 |
| Apartment Investment & Management Co., Class A | 52,513 | 364,440 |
| Apple Hospitality REIT, Inc. | 76,664 | 1,215,891 |
| Armada Hoffler Properties, Inc. | 23,407 | 319,037 |
| Ashford Hospitality Trust, Inc. * | 20,027 | 54,874 |
| AvalonBay Communities, Inc. | 51,229 | 9,835,968 |
| Bluerock Residential Growth REIT, Inc. | 7,000 | 66,360 |
| Boston Properties, Inc. | 52,192 | 5,707,195 |
| Braemar Hotels & Resorts, Inc. * | 9,906 | 64,884 |
| Brandywine Realty Trust | 62,660 | 847,790 |
| Brixmor Property Group, Inc. | 107,126 | 2,393,195 |
| Broadstone Net Lease, Inc. | 12,935 | 261,028 |
| BRT Apartments Corp. | 5,530 | 104,130 |
| Camden Property Trust | 36,109 | 4,350,412 |
| CareTrust REIT, Inc. | 35,461 | 857,447 |
| CatchMark Timber Trust, Inc., Class A | 18,210 | 211,782 |
| CBRE Group, Inc., Class A * | 122,865 | 10,468,098 |
| Cedar Realty Trust, Inc. | 4,511 | 71,499 |
| Centerspace | 4,576 | 322,105 |
| Chatham Lodging Trust * | 18,505 | 256,664 |
| CIM Commercial Trust Corp. | 5,148 | 57,658 |
| City Office REIT, Inc. | 16,407 | 179,329 |
| Clipper Realty, Inc. | 4,400 | 36,212 |
| Colony Capital, Inc. * | 179,050 | 1,253,350 |
| Columbia Property Trust, Inc. | 41,944 | 755,411 |
| Community Healthcare Trust, Inc. | 8,042 | 409,499 |
| CorEnergy Infrastructure Trust, Inc. | 5,381 | 32,609 |
| CorePoint Lodging, Inc. * | 15,847 | 158,312 |
| CoreSite Realty Corp. | 15,487 | 1,881,516 |
| Corporate Office Properties Trust | 40,862 | 1,145,770 |
| Cousins Properties, Inc. | 53,851 | 1,974,716 |
| Crown Castle International Corp. | 158,810 | 30,024,619 |
| CTO Realty Growth, Inc. | 2,520 | 133,560 |
| CubeSmart | 72,275 | 3,060,124 |
| Cushman & Wakefield plc * | 39,566 | 672,622 |
| CyrusOne, Inc. | 43,748 | 3,186,167 |
| DiamondRock Hospitality Co. * | 77,205 | 804,476 |
| Digital Realty Trust, Inc. | 103,221 | 15,928,033 |
| Diversified Healthcare Trust | 84,248 | 371,955 |
| Douglas Emmett, Inc. | 59,910 | 2,009,381 |
| Duke Realty Corp. | 136,488 | 6,349,422 |
| Easterly Government Properties, Inc. | 31,042 | 665,230 |
| EastGroup Properties, Inc. | 15,183 | 2,408,935 |
| Empire State Realty Trust, Inc., Class A | 51,702 | 588,886 |
| EPR Properties * | 27,148 | 1,295,231 |
| Equinix, Inc. | 32,941 | 23,742,555 |
| Equity Commonwealth | 44,688 | 1,287,014 |
| Equity LifeStyle Properties, Inc. | 62,599 | 4,344,371 |
| Equity Residential | 126,339 | 9,378,144 |
| Essential Properties Realty Trust, Inc. | 41,806 | 1,094,899 |
| Essex Property Trust, Inc. | 23,891 | 6,940,813 |
| eXp World Holdings, Inc. * | 20,052 | 688,987 |
| Security | Number
of Shares | Value ($) |
| Extra Space Storage, Inc. | 48,335 | 7,186,931 |
| Farmland Partners, Inc. | 11,255 | 150,029 |
| Fathom Holdings, Inc. * | 1,327 | 45,516 |
| Federal Realty Investment Trust | 26,573 | 2,998,497 |
| First Industrial Realty Trust, Inc. | 46,497 | 2,314,156 |
| Forestar Group, Inc. * | 6,845 | 173,452 |
| Four Corners Property Trust, Inc. | 26,985 | 779,057 |
| Franklin Street Properties Corp. | 36,290 | 191,611 |
| FRP Holdings, Inc. * | 2,400 | 121,824 |
| Gaming & Leisure Properties, Inc. | 80,812 | 3,756,950 |
| Getty Realty Corp. | 13,637 | 430,656 |
| Gladstone Commercial Corp. | 14,107 | 296,811 |
| Gladstone Land Corp. | 9,989 | 209,669 |
| Global Medical REIT, Inc. | 15,239 | 218,832 |
| Global Net Lease, Inc. | 32,094 | 616,205 |
| Healthcare Realty Trust, Inc. | 55,209 | 1,775,521 |
| Healthcare Trust of America, Inc., Class A | 78,748 | 2,312,829 |
| Healthpeak Properties, Inc. | 197,759 | 6,791,044 |
| Hersha Hospitality Trust * | 12,806 | 148,037 |
| Highwoods Properties, Inc. | 37,723 | 1,689,613 |
| Host Hotels & Resorts, Inc. * | 261,131 | 4,742,139 |
| Hudson Pacific Properties, Inc. | 54,632 | 1,535,706 |
| Independence Realty Trust, Inc. | 37,895 | 638,152 |
| Indus Realty Trust, Inc. | 2,101 | 131,313 |
| Industrial Logistics Properties Trust | 24,598 | 610,030 |
| Innovative Industrial Properties, Inc. | 8,673 | 1,588,286 |
| Invitation Homes, Inc. | 207,894 | 7,288,764 |
| Iron Mountain, Inc. | 107,831 | 4,326,180 |
| iStar, Inc. | 26,151 | 484,055 |
| JBG SMITH Properties | 40,598 | 1,323,901 |
| Jones Lang LaSalle, Inc. * | 18,987 | 3,567,847 |
| Kennedy-Wilson Holdings, Inc. | 44,077 | 905,782 |
| Kilroy Realty Corp. | 38,430 | 2,633,992 |
| Kimco Realty Corp. | 160,566 | 3,371,886 |
| Kite Realty Group Trust | 30,129 | 626,984 |
| Lamar Advertising Co., Class A | 32,100 | 3,179,184 |
| Lexington Realty Trust | 102,193 | 1,250,842 |
| Life Storage, Inc. | 27,337 | 2,625,992 |
| LTC Properties, Inc. | 13,932 | 592,528 |
| Mack-Cali Realty Corp. | 32,057 | 524,453 |
| Marcus & Millichap, Inc. * | 8,253 | 291,496 |
| Medical Properties Trust, Inc. | 212,627 | 4,688,425 |
| Mid-America Apartment Communities, Inc. | 41,887 | 6,590,082 |
| Monmouth Real Estate Investment Corp. | 36,583 | 676,054 |
| National Health Investors, Inc. | 16,394 | 1,203,484 |
| National Retail Properties, Inc. | 63,375 | 2,941,868 |
| National Storage Affiliates Trust | 23,635 | 1,073,974 |
| NETSTREIT Corp. | 8,606 | 179,263 |
| New Century Financial Corp. *(b) | 3,600 | — |
| New Senior Investment Group, Inc. | 42,340 | 280,291 |
| Newmark Group, Inc., Class A | 59,218 | 636,594 |
| NexPoint Residential Trust, Inc. | 8,413 | 421,996 |
| Office Properties Income Trust | 17,468 | 484,737 |
| Omega Healthcare Investors, Inc. | 86,000 | 3,268,000 |
| One Liberty Properties, Inc. | 6,163 | 153,274 |
| Opendoor Technologies, Inc. * | 123,998 | 2,513,439 |
| Outfront Media, Inc. * | 55,911 | 1,362,551 |
| Paramount Group, Inc. | 59,046 | 626,478 |
| Park Hotels & Resorts, Inc. * | 86,168 | 1,922,408 |
| Pebblebrook Hotel Trust | 48,478 | 1,157,655 |
| Physicians Realty Trust | 76,610 | 1,434,905 |
| Piedmont Office Realty Trust, Inc., Class A | 45,430 | 845,907 |
| Plymouth Industrial REIT, Inc. | 10,700 | 199,448 |
| Postal Realty Trust, Inc., Class A | 4,154 | 80,961 |
| PotlatchDeltic Corp. | 24,056 | 1,427,964 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Power REIT * | 1,185 | 53,396 |
| Preferred Apartment Communities, Inc., Class A | 20,935 | 213,537 |
| Prologis, Inc. | 271,996 | 31,695,694 |
| PS Business Parks, Inc. | 7,180 | 1,165,817 |
| Public Storage | 55,870 | 15,708,409 |
| QTS Realty Trust, Inc., Class A | 23,509 | 1,563,113 |
| Rafael Holdings, Inc., Class B * | 4,182 | 172,884 |
| Rayonier, Inc. | 50,136 | 1,818,934 |
| RE/MAX Holdings, Inc., Class A | 7,179 | 263,685 |
| Realogy Holdings Corp. * | 41,209 | 712,092 |
| Realty Income Corp. | 137,526 | 9,509,923 |
| Redfin Corp. * | 37,425 | 2,648,942 |
| Regency Centers Corp. | 58,731 | 3,738,815 |
| Retail Opportunity Investments Corp. | 43,369 | 763,294 |
| Retail Properties of America, Inc., Class A | 78,447 | 920,183 |
| Retail Value, Inc. | 5,243 | 97,677 |
| Rexford Industrial Realty, Inc. | 48,866 | 2,714,506 |
| RLJ Lodging Trust | 59,027 | 952,696 |
| RPT Realty | 29,352 | 373,064 |
| Ryman Hospitality Properties, Inc. * | 21,603 | 1,699,076 |
| Sabra Health Care REIT, Inc. | 76,526 | 1,390,477 |
| Safehold, Inc. | 5,455 | 385,723 |
| Saul Centers, Inc. | 4,700 | 202,946 |
| SBA Communications Corp. | 40,149 | 12,033,458 |
| Seritage Growth Properties, Class A * | 12,504 | 215,069 |
| Service Properties Trust | 68,194 | 839,809 |
| Simon Property Group, Inc. | 120,840 | 14,711,062 |
| SITE Centers Corp. | 60,474 | 891,992 |
| SL Green Realty Corp. | 25,217 | 1,866,310 |
| Spirit Realty Capital, Inc. | 41,792 | 1,986,792 |
| STAG Industrial, Inc. | 56,986 | 2,080,559 |
| STORE Capital Corp. | 86,615 | 3,099,951 |
| Stratus Properties, Inc. * | 3,398 | 119,440 |
| Summit Hotel Properties, Inc. * | 38,205 | 388,545 |
| Sun Communities, Inc. | 40,845 | 6,814,171 |
| Sunstone Hotel Investors, Inc. * | 78,056 | 1,027,217 |
| Tanger Factory Outlet Centers, Inc. | 34,601 | 603,787 |
| Tejon Ranch Co. * | 8,332 | 131,812 |
| Terreno Realty Corp. | 25,075 | 1,617,839 |
| The GEO Group, Inc. (a) | 41,833 | 230,500 |
| The Howard Hughes Corp. * | 16,573 | 1,788,890 |
| The Macerich Co. | 43,403 | 598,527 |
| The RMR Group, Inc., Class A | 6,145 | 243,219 |
| The St. Joe Co. | 11,338 | 519,167 |
| Trinity Place Holdings, Inc. * | 12,207 | 23,682 |
| UDR, Inc. | 109,948 | 5,107,085 |
| UMH Properties, Inc. | 15,491 | 333,521 |
| Uniti Group, Inc. | 86,025 | 980,685 |
| Universal Health Realty Income Trust | 4,654 | 311,585 |
| Urban Edge Properties | 39,017 | 735,470 |
| Urstadt Biddle Properties, Inc., Class A | 10,512 | 191,003 |
| Ventas, Inc. | 137,237 | 7,611,164 |
| VEREIT, Inc. | 84,729 | 4,053,435 |
| VICI Properties, Inc. | 196,023 | 6,213,929 |
| Vornado Realty Trust | 57,022 | 2,608,757 |
| Washington Real Estate Investment Trust | 31,302 | 726,832 |
| Weingarten Realty Investors | 42,722 | 1,381,629 |
| Welltower, Inc. | 154,790 | 11,613,894 |
| Weyerhaeuser Co. | 276,189 | 10,707,848 |
| Whitestone REIT | 16,023 | 156,545 |
| WP Carey, Inc. | 63,663 | 4,767,722 |
| Xenia Hotels & Resorts, Inc. * | 41,652 | 809,298 |
| | | 524,612,510 |
| |
| Security | Number
of Shares | Value ($) |
| Retailing 6.7% |
| 1-800-Flowers.com, Inc., Class A * | 9,456 | 302,356 |
| Abercrombie & Fitch Co., Class A * | 22,889 | 858,109 |
| Academy Sports & Outdoors, Inc. * | 10,097 | 311,089 |
| Advance Auto Parts, Inc. | 24,189 | 4,841,670 |
| Amazon.com, Inc. * | 157,350 | 545,598,537 |
| America's Car-Mart, Inc. * | 2,260 | 340,876 |
| American Eagle Outfitters, Inc. | 54,508 | 1,884,342 |
| Arko Corp. * | 25,063 | 263,663 |
| Asbury Automotive Group, Inc. * | 7,659 | 1,521,154 |
| At Home Group, Inc. * | 19,320 | 610,126 |
| AutoNation, Inc. * | 19,922 | 2,041,607 |
| AutoZone, Inc. * | 8,226 | 12,043,851 |
| Barnes & Noble Education, Inc. * | 11,885 | 94,010 |
| Bed Bath & Beyond, Inc. * | 43,253 | 1,095,166 |
| Best Buy Co., Inc. | 85,406 | 9,930,156 |
| Big 5 Sporting Goods Corp. | 7,723 | 141,485 |
| Big Lots, Inc. | 12,338 | 850,582 |
| Blink Charging Co. *(a) | 11,185 | 411,608 |
| Blue Apron Holdings, Inc., Class A * | 3,119 | 18,496 |
| Boot Barn Holdings, Inc. * | 10,848 | 765,218 |
| Build-A-Bear Workshop, Inc. * | 6,224 | 50,041 |
| Burlington Stores, Inc. * | 24,391 | 7,959,515 |
| Caleres, Inc. | 13,090 | 305,128 |
| Camping World Holdings, Inc., Class A | 14,077 | 612,913 |
| CarLotz, Inc. * | 25,975 | 196,891 |
| CarMax, Inc. * | 59,713 | 7,956,160 |
| CarParts.com, Inc. * | 11,951 | 206,513 |
| Carvana Co. * | 23,116 | 6,594,070 |
| Chewy, Inc., Class A * | 27,836 | 2,219,086 |
| Chico's FAS, Inc. * | 43,544 | 130,632 |
| Citi Trends, Inc. * | 3,906 | 408,568 |
| Conn's, Inc. * | 7,143 | 144,574 |
| ContextLogic, Inc., Class A *(a) | 17,625 | 244,459 |
| Core-Mark Holding Co., Inc. | 16,495 | 702,027 |
| Designer Brands, Inc., Class A * | 21,162 | 374,567 |
| Dick's Sporting Goods, Inc. | 23,922 | 1,975,479 |
| Dillard’s, Inc., Class A | 2,519 | 249,154 |
| Dollar General Corp. | 90,084 | 19,345,539 |
| Dollar Tree, Inc. * | 86,212 | 9,905,759 |
| DoorDash, Inc., Class A * | 12,484 | 1,787,334 |
| Duluth Holdings, Inc., Class B * | 5,854 | 90,561 |
| eBay, Inc. | 240,253 | 13,403,715 |
| Educational Development Corp. | 2,816 | 50,068 |
| Etsy, Inc. * | 46,468 | 9,237,374 |
| Express, Inc. * | 20,816 | 63,489 |
| Five Below, Inc. * | 20,812 | 4,188,831 |
| Floor & Decor Holdings, Inc., Class A * | 38,004 | 4,215,404 |
| Foot Locker, Inc. | 37,966 | 2,239,235 |
| Franchise Group, Inc. | 9,349 | 360,217 |
| Funko, Inc., Class A * | 7,067 | 152,223 |
| GameStop Corp., Class A * | 20,270 | 3,518,669 |
| Genesco, Inc. * | 4,813 | 240,650 |
| Genuine Parts Co. | 53,633 | 6,702,516 |
| Greenlane Holdings, Inc., Class A * | 7,546 | 33,202 |
| Group 1 Automotive, Inc. | 6,063 | 995,302 |
| Groupon, Inc. * | 8,149 | 412,584 |
| GrowGeneration Corp. * | 17,268 | 752,885 |
| GrubHub, Inc. * | 34,108 | 2,320,708 |
| Guess?, Inc. | 13,457 | 363,877 |
| Haverty Furniture Cos., Inc. | 5,712 | 265,437 |
| Hibbett Sports, Inc. * | 6,383 | 507,129 |
| iMedia Brands, Inc. * | 5,763 | 42,589 |
| Kirkland's, Inc. * | 5,229 | 154,778 |
| Kohl's Corp. | 58,543 | 3,434,132 |
| L Brands, Inc. * | 85,729 | 5,649,541 |
| Lands' End, Inc. * | 6,359 | 146,511 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Lazydays Holdings, Inc. * | 2,659 | 65,810 |
| Leaf Group Ltd. * | 13,902 | 123,172 |
| Leslie's, Inc. * | 24,715 | 702,400 |
| Liquidity Services, Inc. * | 10,485 | 187,996 |
| Lithia Motors, Inc., Class A | 9,877 | 3,796,521 |
| LKQ Corp. * | 101,189 | 4,726,538 |
| LMP Automotive Holdings, Inc. *(a) | 1,114 | 16,320 |
| Lowe's Cos., Inc. | 268,550 | 52,702,937 |
| Lumber Liquidators Holdings, Inc. * | 10,644 | 255,137 |
| Macy's, Inc. * | 113,411 | 1,880,354 |
| MarineMax, Inc. * | 8,171 | 464,113 |
| Monro, Inc. | 11,982 | 845,809 |
| Murphy USA, Inc. | 9,213 | 1,284,292 |
| National Vision Holdings, Inc. * | 29,564 | 1,490,321 |
| Nordstrom, Inc. * | 39,662 | 1,454,802 |
| O'Reilly Automotive, Inc. * | 25,722 | 14,221,179 |
| Ollie's Bargain Outlet Holdings, Inc. * | 22,377 | 2,064,726 |
| OneWater Marine, Inc., Class A * | 4,097 | 209,889 |
| Overstock.com, Inc. * | 15,798 | 1,287,537 |
| Party City Holdco, Inc. * | 42,981 | 300,867 |
| Penske Automotive Group, Inc. | 11,602 | 1,017,379 |
| Petco Health & Wellness Co., Inc. *(a) | 18,277 | 431,703 |
| PetMed Express, Inc. | 8,051 | 236,901 |
| Pool Corp. | 14,922 | 6,304,843 |
| Porch Group, Inc. * | 23,909 | 318,229 |
| Poshmark, Inc., Class A *(a) | 2,418 | 101,145 |
| PubMatic, Inc., Class A *(a) | 2,515 | 129,447 |
| Quotient Technology, Inc. * | 28,909 | 472,373 |
| Qurate Retail, Inc. Class A | 137,251 | 1,633,287 |
| Remark Holdings, Inc. * | 29,048 | 67,682 |
| Rent-A-Center, Inc. | 17,748 | 1,021,397 |
| Revolve Group, Inc. * | 12,066 | 585,080 |
| RH * | 6,056 | 4,166,649 |
| Ross Stores, Inc. | 130,818 | 17,129,309 |
| Sally Beauty Holdings, Inc. * | 40,498 | 812,795 |
| Shift Technologies, Inc. * | 22,378 | 188,647 |
| Shoe Carnival, Inc. | 3,199 | 191,780 |
| Shutterstock, Inc. | 7,864 | 685,584 |
| Signet Jewelers Ltd. * | 19,034 | 1,137,282 |
| Sleep Number Corp. * | 9,204 | 1,029,836 |
| Sonic Automotive, Inc., Class A | 8,473 | 418,058 |
| Sportsman's Warehouse Holdings, Inc. * | 14,662 | 257,465 |
| Stamps.com, Inc. * | 6,684 | 1,372,693 |
| Stitch Fix, Inc., Class A * | 21,490 | 930,947 |
| Target Corp. | 184,457 | 38,230,558 |
| The Aaron's Co., Inc. | 11,989 | 370,340 |
| The Buckle, Inc. | 10,296 | 431,814 |
| The Cato Corp., Class A * | 7,100 | 95,140 |
| The Children's Place, Inc. * | 5,146 | 403,189 |
| The Container Store Group, Inc. * | 6,755 | 95,178 |
| The Gap, Inc. | 74,814 | 2,476,343 |
| The Home Depot, Inc. | 395,837 | 128,120,562 |
| The ODP Corp. * | 19,567 | 791,094 |
| The RealReall, Inc. * | 21,078 | 522,102 |
| The TJX Cos., Inc. | 441,267 | 31,329,957 |
| Tilly's, Inc., Class A * | 8,425 | 101,606 |
| Tractor Supply Co. | 43,062 | 8,121,493 |
| TravelCenters of America, Inc. * | 5,846 | 160,707 |
| Ulta Beauty, Inc. * | 20,667 | 6,806,676 |
| Urban Outfitters, Inc. * | 24,958 | 895,992 |
| Vroom, Inc. * | 12,936 | 598,549 |
| Waitr Holdings, Inc. * | 40,686 | 100,088 |
| Wayfair, Inc., Class A * | 27,113 | 8,013,789 |
| Weyco Group, Inc. | 3,066 | 60,308 |
| Williams-Sonoma, Inc. | 28,303 | 4,832,737 |
| Security | Number
of Shares | Value ($) |
| Winmark Corp. | 1,106 | 212,982 |
| Zumiez, Inc. * | 7,807 | 335,467 |
| | | 1,066,662,039 |
| |
| Semiconductors & Semiconductor Equipment 4.8% |
| ACM Research, Inc., Class A * | 3,697 | 291,878 |
| Advanced Energy Industries, Inc. | 14,037 | 1,548,421 |
| Advanced Micro Devices, Inc. * | 445,394 | 36,353,058 |
| Allegro MicroSystems, Inc. * | 14,968 | 369,410 |
| Alpha & Omega Semiconductor Ltd. * | 7,776 | 241,834 |
| Ambarella, Inc. * | 12,761 | 1,244,070 |
| Amkor Technology, Inc. | 38,838 | 785,304 |
| Amtech Systems, Inc. * | 5,642 | 59,467 |
| Analog Devices, Inc. | 135,640 | 20,774,622 |
| Applied Materials, Inc. | 338,402 | 44,909,329 |
| Atomera, Inc. * | 6,386 | 106,263 |
| Axcelis Technologies, Inc. * | 11,957 | 496,574 |
| AXT, Inc. * | 15,887 | 156,646 |
| Broadcom, Inc. | 149,844 | 68,358,833 |
| Brooks Automation, Inc. | 28,401 | 2,877,873 |
| CEVA, Inc. * | 8,099 | 449,009 |
| Cirrus Logic, Inc. * | 21,831 | 1,624,445 |
| CMC Materials, Inc. | 10,633 | 1,950,411 |
| Cohu, Inc. * | 18,563 | 742,706 |
| Cree, Inc. * | 42,650 | 4,240,263 |
| CyberOptics Corp. * | 2,095 | 69,114 |
| Diodes, Inc. * | 16,765 | 1,287,720 |
| DSP Group, Inc. * | 10,322 | 143,373 |
| eMagin Corp. * | 21,824 | 57,397 |
| Enphase Energy, Inc. * | 47,350 | 6,593,488 |
| Entegris, Inc. | 49,923 | 5,620,331 |
| First Solar, Inc. * | 30,684 | 2,348,247 |
| FormFactor, Inc. * | 28,473 | 1,114,718 |
| Ichor Holdings Ltd. * | 10,335 | 576,383 |
| Impinj, Inc. * | 7,682 | 364,588 |
| Intel Corp. | 1,494,051 | 85,952,754 |
| KLA Corp. | 56,641 | 17,861,739 |
| Kopin Corp. * | 25,275 | 207,761 |
| Kulicke & Soffa Industries, Inc. | 22,537 | 1,281,228 |
| Lam Research Corp. | 52,691 | 32,692,131 |
| Lattice Semiconductor Corp. * | 49,618 | 2,496,282 |
| MACOM Technology Solutions Holdings, Inc. * | 16,799 | 950,991 |
| Marvell Technology, Inc. | 293,778 | 13,281,703 |
| Maxim Integrated Products, Inc. | 98,557 | 9,264,358 |
| MaxLinear, Inc. * | 25,159 | 905,472 |
| Microchip Technology, Inc. | 99,020 | 14,881,719 |
| Micron Technology, Inc. * | 411,709 | 35,435,794 |
| MKS Instruments, Inc. | 20,541 | 3,679,099 |
| Monolithic Power Systems, Inc. | 15,914 | 5,751,001 |
| NeoPhotonics Corp. * | 17,621 | 164,933 |
| NVE Corp. | 1,664 | 127,346 |
| NVIDIA Corp. | 227,935 | 136,847,615 |
| NXP Semiconductors N.V. | 101,481 | 19,536,107 |
| ON Semiconductor Corp. * | 151,007 | 5,889,273 |
| Onto Innovation, Inc. * | 18,071 | 1,238,225 |
| PDF Solutions, Inc. * | 16,239 | 287,917 |
| Photronics, Inc. * | 24,990 | 317,373 |
| Pixelworks, Inc. * | 21,959 | 64,779 |
| Power Integrations, Inc. | 21,822 | 1,807,080 |
| Qorvo, Inc. * | 41,927 | 7,889,404 |
| QUALCOMM, Inc. | 417,267 | 57,916,660 |
| Rambus, Inc. * | 39,813 | 755,651 |
| Semtech Corp. * | 23,308 | 1,578,884 |
| Silicon Laboratories, Inc. * | 16,041 | 2,260,979 |
| SiTime Corp. * | 4,417 | 408,793 |
| Skyworks Solutions, Inc. | 60,957 | 11,053,333 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| SMART Global Holdings, Inc. * | 5,168 | 238,503 |
| SolarEdge Technologies, Inc. * | 18,940 | 4,991,448 |
| SunPower Corp. * | 29,164 | 749,223 |
| Synaptics, Inc. * | 12,768 | 1,785,860 |
| Teradyne, Inc. | 61,253 | 7,661,525 |
| Texas Instruments, Inc. | 338,345 | 61,074,656 |
| Ultra Clean Holdings, Inc. * | 15,963 | 815,230 |
| Universal Display Corp. | 15,890 | 3,554,434 |
| Veeco Instruments, Inc. * | 18,947 | 435,970 |
| Xilinx, Inc. | 90,176 | 11,538,921 |
| | | 771,387,929 |
| |
| Software & Services 14.0% |
| 8x8, Inc. * | 39,587 | 1,302,016 |
| A10 Networks, Inc. * | 23,800 | 206,584 |
| Accenture plc, Class A | 232,720 | 67,481,818 |
| ACI Worldwide, Inc. * | 42,750 | 1,615,095 |
| Adobe, Inc. * | 176,065 | 89,500,882 |
| Affirm Holdings, Inc. * | 11,789 | 831,124 |
| Agilysys, Inc. * | 7,381 | 372,076 |
| Akamai Technologies, Inc. * | 60,031 | 6,525,370 |
| Alarm.com Holdings, Inc. * | 16,414 | 1,473,321 |
| Alliance Data Systems Corp. | 18,038 | 2,125,778 |
| Altair Engineering, Inc., Class A * | 16,164 | 1,050,660 |
| Alteryx, Inc., Class A * | 21,381 | 1,747,897 |
| American Software, Inc., Class A | 11,319 | 234,190 |
| Anaplan, Inc. * | 51,619 | 3,079,073 |
| ANSYS, Inc. * | 31,903 | 11,665,651 |
| Appfolio, Inc., Class A * | 6,341 | 917,099 |
| Appian Corp. * | 14,142 | 1,713,728 |
| Asana, Inc. * | 6,326 | 210,782 |
| Aspen Technology, Inc. * | 25,148 | 3,290,364 |
| Asure Software, Inc. * | 7,413 | 59,378 |
| AudioEye, Inc. * | 2,093 | 52,953 |
| Autodesk, Inc. * | 80,911 | 23,618,730 |
| Automatic Data Processing, Inc. | 157,317 | 29,416,706 |
| Avalara, Inc. * | 31,914 | 4,522,533 |
| Avaya Holdings Corp. * | 27,036 | 777,826 |
| Benefitfocus, Inc. * | 12,031 | 162,659 |
| BigCommerce Holdings, Inc. * | 4,151 | 248,811 |
| Bill.com Holdings, Inc. * | 22,959 | 3,550,150 |
| Black Knight, Inc. * | 58,131 | 4,209,847 |
| Blackbaud, Inc. * | 17,605 | 1,252,068 |
| Blackline, Inc. * | 18,564 | 2,154,538 |
| BM Technologies, Inc. *(b) | 1,617 | 13,104 |
| Bottomline Technologies (DE), Inc. * | 14,489 | 703,586 |
| Box, Inc., Class A * | 51,681 | 1,100,805 |
| Brightcove, Inc. * | 15,409 | 223,739 |
| Broadridge Financial Solutions, Inc. | 42,610 | 6,759,224 |
| BTRS Holdings, Inc. * | 22,614 | 357,301 |
| C3.ai, Inc., Class A *(a) | 6,042 | 400,343 |
| Cadence Design Systems, Inc. * | 103,587 | 13,649,659 |
| Cantaloupe, Inc. * | 20,718 | 214,431 |
| Cardtronics plc, Class A * | 12,687 | 492,763 |
| Cass Information Systems, Inc. | 4,677 | 214,628 |
| CDK Global, Inc. | 45,310 | 2,428,163 |
| Cerence, Inc. * | 13,514 | 1,302,885 |
| Ceridian HCM Holding, Inc. * | 48,326 | 4,565,840 |
| ChannelAdvisor Corp. * | 10,971 | 232,037 |
| Citrix Systems, Inc. | 45,086 | 5,583,901 |
| Cleanspark, Inc. *(a) | 12,567 | 270,819 |
| Cloudera, Inc. * | 79,899 | 1,013,918 |
| Cloudflare, Inc., Class A * | 69,721 | 5,908,158 |
| Cognizant Technology Solutions Corp., Class A | 195,348 | 15,705,979 |
| CommVault Systems, Inc. * | 17,338 | 1,205,164 |
| Computer Task Group, Inc. * | 6,059 | 59,984 |
| Security | Number
of Shares | Value ($) |
| Concentrix Corp. * | 15,213 | 2,363,796 |
| Conduent, Inc. * | 60,525 | 411,570 |
| Cornerstone OnDemand, Inc. * | 22,433 | 992,997 |
| Coupa Software, Inc. * | 26,734 | 7,192,515 |
| Crowdstrike Holdings, Inc., Class A * | 69,850 | 14,564,423 |
| CSG Systems International, Inc. | 11,766 | 541,118 |
| Datadog, Inc., Class A * | 76,422 | 6,554,715 |
| Datto Holding Corp. * | 8,155 | 208,360 |
| Digimarc Corp. * | 5,752 | 194,015 |
| Digital Turbine, Inc. * | 27,270 | 2,056,976 |
| DocuSign, Inc. * | 69,168 | 15,420,314 |
| Dolby Laboratories, Inc., Class A | 23,943 | 2,429,496 |
| Domo, Inc., Class B * | 9,803 | 630,235 |
| Dropbox, Inc., Class A * | 108,045 | 2,776,756 |
| Duck Creek Technologies, Inc. * | 11,717 | 487,193 |
| DXC Technology Co. * | 94,705 | 3,116,742 |
| Dynatrace, Inc. * | 68,230 | 3,550,689 |
| E2open Parent Holdings, Inc. *(a) | 45,300 | 495,582 |
| Ebix, Inc. | 8,770 | 264,065 |
| eGain Corp. * | 7,634 | 75,042 |
| Elastic N.V. * | 22,808 | 2,751,101 |
| Envestnet, Inc. * | 19,642 | 1,450,169 |
| EPAM Systems, Inc. * | 20,693 | 9,472,221 |
| Euronet Worldwide, Inc. * | 19,621 | 2,814,240 |
| Everbridge, Inc. * | 13,212 | 1,753,365 |
| EVERTEC, Inc. | 22,179 | 884,942 |
| Evo Payments, Inc., Class A * | 16,763 | 477,913 |
| Exela Technologies, Inc. *(a) | 11,700 | 22,815 |
| ExlService Holdings, Inc. * | 13,079 | 1,208,238 |
| Fair Isaac Corp. * | 10,695 | 5,576,480 |
| Fastly, Inc., Class A * | 31,045 | 1,982,844 |
| Fidelity National Information Services, Inc. | 228,134 | 34,881,689 |
| FireEye, Inc. * | 86,837 | 1,725,885 |
| Fiserv, Inc. * | 211,633 | 25,421,356 |
| Five9, Inc. * | 24,966 | 4,692,859 |
| FleetCor Technologies, Inc. * | 30,589 | 8,801,067 |
| Fortinet, Inc. * | 49,819 | 10,174,534 |
| fuboTV, Inc. * | 18,445 | 371,851 |
| Gartner, Inc. * | 32,559 | 6,377,657 |
| Genpact Ltd. | 63,778 | 3,031,368 |
| Global Payments, Inc. | 108,445 | 23,275,550 |
| GoDaddy, Inc., Class A * | 62,856 | 5,457,158 |
| GreenSky, Inc., Class A * | 19,821 | 120,710 |
| Grid Dynamics Holdings, Inc. * | 9,191 | 132,442 |
| GTT Communications, Inc. *(a) | 11,441 | 18,420 |
| GTY Technology Holdings, Inc. * | 16,630 | 84,813 |
| Guidewire Software, Inc. * | 31,030 | 3,273,975 |
| HubSpot, Inc. * | 16,044 | 8,446,364 |
| I3 Verticals, Inc., Class A * | 7,477 | 248,386 |
| Information Services Group, Inc. * | 16,112 | 73,310 |
| Innodata, Inc. * | 7,993 | 50,116 |
| Intelligent Systems Corp. * | 2,218 | 84,994 |
| InterDigital, Inc. | 11,287 | 783,544 |
| International Business Machines Corp. | 328,501 | 46,607,722 |
| International Money Express, Inc. * | 8,993 | 141,910 |
| Intrusion, Inc. *(a) | 4,921 | 90,153 |
| Intuit, Inc. | 100,824 | 41,555,620 |
| Inuvo, Inc. * | 37,191 | 30,500 |
| j2 Global, Inc. * | 15,342 | 1,856,382 |
| Jack Henry & Associates, Inc. | 28,078 | 4,571,941 |
| Jamf Holding Corp. * | 9,764 | 356,581 |
| Limelight Networks, Inc. * | 46,809 | 146,512 |
| LivePerson, Inc. * | 23,014 | 1,257,715 |
| LiveRamp Holdings, Inc. * | 24,256 | 1,188,059 |
| Manhattan Associates, Inc. * | 23,204 | 3,184,517 |
| Marathon Digital Holdings, Inc. *(a) | 31,676 | 1,165,043 |
| Mastercard, Inc., Class A | 322,084 | 123,055,413 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| MAXIMUS, Inc. | 22,190 | 2,033,492 |
| McAfee Corp., Class A | 12,652 | 307,191 |
| Medallia, Inc. * | 30,688 | 904,989 |
| Microsoft Corp. | 2,773,380 | 699,390,968 |
| MicroStrategy, Inc., Class A * | 2,769 | 1,819,676 |
| Mimecast Ltd. * | 21,848 | 948,640 |
| Mitek Systems, Inc. * | 15,570 | 252,390 |
| Model N, Inc. * | 11,071 | 440,404 |
| MoneyGram International, Inc. * | 21,956 | 151,496 |
| MongoDB, Inc. * | 19,259 | 5,728,782 |
| New Relic, Inc. * | 20,017 | 1,287,093 |
| NortonLifeLock, Inc. | 214,538 | 4,636,166 |
| Nuance Communications, Inc. * | 105,316 | 5,599,652 |
| Nutanix, Inc., Class A * | 70,666 | 1,910,809 |
| Okta, Inc. * | 45,505 | 12,272,698 |
| ON24, Inc. * | 3,135 | 137,940 |
| OneSpan, Inc. * | 12,589 | 337,511 |
| Oracle Corp. | 681,441 | 51,646,413 |
| PagerDuty, Inc. * | 20,324 | 862,957 |
| Palantir Technologies, Inc. * | 162,109 | 3,734,991 |
| Palo Alto Networks, Inc. * | 35,842 | 12,666,204 |
| Paya Holdings, Inc. * | 19,431 | 216,850 |
| Paychex, Inc. | 118,093 | 11,512,887 |
| Paycom Software, Inc. * | 17,986 | 6,913,998 |
| Paylocity Holding Corp. * | 14,482 | 2,798,502 |
| PayPal Holdings, Inc. * | 430,985 | 113,043,056 |
| Paysign, Inc. * | 12,225 | 46,700 |
| Pegasystems, Inc. | 14,519 | 1,843,042 |
| Perficient, Inc. * | 11,917 | 781,874 |
| Perspecta, Inc. | 49,603 | 1,451,880 |
| PFSweb, Inc. * | 1,728 | 12,614 |
| Phunware, Inc. *(a) | 26,099 | 41,497 |
| Ping Identity Holding Corp. * | 12,813 | 311,100 |
| Progress Software Corp. | 15,976 | 697,512 |
| Proofpoint, Inc. * | 21,509 | 3,701,914 |
| PROS Holdings, Inc. * | 14,674 | 630,689 |
| PTC, Inc. * | 38,715 | 5,069,342 |
| Q2 Holdings, Inc. * | 18,970 | 1,973,259 |
| QAD, Inc., Class A | 4,467 | 315,772 |
| Qualtrics International, Inc., Class A * | 20,519 | 766,385 |
| Qualys, Inc. * | 12,189 | 1,235,477 |
| Qumu Corp. * | 7,499 | 41,245 |
| Rackspace Technology, Inc. * | 12,292 | 305,702 |
| Rapid7, Inc. * | 19,320 | 1,569,750 |
| RealNetworks, Inc. * | 5,104 | 13,270 |
| Repay Holdings Corp. * | 27,841 | 636,167 |
| Rimini Street, Inc. * | 8,741 | 68,792 |
| RingCentral, Inc., Class A * | 29,588 | 9,437,093 |
| Riot Blockchain, Inc. *(a) | 24,596 | 1,028,851 |
| Sabre Corp. * | 115,344 | 1,727,853 |
| SailPoint Technologies Holding, Inc. * | 33,348 | 1,628,383 |
| salesforce.com, Inc. * | 337,435 | 77,718,029 |
| ServiceNow, Inc. * | 72,315 | 36,618,147 |
| ServiceSource International, Inc. * | 26,733 | 39,565 |
| SharpSpring, Inc. * | 5,251 | 86,642 |
| Shift4 Payments, Inc., Class A * | 13,037 | 1,289,229 |
| ShotSpotter, Inc. * | 2,643 | 92,346 |
| Slack Technologies, Inc., Class A * | 183,610 | 7,785,064 |
| Smartsheet, Inc., Class A * | 41,754 | 2,476,012 |
| Smith Micro Software, Inc. * | 14,006 | 78,714 |
| Snowflake, Inc., Class A * | 21,917 | 5,075,758 |
| SolarWinds Corp. * | 25,934 | 437,247 |
| Splunk, Inc. * | 59,508 | 7,523,001 |
| Sprout Social, Inc., Class A * | 10,069 | 667,474 |
| SPS Commerce, Inc. * | 12,945 | 1,326,086 |
| Square, Inc., Class A * | 143,733 | 35,188,713 |
| SS&C Technologies Holdings, Inc. | 81,920 | 6,080,102 |
| Sumo Logic, Inc. * | 5,985 | 116,648 |
| Security | Number
of Shares | Value ($) |
| SVMK, Inc. * | 44,061 | 792,657 |
| Switch, Inc., Class A | 33,347 | 619,254 |
| Sykes Enterprises, Inc. * | 14,201 | 622,430 |
| Synchronoss Technologies, Inc. * | 15,860 | 52,972 |
| Synopsys, Inc. * | 55,783 | 13,781,748 |
| Telos Corp. * | 8,864 | 294,108 |
| Tenable Holdings, Inc. * | 24,196 | 907,229 |
| Teradata Corp. * | 39,683 | 1,963,118 |
| The Hackett Group, Inc. | 11,302 | 187,952 |
| The Trade Desk, Inc., Class A * | 15,796 | 11,520,181 |
| The Western Union Co. | 151,281 | 3,896,999 |
| TTEC Holdings, Inc. | 6,433 | 654,429 |
| Tucows, Inc., Class A * | 3,871 | 304,299 |
| Twilio, Inc., Class A * | 58,810 | 21,630,318 |
| Tyler Technologies, Inc. * | 14,957 | 6,354,631 |
| Unisys Corp. * | 22,526 | 540,624 |
| Upland Software, Inc. * | 9,814 | 486,382 |
| Usio, Inc. * | 7,533 | 44,821 |
| Varonis Systems, Inc. * | 36,675 | 1,941,941 |
| Verint Systems, Inc. * | 23,652 | 1,148,778 |
| VeriSign, Inc. * | 36,458 | 7,975,917 |
| Veritone, Inc. * | 8,997 | 217,008 |
| Verra Mobility Corp. * | 49,957 | 671,422 |
| Vertex, Inc., Class A * | 9,192 | 187,793 |
| Viant Technology, Inc., Class A * | 3,698 | 121,442 |
| VirnetX Holding Corp. | 26,091 | 121,584 |
| Visa, Inc., Class A | 623,792 | 145,692,860 |
| VMware, Inc., Class A *(a) | 29,784 | 4,790,161 |
| WEX, Inc. * | 16,573 | 3,400,945 |
| WidePoint Corp. * | 3,919 | 34,762 |
| Workday, Inc., Class A * | 67,648 | 16,709,056 |
| Workiva, Inc. * | 15,190 | 1,427,860 |
| Xperi Holding Corp. | 37,453 | 769,659 |
| Yext, Inc. * | 34,806 | 485,544 |
| Zendesk, Inc. * | 43,649 | 6,379,301 |
| Zix Corp. * | 19,522 | 153,931 |
| Zoom Video Communications, Inc., Class A * | 75,125 | 24,007,696 |
| Zscaler, Inc. * | 27,555 | 5,170,420 |
| Zuora, Inc., Class A * | 37,913 | 614,191 |
| | | 2,229,400,299 |
| |
| Technology Hardware & Equipment 6.8% |
| 3D Systems Corp. * | 44,387 | 956,096 |
| 908 Devices, Inc. * | 2,490 | 131,945 |
| ADTRAN, Inc. | 18,881 | 322,676 |
| Airgain, Inc. * | 3,401 | 80,366 |
| Akoustis Technologies, Inc. * | 13,311 | 149,483 |
| Amphenol Corp., Class A | 220,136 | 14,823,958 |
| Apple Inc. | 5,802,204 | 762,757,738 |
| Applied Optoelectronics, Inc. * | 10,991 | 81,443 |
| Arista Networks, Inc. * | 20,363 | 6,417,807 |
| Arlo Technologies, Inc. * | 31,084 | 190,545 |
| Arrow Electronics, Inc. * | 27,566 | 3,144,454 |
| AstroNova, Inc. * | 1,900 | 27,854 |
| Aviat Networks, Inc. * | 3,200 | 103,712 |
| Avid Technology, Inc. * | 15,542 | 353,425 |
| Avnet, Inc. | 36,212 | 1,590,431 |
| Badger Meter, Inc. | 10,711 | 1,000,300 |
| Bel Fuse, Inc., Class B | 5,450 | 108,618 |
| Belden, Inc. | 16,643 | 720,309 |
| Benchmark Electronics, Inc. | 13,708 | 411,514 |
| Boxlight Corp., Class A *(a) | 18,333 | 47,299 |
| CalAmp Corp. * | 14,173 | 194,879 |
| Calix, Inc. * | 20,732 | 876,756 |
| Cambium Networks Corp. * | 1,944 | 116,640 |
| Casa Systems, Inc. * | 13,736 | 107,759 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| CDW Corp. | 52,022 | 9,277,083 |
| Ciena Corp. * | 56,331 | 2,843,026 |
| Cisco Systems, Inc. | 1,551,980 | 79,011,302 |
| Clearfield, Inc. * | 4,164 | 143,033 |
| ClearSign Technologies Corp. * | 12,073 | 57,709 |
| Cognex Corp. | 65,554 | 5,645,510 |
| Coherent, Inc. * | 9,131 | 2,373,969 |
| CommScope Holding Co., Inc. * | 72,294 | 1,189,236 |
| ComSovereign Holding Corp. *(a) | 15,123 | 36,295 |
| Comtech Telecommunications Corp. | 8,949 | 214,597 |
| Corning, Inc. | 284,553 | 12,580,088 |
| Corsair Gaming, Inc. * | 7,532 | 249,912 |
| CPS Technologies Corp. * | 3,182 | 24,088 |
| CTS Corp. | 12,607 | 409,980 |
| Daktronics, Inc. * | 14,170 | 87,429 |
| Dell Technologies, Inc., Class C * | 86,824 | 8,537,404 |
| Diebold Nixdorf, Inc. * | 28,307 | 424,888 |
| Digi International, Inc. * | 12,746 | 227,771 |
| Digital Ally, Inc. *(a) | 12,381 | 22,286 |
| DZS, Inc. * | 4,470 | 67,139 |
| Eastman Kodak Co. *(a) | 24,148 | 180,144 |
| EchoStar Corp., Class A * | 18,592 | 454,574 |
| EMCORE Corp. * | 11,147 | 69,446 |
| ePlus, Inc. * | 5,027 | 504,510 |
| Extreme Networks, Inc. * | 46,911 | 533,847 |
| F5 Networks, Inc. * | 22,802 | 4,258,502 |
| Fabrinet * | 13,517 | 1,157,326 |
| FARO Technologies, Inc. * | 6,619 | 502,018 |
| FLIR Systems, Inc. | 49,039 | 2,940,869 |
| Genasys, Inc. * | 11,026 | 68,913 |
| Harmonic, Inc. * | 38,407 | 300,343 |
| Hewlett Packard Enterprise Co. | 487,934 | 7,816,703 |
| HP, Inc. | 459,195 | 15,663,141 |
| Identiv, Inc. * | 8,288 | 132,194 |
| IEC Electronics Corp. * | 5,132 | 62,559 |
| II-VI, Inc. * | 38,907 | 2,612,216 |
| Immersion Corp. * | 6,138 | 52,603 |
| Infinera Corp. * | 74,922 | 690,781 |
| Inseego Corp. *(a) | 22,287 | 197,909 |
| Insight Enterprises, Inc. * | 12,882 | 1,292,966 |
| Intellicheck, Inc. * | 3,914 | 39,023 |
| Intevac, Inc. * | 13,901 | 89,105 |
| IPG Photonics Corp. * | 13,580 | 2,948,354 |
| Iteris, Inc. * | 14,737 | 99,475 |
| Itron, Inc. * | 16,113 | 1,449,203 |
| Jabil, Inc. | 48,824 | 2,559,354 |
| Juniper Networks, Inc. | 122,238 | 3,103,623 |
| Key Tronic Corp. * | 5,123 | 35,656 |
| Keysight Technologies, Inc. * | 68,253 | 9,852,321 |
| Kimball Electronics, Inc. * | 9,413 | 216,593 |
| Knowles Corp. * | 33,259 | 695,113 |
| KVH Industries, Inc. * | 5,000 | 66,950 |
| Littelfuse, Inc. | 8,821 | 2,339,682 |
| Lumentum Holdings, Inc. * | 28,712 | 2,441,956 |
| Luna Innovations, Inc. * | 11,699 | 132,667 |
| Methode Electronics, Inc. | 14,387 | 646,408 |
| MicroVision, Inc. * | 52,342 | 798,215 |
| MICT, Inc. *(a) | 40,861 | 67,421 |
| Motorola Solutions, Inc. | 62,065 | 11,686,839 |
| Napco Security Technologies, Inc. * | 4,458 | 148,496 |
| National Instruments Corp. | 47,435 | 1,964,283 |
| NCR Corp. * | 47,019 | 2,151,119 |
| NetApp, Inc. | 82,008 | 6,125,178 |
| NETGEAR, Inc. * | 11,235 | 418,054 |
| NetScout Systems, Inc. * | 26,204 | 686,414 |
| nLight, Inc. * | 13,651 | 400,520 |
| Novanta, Inc. * | 12,752 | 1,679,566 |
| Ondas Holdings, Inc. * | 7,555 | 60,742 |
| Security | Number
of Shares | Value ($) |
| One Stop Systems, Inc. * | 5,350 | 28,462 |
| OSI Systems, Inc. * | 6,235 | 602,114 |
| PAR Technology Corp. * | 7,135 | 586,069 |
| PC Connection, Inc. | 4,382 | 198,724 |
| Plantronics, Inc. * | 13,754 | 550,022 |
| Plexus Corp. * | 10,389 | 960,359 |
| Powerfleet, Inc. * | 11,094 | 83,871 |
| Pure Storage, Inc., Class A * | 94,611 | 1,913,034 |
| Quantum Corp. * | 18,711 | 159,418 |
| Resonant, Inc. *(a) | 15,910 | 52,026 |
| Ribbon Communications, Inc. * | 43,357 | 292,660 |
| Rogers Corp. * | 6,788 | 1,329,362 |
| Sanmina Corp. * | 24,005 | 980,364 |
| ScanSource, Inc. * | 9,015 | 272,523 |
| Seagate Technology plc | 74,270 | 6,895,227 |
| Super Micro Computer, Inc. * | 15,721 | 581,991 |
| SYNNEX Corp. | 14,950 | 1,811,940 |
| TE Connectivity Ltd. | 121,786 | 16,376,563 |
| TransAct Technologies, Inc. * | 3,819 | 48,539 |
| Trimble, Inc. * | 92,308 | 7,569,256 |
| TTM Technologies, Inc. * | 37,069 | 556,035 |
| Turtle Beach Corp. * | 6,086 | 169,130 |
| Ubiquiti, Inc. | 2,737 | 780,948 |
| Velodyne Lidar, Inc. *(a) | 15,609 | 214,936 |
| ViaSat, Inc. * | 23,803 | 1,232,757 |
| Viavi Solutions, Inc. * | 84,356 | 1,380,064 |
| Vishay Intertechnology, Inc. | 48,841 | 1,200,023 |
| Vishay Precision Group, Inc. * | 5,394 | 171,961 |
| Vislink Technologies, Inc. *(a) | 17,989 | 49,830 |
| Vontier Corp. * | 61,469 | 1,926,438 |
| Wayside Technology Group, Inc. | 1,944 | 47,628 |
| Western Digital Corp. * | 112,556 | 7,949,830 |
| Wrap Technologies, Inc. *(a) | 10,465 | 61,534 |
| Xerox Holdings Corp. | 61,158 | 1,476,354 |
| Zebra Technologies Corp., Class A * | 19,677 | 9,597,260 |
| | | 1,078,639,898 |
| |
| Telecommunication Services 1.4% |
| Alaska Communications Systems Group, Inc. * | 26,271 | 86,957 |
| Anterix, Inc. * | 3,968 | 187,766 |
| AT&T, Inc. | 2,619,987 | 82,293,792 |
| ATN International, Inc. | 3,752 | 171,016 |
| Bandwidth, Inc., Class A * | 8,376 | 1,107,307 |
| Boingo Wireless, Inc. * | 16,693 | 233,034 |
| Cincinnati Bell, Inc. * | 18,761 | 289,482 |
| Cogent Communications Holdings, Inc. | 15,663 | 1,182,713 |
| Consolidated Communications Holdings, Inc. * | 28,849 | 207,713 |
| Globalstar, Inc. * | 214,430 | 272,326 |
| Gogo, Inc. * | 19,996 | 208,358 |
| IDT Corp., Class B * | 6,600 | 158,466 |
| Iridium Communications, Inc. * | 42,954 | 1,631,823 |
| Liberty Global plc, Class A * | 52,647 | 1,416,204 |
| Liberty Global plc, Class C * | 130,601 | 3,534,063 |
| Liberty Latin America Ltd., Class A * | 28,136 | 390,668 |
| Liberty Latin America Ltd., Class C * | 53,326 | 743,898 |
| Lumen Technologies, Inc. | 369,320 | 4,738,376 |
| Ooma, Inc. * | 9,017 | 149,051 |
| ORBCOMM, Inc. * | 28,696 | 328,856 |
| Radius Global Infrastructure, Inc. * | 21,530 | 318,859 |
| Shenandoah Telecommunications Co. | 17,897 | 845,812 |
| Spok Holdings, Inc. | 9,091 | 93,365 |
| T-Mobile US, Inc. * | 214,461 | 28,336,732 |
| Telephone & Data Systems, Inc. | 35,953 | 826,200 |
| United States Cellular Corp. * | 5,400 | 184,302 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Verizon Communications, Inc. | 1,521,483 | 87,926,503 |
| Vonage Holdings Corp. * | 83,866 | 1,136,384 |
| | | 219,000,026 |
| |
| Transportation 2.1% |
| Air Transport Services Group, Inc. * | 21,611 | 568,802 |
| Alaska Air Group, Inc. * | 46,040 | 3,183,206 |
| Allegiant Travel Co. * | 4,768 | 1,123,961 |
| AMERCO | 3,378 | 2,015,416 |
| American Airlines Group, Inc. * | 236,081 | 5,127,679 |
| ArcBest Corp. | 8,956 | 651,639 |
| Atlas Air Worldwide Holdings, Inc. * | 10,362 | 703,683 |
| Avis Budget Group, Inc. * | 18,622 | 1,668,717 |
| C.H. Robinson Worldwide, Inc. | 49,251 | 4,781,287 |
| Covenant Logistics Group, Inc. * | 5,112 | 109,959 |
| CSX Corp. | 279,907 | 28,200,630 |
| Daseke, Inc. * | 20,197 | 153,295 |
| Delta Air Lines, Inc. * | 235,281 | 11,039,385 |
| Eagle Bulk Shipping, Inc. * | 4,815 | 208,682 |
| Echo Global Logistics, Inc. * | 10,195 | 333,377 |
| Expeditors International of Washington, Inc. | 61,934 | 6,804,069 |
| FedEx Corp. | 89,930 | 26,107,578 |
| Forward Air Corp. | 10,091 | 890,934 |
| Genco Shipping & Trading Ltd. | 11,619 | 178,235 |
| Hawaiian Holdings, Inc. * | 18,476 | 463,932 |
| Heartland Express, Inc. | 18,164 | 337,669 |
| Hub Group, Inc., Class A * | 12,389 | 814,205 |
| HyreCar, Inc. * | 6,951 | 93,143 |
| JB Hunt Transport Services, Inc. | 30,688 | 5,238,749 |
| JetBlue Airways Corp. * | 114,691 | 2,335,109 |
| Kansas City Southern | 33,631 | 9,827,315 |
| Kirby Corp. * | 22,034 | 1,403,566 |
| Knight-Swift Transportation Holdings, Inc. | 44,601 | 2,101,599 |
| Landstar System, Inc. | 13,869 | 2,389,351 |
| Lyft, Inc., Class A * | 94,615 | 5,266,271 |
| Macquarie Infrastructure Corp. | 27,032 | 900,436 |
| Marten Transport Ltd. | 22,339 | 373,508 |
| Matson, Inc. | 15,474 | 1,010,916 |
| Mesa Air Group, Inc. * | 10,446 | 117,622 |
| Norfolk Southern Corp. | 92,616 | 25,862,092 |
| Old Dominion Freight Line, Inc. | 35,211 | 9,077,748 |
| Radiant Logistics, Inc. * | 16,850 | 112,558 |
| Ryder System, Inc. | 19,342 | 1,544,265 |
| Saia, Inc. * | 9,545 | 2,238,303 |
| Schneider National, Inc., Class B | 14,302 | 346,537 |
| SkyWest, Inc. * | 18,448 | 916,128 |
| Southwest Airlines Co. * | 217,909 | 13,680,327 |
| Spirit Airlines, Inc. * | 35,544 | 1,273,186 |
| Uber Technologies, Inc. * | 541,139 | 29,638,183 |
| Union Pacific Corp. | 245,802 | 54,590,166 |
| United Airlines Holdings, Inc. * | 117,606 | 6,397,766 |
| United Parcel Service, Inc., Class B | 264,656 | 53,952,772 |
| Universal Logistics Holdings, Inc. | 3,300 | 82,533 |
| US Xpress Enterprises, Inc., Class A * | 8,327 | 85,268 |
| USA Truck, Inc. * | 2,826 | 43,436 |
| Werner Enterprises, Inc. | 21,085 | 974,760 |
| XPO Logistics, Inc. * | 37,754 | 5,252,337 |
| Yellow Corp. * | 17,799 | 163,217 |
| | | 332,755,507 |
| |
| Utilities 2.5% |
| ALLETE, Inc. | 19,092 | 1,343,313 |
| Alliant Energy Corp. | 93,247 | 5,237,684 |
| Ameren Corp. | 92,715 | 7,865,941 |
| Security | Number
of Shares | Value ($) |
| American Electric Power Co., Inc. | 182,927 | 16,227,454 |
| American States Water Co. | 13,159 | 1,042,061 |
| American Water Works Co., Inc. | 67,349 | 10,505,771 |
| Artesian Resources Corp., Class A | 3,837 | 155,207 |
| Atmos Energy Corp. | 46,915 | 4,859,925 |
| Avangrid, Inc. | 19,861 | 1,010,925 |
| Avista Corp. | 25,435 | 1,170,519 |
| Black Hills Corp. | 23,056 | 1,590,403 |
| Cadiz, Inc. *(a) | 12,851 | 149,714 |
| California Water Service Group | 18,494 | 1,086,523 |
| CenterPoint Energy, Inc. | 202,699 | 4,964,099 |
| Chesapeake Utilities Corp. | 6,235 | 738,972 |
| Clearway Energy, Inc., Class A | 11,000 | 292,380 |
| Clearway Energy, Inc., Class C | 28,572 | 819,731 |
| CMS Energy Corp. | 106,022 | 6,826,757 |
| Consolidated Edison, Inc. | 127,374 | 9,860,021 |
| Dominion Energy, Inc. | 295,638 | 23,621,476 |
| DTE Energy Co. | 71,361 | 9,991,967 |
| Duke Energy Corp. | 281,650 | 28,359,339 |
| Edison International | 139,275 | 8,279,899 |
| Entergy Corp. | 74,158 | 8,104,728 |
| Essential Utilities, Inc. | 80,811 | 3,808,622 |
| Evergy, Inc. | 83,765 | 5,358,447 |
| Eversource Energy | 127,315 | 10,977,099 |
| Exelon Corp. | 359,063 | 16,136,291 |
| FirstEnergy Corp. | 199,438 | 7,562,689 |
| Genie Energy Ltd., Class B | 11,877 | 66,511 |
| Global Water Resources, Inc. | 4,694 | 80,033 |
| Hawaiian Electric Industries, Inc. | 40,082 | 1,725,931 |
| IDACORP, Inc. | 18,440 | 1,889,731 |
| MDU Resources Group, Inc. | 72,409 | 2,422,805 |
| MGE Energy, Inc. | 13,140 | 983,003 |
| Middlesex Water Co. | 6,534 | 535,919 |
| National Fuel Gas Co. | 33,127 | 1,645,087 |
| New Jersey Resources Corp. | 39,902 | 1,673,889 |
| NextEra Energy, Inc. | 720,362 | 55,835,259 |
| NiSource, Inc. | 142,167 | 3,699,185 |
| Northwest Natural Holding Co. | 10,861 | 585,625 |
| NorthWestern Corp. | 18,710 | 1,272,841 |
| NRG Energy, Inc. | 88,952 | 3,186,261 |
| OGE Energy Corp. | 72,379 | 2,429,039 |
| ONE Gas, Inc. | 19,209 | 1,545,748 |
| Ormat Technologies, Inc. | 16,267 | 1,177,731 |
| Otter Tail Corp. | 15,277 | 721,533 |
| PG&E Corp. * | 545,829 | 6,178,784 |
| Pinnacle West Capital Corp. | 41,004 | 3,470,989 |
| PNM Resources, Inc. | 32,459 | 1,602,176 |
| Portland General Electric Co. | 32,904 | 1,673,497 |
| PPL Corp. | 282,073 | 8,216,786 |
| Public Service Enterprise Group, Inc. | 185,161 | 11,694,769 |
| Pure Cycle Corp. * | 8,000 | 122,160 |
| RGC Resources, Inc. | 3,883 | 84,222 |
| Sempra Energy | 111,386 | 15,323,372 |
| SJW Group | 9,706 | 636,228 |
| South Jersey Industries, Inc. | 37,102 | 918,275 |
| Southwest Gas Holdings, Inc. | 20,941 | 1,460,007 |
| Spark Energy, Inc., Class A | 5,059 | 53,524 |
| Spire, Inc. | 18,677 | 1,407,125 |
| Sunnova Energy International, Inc. * | 22,845 | 806,885 |
| The AES Corp. | 245,306 | 6,824,413 |
| The Southern Co. | 386,219 | 25,556,111 |
| The York Water Co. | 4,611 | 238,112 |
| UGI Corp. | 75,180 | 3,286,118 |
| Unitil Corp. | 5,196 | 299,445 |
| Vistra Corp. | 182,320 | 3,075,738 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| WEC Energy Group, Inc. | 116,630 | 11,332,937 |
| Xcel Energy, Inc. | 198,022 | 14,118,969 |
| | | 397,804,730 |
| Total Common Stock |
| (Cost $7,376,701,045) | | 15,853,680,810 |
|
| Rights 0.0% of net assets |
| |
| Consumer Durables & Apparel 0.0% |
| ZAGG, Inc. CVR *(b) | 8,000 | 720 |
| |
| Media & Entertainment 0.0% |
| Media General, Inc. CVR *(b) | 18,400 | 1,566 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
| Adicet Bio, Inc. CVR *(b) | 780 | — |
| Aduro Biotech, Inc. CVR *(b) | 5,747 | 17,241 |
| Elanco Animal Health, Inc. CVR *(b) | 16,000 | 97 |
| F-star Therapeutics, Inc. Agonist CVR *(b) | 975 | 395 |
| F-star Therapeutics, Inc. Antagonist CVR *(b) | 975 | 395 |
| Proteostasis Therapeutics, Inc. CVR *(b) | 7,700 | 831 |
| | | 18,959 |
| Total Rights |
| (Cost $1,954) | | 21,245 |
|
| Investment Company 0.2% of net assets |
| |
| Securities Lending Collateral 0.2% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (d) | 36,854,204 | 36,854,204 |
| Total Investment Company |
| (Cost $36,854,204) | | 36,854,204 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.4% of net assets |
| |
| Time Deposit 0.4% |
| Barclays Bank PLC |
| 0.01%, 05/03/21 (e) | 53,731,283 | 53,731,283 |
| Total Short-Term Investment |
| (Cost $53,731,283) | | 53,731,283 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
($) |
| Futures Contracts | |
| Long | |
| Russell 2000 Index, e-mini, expires 06/18/21 | 99 | 11,194,425 | 100,803 |
| S&P 500 Index, e-mini, expires 06/18/21 | 306 | 63,868,320 | 195,297 |
| Net Unrealized Appreciation | 296,100 |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $35,389,720. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (c) | Issuer is affiliated with the fund’s investment adviser. |
| (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 |
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, 2021:
| |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Dividends
Received |
| The Charles Schwab Corp. | $21,138,598 | $1,970,858 | $— | $— | $15,469,955 | $38,579,411 | 548,003 | $188,550 |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $11,693,082,322 | $— | $— | $11,693,082,322 | |
| Automobiles & Components | 300,764,562 | — | 60,192 | 300,824,754 | |
| Pharmaceuticals, Biotechnology & Life Sciences | 1,105,649,577 | — | 111,348 | 1,105,760,925 | |
| Real Estate | 524,612,510 | — | — * | 524,612,510 | |
| Software & Services | 2,229,387,195 | — | 13,104 | 2,229,400,299 | |
| Rights 1 | | | | | |
| Consumer Durables & Apparel | — | — | 720 | 720 | |
| Media & Entertainment | — | — | 1,566 | 1,566 | |
| Pharmaceuticals, Biotechnology & Life Sciences | — | — | 18,959 * | 18,959 | |
| Investment Company1 | 36,854,204 | — | — | 36,854,204 | |
| Short-Term Investment1 | — | 53,731,283 | — | 53,731,283 | |
| Futures Contracts2 | 296,100 | — | — | 296,100 | |
| Total | $15,890,646,470 | $53,731,283 | $205,889 | $15,944,583,642 | |
| * | Level 3 amount shown includes securities determined to have no value at April 30, 2021. |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $17,583,204) | | $38,579,411 |
| Investments in securities, at value - unaffiliated (cost $7,412,851,078) including securities on loan of $35,389,720 | | 15,868,853,927 |
| Collateral invested for securities on loan, at value (cost $36,854,204) | | 36,854,204 |
| Deposit with broker for futures contracts | | 8,593,000 |
| Receivables: | | |
| Investments sold | | 28,502 |
| Fund shares sold | | 10,911,498 |
| Dividends | | 9,830,591 |
| Income from securities on loan | + | 90,033 |
| Total assets | | 15,973,741,166 |
| Liabilities |
| Collateral held for securities on loan | | 36,854,204 |
| Payables: | | |
| Investments bought | | 323,679 |
| Investment adviser fees | | 411,577 |
| Fund shares redeemed | | 5,150,039 |
| Variation margin on futures contracts | + | 545,316 |
| Total liabilities | | 43,284,815 |
| Net Assets |
| Total assets | | 15,973,741,166 |
| Total liabilities | – | 43,284,815 |
| Net assets | | $15,930,456,351 |
| Net Assets by Source | | |
| Capital received from investors | | 7,459,214,636 |
| Total distributable earnings | | 8,471,241,715 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $15,930,456,351 | | 214,199,147 | | $74.37 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $188,550 |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $18,775) | | 108,101,557 |
| Interest received from securities - unaffiliated | | 2,329 |
| Securities on loan, net | + | 638,146 |
| Total investment income | | 108,930,582 |
| Expenses |
| Investment adviser fees | | 2,118,846 |
| Total expenses | – | 2,118,846 |
| Net investment income | | 106,811,736 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 5,993,011 |
| Net realized gains on futures contracts | + | 18,844,272 |
| Net realized gains | | 24,837,283 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 15,469,955 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 3,507,810,489 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 1,815,605 |
| Net change in unrealized appreciation (depreciation) | + | 3,525,096,049 |
| Net realized and unrealized gains | | 3,549,933,332 |
| Increase in net assets resulting from operations | | $3,656,745,068 |
Schwab Equity Index Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $106,811,736 | $212,497,929 |
| Net realized gains (losses) | | 24,837,283 | (25,404,301) |
| Net change in unrealized appreciation (depreciation) | + | 3,525,096,049 | 847,687,149 |
| Increase in net assets from operations | | 3,656,745,068 | 1,034,780,777 |
| Distributions to Shareholders | |
| Total distributions | | ($218,157,695) | ($207,148,798) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 26,158,372 | $1,781,731,226 | 47,954,413 | $2,507,068,155 |
| Shares reinvested | | 2,374,705 | 156,303,071 | 2,723,498 | 151,971,124 |
| Shares redeemed | + | (13,710,389) | (933,603,089) | (42,603,146) | (2,219,143,615) |
| Net transactions in fund shares | | 14,822,688 | $1,004,431,208 | 8,074,765 | $439,895,664 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 199,376,459 | $11,487,437,770 | 191,301,694 | $10,219,910,127 |
| Total increase | + | 14,822,688 | 4,443,018,581 | 8,074,765 | 1,267,527,643 |
| End of period | | 214,199,147 | $15,930,456,351 | 199,376,459 | $11,487,437,770 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 12/20/17 1–
10/31/18 | | |
| Per-Share Data |
| Net asset value at beginning of period | $62.76 | $49.06 | $42.37 | $40.00 | | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.29 | 0.55 | 0.57 | 0.46 | | |
| Net realized and unrealized gains (losses) | 14.90 | 13.65 | 6.52 | 1.91 3 | | |
| Total from investment operations | 15.19 | 14.20 | 7.09 | 2.37 | | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.48) | (0.50) | (0.40) | — | | |
| Net asset value at end of period | $77.47 | $62.76 | $49.06 | $42.37 | | |
| Total return | 24.27% 4 | 29.16% | 17.04% | 5.93% 4 | | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.035% 5 | 0.035% | 0.035% 6 | 0.040% 5,7 | | |
| Net operating expenses | N/A | N/A | N/A | 0.02% 5,7 | | |
| Net investment income (loss) | 0.80% 5 | 0.97% | 1.27% | 1.23% 5 | | |
| Portfolio turnover rate | 3% 4 | 41% | 46% | 23% 4 | | |
| Net assets, end of period (x 1,000,000) | $702 | $487 | $166 | $93 | | |
| |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
3
The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
4
Not annualized.
5
Annualized.
6
Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended 10/31/19 is a blended ratio.
7
The investment adviser voluntarily agreed to waive the fund’s management fees to 0.00% beginning with the fund’s commencement of operations through June 30, 2018. The ratio presented for period ended 10/31/18 is a blended ratio.
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.3% of net assets |
| |
| Automobiles & Components 2.7% |
| BorgWarner, Inc. | 1,038 | 50,426 |
| Tesla, Inc. * | 26,984 | 19,143,529 |
| | | 19,193,955 |
| |
| Banks 0.0% |
| Rocket Cos., Inc., Class A | 1,512 | 33,944 |
| |
| Capital Goods 2.2% |
| 3M Co. | 13,071 | 2,576,817 |
| Allegion plc | 2,093 | 281,257 |
| Allison Transmission Holdings, Inc. | 2,593 | 107,532 |
| Armstrong World Industries, Inc. | 619 | 64,159 |
| Array Technologies, Inc. * | 330 | 9,293 |
| Axon Enterprise, Inc. * | 2,203 | 333,997 |
| BWX Technologies, Inc. | 2,137 | 143,008 |
| Carrier Global Corp. | 10,957 | 477,506 |
| Donaldson Co., Inc. | 481 | 30,245 |
| Fastenal Co. | 16,351 | 854,830 |
| Generac Holdings, Inc. * | 1,961 | 635,266 |
| Graco, Inc. | 2,915 | 223,872 |
| HEICO Corp. | 1,279 | 180,083 |
| HEICO Corp., Class A | 2,180 | 275,290 |
| Huntington Ingalls Industries, Inc. | 131 | 27,814 |
| Illinois Tool Works, Inc. | 4,919 | 1,133,633 |
| Lincoln Electric Holdings, Inc. | 851 | 108,971 |
| Lockheed Martin Corp. | 8,719 | 3,318,103 |
| Mercury Systems, Inc. * | 1,578 | 118,729 |
| Nordson Corp. | 1,652 | 349,249 |
| Northrop Grumman Corp. | 5,058 | 1,792,757 |
| Quanta Services, Inc. | 976 | 94,321 |
| Rockwell Automation, Inc. | 1,977 | 522,442 |
| Roper Technologies, Inc. | 503 | 224,559 |
| Shoals Technologies Group, Inc., Class A * | 237 | 7,601 |
| The AZEK Co., Inc. * | 542 | 26,168 |
| The Toro Co. | 3,378 | 387,119 |
| TransDigm Group, Inc. * | 410 | 251,633 |
| Trex Co., Inc. * | 4,051 | 437,467 |
| Vertiv Holdings Co. | 8,378 | 190,181 |
| Virgin Galactic Holdings, Inc. *(a) | 2,057 | 45,563 |
| W.W. Grainger, Inc. | 1,125 | 487,732 |
| | | 15,717,197 |
| |
| Commercial & Professional Services 1.1% |
| Booz Allen Hamilton Holding Corp. | 4,740 | 393,183 |
| CACI International, Inc., Class A * | 145 | 36,955 |
| Cintas Corp. | 2,751 | 949,480 |
| Copart, Inc. * | 7,218 | 898,713 |
| CoreLogic, Inc. | 127 | 10,122 |
| CoStar Group, Inc. * | 1,372 | 1,172,278 |
| Driven Brands Holdings, Inc. * | 131 | 3,736 |
| Dun & Bradstreet Holdings, Inc. * | 2,338 | 55,551 |
| Security | Number
of Shares | Value ($) |
| Equifax, Inc. | 3,164 | 725,284 |
| IAA, Inc. * | 1,135 | 71,289 |
| IHS Markit Ltd. | 7,623 | 820,082 |
| Leidos Holdings, Inc. | 471 | 47,703 |
| MSA Safety, Inc. | 285 | 45,817 |
| Rollins, Inc. | 6,827 | 254,510 |
| Science Applications International Corp. | 240 | 21,461 |
| TransUnion | 6,097 | 637,685 |
| Verisk Analytics, Inc. | 5,584 | 1,050,909 |
| Waste Management, Inc. | 1,905 | 262,833 |
| | | 7,457,591 |
| |
| Consumer Durables & Apparel 1.1% |
| Lululemon Athletica, Inc. * | 3,998 | 1,340,409 |
| Mattel, Inc. * | 7,154 | 153,525 |
| NIKE, Inc., Class B | 43,775 | 5,805,440 |
| NVR, Inc. * | 12 | 60,217 |
| Peloton Interactive, Inc., Class A * | 2,170 | 213,420 |
| Polaris, Inc. | 212 | 29,686 |
| Tempur Sealy International, Inc. | 4,934 | 188,183 |
| VF Corp. | 671 | 58,820 |
| | | 7,849,700 |
| |
| Consumer Services 1.6% |
| 2U, Inc. * | 819 | 32,146 |
| Booking Holdings, Inc. * | 1,440 | 3,551,155 |
| Bright Horizons Family Solutions, Inc. * | 1,461 | 211,597 |
| Chegg, Inc. * | 4,565 | 412,356 |
| Chipotle Mexican Grill, Inc. * | 980 | 1,462,189 |
| Domino's Pizza, Inc. | 1,374 | 580,295 |
| Expedia Group, Inc. * | 539 | 94,988 |
| frontdoor, Inc. * | 470 | 25,159 |
| H&R Block, Inc. | 4,533 | 100,905 |
| Las Vegas Sands Corp. * | 5,011 | 306,974 |
| McDonald's Corp. | 3,757 | 886,953 |
| Planet Fitness, Inc., Class A * | 1,648 | 138,416 |
| Starbucks Corp. | 23,775 | 2,722,000 |
| The Wendy's Co. | 6,300 | 142,191 |
| Vail Resorts, Inc. * | 107 | 34,792 |
| Wynn Resorts Ltd. * | 911 | 116,972 |
| Yum China Holdings, Inc. | 995 | 62,605 |
| Yum! Brands, Inc. | 796 | 95,138 |
| | | 10,976,831 |
| |
| Diversified Financials 1.2% |
| Apollo Global Management, Inc. | 2,957 | 163,729 |
| Ares Management Corp., Class A | 3,709 | 194,797 |
| Cboe Global Markets, Inc. | 829 | 86,523 |
| Credit Acceptance Corp. * | 18 | 7,106 |
| FactSet Research Systems, Inc. | 1,302 | 437,758 |
| Intercontinental Exchange, Inc. | 6,886 | 810,551 |
| LendingTree, Inc. * | 368 | 75,988 |
| LPL Financial Holdings, Inc. | 229 | 35,884 |
| MarketAxess Holdings, Inc. | 1,299 | 634,510 |
| Moody's Corp. | 5,725 | 1,870,415 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Morningstar, Inc. | 632 | 167,486 |
| MSCI, Inc. | 2,830 | 1,374,729 |
| S&P Global, Inc. | 5,009 | 1,955,464 |
| SLM Corp. | 2,962 | 58,233 |
| T. Rowe Price Group, Inc. | 2,026 | 363,059 |
| The Carlyle Group, Inc. | 374 | 15,955 |
| Tradeweb Markets, Inc., Class A | 2,493 | 202,631 |
| Upstart Holdings, Inc. * | 98 | 10,684 |
| Virtu Financial, Inc., Class A | 1,969 | 58,342 |
| | | 8,523,844 |
| |
| Energy 0.1% |
| Cheniere Energy, Inc. * | 8,119 | 629,385 |
| Equitrans Midstream Corp. | 1,273 | 10,388 |
| | | 639,773 |
| |
| Food & Staples Retailing 0.9% |
| Albertsons Cos., Inc., Class A | 1,960 | 36,397 |
| Costco Wholesale Corp. | 13,735 | 5,110,656 |
| Grocery Outlet Holding Corp. * | 1,362 | 55,011 |
| Sprouts Farmers Market, Inc. * | 3,471 | 88,893 |
| Sysco Corp. | 12,140 | 1,028,622 |
| | | 6,319,579 |
| |
| Food, Beverage & Tobacco 2.1% |
| Altria Group, Inc. | 28,547 | 1,363,119 |
| Beyond Meat, Inc. * | 1,454 | 191,463 |
| Brown-Forman Corp., Class A | 1,359 | 96,965 |
| Brown-Forman Corp., Class B | 5,383 | 410,615 |
| Campbell Soup Co. | 3,380 | 161,395 |
| Kellogg Co. | 2,986 | 186,386 |
| Lamb Weston Holdings, Inc. | 1,177 | 94,749 |
| McCormick & Co., Inc. - Non Voting Shares | 4,878 | 440,776 |
| Monster Beverage Corp. * | 12,999 | 1,261,553 |
| PepsiCo, Inc. | 35,915 | 5,177,506 |
| Pilgrim's Pride Corp. * | 568 | 13,609 |
| The Boston Beer Co., Inc., Class A * | 313 | 380,761 |
| The Coca-Cola Co. | 79,991 | 4,317,914 |
| The Hershey Co. | 4,015 | 659,665 |
| | | 14,756,476 |
| |
| Health Care Equipment & Services 5.9% |
| Abbott Laboratories | 23,398 | 2,809,632 |
| ABIOMED, Inc. * | 1,561 | 500,660 |
| Align Technology, Inc. * | 2,746 | 1,635,325 |
| Amedisys, Inc. * | 1,129 | 304,661 |
| American Well Corp., Class A * | 1,429 | 21,992 |
| AmerisourceBergen Corp. | 2,447 | 295,598 |
| Anthem, Inc. | 2,255 | 855,524 |
| Baxter International, Inc. | 7,496 | 642,332 |
| Cardinal Health, Inc. | 10,255 | 618,787 |
| Centene Corp. * | 5,946 | 367,106 |
| Cerner Corp. | 10,708 | 803,635 |
| Certara, Inc. * | 846 | 26,911 |
| Change Healthcare, Inc. * | 6,220 | 142,749 |
| Chemed Corp. | 541 | 257,846 |
| Cigna Corp. | 3,274 | 815,259 |
| DaVita, Inc. * | 433 | 50,458 |
| DexCom, Inc. * | 3,237 | 1,249,806 |
| Edwards Lifesciences Corp. * | 21,723 | 2,074,981 |
| Encompass Health Corp. | 1,561 | 132,467 |
| Guardant Health, Inc. * | 2,890 | 459,452 |
| Haemonetics Corp. * | 1,626 | 109,365 |
| HCA Healthcare, Inc. | 4,893 | 983,787 |
| Security | Number
of Shares | Value ($) |
| Hill-Rom Holdings, Inc. | 283 | 31,192 |
| Hologic, Inc. * | 6,287 | 412,113 |
| Humana, Inc. | 1,730 | 770,265 |
| ICU Medical, Inc. * | 174 | 36,239 |
| IDEXX Laboratories, Inc. * | 2,960 | 1,625,010 |
| Insulet Corp. * | 2,309 | 681,663 |
| Intuitive Surgical, Inc. * | 4,078 | 3,527,470 |
| Laboratory Corp. of America Holdings * | 182 | 48,388 |
| Masimo Corp. * | 1,725 | 401,356 |
| McKesson Corp. | 4,180 | 784,001 |
| Molina Healthcare, Inc. * | 1,391 | 354,844 |
| Novocure Ltd. * | 3,548 | 724,147 |
| Oak Street Health, Inc. * | 1,686 | 103,908 |
| Penumbra, Inc. * | 1,163 | 355,866 |
| Quidel Corp. * | 1,304 | 136,646 |
| ResMed, Inc. | 5,042 | 947,745 |
| Signify Health, Inc., Class A * | 526 | 14,912 |
| STERIS plc | 163 | 34,396 |
| Stryker Corp. | 3,982 | 1,045,793 |
| Tandem Diabetes Care, Inc. * | 1,888 | 173,507 |
| Teladoc Health, Inc. * | 3,544 | 610,808 |
| Teleflex, Inc. | 1,023 | 432,197 |
| The Cooper Cos., Inc. | 206 | 84,643 |
| UnitedHealth Group, Inc. | 27,683 | 11,039,980 |
| Veeva Systems, Inc., Class A * | 4,760 | 1,344,462 |
| West Pharmaceutical Services, Inc. | 2,582 | 848,239 |
| | | 41,728,123 |
| |
| Household & Personal Products 1.3% |
| Church & Dwight Co., Inc. | 8,733 | 748,767 |
| Energizer Holdings, Inc. | 1,892 | 93,276 |
| Herbalife Nutrition Ltd. * | 456 | 20,871 |
| Reynolds Consumer Products, Inc. | 438 | 12,842 |
| The Clorox Co. | 3,148 | 574,510 |
| The Estee Lauder Cos., Inc., Class A | 7,136 | 2,239,277 |
| The Procter & Gamble Co. | 38,388 | 5,121,727 |
| | | 8,811,270 |
| |
| Insurance 0.7% |
| Alleghany Corp. * | 45 | 30,554 |
| Aon plc, Class A | 7,986 | 2,008,000 |
| Axis Capital Holdings Ltd. | 251 | 14,006 |
| Brown & Brown, Inc. | 422 | 22,442 |
| Erie Indemnity Co., Class A | 513 | 109,792 |
| GoHealth, Inc., Class A * | 115 | 1,372 |
| Lincoln National Corp. | 826 | 52,971 |
| Marsh & McLennan Cos., Inc. | 13,860 | 1,880,802 |
| Primerica, Inc. | 862 | 137,722 |
| RenaissanceRe Holdings Ltd. | 599 | 101,117 |
| The Progressive Corp. | 5,956 | 600,007 |
| | | 4,958,785 |
| |
| Materials 0.8% |
| Air Products & Chemicals, Inc. | 986 | 284,441 |
| Amcor plc | 8,370 | 98,348 |
| Avery Dennison Corp. | 1,209 | 258,932 |
| Ball Corp. | 10,509 | 984,063 |
| Berry Global Group, Inc. * | 1,626 | 103,446 |
| Crown Holdings, Inc. | 463 | 50,837 |
| Ecolab, Inc. | 1,742 | 390,417 |
| FMC Corp. | 899 | 106,298 |
| Graphic Packaging Holding Co. | 2,032 | 37,694 |
| NewMarket Corp. | 193 | 66,892 |
| Royal Gold, Inc. | 1,645 | 184,010 |
| RPM International, Inc. | 3,747 | 355,365 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| The Scotts Miracle-Gro Co. | 1,338 | 309,292 |
| The Sherwin-Williams Co. | 8,712 | 2,385,955 |
| W.R. Grace & Co. | 681 | 46,805 |
| | | 5,662,795 |
| |
| Media & Entertainment 12.2% |
| Activision Blizzard, Inc. | 10,636 | 969,897 |
| Alphabet, Inc., Class A * | 8,206 | 19,312,821 |
| Alphabet, Inc., Class C * | 7,949 | 19,158,044 |
| Altice USA, Inc., Class A * | 7,890 | 286,486 |
| Cable One, Inc. | 187 | 334,730 |
| Charter Communications, Inc., Class A * | 4,468 | 3,008,975 |
| Electronic Arts, Inc. | 1,389 | 197,349 |
| Facebook, Inc., Class A * | 84,607 | 27,504,043 |
| IAC/InterActiveCorp * | 2,647 | 670,935 |
| Liberty Media Corp. - Liberty SiriusXM, Class A * | 330 | 14,913 |
| Liberty Media Corp. - Liberty SiriusXM, Class C * | 742 | 33,561 |
| Live Nation Entertainment, Inc. * | 4,970 | 406,944 |
| Match Group, Inc. * | 7,891 | 1,228,076 |
| Netflix, Inc. * | 14,976 | 7,689,727 |
| Nexstar Media Group, Inc., Class A | 999 | 147,263 |
| Pinterest, Inc., Class A * | 11,750 | 779,847 |
| Playtika Holding Corp. * | 1,269 | 35,253 |
| Roku, Inc. * | 3,833 | 1,314,604 |
| Sirius XM Holdings, Inc. | 23,383 | 142,636 |
| Spotify Technology S.A. * | 4,721 | 1,190,258 |
| Take-Two Interactive Software, Inc. * | 3,714 | 651,361 |
| World Wrestling Entertainment, Inc., Class A | 1,626 | 89,609 |
| Zillow Group, Inc., Class A * | 245 | 32,671 |
| Zillow Group, Inc., Class C * | 542 | 70,525 |
| Zynga, Inc., Class A * | 25,619 | 277,197 |
| | | 85,547,725 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 7.3% |
| 10X Genomics, Inc., Class A * | 2,014 | 398,369 |
| AbbVie, Inc. | 58,359 | 6,507,029 |
| ACADIA Pharmaceuticals, Inc. * | 3,854 | 79,238 |
| Acceleron Pharma, Inc. * | 1,701 | 212,574 |
| Adaptive Biotechnologies Corp. * | 2,694 | 112,070 |
| Agilent Technologies, Inc. | 917 | 122,548 |
| Agios Pharmaceuticals, Inc. * | 187 | 10,435 |
| Alexion Pharmaceuticals, Inc. * | 1,146 | 193,307 |
| Alnylam Pharmaceuticals, Inc. * | 4,066 | 571,842 |
| Amgen, Inc. | 20,530 | 4,919,809 |
| Avantor, Inc. * | 17,448 | 559,034 |
| Berkeley Lights, Inc. * | 462 | 22,689 |
| Bio-Techne Corp. | 1,268 | 542,057 |
| Biogen, Inc. * | 1,626 | 434,679 |
| BioMarin Pharmaceutical, Inc. * | 5,758 | 448,663 |
| Bluebird Bio, Inc. * | 1,094 | 32,820 |
| Bristol-Myers Squibb Co. | 28,968 | 1,808,183 |
| Bruker Corp. | 1,562 | 107,028 |
| Charles River Laboratories International, Inc. * | 1,520 | 505,324 |
| Eli Lilly & Co. | 29,683 | 5,425,162 |
| Exact Sciences Corp. * | 4,535 | 597,804 |
| Exelixis, Inc. * | 3,952 | 97,298 |
| Global Blood Therapeutics, Inc. * | 2,056 | 83,844 |
| Horizon Therapeutics plc * | 6,359 | 601,689 |
| Illumina, Inc. * | 5,169 | 2,030,590 |
| Incyte Corp. * | 6,471 | 552,494 |
| Ionis Pharmaceuticals, Inc. * | 2,216 | 94,889 |
| Iovance Biotherapeutics, Inc. * | 4,854 | 152,610 |
| IQVIA Holdings, Inc. * | 2,544 | 597,051 |
| Security | Number
of Shares | Value ($) |
| Johnson & Johnson | 12,458 | 2,027,290 |
| Maravai LifeSciences Holdings, Inc., Class A * | 2,114 | 82,256 |
| Merck & Co., Inc. | 77,810 | 5,796,845 |
| Mettler-Toledo International, Inc. * | 764 | 1,003,376 |
| Moderna, Inc. * | 10,045 | 1,796,247 |
| Neurocrine Biosciences, Inc. * | 3,272 | 309,171 |
| PerkinElmer, Inc. | 747 | 96,834 |
| PPD, Inc. * | 4,786 | 221,113 |
| PRA Health Sciences, Inc. * | 1,892 | 315,756 |
| Reata Pharmaceuticals, Inc., Class A * | 832 | 84,365 |
| Regeneron Pharmaceuticals, Inc. * | 3,408 | 1,640,270 |
| Repligen Corp. * | 1,910 | 404,366 |
| Royalty Pharma plc, Class A | 4,804 | 211,376 |
| Sage Therapeutics, Inc. * | 126 | 9,924 |
| Sana Biotechnology, Inc. * | 651 | 13,997 |
| Sarepta Therapeutics, Inc. * | 2,664 | 188,718 |
| Seagen, Inc. * | 4,462 | 641,457 |
| Sotera Health Co. * | 1,386 | 35,703 |
| Syneos Health, Inc. * | 320 | 27,152 |
| Thermo Fisher Scientific, Inc. | 8,173 | 3,843,190 |
| Vertex Pharmaceuticals, Inc. * | 9,147 | 1,995,875 |
| Waters Corp. * | 160 | 47,979 |
| Zoetis, Inc. | 15,156 | 2,622,443 |
| | | 51,236,832 |
| |
| Real Estate 1.7% |
| American Tower Corp. | 15,547 | 3,960,909 |
| Americold Realty Trust | 808 | 32,635 |
| Brookfield Property REIT, Inc., Class A | 1,229 | 22,104 |
| CoreSite Realty Corp. | 932 | 113,229 |
| Crown Castle International Corp. | 13,661 | 2,582,749 |
| Equinix, Inc. | 3,129 | 2,255,258 |
| Equity LifeStyle Properties, Inc. | 2,517 | 174,680 |
| Extra Space Storage, Inc. | 3,172 | 471,645 |
| Iron Mountain, Inc. | 5,910 | 237,109 |
| Public Storage | 3,466 | 974,500 |
| SBA Communications Corp. | 532 | 159,451 |
| Simon Property Group, Inc. | 9,050 | 1,101,747 |
| | | 12,086,016 |
| |
| Retailing 11.2% |
| Amazon.com, Inc. * | 14,941 | 51,806,722 |
| AutoZone, Inc. * | 474 | 693,993 |
| Best Buy Co., Inc. | 1,465 | 170,336 |
| Burlington Stores, Inc. * | 2,045 | 667,345 |
| CarMax, Inc. * | 415 | 55,295 |
| Carvana Co. * | 1,968 | 561,392 |
| Dollar General Corp. | 8,637 | 1,854,796 |
| Dollar Tree, Inc. * | 3,940 | 452,706 |
| eBay, Inc. | 20,884 | 1,165,118 |
| Etsy, Inc. * | 4,155 | 825,973 |
| Five Below, Inc. * | 1,915 | 385,432 |
| Floor & Decor Holdings, Inc., Class A * | 3,297 | 365,703 |
| GrubHub, Inc. * | 336 | 22,861 |
| Leslie's, Inc. * | 924 | 26,260 |
| Lowe's Cos., Inc. | 25,853 | 5,073,651 |
| O'Reilly Automotive, Inc. * | 2,469 | 1,365,061 |
| Ollie's Bargain Outlet Holdings, Inc. * | 1,690 | 155,936 |
| Petco Health & Wellness Co., Inc. * | 850 | 20,077 |
| Pool Corp. | 1,367 | 577,585 |
| Ross Stores, Inc. | 9,947 | 1,302,460 |
| The Home Depot, Inc. | 18,931 | 6,127,397 |
| The TJX Cos., Inc. | 34,200 | 2,428,200 |
| Tractor Supply Co. | 4,067 | 767,036 |
| Ulta Beauty, Inc. * | 1,766 | 581,632 |
| Vroom, Inc. * | 2,863 | 132,471 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Wayfair, Inc., Class A * | 2,274 | 672,126 |
| Williams-Sonoma, Inc. | 431 | 73,593 |
| | | 78,331,157 |
| |
| Semiconductors & Semiconductor Equipment 6.5% |
| Advanced Micro Devices, Inc. * | 39,243 | 3,203,014 |
| Allegro MicroSystems, Inc. * | 634 | 15,647 |
| Analog Devices, Inc. | 1,569 | 240,308 |
| Applied Materials, Inc. | 32,287 | 4,284,808 |
| Broadcom, Inc. | 13,196 | 6,020,015 |
| Enphase Energy, Inc. * | 3,723 | 518,428 |
| Entegris, Inc. | 4,394 | 494,677 |
| KLA Corp. | 5,463 | 1,722,757 |
| Lam Research Corp. | 5,028 | 3,119,623 |
| Marvell Technology, Inc. | 3,874 | 175,144 |
| Maxim Integrated Products, Inc. | 3,082 | 289,708 |
| Microchip Technology, Inc. | 6,597 | 991,463 |
| MKS Instruments, Inc. | 1,454 | 260,426 |
| Monolithic Power Systems, Inc. | 1,553 | 561,223 |
| NVIDIA Corp. | 20,805 | 12,490,906 |
| QUALCOMM, Inc. | 39,663 | 5,505,224 |
| SolarEdge Technologies, Inc. * | 1,717 | 452,498 |
| Teradyne, Inc. | 5,819 | 727,840 |
| Texas Instruments, Inc. | 16,120 | 2,909,821 |
| Universal Display Corp. | 1,506 | 336,877 |
| Xilinx, Inc. | 8,595 | 1,099,816 |
| | | 45,420,223 |
| |
| Software & Services 26.1% |
| Accenture plc, Class A | 22,466 | 6,514,466 |
| Adobe, Inc. * | 16,958 | 8,620,430 |
| Akamai Technologies, Inc. * | 4,621 | 502,303 |
| Alteryx, Inc., Class A * | 1,902 | 155,489 |
| Anaplan, Inc. * | 4,761 | 283,994 |
| ANSYS, Inc. * | 3,016 | 1,102,831 |
| Aspen Technology, Inc. * | 2,220 | 290,465 |
| Atlassian Corp. plc, Class A * | 4,621 | 1,097,765 |
| Autodesk, Inc. * | 5,148 | 1,502,753 |
| Automatic Data Processing, Inc. | 13,025 | 2,435,545 |
| Avalara, Inc. * | 2,888 | 409,258 |
| BigCommerce Holdings, Inc. * | 1,288 | 77,203 |
| Bill.com Holdings, Inc. * | 2,609 | 403,430 |
| Black Knight, Inc. * | 5,307 | 384,333 |
| Broadridge Financial Solutions, Inc. | 4,035 | 640,072 |
| C3.ai, Inc., Class A *(a) | 439 | 29,088 |
| Cadence Design Systems, Inc. * | 9,705 | 1,278,828 |
| CDK Global, Inc. | 552 | 29,582 |
| Ceridian HCM Holding, Inc. * | 2,899 | 273,898 |
| Citrix Systems, Inc. | 1,167 | 144,533 |
| Cloudflare, Inc., Class A * | 4,087 | 346,332 |
| Cognizant Technology Solutions Corp., Class A | 1,317 | 105,887 |
| Coupa Software, Inc. * | 2,452 | 659,686 |
| Crowdstrike Holdings, Inc., Class A * | 3,957 | 825,074 |
| Datadog, Inc., Class A * | 5,353 | 459,127 |
| Datto Holding Corp. * | 354 | 9,045 |
| DocuSign, Inc. * | 6,379 | 1,422,134 |
| Dolby Laboratories, Inc., Class A | 256 | 25,976 |
| Dropbox, Inc., Class A * | 8,647 | 222,228 |
| Duck Creek Technologies, Inc. * | 2,123 | 88,274 |
| Dynatrace, Inc. * | 6,439 | 335,086 |
| Elastic N.V. * | 2,311 | 278,753 |
| EPAM Systems, Inc. * | 1,870 | 855,992 |
| Everbridge, Inc. * | 1,238 | 164,295 |
| Fair Isaac Corp. * | 983 | 512,546 |
| Fastly, Inc., Class A * | 2,752 | 175,770 |
| Security | Number
of Shares | Value ($) |
| FireEye, Inc. * | 1,727 | 34,324 |
| Fiserv, Inc. * | 5,977 | 717,957 |
| Five9, Inc. * | 2,167 | 407,331 |
| FleetCor Technologies, Inc. * | 2,902 | 834,963 |
| Fortinet, Inc. * | 4,679 | 955,592 |
| Gartner, Inc. * | 3,052 | 597,826 |
| Genpact Ltd. | 2,518 | 119,681 |
| Globant S.A. * | 1,347 | 308,705 |
| GoDaddy, Inc., Class A * | 5,898 | 512,064 |
| Guidewire Software, Inc. * | 573 | 60,457 |
| HubSpot, Inc. * | 1,456 | 766,511 |
| Intuit, Inc. | 8,881 | 3,660,393 |
| Jack Henry & Associates, Inc. | 2,106 | 342,920 |
| Jamf Holding Corp. * | 691 | 25,235 |
| JFrog Ltd. * | 392 | 19,220 |
| Manhattan Associates, Inc. * | 1,988 | 272,833 |
| Mastercard, Inc., Class A | 31,093 | 11,879,392 |
| McAfee Corp., Class A | 571 | 13,864 |
| Medallia, Inc. * | 3,096 | 91,301 |
| Microsoft Corp. | 263,882 | 66,545,763 |
| MongoDB, Inc. * | 1,830 | 544,352 |
| nCino, Inc. * | 1,348 | 88,146 |
| New Relic, Inc. * | 1,878 | 120,755 |
| NortonLifeLock, Inc. | 19,001 | 410,612 |
| Nutanix, Inc., Class A * | 6,654 | 179,924 |
| Okta, Inc. * | 4,090 | 1,103,073 |
| Oracle Corp. | 57,151 | 4,331,474 |
| PagerDuty, Inc. * | 2,510 | 106,575 |
| Palo Alto Networks, Inc. * | 3,344 | 1,181,736 |
| Paychex, Inc. | 8,922 | 869,806 |
| Paycom Software, Inc. * | 1,705 | 655,419 |
| Paylocity Holding Corp. * | 1,343 | 259,521 |
| PayPal Holdings, Inc. * | 41,388 | 10,855,659 |
| Pegasystems, Inc. | 1,251 | 158,802 |
| Proofpoint, Inc. * | 1,990 | 342,499 |
| PTC, Inc. * | 3,680 | 481,859 |
| RingCentral, Inc., Class A * | 2,770 | 883,491 |
| salesforce.com, Inc. * | 28,646 | 6,597,747 |
| ServiceNow, Inc. * | 6,852 | 3,469,647 |
| Slack Technologies, Inc., Class A * | 17,435 | 739,244 |
| Smartsheet, Inc., Class A * | 3,950 | 234,235 |
| Splunk, Inc. * | 5,700 | 720,594 |
| Square, Inc., Class A * | 13,014 | 3,186,087 |
| SS&C Technologies Holdings, Inc. | 1,634 | 121,275 |
| StoneCo Ltd., Class A * | 7,091 | 458,362 |
| Switch, Inc., Class A | 3,192 | 59,275 |
| Synopsys, Inc. * | 4,941 | 1,220,723 |
| Teradata Corp. * | 2,919 | 144,403 |
| The Trade Desk, Inc., Class A * | 1,454 | 1,060,417 |
| The Western Union Co. | 2,827 | 72,824 |
| Twilio, Inc., Class A * | 4,209 | 1,548,070 |
| Tyler Technologies, Inc. * | 1,392 | 591,405 |
| Unity Software, Inc. * | 866 | 87,968 |
| VeriSign, Inc. * | 2,099 | 459,198 |
| Visa, Inc., Class A | 59,511 | 13,899,389 |
| VMware, Inc., Class A *(a) | 2,839 | 456,596 |
| WEX, Inc. * | 137 | 28,114 |
| Workday, Inc., Class A * | 6,305 | 1,557,335 |
| Zendesk, Inc. * | 4,067 | 594,392 |
| Zoom Video Communications, Inc., Class A * | 6,166 | 1,970,469 |
| Zscaler, Inc. * | 2,534 | 475,480 |
| | | 183,155,755 |
| |
| Technology Hardware & Equipment 11.2% |
| Amphenol Corp., Class A | 12,210 | 822,221 |
| Apple Inc. | 558,223 | 73,383,996 |
| Arista Networks, Inc. * | 1,694 | 533,898 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| CDW Corp. | 4,993 | 890,402 |
| Cognex Corp. | 5,878 | 506,213 |
| Coherent, Inc. * | 704 | 183,033 |
| CommScope Holding Co., Inc. * | 321 | 5,281 |
| Dell Technologies, Inc., Class C * | 582 | 57,228 |
| IPG Photonics Corp. * | 73 | 15,849 |
| Jabil, Inc. | 991 | 51,948 |
| Keysight Technologies, Inc. * | 2,221 | 320,601 |
| Lumentum Holdings, Inc. * | 293 | 24,920 |
| Motorola Solutions, Inc. | 614 | 115,616 |
| NetApp, Inc. | 4,247 | 317,208 |
| Pure Storage, Inc., Class A * | 5,027 | 101,646 |
| Ubiquiti, Inc. | 245 | 69,906 |
| Zebra Technologies Corp., Class A * | 1,689 | 823,793 |
| | | 78,223,759 |
| |
| Transportation 1.4% |
| C.H. Robinson Worldwide, Inc. | 740 | 71,839 |
| Expeditors International of Washington, Inc. | 3,626 | 398,352 |
| JB Hunt Transport Services, Inc. | 800 | 136,568 |
| Landstar System, Inc. | 1,082 | 186,407 |
| Old Dominion Freight Line, Inc. | 2,958 | 762,602 |
| Uber Technologies, Inc. * | 37,344 | 2,045,331 |
| Union Pacific Corp. | 12,046 | 2,675,296 |
| United Parcel Service, Inc., Class B | 16,661 | 3,396,512 |
| XPO Logistics, Inc. * | 170 | 23,650 |
| | | 9,696,557 |
| |
| Utilities 0.0% |
| NRG Energy, Inc. | 2,969 | 106,350 |
| Total Common Stock |
| (Cost $451,004,679) | | 696,434,237 |
|
| Investment Companies 0.6% of net assets |
| |
| Equity Funds 0.1% |
| iShares Russell 1000 Growth ETF | 3,200 | 831,168 |
| |
| Security | Number
of Shares | Value ($) |
| Money Market Fund 0.4% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (b) | 3,167,648 | 3,167,648 |
| |
| Securities Lending Collateral 0.1% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (b) | 502,600 | 502,600 |
| Total Investment Companies |
| (Cost $4,479,139) | | 4,501,416 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
(Depreciation)
($) |
| Futures Contracts | |
| Long | |
| Russell 1000 Growth Index, e-mini, expires 06/18/21 | 29 | 3,781,020 | (26,902) |
| S&P 500 Index, e-mini, expires 06/18/21 | 2 | 417,440 | 187 |
| Net Unrealized Depreciation | (26,715) |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $486,747. |
| (b) | The rate shown is the 7-day yield. |
| | |
| ETF — | Exchange-traded fund |
| REIT — | Real Estate Investment Trust |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $696,434,237 | $— | $— | $696,434,237 | |
| Investment Companies1 | 4,501,416 | — | — | 4,501,416 | |
| Futures Contracts2 | 187 | — | — | 187 | |
| Liabilities | | | | | |
| Futures Contracts2 | (26,902) | — | — | (26,902) | |
| Total | $700,908,938 | $— | $— | $700,908,938 | |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $454,981,218) including securities on loan of $486,747 | | $700,433,053 |
| Collateral invested for securities on loan, at value (cost $502,600) | | 502,600 |
| Deposit with broker for futures contracts | | 414,200 |
| Receivables: | | |
| Investments sold | | 130,660 |
| Fund shares sold | | 878,157 |
| Dividends | | 242,738 |
| Income from securities on loan | + | 199 |
| Total assets | | 702,601,607 |
| Liabilities |
| Collateral held for securities on loan | | 502,600 |
| Payables: | | |
| Investment adviser fees | | 20,902 |
| Fund shares redeemed | | 475,780 |
| Variation margin on futures contracts | + | 28,168 |
| Total liabilities | | 1,027,450 |
| Net Assets |
| Total assets | | 702,601,607 |
| Total liabilities | – | 1,027,450 |
| Net assets | | $701,574,157 |
| Net Assets by Source | | |
| Capital received from investors | | 469,499,759 |
| Total distributable earnings | | 232,074,398 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $701,574,157 | | 9,055,677 | | $77.47 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated | | $2,504,018 |
| Securities on loan, net | + | 3,386 |
| Total investment income | | 2,507,404 |
| Expenses |
| Investment adviser fees | | 105,230 |
| Total expenses | – | 105,230 |
| Net investment income | | 2,402,174 |
| Realized and Unrealized Gains (Losses) |
| Net realized losses on sales of securities - unaffiliated | | (450,320) |
| Net realized gains on futures contracts | + | 621,458 |
| Net realized gains | | 171,138 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 121,361,782 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 36,820 |
| Net change in unrealized appreciation (depreciation) | + | 121,398,602 |
| Net realized and unrealized gains | | 121,569,740 |
| Increase in net assets resulting from operations | | $123,971,914 |
Schwab Equity Index Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $2,402,174 | $3,272,535 |
| Net realized gains (losses) | | 171,138 | (10,491,785) |
| Net change in unrealized appreciation (depreciation) | + | 121,398,602 | 98,464,618 |
| Increase in net assets from operations | | 123,971,914 | 91,245,368 |
| Distributions to Shareholders | |
| Total distributions | | ($3,820,481) | ($1,890,344) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,644,389 | $191,475,942 | 8,242,661 | $434,758,920 |
| Shares reinvested | | 45,814 | 3,263,376 | 30,207 | 1,571,983 |
| Shares redeemed | + | (1,397,767) | (100,521,588) | (3,889,701) | (204,300,295) |
| Net transactions in fund shares | | 1,292,436 | $94,217,730 | 4,383,167 | $232,030,608 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 7,763,241 | $487,204,994 | 3,380,074 | $165,819,362 |
| Total increase | + | 1,292,436 | 214,369,163 | 4,383,167 | 321,385,632 |
| End of period | | 9,055,677 | $701,574,157 | 7,763,241 | $487,204,994 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 12/20/17 1–
10/31/18 | | |
| Per-Share Data |
| Net asset value at beginning of period | $38.09 | $43.06 | $39.51 | $40.00 | | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.52 | 1.00 | 1.13 | 0.82 | | |
| Net realized and unrealized gains (losses) | 13.15 | (4.07) | 3.10 | (1.31) | | |
| Total from investment operations | 13.67 | (3.07) | 4.23 | (0.49) | | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.88) | (1.06) | (0.62) | — | | |
| Distributions from net realized gains | — | (0.84) | (0.06) | — | | |
| Total distributions | (0.88) | (1.90) | (0.68) | — | | |
| Net asset value at end of period | $50.88 | $38.09 | $43.06 | $39.51 | | |
| Total return | 36.28% 3 | (7.69%) | 11.08% | (1.23%) 3 | | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.035% 4 | 0.035% | 0.035% 5 | 0.040% 4,6 | | |
| Net operating expenses | N/A | N/A | N/A | 0.02% 4,6 | | |
| Net investment income (loss) | 2.26% 4 | 2.57% | 2.79% | 2.36% 4 | | |
| Portfolio turnover rate | 3% 3 | 50% | 22% | 22% 3 | | |
| Net assets, end of period (x 1,000,000) | $515 | $331 | $212 | $70 | | |
| |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
3
Not annualized.
4
Annualized.
5
Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended 10/31/19 is a blended ratio.
6
The investment adviser voluntarily agreed to waive the fund’s management fees to 0.00% beginning with the fund’s commencement of operations through June 30, 2018. The ratio presented for period ended 10/31/18 is a blended ratio.
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.5% of net assets |
| |
| Automobiles & Components 1.0% |
| Aptiv plc * | 6,949 | 999,892 |
| BorgWarner, Inc. | 5,516 | 267,967 |
| Ford Motor Co. * | 101,141 | 1,167,167 |
| General Motors Co. * | 32,433 | 1,855,816 |
| Gentex Corp. | 6,330 | 222,690 |
| Harley-Davidson, Inc. | 3,984 | 192,706 |
| Lear Corp. | 1,561 | 286,974 |
| Thor Industries, Inc. | 1,373 | 194,403 |
| | | 5,187,615 |
| |
| Banks 8.6% |
| Associated Banc-Corp. | 3,966 | 86,816 |
| Bank of America Corp. | 200,902 | 8,142,558 |
| Bank of Hawaii Corp. | 1,015 | 92,253 |
| Bank OZK | 3,162 | 129,610 |
| BOK Financial Corp. | 805 | 70,792 |
| Citigroup, Inc. | 54,080 | 3,852,659 |
| Citizens Financial Group, Inc. | 11,077 | 512,644 |
| Comerica, Inc. | 3,612 | 271,478 |
| Commerce Bancshares, Inc. | 2,740 | 213,199 |
| Cullen/Frost Bankers, Inc. | 1,457 | 174,927 |
| East West Bancorp, Inc. | 3,649 | 277,871 |
| F.N.B. Corp. | 8,430 | 108,663 |
| Fifth Third Bancorp | 18,441 | 747,598 |
| First Citizens BancShares, Inc., Class A | 163 | 141,396 |
| First Hawaiian, Inc. | 3,334 | 91,552 |
| First Horizon Corp. | 14,124 | 258,328 |
| First Republic Bank | 4,479 | 820,732 |
| Huntington Bancshares, Inc. | 26,218 | 401,660 |
| JPMorgan Chase & Co. | 78,676 | 12,101,156 |
| KeyCorp | 25,242 | 549,266 |
| M&T Bank Corp. | 3,312 | 522,269 |
| MGIC Investment Corp. | 8,778 | 133,777 |
| New York Community Bancorp, Inc. | 11,563 | 138,293 |
| PacWest Bancorp | 2,991 | 129,839 |
| People's United Financial, Inc. | 11,004 | 199,502 |
| Pinnacle Financial Partners, Inc. | 1,917 | 168,006 |
| Popular, Inc. | 2,164 | 160,049 |
| Prosperity Bancshares, Inc. | 2,307 | 169,242 |
| Regions Financial Corp. | 24,962 | 544,172 |
| Rocket Cos., Inc., Class A | 1,675 | 37,604 |
| Signature Bank | 1,459 | 366,953 |
| Sterling Bancorp | 5,053 | 126,982 |
| SVB Financial Group * | 1,333 | 762,249 |
| Synovus Financial Corp. | 3,794 | 177,787 |
| TCF Financial Corp. | 3,894 | 177,255 |
| TFS Financial Corp. | 1,202 | 23,511 |
| The PNC Financial Services Group, Inc. | 11,010 | 2,058,319 |
| Truist Financial Corp. | 34,973 | 2,074,249 |
| U.S. Bancorp | 35,288 | 2,094,343 |
| Umpqua Holdings Corp. | 5,638 | 105,092 |
| Webster Financial Corp. | 2,315 | 122,487 |
| Wells Fargo & Co. | 98,575 | 4,440,804 |
| Security | Number
of Shares | Value ($) |
| Western Alliance Bancorp | 2,541 | 266,983 |
| Wintrust Financial Corp. | 1,468 | 113,183 |
| Zions Bancorp NA | 4,163 | 232,295 |
| | | 44,390,403 |
| |
| Capital Goods 9.7% |
| 3M Co. | 4,962 | 978,209 |
| A.O. Smith Corp. | 3,427 | 232,179 |
| Acuity Brands, Inc. | 922 | 171,049 |
| AECOM * | 3,665 | 243,466 |
| AGCO Corp. | 1,597 | 233,034 |
| Air Lease Corp. | 2,752 | 128,546 |
| Allegion plc | 827 | 111,132 |
| Allison Transmission Holdings, Inc. | 1,047 | 43,419 |
| AMETEK, Inc. | 5,943 | 801,889 |
| Armstrong World Industries, Inc. | 776 | 80,432 |
| Array Technologies, Inc. * | 2,897 | 81,580 |
| BWX Technologies, Inc. | 873 | 58,421 |
| Carlisle Cos., Inc. | 1,356 | 259,877 |
| Carrier Global Corp. | 14,437 | 629,164 |
| Caterpillar, Inc. | 14,062 | 3,207,683 |
| Colfax Corp. * | 2,869 | 129,650 |
| Crane Co. | 1,266 | 119,080 |
| Cummins, Inc. | 3,823 | 963,549 |
| Curtiss-Wright Corp. | 1,074 | 137,365 |
| Deere & Co. | 7,321 | 2,714,993 |
| Donaldson Co., Inc. | 2,954 | 185,748 |
| Dover Corp. | 3,731 | 556,628 |
| Eaton Corp. plc | 10,382 | 1,483,899 |
| Emerson Electric Co. | 15,450 | 1,398,070 |
| Fastenal Co. | 2,829 | 147,900 |
| Flowserve Corp. | 3,362 | 133,270 |
| Fortive Corp. | 7,720 | 546,730 |
| Fortune Brands Home & Security, Inc. | 3,574 | 375,199 |
| Gates Industrial Corp. plc * | 1,715 | 29,584 |
| Generac Holdings, Inc. * | 143 | 46,325 |
| General Dynamics Corp. | 6,587 | 1,253,045 |
| General Electric Co. | 225,718 | 2,961,420 |
| Graco, Inc. | 2,155 | 165,504 |
| GrafTech International Ltd. | 4,434 | 56,400 |
| HEICO Corp. | 219 | 30,835 |
| HEICO Corp., Class A | 400 | 50,512 |
| Hexcel Corp. * | 2,165 | 122,128 |
| Honeywell International, Inc. | 18,236 | 4,067,357 |
| Howmet Aerospace, Inc. * | 10,195 | 325,832 |
| Hubbell, Inc. | 1,398 | 268,430 |
| Huntington Ingalls Industries, Inc. | 923 | 195,971 |
| IDEX Corp. | 1,953 | 437,863 |
| Illinois Tool Works, Inc. | 4,546 | 1,047,671 |
| Ingersoll Rand, Inc. * | 8,983 | 443,850 |
| ITT, Inc. | 2,229 | 210,217 |
| Johnson Controls International plc | 18,854 | 1,175,358 |
| L3Harris Technologies, Inc. | 5,446 | 1,139,467 |
| Lennox International, Inc. | 894 | 299,794 |
| Lincoln Electric Holdings, Inc. | 846 | 108,330 |
| Masco Corp. | 6,658 | 425,313 |
| Mercury Systems, Inc. * | 262 | 19,713 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| MSC Industrial Direct Co., Inc., Class A | 1,203 | 108,462 |
| Nordson Corp. | 270 | 57,081 |
| Northrop Grumman Corp. | 327 | 115,902 |
| nVent Electric plc | 4,036 | 122,896 |
| Oshkosh Corp. | 1,757 | 218,623 |
| Otis Worldwide Corp. | 10,583 | 824,098 |
| Owens Corning | 2,776 | 268,745 |
| PACCAR, Inc. | 8,795 | 790,495 |
| Parker-Hannifin Corp. | 3,320 | 1,041,849 |
| Pentair plc | 4,273 | 275,651 |
| Quanta Services, Inc. | 2,835 | 273,974 |
| Raytheon Technologies Corp. | 37,030 | 3,082,377 |
| Regal Beloit Corp. | 1,057 | 152,663 |
| Rockwell Automation, Inc. | 1,546 | 408,546 |
| Roper Technologies, Inc. | 2,330 | 1,040,205 |
| Sensata Technologies Holding plc * | 4,020 | 232,115 |
| Shoals Technologies Group, Inc., Class A * | 2,110 | 67,668 |
| Snap-on, Inc. | 1,390 | 330,264 |
| Spirit AeroSystems Holdings, Inc., Class A | 2,715 | 124,048 |
| Stanley Black & Decker, Inc. | 3,998 | 826,666 |
| Teledyne Technologies, Inc. * | 938 | 419,989 |
| Textron, Inc. | 5,920 | 380,301 |
| The AZEK Co., Inc. * | 1,993 | 96,222 |
| The Boeing Co. * | 13,872 | 3,250,348 |
| The Middleby Corp. * | 1,433 | 259,832 |
| The Timken Co. | 1,655 | 138,805 |
| The Toro Co. | 283 | 32,432 |
| Trane Technologies plc | 6,194 | 1,076,703 |
| TransDigm Group, Inc. * | 1,067 | 654,861 |
| Trinity Industries, Inc. | 2,264 | 62,577 |
| United Rentals, Inc. * | 1,868 | 597,667 |
| Univar Solutions, Inc. * | 4,308 | 100,592 |
| Valmont Industries, Inc. | 543 | 134,040 |
| Virgin Galactic Holdings, Inc. * | 203 | 4,496 |
| W.W. Grainger, Inc. | 301 | 130,496 |
| Watsco, Inc. | 845 | 247,467 |
| Westinghouse Air Brake Technologies Corp. | 4,694 | 385,237 |
| Woodward, Inc. | 1,462 | 182,765 |
| Xylem, Inc. | 4,646 | 514,080 |
| | | 50,064,318 |
| |
| Commercial & Professional Services 1.0% |
| ADT, Inc. | 4,023 | 37,012 |
| CACI International, Inc., Class A * | 542 | 138,134 |
| Cintas Corp. | 257 | 88,701 |
| Clean Harbors, Inc. * | 1,343 | 119,473 |
| CoreLogic, Inc. | 1,787 | 142,424 |
| Driven Brands Holdings, Inc. * | 822 | 23,443 |
| Dun & Bradstreet Holdings, Inc. * | 1,874 | 44,526 |
| Equifax, Inc. | 813 | 186,364 |
| FTI Consulting, Inc. * | 912 | 126,631 |
| IAA, Inc. * | 2,672 | 167,828 |
| IHS Markit Ltd. | 4,687 | 504,227 |
| Jacobs Engineering Group, Inc. | 3,355 | 448,262 |
| Leidos Holdings, Inc. | 3,153 | 319,336 |
| ManpowerGroup, Inc. | 1,507 | 182,181 |
| MSA Safety, Inc. | 739 | 118,802 |
| Nielsen Holdings plc | 9,187 | 235,647 |
| Republic Services, Inc. | 5,439 | 578,166 |
| Robert Half International, Inc. | 2,852 | 249,864 |
| Rollins, Inc. | 688 | 25,649 |
| Science Applications International Corp. | 1,320 | 118,034 |
| Stericycle, Inc. * | 2,377 | 181,318 |
| TransUnion | 428 | 44,764 |
| Waste Management, Inc. | 9,544 | 1,316,786 |
| | | 5,397,572 |
| |
| Security | Number
of Shares | Value ($) |
| Consumer Durables & Apparel 1.6% |
| Brunswick Corp. | 2,055 | 220,152 |
| Capri Holdings Ltd. * | 3,710 | 204,347 |
| Carter's, Inc. * | 1,109 | 120,648 |
| Columbia Sportswear Co. | 758 | 82,630 |
| D.R. Horton, Inc. | 8,572 | 842,542 |
| Garmin Ltd. | 3,884 | 533,040 |
| Hanesbrands, Inc. | 8,977 | 189,056 |
| Hasbro, Inc. | 3,309 | 329,080 |
| Leggett & Platt, Inc. | 3,434 | 170,567 |
| Lennar Corp., Class A | 7,023 | 727,583 |
| Lennar Corp., Class B | 401 | 32,309 |
| Mattel, Inc. * | 3,582 | 76,870 |
| Mohawk Industries, Inc. * | 1,510 | 310,305 |
| Newell Brands, Inc. | 9,956 | 268,414 |
| NVR, Inc. * | 78 | 391,412 |
| Peloton Interactive, Inc., Class A * | 4,998 | 491,553 |
| Polaris, Inc. | 1,346 | 188,480 |
| PulteGroup, Inc. | 6,935 | 409,997 |
| PVH Corp. * | 1,809 | 204,743 |
| Ralph Lauren Corp. * | 1,211 | 161,414 |
| Skechers U.S.A., Inc., Class A * | 3,493 | 169,375 |
| Tapestry, Inc. * | 7,150 | 342,127 |
| Tempur Sealy International, Inc. | 1,235 | 47,103 |
| Toll Brothers, Inc. | 2,909 | 182,394 |
| Under Armour, Inc., Class A * | 4,869 | 118,365 |
| Under Armour, Inc., Class C * | 5,115 | 101,840 |
| VF Corp. | 7,881 | 690,848 |
| Whirlpool Corp. | 1,602 | 378,793 |
| | | 7,985,987 |
| |
| Consumer Services 2.8% |
| 2U, Inc. * | 1,226 | 48,120 |
| Aramark | 5,949 | 231,238 |
| Bright Horizons Family Solutions, Inc. * | 467 | 67,636 |
| Carnival Corp. * | 15,742 | 440,146 |
| Choice Hotels International, Inc. * | 907 | 103,217 |
| Darden Restaurants, Inc. | 3,381 | 496,060 |
| Expedia Group, Inc. * | 3,181 | 560,588 |
| Extended Stay America, Inc. | 4,621 | 91,912 |
| frontdoor, Inc. * | 1,847 | 98,870 |
| Graham Holdings Co., Class B | 101 | 64,197 |
| Grand Canyon Education, Inc. * | 1,206 | 130,598 |
| H&R Block, Inc. | 1,401 | 31,186 |
| Hilton Worldwide Holdings, Inc. * | 7,078 | 910,939 |
| Hyatt Hotels Corp., Class A * | 919 | 75,661 |
| Las Vegas Sands Corp. * | 4,940 | 302,624 |
| Marriott International, Inc., Class A * | 6,971 | 1,035,333 |
| McDonald's Corp. | 16,570 | 3,911,845 |
| MGM Resorts International | 12,232 | 498,087 |
| Norwegian Cruise Line Holdings Ltd. * | 9,363 | 290,721 |
| Planet Fitness, Inc., Class A * | 912 | 76,599 |
| Royal Caribbean Cruises Ltd. * | 5,121 | 445,271 |
| Service Corp. International | 4,361 | 233,052 |
| Six Flags Entertainment Corp. * | 1,969 | 92,504 |
| Starbucks Corp. | 12,840 | 1,470,051 |
| Terminix Global Holdings, Inc. * | 3,432 | 174,654 |
| Travel & Leisure Co. | 2,172 | 140,159 |
| Vail Resorts, Inc. * | 954 | 310,203 |
| Wyndham Hotels & Resorts, Inc. | 2,380 | 174,002 |
| Wynn Resorts Ltd. * | 2,041 | 262,064 |
| Yum China Holdings, Inc. | 9,676 | 608,814 |
| Yum! Brands, Inc. | 7,229 | 864,010 |
| | | 14,240,361 |
| |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Diversified Financials 8.8% |
| Affiliated Managers Group, Inc. | 1,167 | 188,085 |
| AGNC Investment Corp. | 14,057 | 252,042 |
| Ally Financial, Inc. | 9,688 | 498,448 |
| American Express Co. | 16,985 | 2,604,650 |
| Ameriprise Financial, Inc. | 3,062 | 791,221 |
| Annaly Capital Management, Inc. | 36,436 | 330,839 |
| Apollo Global Management, Inc. | 2,211 | 122,423 |
| Berkshire Hathaway, Inc., Class B * | 48,862 | 13,434,607 |
| BlackRock, Inc. | 3,823 | 3,132,184 |
| Capital One Financial Corp. | 11,747 | 1,751,243 |
| Cboe Global Markets, Inc. | 2,180 | 227,527 |
| CME Group, Inc. | 9,219 | 1,862,146 |
| Credit Acceptance Corp. * | 225 | 88,828 |
| Discover Financial Services | 7,949 | 906,186 |
| Equitable Holdings, Inc. | 10,423 | 356,779 |
| Evercore, Inc., Class A | 1,021 | 143,073 |
| Franklin Resources, Inc. | 7,132 | 213,960 |
| Interactive Brokers Group, Inc., Class A | 1,889 | 135,101 |
| Intercontinental Exchange, Inc. | 9,320 | 1,097,057 |
| Invesco Ltd. | 9,801 | 264,627 |
| Jefferies Financial Group, Inc. | 5,753 | 187,030 |
| KKR & Co., Inc. | 14,095 | 797,495 |
| Lazard Ltd., Class A | 2,636 | 118,594 |
| LendingTree, Inc. * | 16 | 3,304 |
| LPL Financial Holdings, Inc. | 1,874 | 293,656 |
| Morgan Stanley | 36,294 | 2,996,070 |
| Morningstar, Inc. | 88 | 23,321 |
| Nasdaq, Inc. | 2,962 | 478,481 |
| New Residential Investment Corp. | 11,744 | 125,896 |
| Northern Trust Corp. | 4,990 | 567,862 |
| OneMain Holdings, Inc. | 1,887 | 107,314 |
| Raymond James Financial, Inc. | 3,186 | 416,665 |
| S&P Global, Inc. | 2,564 | 1,000,960 |
| Santander Consumer USA Holdings, Inc. | 1,891 | 64,180 |
| SEI Investments Co. | 2,920 | 179,405 |
| SLM Corp. | 7,464 | 146,742 |
| Starwood Property Trust, Inc. | 7,123 | 183,916 |
| State Street Corp. | 9,134 | 766,799 |
| Synchrony Financial | 15,126 | 661,611 |
| T. Rowe Price Group, Inc. | 4,380 | 784,896 |
| The Bank of New York Mellon Corp. | 20,728 | 1,033,913 |
| The Carlyle Group, Inc. | 2,752 | 117,400 |
| The Charles Schwab Corp. (a) | 35,766 | 2,517,926 |
| The Goldman Sachs Group, Inc. | 8,603 | 2,997,715 |
| Tradeweb Markets, Inc., Class A | 340 | 27,635 |
| Upstart Holdings, Inc. * | 274 | 29,871 |
| Virtu Financial, Inc., Class A | 151 | 4,474 |
| Voya Financial, Inc. | 3,189 | 216,278 |
| | | 45,250,435 |
| |
| Energy 4.9% |
| Antero Midstream Corp. | 7,423 | 64,135 |
| APA Corp. | 9,848 | 196,960 |
| Baker Hughes Co. | 17,042 | 342,203 |
| Cabot Oil & Gas Corp. | 10,119 | 168,684 |
| Chevron Corp. | 50,022 | 5,155,768 |
| Cimarex Energy Co. | 2,611 | 172,848 |
| ConocoPhillips | 35,275 | 1,803,964 |
| Continental Resources, Inc. * | 1,950 | 53,118 |
| Devon Energy Corp. | 15,304 | 357,808 |
| Diamondback Energy, Inc. | 4,403 | 359,857 |
| EOG Resources, Inc. | 15,116 | 1,113,142 |
| EQT Corp. * | 7,130 | 136,183 |
| Equitrans Midstream Corp. | 9,743 | 79,503 |
| Exxon Mobil Corp. | 109,930 | 6,292,393 |
| Security | Number
of Shares | Value ($) |
| Halliburton Co. | 22,950 | 448,902 |
| Helmerich & Payne, Inc. | 2,756 | 70,636 |
| Hess Corp. | 7,135 | 531,629 |
| HollyFrontier Corp. | 3,845 | 134,575 |
| Kinder Morgan, Inc. | 50,439 | 859,985 |
| Marathon Oil Corp. | 20,352 | 229,164 |
| Marathon Petroleum Corp. | 16,785 | 934,085 |
| Murphy Oil Corp. | 3,800 | 64,334 |
| NOV, Inc. * | 10,000 | 149,500 |
| Occidental Petroleum Corp. | 21,791 | 552,620 |
| ONEOK, Inc. | 11,495 | 601,648 |
| Phillips 66 | 11,321 | 915,982 |
| Pioneer Natural Resources Co. | 5,234 | 805,146 |
| Schlumberger N.V. | 36,029 | 974,585 |
| Targa Resources Corp. | 5,844 | 202,728 |
| The Williams Cos., Inc. | 31,520 | 767,827 |
| Valero Energy Corp. | 10,571 | 781,831 |
| | | 25,321,743 |
| |
| Food & Staples Retailing 1.6% |
| Albertsons Cos., Inc., Class A | 2,555 | 47,446 |
| Casey's General Stores, Inc. | 957 | 212,636 |
| Costco Wholesale Corp. | 1,341 | 498,973 |
| Grocery Outlet Holding Corp. * | 903 | 36,472 |
| Sprouts Farmers Market, Inc. * | 506 | 12,959 |
| Sysco Corp. | 3,611 | 305,960 |
| The Kroger Co. | 19,665 | 718,559 |
| U.S. Foods Holding Corp. * | 5,689 | 235,866 |
| Walgreens Boots Alliance, Inc. | 18,795 | 998,015 |
| Walmart, Inc. | 36,195 | 5,064,042 |
| | | 8,130,928 |
| |
| Food, Beverage & Tobacco 3.7% |
| Altria Group, Inc. | 27,248 | 1,301,092 |
| Archer-Daniels-Midland Co. | 14,362 | 906,673 |
| Beyond Meat, Inc. * | 265 | 34,895 |
| Brown-Forman Corp., Class A | 180 | 12,843 |
| Brown-Forman Corp., Class B | 678 | 51,718 |
| Bunge Ltd. | 3,503 | 295,723 |
| Campbell Soup Co. | 2,559 | 122,192 |
| Conagra Brands, Inc. | 12,615 | 467,890 |
| Constellation Brands, Inc., Class A | 4,194 | 1,007,902 |
| Flowers Foods, Inc. | 5,071 | 121,501 |
| General Mills, Inc. | 15,752 | 958,667 |
| Hormel Foods Corp. | 7,249 | 334,904 |
| Ingredion, Inc. | 1,748 | 163,281 |
| Kellogg Co. | 4,289 | 267,719 |
| Keurig Dr Pepper, Inc. | 18,156 | 650,893 |
| Lamb Weston Holdings, Inc. | 2,931 | 235,946 |
| McCormick & Co., Inc. - Non Voting Shares | 2,845 | 257,074 |
| Molson Coors Beverage Co., Class B * | 4,591 | 252,276 |
| Mondelez International, Inc., Class A | 36,256 | 2,204,727 |
| PepsiCo, Inc. | 9,590 | 1,382,494 |
| Philip Morris International, Inc. | 40,419 | 3,839,805 |
| Pilgrim's Pride Corp. * | 911 | 21,828 |
| Post Holdings, Inc. * | 1,566 | 178,180 |
| Seaboard Corp. | 7 | 25,046 |
| The Coca-Cola Co. | 41,476 | 2,238,875 |
| The Hain Celestial Group, Inc. * | 2,184 | 89,566 |
| The Hershey Co. | 873 | 143,434 |
| The JM Smucker Co. | 2,865 | 375,286 |
| The Kraft Heinz Co. | 16,787 | 693,135 |
| TreeHouse Foods, Inc. * | 1,429 | 68,020 |
| Tyson Foods, Inc., Class A | 7,463 | 578,009 |
| | | 19,281,594 |
| |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Health Care Equipment & Services 6.6% |
| Abbott Laboratories | 27,659 | 3,321,293 |
| Acadia Healthcare Co., Inc. * | 2,274 | 138,532 |
| American Well Corp., Class A * | 385 | 5,925 |
| AmerisourceBergen Corp. | 1,959 | 236,647 |
| Anthem, Inc. | 4,804 | 1,822,590 |
| Baxter International, Inc. | 7,681 | 658,185 |
| Becton, Dickinson & Co. | 7,484 | 1,862,094 |
| Boston Scientific Corp. * | 37,107 | 1,617,865 |
| Centene Corp. * | 10,513 | 649,073 |
| Certara, Inc. * | 585 | 18,609 |
| Change Healthcare, Inc. * | 1,629 | 37,386 |
| Cigna Corp. | 6,520 | 1,623,545 |
| CVS Health Corp. | 33,956 | 2,594,238 |
| Danaher Corp. | 16,262 | 4,129,572 |
| DaVita, Inc. * | 1,613 | 187,963 |
| DENTSPLY SIRONA, Inc. | 5,673 | 382,984 |
| Encompass Health Corp. | 1,390 | 117,955 |
| Envista Holdings Corp. * | 4,139 | 179,136 |
| Globus Medical, Inc., Class A * | 1,960 | 140,669 |
| Haemonetics Corp. * | 96 | 6,457 |
| HCA Healthcare, Inc. | 3,314 | 666,313 |
| Henry Schein, Inc. * | 3,703 | 268,467 |
| Hill-Rom Holdings, Inc. | 1,528 | 168,416 |
| Hologic, Inc. * | 1,994 | 130,707 |
| Humana, Inc. | 2,071 | 922,092 |
| ICU Medical, Inc. * | 373 | 77,685 |
| Integra LifeSciences Holdings Corp. * | 1,849 | 136,974 |
| Laboratory Corp. of America Holdings * | 2,377 | 631,973 |
| McKesson Corp. | 1,049 | 196,750 |
| Medtronic plc | 34,842 | 4,561,515 |
| Molina Healthcare, Inc. * | 503 | 128,315 |
| Oak Street Health, Inc. * | 1,096 | 67,546 |
| Premier, Inc., Class A | 3,115 | 110,115 |
| Quest Diagnostics, Inc. | 3,459 | 456,173 |
| Signify Health, Inc., Class A * | 172 | 4,876 |
| STERIS plc | 2,069 | 436,600 |
| Stryker Corp. | 6,063 | 1,592,326 |
| Tandem Diabetes Care, Inc. * | 164 | 15,072 |
| Teladoc Health, Inc. * | 179 | 30,851 |
| Teleflex, Inc. | 445 | 188,004 |
| The Cooper Cos., Inc. | 1,110 | 456,088 |
| UnitedHealth Group, Inc. | 4,120 | 1,643,056 |
| Universal Health Services, Inc., Class B | 1,905 | 282,721 |
| Zimmer Biomet Holdings, Inc. | 5,373 | 951,881 |
| | | 33,855,234 |
| |
| Household & Personal Products 1.6% |
| Colgate-Palmolive Co. | 21,871 | 1,764,990 |
| Coty, Inc., Class A * | 7,561 | 75,686 |
| Energizer Holdings, Inc. | 338 | 16,663 |
| Herbalife Nutrition Ltd. * | 2,039 | 93,325 |
| Kimberly-Clark Corp. | 8,816 | 1,175,349 |
| Nu Skin Enterprises, Inc., Class A | 1,281 | 67,714 |
| Reynolds Consumer Products, Inc. | 956 | 28,030 |
| Spectrum Brands Holdings, Inc. | 1,098 | 96,778 |
| The Clorox Co. | 943 | 172,097 |
| The Estee Lauder Cos., Inc., Class A | 622 | 195,183 |
| The Procter & Gamble Co. | 35,007 | 4,670,634 |
| | | 8,356,449 |
| |
| Insurance 3.6% |
| Aflac, Inc. | 17,769 | 954,728 |
| Alleghany Corp. * | 324 | 219,986 |
| American Financial Group, Inc. | 1,846 | 226,800 |
| Security | Number
of Shares | Value ($) |
| American International Group, Inc. | 22,371 | 1,083,875 |
| American National Group, Inc. | 189 | 21,423 |
| Arch Capital Group Ltd. * | 10,218 | 405,757 |
| Arthur J. Gallagher & Co. | 4,953 | 717,937 |
| Assurant, Inc. | 1,526 | 237,446 |
| Assured Guaranty Ltd. | 2,044 | 103,937 |
| Athene Holding Ltd., Class A * | 2,970 | 177,220 |
| Axis Capital Holdings Ltd. | 1,955 | 109,089 |
| Brighthouse Financial, Inc. * | 2,256 | 105,558 |
| Brown & Brown, Inc. | 5,778 | 307,274 |
| Chubb Ltd. | 11,672 | 2,002,798 |
| Cincinnati Financial Corp. | 3,890 | 438,325 |
| CNA Financial Corp. | 734 | 34,447 |
| Erie Indemnity Co., Class A | 280 | 59,926 |
| Everest Re Group Ltd. | 1,021 | 282,766 |
| Fidelity National Financial, Inc. | 7,131 | 325,316 |
| First American Financial Corp. | 2,818 | 181,761 |
| Globe Life, Inc. | 2,669 | 273,546 |
| GoHealth, Inc., Class A * | 1,069 | 12,753 |
| Kemper Corp. | 1,599 | 124,818 |
| Lemonade, Inc. *(b) | 855 | 77,292 |
| Lincoln National Corp. | 4,364 | 279,863 |
| Loews Corp. | 5,890 | 328,368 |
| Markel Corp. * | 351 | 412,923 |
| Marsh & McLennan Cos., Inc. | 2,930 | 397,601 |
| Mercury General Corp. | 688 | 42,842 |
| MetLife, Inc. | 19,634 | 1,249,311 |
| Old Republic International Corp. | 7,352 | 181,006 |
| Primerica, Inc. | 385 | 61,511 |
| Principal Financial Group, Inc. | 7,045 | 449,964 |
| Prudential Financial, Inc. | 10,256 | 1,029,292 |
| Reinsurance Group of America, Inc. | 1,750 | 228,428 |
| RenaissanceRe Holdings Ltd. | 864 | 145,852 |
| The Allstate Corp. | 7,873 | 998,296 |
| The Hanover Insurance Group, Inc. | 942 | 130,288 |
| The Hartford Financial Services Group, Inc. | 9,276 | 611,845 |
| The Progressive Corp. | 10,808 | 1,088,798 |
| The Travelers Cos., Inc. | 6,560 | 1,014,570 |
| Unum Group | 5,233 | 147,885 |
| W.R. Berkley Corp. | 3,600 | 286,992 |
| White Mountains Insurance Group Ltd. | 78 | 90,904 |
| Willis Towers Watson plc | 3,338 | 864,075 |
| | | 18,525,392 |
| |
| Materials 4.8% |
| Air Products & Chemicals, Inc. | 5,006 | 1,444,131 |
| Albemarle Corp. | 3,003 | 505,014 |
| Amcor plc | 34,793 | 408,818 |
| AptarGroup, Inc. | 1,673 | 252,305 |
| Ardagh Group S.A. | 502 | 13,484 |
| Ashland Global Holdings, Inc. | 1,433 | 123,539 |
| Avery Dennison Corp. | 1,274 | 272,853 |
| Axalta Coating Systems Ltd. * | 5,468 | 174,374 |
| Ball Corp. | 535 | 50,097 |
| Berry Global Group, Inc. * | 2,305 | 146,644 |
| Cabot Corp. | 1,426 | 78,259 |
| Celanese Corp. | 2,949 | 461,961 |
| CF Industries Holdings, Inc. | 5,531 | 268,973 |
| Corteva, Inc. | 19,450 | 948,382 |
| Crown Holdings, Inc. | 3,018 | 331,376 |
| Dow, Inc. | 19,265 | 1,204,062 |
| DuPont de Nemours, Inc. | 13,947 | 1,075,453 |
| Eagle Materials, Inc. * | 1,063 | 146,843 |
| Eastman Chemical Co. | 3,517 | 405,827 |
| Ecolab, Inc. | 5,179 | 1,160,717 |
| Element Solutions, Inc. | 5,614 | 122,834 |
| FMC Corp. | 2,699 | 319,130 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Freeport-McMoRan, Inc. | 37,605 | 1,418,085 |
| Graphic Packaging Holding Co. | 5,327 | 98,816 |
| Huntsman Corp. | 5,149 | 147,622 |
| International Flavors & Fragrances, Inc. | 6,463 | 918,845 |
| International Paper Co. | 10,213 | 592,354 |
| Linde plc | 13,642 | 3,899,429 |
| LyondellBasell Industries N.V., Class A | 6,652 | 690,078 |
| Martin Marietta Materials, Inc. | 1,612 | 569,229 |
| NewMarket Corp. | 32 | 11,091 |
| Newmont Corp. | 20,847 | 1,301,061 |
| Nucor Corp. | 7,812 | 642,615 |
| Olin Corp. | 3,695 | 158,996 |
| Packaging Corp. of America | 2,422 | 357,608 |
| PPG Industries, Inc. | 6,118 | 1,047,646 |
| Reliance Steel & Aluminum Co. | 1,647 | 264,031 |
| Royal Gold, Inc. | 482 | 53,917 |
| RPM International, Inc. | 549 | 52,067 |
| Sealed Air Corp. | 4,021 | 198,637 |
| Silgan Holdings, Inc. | 2,017 | 85,057 |
| Sonoco Products Co. | 2,610 | 170,851 |
| Southern Copper Corp. | 2,122 | 147,288 |
| Steel Dynamics, Inc. | 5,200 | 281,944 |
| The Chemours Co. | 4,255 | 128,501 |
| The Mosaic Co. | 8,920 | 313,806 |
| The Scotts Miracle-Gro Co. | 68 | 15,719 |
| Valvoline, Inc. | 4,704 | 147,706 |
| Vulcan Materials Co. | 3,427 | 610,828 |
| W.R. Grace & Co. | 926 | 63,644 |
| Westlake Chemical Corp. | 891 | 83,656 |
| WestRock Co. | 6,777 | 377,818 |
| | | 24,764,021 |
| |
| Media & Entertainment 6.3% |
| Activision Blizzard, Inc. | 12,006 | 1,094,827 |
| Alphabet, Inc., Class A * | 1,747 | 4,111,565 |
| Alphabet, Inc., Class C * | 1,691 | 4,075,513 |
| Charter Communications, Inc., Class A * | 351 | 236,381 |
| Comcast Corp., Class A | 117,700 | 6,608,855 |
| Discovery, Inc., Class A * | 4,080 | 153,653 |
| Discovery, Inc., Class C * | 8,059 | 260,386 |
| DISH Network Corp., Class A * | 6,371 | 285,357 |
| Electronic Arts, Inc. | 6,383 | 906,897 |
| Fox Corp., Class A | 8,606 | 322,037 |
| Fox Corp., Class B | 4,122 | 149,958 |
| John Wiley & Sons, Inc., Class A | 1,099 | 62,577 |
| Liberty Broadband Corp., Class A * | 641 | 101,066 |
| Liberty Broadband Corp., Class C * | 4,144 | 674,312 |
| Liberty Media Corp. - Liberty Formula One, Class A * | 643 | 26,633 |
| Liberty Media Corp. - Liberty Formula One, Class C * | 5,112 | 239,957 |
| Liberty Media Corp. - Liberty SiriusXM, Class A * | 1,872 | 84,596 |
| Liberty Media Corp. - Liberty SiriusXM, Class C * | 4,002 | 181,010 |
| Lions Gate Entertainment Corp., Class A * | 1,637 | 23,687 |
| Lions Gate Entertainment Corp., Class B * | 3,028 | 38,153 |
| Madison Square Garden Entertainment Corp. * | 486 | 44,036 |
| Madison Square Garden Sports Corp. * | 484 | 89,463 |
| News Corp., Class A | 10,101 | 264,596 |
| News Corp., Class B | 3,102 | 75,410 |
| Nexstar Media Group, Inc., Class A | 357 | 52,625 |
| Omnicom Group, Inc. | 5,524 | 454,404 |
| Pinterest, Inc., Class A * | 1,775 | 117,807 |
| Playtika Holding Corp. * | 989 | 27,474 |
| Security | Number
of Shares | Value ($) |
| Sirius XM Holdings, Inc. | 11,611 | 70,827 |
| Take-Two Interactive Software, Inc. * | 224 | 39,285 |
| The Interpublic Group of Cos., Inc. | 10,036 | 318,643 |
| The New York Times Co., Class A | 4,202 | 190,813 |
| The Walt Disney Co. * | 46,945 | 8,732,709 |
| TripAdvisor, Inc. * | 2,602 | 122,632 |
| Twitter, Inc. * | 20,226 | 1,116,880 |
| ViacomCBS, Inc., Class A | 268 | 12,114 |
| ViacomCBS, Inc., Class B | 14,572 | 597,743 |
| Zillow Group, Inc., Class A * | 1,350 | 180,023 |
| Zillow Group, Inc., Class C * | 3,346 | 435,382 |
| Zynga, Inc., Class A * | 4,082 | 44,167 |
| | | 32,624,453 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 6.0% |
| AbbVie, Inc. | 2,755 | 307,182 |
| Acceleron Pharma, Inc. * | 78 | 9,748 |
| Agilent Technologies, Inc. | 7,237 | 967,153 |
| Agios Pharmaceuticals, Inc. * | 1,439 | 80,296 |
| Alexion Pharmaceuticals, Inc. * | 4,667 | 787,230 |
| Alkermes plc * | 4,109 | 90,419 |
| Berkeley Lights, Inc. * | 282 | 13,849 |
| Bio-Rad Laboratories, Inc., Class A * | 546 | 344,051 |
| Bio-Techne Corp. | 57 | 24,367 |
| Biogen, Inc. * | 2,747 | 734,356 |
| BioMarin Pharmaceutical, Inc. * | 434 | 33,817 |
| Bluebird Bio, Inc. * | 914 | 27,420 |
| Bristol-Myers Squibb Co. | 37,468 | 2,338,753 |
| Bruker Corp. | 1,539 | 105,452 |
| Catalent, Inc. * | 4,203 | 472,711 |
| Charles River Laboratories International, Inc. * | 148 | 49,203 |
| Elanco Animal Health, Inc. * | 11,793 | 373,956 |
| Exact Sciences Corp. * | 510 | 67,228 |
| Exelixis, Inc. * | 5,108 | 125,759 |
| Gilead Sciences, Inc. | 32,614 | 2,070,011 |
| Horizon Therapeutics plc * | 378 | 35,766 |
| Ionis Pharmaceuticals, Inc. * | 1,699 | 72,751 |
| IQVIA Holdings, Inc. * | 3,063 | 718,855 |
| Jazz Pharmaceuticals plc * | 1,432 | 235,421 |
| Johnson & Johnson | 59,317 | 9,652,655 |
| Maravai LifeSciences Holdings, Inc., Class A * | 646 | 25,136 |
| Merck & Co., Inc. | 8,271 | 616,189 |
| Mettler-Toledo International, Inc. * | 36 | 47,280 |
| Nektar Therapeutics * | 4,474 | 87,735 |
| PerkinElmer, Inc. | 2,331 | 302,168 |
| Perrigo Co., plc | 3,514 | 146,288 |
| Pfizer, Inc. | 144,456 | 5,583,224 |
| PPD, Inc. * | 613 | 28,321 |
| PRA Health Sciences, Inc. * | 243 | 40,554 |
| QIAGEN N.V. * | 5,815 | 279,876 |
| Reata Pharmaceuticals, Inc., Class A * | 76 | 7,706 |
| Royalty Pharma plc, Class A | 4,751 | 209,044 |
| Sage Therapeutics, Inc. * | 1,233 | 97,111 |
| Sana Biotechnology, Inc. * | 188 | 4,042 |
| Sotera Health Co. * | 949 | 24,446 |
| Syneos Health, Inc. * | 1,879 | 159,433 |
| Thermo Fisher Scientific, Inc. | 4,239 | 1,993,305 |
| United Therapeutics Corp. * | 1,129 | 227,561 |
| Viatris, Inc. * | 31,300 | 416,290 |
| Waters Corp. * | 1,470 | 440,809 |
| Zoetis, Inc. | 1,168 | 202,099 |
| | | 30,677,026 |
| |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Real Estate 4.5% |
| Alexandria Real Estate Equities, Inc. | 3,516 | 636,748 |
| American Campus Communities, Inc. | 3,572 | 161,490 |
| American Homes 4 Rent, Class A | 7,107 | 263,243 |
| Americold Realty Trust | 5,525 | 223,155 |
| Apartment Income REIT Corp. | 3,846 | 173,647 |
| Apartment Investment & Management Co., Class A | 3,872 | 26,872 |
| Apple Hospitality REIT, Inc. | 5,488 | 87,040 |
| AvalonBay Communities, Inc. | 3,649 | 700,608 |
| Boston Properties, Inc. | 4,036 | 441,337 |
| Brandywine Realty Trust | 4,327 | 58,544 |
| Brixmor Property Group, Inc. | 7,718 | 172,420 |
| Brookfield Property REIT, Inc., Class A | 150 | 2,698 |
| Camden Property Trust | 2,439 | 293,851 |
| CBRE Group, Inc., Class A * | 8,656 | 737,491 |
| CoreSite Realty Corp. | 331 | 40,213 |
| Corporate Office Properties Trust | 2,864 | 80,307 |
| Cousins Properties, Inc. | 3,821 | 140,116 |
| Crown Castle International Corp. | 725 | 137,068 |
| CubeSmart | 4,988 | 211,192 |
| CyrusOne, Inc. | 3,115 | 226,865 |
| Digital Realty Trust, Inc. | 7,245 | 1,117,976 |
| Douglas Emmett, Inc. | 4,299 | 144,188 |
| Duke Realty Corp. | 9,540 | 443,801 |
| Empire State Realty Trust, Inc., Class A | 3,695 | 42,086 |
| EPR Properties * | 1,930 | 92,080 |
| Equity Commonwealth | 3,019 | 86,947 |
| Equity LifeStyle Properties, Inc. | 2,662 | 184,743 |
| Equity Residential | 9,532 | 707,560 |
| Essex Property Trust, Inc. | 1,687 | 490,107 |
| Extra Space Storage, Inc. | 985 | 146,460 |
| Federal Realty Investment Trust | 1,971 | 222,408 |
| First Industrial Realty Trust, Inc. | 3,341 | 166,282 |
| Gaming & Leisure Properties, Inc. | 5,648 | 262,576 |
| Healthcare Trust of America, Inc., Class A | 5,668 | 166,469 |
| Healthpeak Properties, Inc. | 13,981 | 480,108 |
| Highwoods Properties, Inc. | 2,638 | 118,156 |
| Host Hotels & Resorts, Inc. * | 18,092 | 328,551 |
| Hudson Pacific Properties, Inc. | 3,887 | 109,264 |
| Invitation Homes, Inc. | 14,521 | 509,106 |
| Iron Mountain, Inc. | 3,050 | 122,366 |
| JBG SMITH Properties | 3,158 | 102,982 |
| Jones Lang LaSalle, Inc. * | 1,327 | 249,357 |
| Kilroy Realty Corp. | 3,005 | 205,963 |
| Kimco Realty Corp. | 10,721 | 225,141 |
| Lamar Advertising Co., Class A | 2,228 | 220,661 |
| Life Storage, Inc. | 1,924 | 184,819 |
| Medical Properties Trust, Inc. | 14,874 | 327,972 |
| Mid-America Apartment Communities, Inc. | 2,954 | 464,753 |
| National Retail Properties, Inc. | 4,502 | 208,983 |
| Omega Healthcare Investors, Inc. | 5,971 | 226,898 |
| Outfront Media, Inc. * | 3,767 | 91,802 |
| Paramount Group, Inc. | 4,916 | 52,159 |
| Park Hotels & Resorts, Inc. * | 6,085 | 135,756 |
| Prologis, Inc. | 19,112 | 2,227,121 |
| Public Storage | 1,359 | 382,096 |
| Rayonier, Inc. | 3,445 | 124,985 |
| Realty Income Corp. | 9,695 | 670,409 |
| Regency Centers Corp. | 4,367 | 278,003 |
| Rexford Industrial Realty, Inc. | 3,409 | 189,370 |
| SBA Communications Corp. | 2,481 | 743,605 |
| Simon Property Group, Inc. | 1,796 | 218,645 |
| SL Green Realty Corp. | 1,818 | 134,550 |
| Spirit Realty Capital, Inc. | 2,948 | 140,148 |
| STORE Capital Corp. | 6,261 | 224,081 |
| Sun Communities, Inc. | 2,744 | 457,781 |
| Security | Number
of Shares | Value ($) |
| The Howard Hughes Corp. * | 1,018 | 109,883 |
| UDR, Inc. | 7,615 | 353,717 |
| Ventas, Inc. | 9,692 | 537,518 |
| VEREIT, Inc. | 5,664 | 270,966 |
| VICI Properties, Inc. | 13,833 | 438,506 |
| Vornado Realty Trust | 4,552 | 208,254 |
| Weingarten Realty Investors | 3,160 | 102,194 |
| Welltower, Inc. | 10,845 | 813,700 |
| Weyerhaeuser Co. | 19,370 | 750,975 |
| WP Carey, Inc. | 4,498 | 336,855 |
| | | 23,166,747 |
| |
| Retailing 2.5% |
| Advance Auto Parts, Inc. | 1,691 | 338,471 |
| AutoNation, Inc. * | 1,488 | 152,490 |
| AutoZone, Inc. * | 242 | 354,317 |
| Best Buy Co., Inc. | 4,853 | 564,258 |
| Burlington Stores, Inc. * | 180 | 58,739 |
| CarMax, Inc. * | 3,907 | 520,569 |
| Dick's Sporting Goods, Inc. | 1,603 | 132,376 |
| Dollar Tree, Inc. * | 3,179 | 365,267 |
| eBay, Inc. | 1,424 | 79,445 |
| Foot Locker, Inc. | 2,667 | 157,300 |
| Genuine Parts Co. | 3,636 | 454,391 |
| GrubHub, Inc. * | 2,143 | 145,810 |
| Kohl's Corp. | 4,097 | 240,330 |
| L Brands, Inc. * | 5,947 | 391,907 |
| Leslie's, Inc. * | 1,227 | 34,871 |
| LKQ Corp. * | 7,862 | 367,234 |
| Nordstrom, Inc. * | 2,812 | 103,144 |
| Ollie's Bargain Outlet Holdings, Inc. * | 159 | 14,671 |
| Penske Automotive Group, Inc. | 810 | 71,029 |
| Petco Health & Wellness Co., Inc. * | 686 | 16,203 |
| Qurate Retail, Inc. Class A | 9,928 | 118,143 |
| Ross Stores, Inc. | 1,738 | 227,574 |
| Target Corp. | 12,980 | 2,690,235 |
| The Gap, Inc. | 4,703 | 155,669 |
| The Home Depot, Inc. | 13,950 | 4,515,197 |
| The TJX Cos., Inc. | 5,922 | 420,462 |
| Ulta Beauty, Inc. * | 100 | 32,935 |
| Vroom, Inc. * | 530 | 24,523 |
| Wayfair, Inc., Class A * | 165 | 48,769 |
| Williams-Sonoma, Inc. | 1,664 | 284,128 |
| | | 13,080,457 |
| |
| Semiconductors & Semiconductor Equipment 3.2% |
| Advanced Micro Devices, Inc. * | 2,183 | 178,176 |
| Allegro MicroSystems, Inc. * | 724 | 17,868 |
| Analog Devices, Inc. | 8,396 | 1,285,931 |
| Broadcom, Inc. | 535 | 244,067 |
| Cirrus Logic, Inc. * | 1,506 | 112,061 |
| Cree, Inc. * | 2,859 | 284,242 |
| Entegris, Inc. | 213 | 23,980 |
| First Solar, Inc. * | 2,371 | 181,453 |
| Intel Corp. | 106,570 | 6,130,972 |
| Marvell Technology, Inc. | 17,281 | 781,274 |
| Maxim Integrated Products, Inc. | 4,599 | 432,306 |
| Microchip Technology, Inc. | 1,625 | 244,221 |
| Micron Technology, Inc. * | 28,881 | 2,485,788 |
| MKS Instruments, Inc. | 343 | 61,435 |
| ON Semiconductor Corp. * | 10,523 | 410,397 |
| Qorvo, Inc. * | 2,961 | 557,171 |
| Skyworks Solutions, Inc. | 4,276 | 775,367 |
| Texas Instruments, Inc. | 11,966 | 2,159,983 |
| | | 16,366,692 |
| |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Software & Services 3.1% |
| Akamai Technologies, Inc. * | 722 | 78,481 |
| Alliance Data Systems Corp. | 1,217 | 143,424 |
| Amdocs Ltd. | 3,354 | 257,386 |
| Aspen Technology, Inc. * | 117 | 15,308 |
| Autodesk, Inc. * | 1,905 | 556,089 |
| Automatic Data Processing, Inc. | 1,566 | 292,826 |
| BigCommerce Holdings, Inc. * | 185 | 11,089 |
| C3.ai, Inc., Class A * | 67 | 4,439 |
| CDK Global, Inc. | 2,736 | 146,622 |
| Ceridian HCM Holding, Inc. * | 900 | 85,032 |
| Citrix Systems, Inc. | 2,319 | 287,208 |
| Cognizant Technology Solutions Corp., Class A | 12,884 | 1,035,874 |
| Concentrix Corp. * | 1,082 | 168,121 |
| Crowdstrike Holdings, Inc., Class A * | 1,095 | 228,319 |
| Datto Holding Corp. * | 265 | 6,771 |
| Dolby Laboratories, Inc., Class A | 1,464 | 148,552 |
| Duck Creek Technologies, Inc. * | 310 | 12,890 |
| DXC Technology Co. * | 6,542 | 215,297 |
| Euronet Worldwide, Inc. * | 1,311 | 188,037 |
| Fidelity National Information Services, Inc. | 16,036 | 2,451,904 |
| FireEye, Inc. * | 4,555 | 90,531 |
| Fiserv, Inc. * | 10,510 | 1,262,461 |
| Genpact Ltd. | 2,969 | 141,117 |
| Global Payments, Inc. | 7,730 | 1,659,090 |
| Guidewire Software, Inc. * | 1,760 | 185,698 |
| International Business Machines Corp. | 23,078 | 3,274,307 |
| Jack Henry & Associates, Inc. | 433 | 70,505 |
| Jamf Holding Corp. * | 531 | 19,392 |
| JFrog Ltd. * | 48 | 2,353 |
| Manhattan Associates, Inc. * | 168 | 23,056 |
| McAfee Corp., Class A | 514 | 12,480 |
| nCino, Inc. * | 197 | 12,882 |
| Nuance Communications, Inc. * | 7,398 | 393,352 |
| Oracle Corp. | 5,749 | 435,717 |
| Paychex, Inc. | 1,755 | 171,095 |
| Pegasystems, Inc. | 109 | 13,837 |
| Sabre Corp. * | 8,240 | 123,435 |
| salesforce.com, Inc. * | 1,666 | 383,713 |
| SolarWinds Corp. * | 1,185 | 19,979 |
| SS&C Technologies Holdings, Inc. | 4,597 | 341,189 |
| Synopsys, Inc. * | 283 | 69,918 |
| Teradata Corp. * | 632 | 31,265 |
| The Western Union Co. | 8,561 | 220,531 |
| Twilio, Inc., Class A * | 628 | 230,978 |
| Unity Software, Inc. * | 131 | 13,307 |
| VeriSign, Inc. * | 1,065 | 232,990 |
| WEX, Inc. * | 1,039 | 213,213 |
| | | 15,982,060 |
| |
| Technology Hardware & Equipment 2.9% |
| Amphenol Corp., Class A | 6,145 | 413,804 |
| Arista Networks, Inc. * | 268 | 84,466 |
| Arrow Electronics, Inc. * | 1,926 | 219,699 |
| Avnet, Inc. | 2,544 | 111,732 |
| Ciena Corp. * | 3,981 | 200,921 |
| Cisco Systems, Inc. | 110,313 | 5,616,035 |
| Coherent, Inc. * | 112 | 29,119 |
| CommScope Holding Co., Inc. * | 4,755 | 78,220 |
| Corning, Inc. | 19,448 | 859,796 |
| Dell Technologies, Inc., Class C * | 6,375 | 626,854 |
| EchoStar Corp., Class A * | 1,269 | 31,027 |
| F5 Networks, Inc. * | 1,595 | 297,882 |
| FLIR Systems, Inc. | 3,371 | 202,159 |
| Hewlett Packard Enterprise Co. | 33,497 | 536,622 |
| Security | Number
of Shares | Value ($) |
| HP, Inc. | 33,493 | 1,142,446 |
| IPG Photonics Corp. * | 856 | 185,846 |
| Jabil, Inc. | 3,106 | 162,817 |
| Juniper Networks, Inc. | 8,559 | 217,313 |
| Keysight Technologies, Inc. * | 3,223 | 465,240 |
| Littelfuse, Inc. | 613 | 162,592 |
| Lumentum Holdings, Inc. * | 1,742 | 148,157 |
| Motorola Solutions, Inc. | 3,963 | 746,233 |
| National Instruments Corp. | 3,318 | 137,398 |
| NCR Corp. * | 3,301 | 151,021 |
| NetApp, Inc. | 2,620 | 195,688 |
| Pure Storage, Inc., Class A * | 2,713 | 54,857 |
| SYNNEX Corp. | 1,072 | 129,926 |
| Trimble, Inc. * | 6,473 | 530,786 |
| Ubiquiti, Inc. | 36 | 10,272 |
| ViaSat, Inc. * | 1,600 | 82,864 |
| Vontier Corp. * | 3,991 | 125,078 |
| Western Digital Corp. * | 7,904 | 558,259 |
| Xerox Holdings Corp. | 4,413 | 106,530 |
| Zebra Technologies Corp., Class A * | 116 | 56,578 |
| | | 14,678,237 |
| |
| Telecommunication Services 2.8% |
| AT&T, Inc. | 185,221 | 5,817,792 |
| Lumen Technologies, Inc. | 28,409 | 364,487 |
| T-Mobile US, Inc. * | 14,283 | 1,887,213 |
| Telephone & Data Systems, Inc. | 2,589 | 59,495 |
| United States Cellular Corp. * | 391 | 13,345 |
| Verizon Communications, Inc. | 107,627 | 6,219,764 |
| | | 14,362,096 |
| |
| Transportation 2.9% |
| Alaska Air Group, Inc. * | 3,166 | 218,897 |
| AMERCO | 230 | 137,225 |
| American Airlines Group, Inc. * | 16,043 | 348,454 |
| C.H. Robinson Worldwide, Inc. | 2,887 | 280,270 |
| Copa Holdings S.A., Class A * | 806 | 69,719 |
| CSX Corp. | 19,805 | 1,995,354 |
| Delta Air Lines, Inc. * | 16,536 | 775,869 |
| Expeditors International of Washington, Inc. | 1,690 | 185,663 |
| FedEx Corp. | 6,365 | 1,847,823 |
| JB Hunt Transport Services, Inc. | 1,589 | 271,258 |
| JetBlue Airways Corp. * | 8,174 | 166,423 |
| Kansas City Southern | 2,351 | 686,986 |
| Kirby Corp. * | 1,534 | 97,716 |
| Knight-Swift Transportation Holdings, Inc. | 3,266 | 153,894 |
| Landstar System, Inc. | 190 | 32,733 |
| Lyft, Inc., Class A * | 6,537 | 363,849 |
| Macquarie Infrastructure Corp. | 1,921 | 63,989 |
| Norfolk Southern Corp. | 6,536 | 1,825,113 |
| Old Dominion Freight Line, Inc. | 350 | 90,234 |
| Ryder System, Inc. | 1,347 | 107,545 |
| Schneider National, Inc., Class B | 1,512 | 36,636 |
| Southwest Airlines Co. * | 15,271 | 958,713 |
| Uber Technologies, Inc. * | 8,246 | 451,633 |
| Union Pacific Corp. | 8,530 | 1,894,428 |
| United Airlines Holdings, Inc. * | 8,081 | 439,606 |
| United Parcel Service, Inc., Class B | 6,327 | 1,289,822 |
| XPO Logistics, Inc. * | 2,228 | 309,959 |
| | | 15,099,811 |
| |
| Utilities 5.0% |
| Alliant Energy Corp. | 6,485 | 364,262 |
| Ameren Corp. | 6,394 | 542,467 |
| American Electric Power Co., Inc. | 12,887 | 1,143,206 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| American Water Works Co., Inc. | 4,704 | 733,777 |
| Atmos Energy Corp. | 3,297 | 341,536 |
| Avangrid, Inc. | 1,463 | 74,467 |
| CenterPoint Energy, Inc. | 13,071 | 320,109 |
| CMS Energy Corp. | 7,414 | 477,387 |
| Consolidated Edison, Inc. | 8,894 | 688,485 |
| Dominion Energy, Inc. | 21,162 | 1,690,844 |
| DTE Energy Co. | 4,979 | 697,160 |
| Duke Energy Corp. | 19,069 | 1,920,058 |
| Edison International | 9,287 | 552,112 |
| Entergy Corp. | 5,214 | 569,838 |
| Essential Utilities, Inc. | 5,819 | 274,249 |
| Evergy, Inc. | 5,876 | 375,888 |
| Eversource Energy | 8,905 | 767,789 |
| Exelon Corp. | 25,246 | 1,134,555 |
| FirstEnergy Corp. | 14,082 | 533,989 |
| Hawaiian Electric Industries, Inc. | 2,762 | 118,932 |
| IDACORP, Inc. | 1,305 | 133,736 |
| MDU Resources Group, Inc. | 5,183 | 173,423 |
| National Fuel Gas Co. | 2,246 | 111,536 |
| NextEra Energy, Inc. | 50,846 | 3,941,073 |
| NiSource, Inc. | 9,957 | 259,081 |
| NRG Energy, Inc. | 4,148 | 148,581 |
| OGE Energy Corp. | 5,195 | 174,344 |
| PG&E Corp. * | 34,440 | 389,861 |
| Pinnacle West Capital Corp. | 2,903 | 245,739 |
| PPL Corp. | 19,997 | 582,513 |
| Public Service Enterprise Group, Inc. | 13,095 | 827,080 |
| Sempra Energy | 7,517 | 1,034,114 |
| The AES Corp. | 17,096 | 475,611 |
| The Southern Co. | 27,411 | 1,813,786 |
| UGI Corp. | 5,377 | 235,029 |
| Vistra Corp. | 12,611 | 212,748 |
| WEC Energy Group, Inc. | 8,191 | 795,920 |
| Xcel Energy, Inc. | 13,634 | 972,104 |
| | | 25,847,389 |
| Total Common Stock |
| (Cost $371,485,526) | | 512,637,020 |
|
| Investment Companies 0.8% of net assets |
| |
| Equity Funds 0.1% |
| iShares Russell 1000 Value ETF | 2,900 | 456,895 |
| |
| Security | Number
of Shares | Value ($) |
| Money Market Fund 0.7% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (c) | 3,594,647 | 3,594,647 |
| |
| Securities Lending Collateral 0.0% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 75,600 | 75,600 |
| Total Investment Companies |
| (Cost $4,066,098) | | 4,127,142 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
(Depreciation)
($) |
| Futures Contracts | |
| Long | |
| Russell 1000 Value Index, e-mini, expires 06/18/21 | 27 | 2,087,505 | 942 |
| S&P 500 Index, e-mini, expires 06/18/21 | 1 | 208,720 | (1,476) |
| Net Unrealized Depreciation | (534) |
| * | 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 $72,320. |
| (c) | The rate shown is the 7-day yield. |
| | |
| ETF — | Exchange-traded fund |
| REIT — | Real Estate Investment Trust |
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, 2021:
| |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Dividends
Received |
| The Charles Schwab Corp. | $1,329,909 | $328,940 | ($99,680) | $10,763 | $947,994 | $2,517,926 | 35,766 | $11,596 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $512,637,020 | $— | $— | $512,637,020 | |
| Investment Companies1 | 4,127,142 | — | — | 4,127,142 | |
| Futures Contracts2 | 942 | — | — | 942 | |
| Liabilities | | | | | |
| Futures Contracts2 | (1,476) | — | — | (1,476) | |
| Total | $516,763,628 | $— | $— | $516,763,628 | |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $1,344,558) | | $2,517,926 |
| Investments in securities, at value - unaffiliated (cost $374,131,466) including securities on loan of $72,320 | | 514,170,636 |
| Collateral invested for securities on loan, at value (cost $75,600) | | 75,600 |
| Deposit with broker for futures contracts | | 335,300 |
| Receivables: | | |
| Investments sold | | 189,050 |
| Dividends | | 477,770 |
| Fund shares sold | | 439,673 |
| Income from securities on loan | + | 60 |
| Total assets | | 518,206,015 |
| Liabilities |
| Collateral held for securities on loan | | 75,600 |
| Payables: | | |
| Investments bought | | 2,460,212 |
| Investment adviser fees | | 15,381 |
| Fund shares redeemed | | 163,812 |
| Variation margin on futures contracts | + | 32,925 |
| Total liabilities | | 2,747,930 |
| Net Assets |
| Total assets | | 518,206,015 |
| Total liabilities | – | 2,747,930 |
| Net assets | | $515,458,085 |
| Net Assets by Source | | |
| Capital received from investors | | 397,032,140 |
| Total distributable earnings | | 118,425,945 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $515,458,085 | | 10,130,827 | | $50.88 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $11,596 |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $177) | | 4,869,358 |
| Securities on loan, net | + | 3,882 |
| Total investment income | | 4,884,836 |
| Expenses |
| Investment adviser fees | | 74,347 |
| Total expenses | – | 74,347 |
| Net investment income | | 4,810,489 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - affiliated | | 10,763 |
| Net realized gains on sales of securities - unaffiliated | | 65,173 |
| Net realized gains on futures contracts | + | 591,736 |
| Net realized gains | | 667,672 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 947,994 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 118,338,122 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 57,890 |
| Net change in unrealized appreciation (depreciation) | + | 119,344,006 |
| Net realized and unrealized gains | | 120,011,678 |
| Increase in net assets resulting from operations | | $124,822,167 |
Schwab Equity Index Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $4,810,489 | $6,981,568 |
| Net realized gains (losses) | | 667,672 | (24,790,374) |
| Net change in unrealized appreciation (depreciation) | + | 119,344,006 | 7,157,519 |
| Increase (decrease) in net assets from operations | | 124,822,167 | (10,651,287) |
| Distributions to Shareholders | |
| Total distributions | | ($7,759,956) | ($9,633,049) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,368,636 | $110,185,126 | 7,976,599 | $290,627,433 |
| Shares reinvested | | 129,214 | 5,614,330 | 182,880 | 7,979,022 |
| Shares redeemed | + | (1,065,260) | (48,725,969) | (4,389,206) | (159,213,048) |
| Net transactions in fund shares | | 1,432,590 | $67,073,487 | 3,770,273 | $139,393,407 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 8,698,237 | $331,322,387 | 4,927,964 | $212,213,316 |
| Total increase | + | 1,432,590 | 184,135,698 | 3,770,273 | 119,109,071 |
| End of period | | 10,130,827 | $515,458,085 | 8,698,237 | $331,322,387 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 12/20/17 1–
10/31/18 | | |
| Per-Share Data |
| Net asset value at beginning of period | $44.98 | $44.29 | $39.55 | $40.00 | | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.41 | 0.72 | 0.70 | 0.59 | | |
| Net realized and unrealized gains (losses) | 15.43 | 1.09 | 4.54 | (1.04) | | |
| Total from investment operations | 15.84 | 1.81 | 5.24 | (0.45) | | |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.77) | (0.64) | (0.42) | — | | |
| Distributions from net realized gains | — | (0.48) | (0.08) | — | | |
| Total distributions | (0.77) | (1.12) | (0.50) | — | | |
| Net asset value at end of period | $60.05 | $44.98 | $44.29 | $39.55 | | |
| Total return | 35.45% 3 | 4.04% | 13.61% | (1.13%) 3 | | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.04% 4 | 0.04% | 0.04% 5 | 0.05% 4,6 | | |
| Net operating expenses | N/A | N/A | N/A | 0.03% 4,6 | | |
| Net investment income (loss) | 1.48% 4 | 1.69% | 1.67% | 1.65% 4 | | |
| Portfolio turnover rate | 4% 3 | 29% | 21% | 15% 3 | | |
| Net assets, end of period (x 1,000,000) | $739 | $483 | $357 | $171 | | |
| |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
3
Not annualized.
4
Annualized.
5
Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended 10/31/19 is a blended ratio.
6
The investment adviser voluntarily agreed to waive the fund’s management fees to 0.00% beginning with the fund’s commencement of operations through June 30, 2018. The ratio presented for period ended 10/31/18 is a blended ratio.
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.2% of net assets |
| |
| Automobiles & Components 1.2% |
| Aptiv plc * | 18,432 | 2,652,180 |
| BorgWarner, Inc. | 16,775 | 814,929 |
| Ford Motor Co. * | 268,428 | 3,097,659 |
| Gentex Corp. | 16,927 | 595,492 |
| Harley-Davidson, Inc. | 10,521 | 508,901 |
| Lear Corp. | 4,121 | 757,605 |
| Thor Industries, Inc. | 3,640 | 515,388 |
| | | 8,942,154 |
| |
| Banks 3.5% |
| Associated Banc-Corp. | 10,413 | 227,941 |
| Bank of Hawaii Corp. | 2,718 | 247,039 |
| Bank OZK | 8,372 | 343,168 |
| BOK Financial Corp. | 2,172 | 191,006 |
| Citizens Financial Group, Inc. | 29,307 | 1,356,328 |
| Comerica, Inc. | 9,574 | 719,582 |
| Commerce Bancshares, Inc. | 7,277 | 566,223 |
| Cullen/Frost Bankers, Inc. | 3,855 | 462,831 |
| East West Bancorp, Inc. | 9,698 | 738,503 |
| F.N.B. Corp. | 22,204 | 286,210 |
| Fifth Third Bancorp | 48,934 | 1,983,784 |
| First Citizens BancShares, Inc., Class A | 434 | 376,478 |
| First Hawaiian, Inc. | 8,936 | 245,383 |
| First Horizon Corp. | 37,563 | 687,027 |
| First Republic Bank | 11,888 | 2,178,357 |
| Huntington Bancshares, Inc. | 69,461 | 1,064,142 |
| KeyCorp | 66,828 | 1,454,177 |
| M&T Bank Corp. | 8,811 | 1,389,407 |
| MGIC Investment Corp. | 23,274 | 354,696 |
| New York Community Bancorp, Inc. | 31,014 | 370,927 |
| PacWest Bancorp | 7,993 | 346,976 |
| People's United Financial, Inc. | 29,136 | 528,236 |
| Pinnacle Financial Partners, Inc. | 5,074 | 444,685 |
| Popular, Inc. | 5,726 | 423,495 |
| Prosperity Bancshares, Inc. | 6,150 | 451,164 |
| Regions Financial Corp. | 66,094 | 1,440,849 |
| Signature Bank | 3,866 | 972,338 |
| Sterling Bancorp | 13,245 | 332,847 |
| SVB Financial Group * | 3,536 | 2,021,991 |
| Synovus Financial Corp. | 10,038 | 470,381 |
| TCF Financial Corp. | 10,362 | 471,678 |
| TFS Financial Corp. | 3,433 | 67,149 |
| Umpqua Holdings Corp. | 15,053 | 280,588 |
| Webster Financial Corp. | 6,137 | 324,709 |
| Western Alliance Bancorp | 6,724 | 706,491 |
| Wintrust Financial Corp. | 3,862 | 297,760 |
| Zions Bancorp NA | 11,068 | 617,594 |
| | | 25,442,140 |
| |
| Capital Goods 9.8% |
| A.O. Smith Corp. | 9,149 | 619,845 |
| Acuity Brands, Inc. | 2,461 | 456,565 |
| Security | Number
of Shares | Value ($) |
| AECOM * | 9,718 | 645,567 |
| AGCO Corp. | 4,256 | 621,036 |
| Air Lease Corp. | 7,291 | 340,563 |
| Allegion plc | 6,339 | 851,835 |
| Allison Transmission Holdings, Inc. | 7,728 | 320,480 |
| AMETEK, Inc. | 15,776 | 2,128,656 |
| Armstrong World Industries, Inc. | 3,263 | 338,210 |
| Array Technologies, Inc. * | 8,417 | 237,023 |
| Axon Enterprise, Inc. * | 4,306 | 652,833 |
| BWX Technologies, Inc. | 6,534 | 437,255 |
| Carlisle Cos., Inc. | 3,620 | 693,773 |
| Carrier Global Corp. | 59,760 | 2,604,341 |
| Colfax Corp. * | 7,636 | 345,071 |
| Crane Co. | 3,340 | 314,160 |
| Cummins, Inc. | 10,143 | 2,556,442 |
| Curtiss-Wright Corp. | 2,871 | 367,201 |
| Donaldson Co., Inc. | 8,752 | 550,326 |
| Dover Corp. | 9,888 | 1,475,191 |
| Fastenal Co. | 39,407 | 2,060,198 |
| Flowserve Corp. | 8,975 | 355,769 |
| Fortive Corp. | 20,470 | 1,449,685 |
| Fortune Brands Home & Security, Inc. | 9,474 | 994,580 |
| Gates Industrial Corp. plc * | 4,488 | 77,418 |
| Generac Holdings, Inc. * | 4,202 | 1,361,238 |
| Graco, Inc. | 11,358 | 872,294 |
| GrafTech International Ltd. | 11,589 | 147,412 |
| HEICO Corp. | 3,073 | 432,678 |
| HEICO Corp., Class A | 5,349 | 675,472 |
| Hexcel Corp. * | 5,720 | 322,665 |
| Howmet Aerospace, Inc. * | 27,149 | 867,682 |
| Hubbell, Inc. | 3,716 | 713,509 |
| Huntington Ingalls Industries, Inc. | 2,724 | 578,360 |
| IDEX Corp. | 5,181 | 1,161,580 |
| Ingersoll Rand, Inc. * | 23,836 | 1,177,737 |
| ITT, Inc. | 5,943 | 560,484 |
| Johnson Controls International plc | 50,036 | 3,119,244 |
| Lennox International, Inc. | 2,379 | 797,774 |
| Lincoln Electric Holdings, Inc. | 3,914 | 501,188 |
| Masco Corp. | 17,626 | 1,125,949 |
| Mercury Systems, Inc. * | 3,778 | 284,257 |
| MSC Industrial Direct Co., Inc., Class A | 3,157 | 284,635 |
| Nordson Corp. | 3,952 | 835,492 |
| nVent Electric plc | 10,641 | 324,018 |
| Oshkosh Corp. | 4,666 | 580,590 |
| Otis Worldwide Corp. | 28,087 | 2,187,135 |
| Owens Corning | 7,351 | 711,650 |
| PACCAR, Inc. | 23,343 | 2,098,069 |
| Parker-Hannifin Corp. | 8,809 | 2,764,352 |
| Pentair plc | 11,352 | 732,318 |
| Quanta Services, Inc. | 9,405 | 908,899 |
| Regal Beloit Corp. | 2,793 | 403,393 |
| Rockwell Automation, Inc. | 7,977 | 2,108,002 |
| Sensata Technologies Holding plc * | 10,641 | 614,411 |
| Shoals Technologies Group, Inc., Class A * | 6,125 | 196,429 |
| Snap-on, Inc. | 3,699 | 878,882 |
| Spirit AeroSystems Holdings, Inc., Class A | 7,180 | 328,054 |
| Stanley Black & Decker, Inc. | 10,610 | 2,193,830 |
| Teledyne Technologies, Inc. * | 2,494 | 1,116,688 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Textron, Inc. | 15,662 | 1,006,127 |
| The AZEK Co., Inc. * | 6,266 | 302,522 |
| The Middleby Corp. * | 3,793 | 687,747 |
| The Timken Co. | 4,367 | 366,260 |
| The Toro Co. | 7,352 | 842,539 |
| Trane Technologies plc | 16,441 | 2,857,939 |
| TransDigm Group, Inc. * | 3,636 | 2,231,559 |
| Trex Co., Inc. * | 7,956 | 859,168 |
| Trinity Industries, Inc. | 6,083 | 168,134 |
| United Rentals, Inc. * | 4,953 | 1,584,712 |
| Univar Solutions, Inc. * | 11,418 | 266,610 |
| Valmont Industries, Inc. | 1,434 | 353,983 |
| Vertiv Holdings Co. | 16,328 | 370,646 |
| Virgin Galactic Holdings, Inc. * | 4,537 | 100,495 |
| W.W. Grainger, Inc. | 3,010 | 1,304,955 |
| Watsco, Inc. | 2,245 | 657,471 |
| Westinghouse Air Brake Technologies Corp. | 12,447 | 1,021,525 |
| Woodward, Inc. | 3,867 | 483,414 |
| Xylem, Inc. | 12,307 | 1,361,770 |
| | | 72,287,969 |
| |
| Commercial & Professional Services 3.4% |
| ADT, Inc. | 10,533 | 96,904 |
| Booz Allen Hamilton Holding Corp. | 9,305 | 771,850 |
| CACI International, Inc., Class A * | 1,709 | 435,556 |
| Cintas Corp. | 6,075 | 2,096,725 |
| Clean Harbors, Inc. * | 3,539 | 314,829 |
| Copart, Inc. * | 14,122 | 1,758,330 |
| CoreLogic, Inc. | 5,036 | 401,369 |
| CoStar Group, Inc. * | 2,683 | 2,292,436 |
| Driven Brands Holdings, Inc. * | 2,516 | 71,756 |
| Dun & Bradstreet Holdings, Inc. * | 9,539 | 226,647 |
| Equifax, Inc. | 8,324 | 1,908,111 |
| FTI Consulting, Inc. * | 2,407 | 334,212 |
| IAA, Inc. * | 9,246 | 580,741 |
| IHS Markit Ltd. | 27,321 | 2,939,193 |
| Jacobs Engineering Group, Inc. | 8,903 | 1,189,530 |
| Leidos Holdings, Inc. | 9,257 | 937,549 |
| ManpowerGroup, Inc. | 3,976 | 480,659 |
| MSA Safety, Inc. | 2,507 | 403,025 |
| Nielsen Holdings plc | 24,554 | 629,810 |
| Republic Services, Inc. | 14,449 | 1,535,929 |
| Robert Half International, Inc. | 7,590 | 664,960 |
| Rollins, Inc. | 15,302 | 570,459 |
| Science Applications International Corp. | 3,975 | 355,444 |
| Stericycle, Inc. * | 6,290 | 479,801 |
| TransUnion | 13,075 | 1,367,514 |
| Verisk Analytics, Inc. | 10,916 | 2,054,391 |
| | | 24,897,730 |
| |
| Consumer Durables & Apparel 3.4% |
| Brunswick Corp. | 5,438 | 582,573 |
| Capri Holdings Ltd. * | 9,899 | 545,237 |
| Carter's, Inc. * | 2,948 | 320,713 |
| Columbia Sportswear Co. | 1,981 | 215,949 |
| D.R. Horton, Inc. | 22,744 | 2,235,508 |
| Garmin Ltd. | 10,291 | 1,412,337 |
| Hanesbrands, Inc. | 23,775 | 500,701 |
| Hasbro, Inc. | 8,751 | 870,287 |
| Leggett & Platt, Inc. | 9,081 | 451,053 |
| Lennar Corp., Class A | 18,620 | 1,929,032 |
| Lennar Corp., Class B | 1,079 | 86,935 |
| Lululemon Athletica, Inc. * | 7,819 | 2,621,476 |
| Mattel, Inc. * | 23,571 | 505,834 |
| Mohawk Industries, Inc. * | 3,995 | 820,972 |
| Newell Brands, Inc. | 26,427 | 712,472 |
| Security | Number
of Shares | Value ($) |
| NVR, Inc. * | 230 | 1,154,163 |
| Peloton Interactive, Inc., Class A * | 17,482 | 1,719,355 |
| Polaris, Inc. | 3,999 | 559,980 |
| PulteGroup, Inc. | 18,396 | 1,087,572 |
| PVH Corp. * | 4,814 | 544,849 |
| Ralph Lauren Corp. * | 3,244 | 432,393 |
| Skechers U.S.A., Inc., Class A * | 9,232 | 447,660 |
| Tapestry, Inc. * | 19,010 | 909,628 |
| Tempur Sealy International, Inc. | 13,042 | 497,422 |
| Toll Brothers, Inc. | 7,702 | 482,915 |
| Under Armour, Inc., Class A * | 12,949 | 314,790 |
| Under Armour, Inc., Class C * | 13,535 | 269,482 |
| VF Corp. | 22,184 | 1,944,649 |
| Whirlpool Corp. | 4,249 | 1,004,676 |
| | | 25,180,613 |
| |
| Consumer Services 3.3% |
| 2U, Inc. * | 4,774 | 187,380 |
| Aramark | 15,746 | 612,047 |
| Bright Horizons Family Solutions, Inc. * | 4,122 | 596,989 |
| Carnival Corp. * | 41,727 | 1,166,687 |
| Chegg, Inc. * | 8,961 | 809,447 |
| Chipotle Mexican Grill, Inc. * | 1,917 | 2,860,222 |
| Choice Hotels International, Inc. * | 2,408 | 274,030 |
| Darden Restaurants, Inc. | 8,946 | 1,312,557 |
| Domino's Pizza, Inc. | 2,680 | 1,131,871 |
| Expedia Group, Inc. * | 9,499 | 1,674,009 |
| Extended Stay America, Inc. | 12,141 | 241,484 |
| frontdoor, Inc. * | 5,866 | 314,007 |
| Graham Holdings Co., Class B | 266 | 169,072 |
| Grand Canyon Education, Inc. * | 3,193 | 345,770 |
| H&R Block, Inc. | 12,658 | 281,767 |
| Hilton Worldwide Holdings, Inc. * | 18,785 | 2,417,629 |
| Hyatt Hotels Corp., Class A * | 2,458 | 202,367 |
| MGM Resorts International | 32,376 | 1,318,351 |
| Norwegian Cruise Line Holdings Ltd. * | 24,942 | 774,449 |
| Planet Fitness, Inc., Class A * | 5,626 | 472,528 |
| Royal Caribbean Cruises Ltd. * | 13,580 | 1,180,781 |
| Service Corp. International | 11,635 | 621,774 |
| Six Flags Entertainment Corp. * | 5,235 | 245,940 |
| Terminix Global Holdings, Inc. * | 9,086 | 462,387 |
| The Wendy's Co. | 12,322 | 278,108 |
| Travel & Leisure Co. | 5,795 | 373,951 |
| Vail Resorts, Inc. * | 2,747 | 893,215 |
| Wyndham Hotels & Resorts, Inc. | 6,296 | 460,301 |
| Wynn Resorts Ltd. * | 7,218 | 926,791 |
| Yum China Holdings, Inc. | 27,565 | 1,734,390 |
| | | 24,340,301 |
| |
| Diversified Financials 4.9% |
| Affiliated Managers Group, Inc. | 3,087 | 497,532 |
| AGNC Investment Corp. | 37,189 | 666,799 |
| Ally Financial, Inc. | 25,694 | 1,321,956 |
| Ameriprise Financial, Inc. | 8,120 | 2,098,208 |
| Annaly Capital Management, Inc. | 96,611 | 877,228 |
| Apollo Global Management, Inc. | 11,706 | 648,161 |
| Ares Management Corp., Class A | 7,206 | 378,459 |
| Cboe Global Markets, Inc. | 7,416 | 774,008 |
| Credit Acceptance Corp. * | 642 | 253,455 |
| Discover Financial Services | 21,091 | 2,404,374 |
| Equitable Holdings, Inc. | 27,599 | 944,714 |
| Evercore, Inc., Class A | 2,706 | 379,192 |
| FactSet Research Systems, Inc. | 2,556 | 859,378 |
| Franklin Resources, Inc. | 19,017 | 570,510 |
| Interactive Brokers Group, Inc., Class A | 5,061 | 361,963 |
| Invesco Ltd. | 25,939 | 700,353 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Jefferies Financial Group, Inc. | 15,212 | 494,542 |
| KKR & Co., Inc. | 37,404 | 2,116,318 |
| Lazard Ltd., Class A | 6,911 | 310,926 |
| LendingTree, Inc. * | 751 | 155,074 |
| LPL Financial Holdings, Inc. | 5,401 | 846,337 |
| MarketAxess Holdings, Inc. | 2,537 | 1,239,223 |
| Morningstar, Inc. | 1,481 | 392,480 |
| MSCI, Inc. | 5,534 | 2,688,251 |
| Nasdaq, Inc. | 7,879 | 1,272,774 |
| New Residential Investment Corp. | 31,429 | 336,919 |
| Northern Trust Corp. | 13,219 | 1,504,322 |
| OneMain Holdings, Inc. | 5,002 | 284,464 |
| Raymond James Financial, Inc. | 8,446 | 1,104,568 |
| Santander Consumer USA Holdings, Inc. | 4,903 | 166,408 |
| SEI Investments Co. | 7,740 | 475,546 |
| SLM Corp. | 25,737 | 505,989 |
| Starwood Property Trust, Inc. | 18,743 | 483,944 |
| State Street Corp. | 24,225 | 2,033,689 |
| Synchrony Financial | 40,114 | 1,754,586 |
| T. Rowe Price Group, Inc. | 15,573 | 2,790,682 |
| The Carlyle Group, Inc. | 8,134 | 346,996 |
| Tradeweb Markets, Inc., Class A | 5,762 | 468,335 |
| Upstart Holdings, Inc. *(a) | 966 | 105,313 |
| Virtu Financial, Inc., Class A | 4,297 | 127,320 |
| Voya Financial, Inc. | 8,500 | 576,470 |
| | | 36,317,766 |
| |
| Energy 2.8% |
| Antero Midstream Corp. | 19,879 | 171,755 |
| APA Corp. | 25,914 | 518,280 |
| Baker Hughes Co. | 45,156 | 906,733 |
| Cabot Oil & Gas Corp. | 26,914 | 448,656 |
| Cheniere Energy, Inc. * | 15,920 | 1,234,118 |
| Cimarex Energy Co. | 6,906 | 457,177 |
| Continental Resources, Inc. * | 5,110 | 139,196 |
| Devon Energy Corp. | 40,533 | 947,662 |
| Diamondback Energy, Inc. | 11,661 | 953,054 |
| EQT Corp. * | 18,861 | 360,245 |
| Equitrans Midstream Corp. | 28,213 | 230,218 |
| Halliburton Co. | 61,051 | 1,194,158 |
| Helmerich & Payne, Inc. | 7,239 | 185,536 |
| Hess Corp. | 18,892 | 1,407,643 |
| HollyFrontier Corp. | 10,316 | 361,060 |
| Marathon Oil Corp. | 54,159 | 609,830 |
| Marathon Petroleum Corp. | 44,536 | 2,478,428 |
| Murphy Oil Corp. | 10,098 | 170,959 |
| NOV, Inc. * | 26,571 | 397,237 |
| Occidental Petroleum Corp. | 57,759 | 1,464,768 |
| ONEOK, Inc. | 30,486 | 1,595,637 |
| Pioneer Natural Resources Co. | 13,886 | 2,136,083 |
| Targa Resources Corp. | 15,618 | 541,788 |
| The Williams Cos., Inc. | 83,661 | 2,037,982 |
| | | 20,948,203 |
| |
| Food & Staples Retailing 0.5% |
| Albertsons Cos., Inc., Class A (a) | 10,706 | 198,810 |
| Casey's General Stores, Inc. | 2,534 | 563,030 |
| Grocery Outlet Holding Corp. * | 5,027 | 203,041 |
| Sprouts Farmers Market, Inc. * | 8,053 | 206,237 |
| The Kroger Co. | 52,139 | 1,905,159 |
| U.S. Foods Holding Corp. * | 15,077 | 625,092 |
| | | 3,701,369 |
| |
| Security | Number
of Shares | Value ($) |
| Food, Beverage & Tobacco 2.5% |
| Archer-Daniels-Midland Co. | 38,126 | 2,406,894 |
| Beyond Meat, Inc. * | 3,578 | 471,151 |
| Brown-Forman Corp., Class A | 3,103 | 221,399 |
| Brown-Forman Corp., Class B | 12,426 | 947,855 |
| Bunge Ltd. | 9,324 | 787,132 |
| Campbell Soup Co. | 13,436 | 641,569 |
| Conagra Brands, Inc. | 33,532 | 1,243,702 |
| Flowers Foods, Inc. | 13,352 | 319,914 |
| Hormel Foods Corp. | 19,201 | 887,086 |
| Ingredion, Inc. | 4,618 | 431,367 |
| Kellogg Co. | 17,263 | 1,077,557 |
| Lamb Weston Holdings, Inc. | 10,040 | 808,220 |
| McCormick & Co., Inc. - Non Voting Shares | 17,070 | 1,542,445 |
| Molson Coors Beverage Co., Class B * | 12,261 | 673,742 |
| Pilgrim's Pride Corp. * | 3,581 | 85,801 |
| Post Holdings, Inc. * | 4,131 | 470,025 |
| Seaboard Corp. | 18 | 64,404 |
| The Boston Beer Co., Inc., Class A * | 611 | 743,276 |
| The Hain Celestial Group, Inc. * | 5,792 | 237,530 |
| The Hershey Co. | 10,154 | 1,668,302 |
| The JM Smucker Co. | 7,593 | 994,607 |
| TreeHouse Foods, Inc. * | 3,863 | 183,879 |
| Tyson Foods, Inc., Class A | 19,783 | 1,532,193 |
| | | 18,440,050 |
| |
| Health Care Equipment & Services 6.4% |
| ABIOMED, Inc. * | 3,046 | 976,944 |
| Acadia Healthcare Co., Inc. * | 6,060 | 369,175 |
| Align Technology, Inc. * | 5,372 | 3,199,187 |
| Amedisys, Inc. * | 2,208 | 595,829 |
| American Well Corp., Class A * | 3,920 | 60,329 |
| AmerisourceBergen Corp. | 10,023 | 1,210,778 |
| Cardinal Health, Inc. | 20,114 | 1,213,679 |
| Cerner Corp. | 20,926 | 1,570,496 |
| Certara, Inc. * | 3,094 | 98,420 |
| Change Healthcare, Inc. * | 16,736 | 384,091 |
| Chemed Corp. | 1,063 | 506,636 |
| DaVita, Inc. * | 5,129 | 597,682 |
| DENTSPLY SIRONA, Inc. | 15,038 | 1,015,215 |
| Encompass Health Corp. | 6,768 | 574,333 |
| Envista Holdings Corp. * | 10,944 | 473,656 |
| Globus Medical, Inc., Class A * | 5,171 | 371,123 |
| Guardant Health, Inc. * | 5,648 | 897,919 |
| Haemonetics Corp. * | 3,436 | 231,105 |
| Henry Schein, Inc. * | 9,809 | 711,153 |
| Hill-Rom Holdings, Inc. | 4,592 | 506,130 |
| Hologic, Inc. * | 17,641 | 1,156,368 |
| ICU Medical, Inc. * | 1,337 | 278,457 |
| IDEXX Laboratories, Inc. * | 5,790 | 3,178,652 |
| Insulet Corp. * | 4,512 | 1,332,033 |
| Integra LifeSciences Holdings Corp. * | 4,896 | 362,696 |
| Laboratory Corp. of America Holdings * | 6,671 | 1,773,619 |
| Masimo Corp. * | 3,362 | 782,237 |
| McKesson Corp. | 10,956 | 2,054,907 |
| Molina Healthcare, Inc. * | 4,042 | 1,031,114 |
| Novocure Ltd. * | 6,929 | 1,414,209 |
| Oak Street Health, Inc. * | 6,218 | 383,215 |
| Penumbra, Inc. * | 2,270 | 694,597 |
| Premier, Inc., Class A | 8,399 | 296,905 |
| Quest Diagnostics, Inc. | 9,194 | 1,212,505 |
| Quidel Corp. * | 2,551 | 267,319 |
| ResMed, Inc. | 9,865 | 1,854,324 |
| Signify Health, Inc., Class A * | 1,588 | 45,020 |
| STERIS plc | 5,783 | 1,220,329 |
| Tandem Diabetes Care, Inc. * | 4,171 | 383,315 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Teladoc Health, Inc. * | 7,402 | 1,275,735 |
| Teleflex, Inc. | 3,197 | 1,350,669 |
| The Cooper Cos., Inc. | 3,351 | 1,376,892 |
| Universal Health Services, Inc., Class B | 5,064 | 751,548 |
| Veeva Systems, Inc., Class A * | 9,304 | 2,627,915 |
| West Pharmaceutical Services, Inc. | 5,050 | 1,659,026 |
| Zimmer Biomet Holdings, Inc. | 14,259 | 2,526,124 |
| | | 46,853,610 |
| |
| Household & Personal Products 0.6% |
| Church & Dwight Co., Inc. | 17,092 | 1,465,468 |
| Coty, Inc., Class A * | 19,984 | 200,040 |
| Energizer Holdings, Inc. | 4,654 | 229,442 |
| Herbalife Nutrition Ltd. * | 6,220 | 284,689 |
| Nu Skin Enterprises, Inc., Class A | 3,488 | 184,376 |
| Reynolds Consumer Products, Inc. | 3,361 | 98,545 |
| Spectrum Brands Holdings, Inc. | 2,872 | 253,138 |
| The Clorox Co. | 8,677 | 1,583,552 |
| | | 4,299,250 |
| |
| Insurance 3.6% |
| Alleghany Corp. * | 945 | 641,627 |
| American Financial Group, Inc. | 4,901 | 602,137 |
| American National Group, Inc. | 511 | 57,922 |
| Arch Capital Group Ltd. * | 27,056 | 1,074,394 |
| Arthur J. Gallagher & Co. | 13,142 | 1,904,933 |
| Assurant, Inc. | 4,026 | 626,446 |
| Assured Guaranty Ltd. | 5,357 | 272,403 |
| Athene Holding Ltd., Class A * | 7,838 | 467,693 |
| Axis Capital Holdings Ltd. | 5,732 | 319,846 |
| Brighthouse Financial, Inc. * | 6,062 | 283,641 |
| Brown & Brown, Inc. | 16,231 | 863,165 |
| Cincinnati Financial Corp. | 10,298 | 1,160,379 |
| CNA Financial Corp. | 1,918 | 90,012 |
| Erie Indemnity Co., Class A | 1,734 | 371,111 |
| Everest Re Group Ltd. | 2,709 | 750,257 |
| Fidelity National Financial, Inc. | 18,907 | 862,537 |
| First American Financial Corp. | 7,449 | 480,460 |
| Globe Life, Inc. | 7,100 | 727,679 |
| GoHealth, Inc., Class A * | 3,029 | 36,136 |
| Kemper Corp. | 4,228 | 330,038 |
| Lemonade, Inc. *(a) | 2,290 | 207,016 |
| Lincoln National Corp. | 13,238 | 848,953 |
| Loews Corp. | 15,636 | 871,707 |
| Markel Corp. * | 930 | 1,094,071 |
| Mercury General Corp. | 1,884 | 117,317 |
| Old Republic International Corp. | 19,435 | 478,490 |
| Primerica, Inc. | 2,707 | 432,497 |
| Principal Financial Group, Inc. | 18,681 | 1,193,155 |
| Prudential Financial, Inc. | 27,221 | 2,731,900 |
| Reinsurance Group of America, Inc. | 4,646 | 606,442 |
| RenaissanceRe Holdings Ltd. | 3,480 | 587,459 |
| The Hanover Insurance Group, Inc. | 2,508 | 346,881 |
| The Hartford Financial Services Group, Inc. | 24,592 | 1,622,088 |
| Unum Group | 13,994 | 395,470 |
| W.R. Berkley Corp. | 9,583 | 763,957 |
| White Mountains Insurance Group Ltd. | 207 | 241,244 |
| Willis Towers Watson plc | 8,855 | 2,292,205 |
| | | 26,753,668 |
| |
| Materials 5.9% |
| Albemarle Corp. | 7,963 | 1,339,138 |
| Amcor plc | 108,474 | 1,274,569 |
| AptarGroup, Inc. | 4,424 | 667,183 |
| Ardagh Group S.A. | 1,265 | 33,978 |
| Security | Number
of Shares | Value ($) |
| Ashland Global Holdings, Inc. | 3,790 | 326,736 |
| Avery Dennison Corp. | 5,727 | 1,226,552 |
| Axalta Coating Systems Ltd. * | 14,488 | 462,022 |
| Ball Corp. | 21,966 | 2,056,896 |
| Berry Global Group, Inc. * | 9,220 | 586,576 |
| Cabot Corp. | 3,809 | 209,038 |
| Celanese Corp. | 7,824 | 1,225,630 |
| CF Industries Holdings, Inc. | 14,682 | 713,986 |
| Corteva, Inc. | 51,621 | 2,517,040 |
| Crown Holdings, Inc. | 8,924 | 979,855 |
| Eagle Materials, Inc. * | 2,844 | 392,870 |
| Eastman Chemical Co. | 9,325 | 1,076,012 |
| Element Solutions, Inc. | 14,898 | 325,968 |
| FMC Corp. | 8,908 | 1,053,282 |
| Freeport-McMoRan, Inc. | 99,780 | 3,762,704 |
| Graphic Packaging Holding Co. | 18,241 | 338,370 |
| Huntsman Corp. | 13,831 | 396,535 |
| International Flavors & Fragrances, Inc. | 17,139 | 2,436,652 |
| International Paper Co. | 27,056 | 1,569,248 |
| LyondellBasell Industries N.V., Class A | 17,645 | 1,830,492 |
| Martin Marietta Materials, Inc. | 4,276 | 1,509,941 |
| NewMarket Corp. | 476 | 164,977 |
| Nucor Corp. | 20,738 | 1,705,908 |
| Olin Corp. | 9,822 | 422,641 |
| Packaging Corp. of America | 6,446 | 951,752 |
| PPG Industries, Inc. | 16,236 | 2,780,253 |
| Reliance Steel & Aluminum Co. | 4,367 | 700,074 |
| Royal Gold, Inc. | 4,496 | 502,922 |
| RPM International, Inc. | 8,797 | 834,307 |
| Sealed Air Corp. | 10,666 | 526,900 |
| Silgan Holdings, Inc. | 5,383 | 227,001 |
| Sonoco Products Co. | 6,886 | 450,758 |
| Steel Dynamics, Inc. | 13,794 | 747,911 |
| The Chemours Co. | 11,285 | 340,807 |
| The Mosaic Co. | 23,747 | 835,419 |
| The Scotts Miracle-Gro Co. | 2,789 | 644,705 |
| Valvoline, Inc. | 12,555 | 394,227 |
| Vulcan Materials Co. | 9,096 | 1,621,271 |
| W.R. Grace & Co. | 3,845 | 264,267 |
| Westlake Chemical Corp. | 2,336 | 219,327 |
| WestRock Co. | 17,933 | 999,765 |
| | | 43,646,465 |
| |
| Media & Entertainment 4.5% |
| Altice USA, Inc., Class A * | 15,519 | 563,495 |
| Cable One, Inc. | 368 | 658,720 |
| Discovery, Inc., Class A * | 10,733 | 404,205 |
| Discovery, Inc., Class C * | 21,345 | 689,657 |
| DISH Network Corp., Class A * | 16,908 | 757,309 |
| Fox Corp., Class A | 22,998 | 860,585 |
| Fox Corp., Class B | 10,851 | 394,759 |
| IAC/InterActiveCorp * | 5,159 | 1,307,652 |
| John Wiley & Sons, Inc., Class A | 2,920 | 166,265 |
| Liberty Broadband Corp., Class A * | 1,693 | 266,935 |
| Liberty Broadband Corp., Class C * | 11,006 | 1,790,896 |
| Liberty Media Corp. - Liberty Formula One, Class A * | 1,702 | 70,497 |
| Liberty Media Corp. - Liberty Formula One, Class C * | 13,645 | 640,496 |
| Liberty Media Corp. - Liberty SiriusXM, Class A * | 5,678 | 256,589 |
| Liberty Media Corp. - Liberty SiriusXM, Class C * | 11,964 | 541,132 |
| Lions Gate Entertainment Corp., Class A * | 3,963 | 57,345 |
| Lions Gate Entertainment Corp., Class B * | 7,985 | 100,611 |
| Live Nation Entertainment, Inc. * | 9,746 | 798,003 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Madison Square Garden Entertainment Corp. * | 1,284 | 116,343 |
| Madison Square Garden Sports Corp. * | 1,283 | 237,150 |
| Match Group, Inc. * | 15,407 | 2,397,791 |
| News Corp., Class A | 26,687 | 699,066 |
| News Corp., Class B | 8,341 | 202,770 |
| Nexstar Media Group, Inc., Class A | 2,924 | 431,027 |
| Omnicom Group, Inc. | 14,603 | 1,201,243 |
| Pinterest, Inc., Class A * | 27,639 | 1,834,400 |
| Playtika Holding Corp. * | 5,199 | 144,428 |
| Roku, Inc. * | 7,494 | 2,570,217 |
| Sirius XM Holdings, Inc. | 76,576 | 467,114 |
| Spotify Technology S.A. * | 9,225 | 2,325,807 |
| Take-Two Interactive Software, Inc. * | 7,843 | 1,375,505 |
| The Interpublic Group of Cos., Inc. | 26,717 | 848,265 |
| The New York Times Co., Class A | 11,213 | 509,182 |
| TripAdvisor, Inc. * | 6,948 | 327,459 |
| Twitter, Inc. * | 53,654 | 2,962,774 |
| ViacomCBS, Inc., Class A | 733 | 33,132 |
| ViacomCBS, Inc., Class B | 38,671 | 1,586,284 |
| World Wrestling Entertainment, Inc., Class A | 3,157 | 173,982 |
| Zillow Group, Inc., Class A * | 4,030 | 537,401 |
| Zillow Group, Inc., Class C * | 9,961 | 1,296,125 |
| Zynga, Inc., Class A * | 61,095 | 661,048 |
| | | 33,263,664 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 5.8% |
| 10X Genomics, Inc., Class A * | 3,950 | 781,310 |
| ACADIA Pharmaceuticals, Inc. * | 7,530 | 154,817 |
| Acceleron Pharma, Inc. * | 3,538 | 442,144 |
| Adaptive Biotechnologies Corp. * | 5,222 | 217,235 |
| Agilent Technologies, Inc. | 21,001 | 2,806,574 |
| Agios Pharmaceuticals, Inc. * | 4,205 | 234,639 |
| Alexion Pharmaceuticals, Inc. * | 14,641 | 2,469,644 |
| Alkermes plc * | 10,872 | 239,238 |
| Alnylam Pharmaceuticals, Inc. * | 7,944 | 1,117,244 |
| Avantor, Inc. * | 34,067 | 1,091,507 |
| Berkeley Lights, Inc. * | 1,699 | 83,438 |
| Bio-Rad Laboratories, Inc., Class A * | 1,452 | 914,949 |
| Bio-Techne Corp. | 2,643 | 1,129,856 |
| BioMarin Pharmaceutical, Inc. * | 12,432 | 968,701 |
| Bluebird Bio, Inc. * | 4,502 | 135,060 |
| Bruker Corp. | 7,119 | 487,794 |
| Catalent, Inc. * | 11,179 | 1,257,302 |
| Charles River Laboratories International, Inc. * | 3,361 | 1,117,364 |
| Elanco Animal Health, Inc. * | 31,262 | 991,318 |
| Exact Sciences Corp. * | 10,227 | 1,348,123 |
| Exelixis, Inc. * | 21,065 | 518,620 |
| Global Blood Therapeutics, Inc. * | 4,083 | 166,505 |
| Horizon Therapeutics plc * | 13,415 | 1,269,327 |
| Incyte Corp. * | 12,679 | 1,082,533 |
| Ionis Pharmaceuticals, Inc. * | 9,013 | 385,937 |
| Iovance Biotherapeutics, Inc. * | 9,483 | 298,146 |
| IQVIA Holdings, Inc. * | 13,088 | 3,071,623 |
| Jazz Pharmaceuticals plc * | 3,793 | 623,569 |
| Maravai LifeSciences Holdings, Inc., Class A * | 5,843 | 227,351 |
| Mettler-Toledo International, Inc. * | 1,589 | 2,086,865 |
| Moderna, Inc. * | 19,647 | 3,513,277 |
| Nektar Therapeutics * | 11,872 | 232,810 |
| Neurocrine Biosciences, Inc. * | 6,381 | 602,941 |
| PerkinElmer, Inc. | 7,657 | 992,577 |
| Perrigo Co., plc | 9,440 | 392,987 |
| PPD, Inc. * | 10,971 | 506,860 |
| PRA Health Sciences, Inc. * | 4,344 | 724,970 |
| QIAGEN N.V. * | 15,475 | 744,812 |
| Reata Pharmaceuticals, Inc., Class A * | 1,812 | 183,737 |
| Security | Number
of Shares | Value ($) |
| Repligen Corp. * | 3,731 | 789,890 |
| Royalty Pharma plc, Class A | 22,055 | 970,420 |
| Sage Therapeutics, Inc. * | 3,509 | 276,369 |
| Sana Biotechnology, Inc. * | 1,834 | 39,431 |
| Sarepta Therapeutics, Inc. * | 5,197 | 368,155 |
| Seagen, Inc. * | 8,723 | 1,254,018 |
| Sotera Health Co. * | 5,378 | 138,537 |
| Syneos Health, Inc. * | 5,606 | 475,669 |
| United Therapeutics Corp. * | 2,987 | 602,060 |
| Viatris, Inc. * | 83,019 | 1,104,153 |
| Waters Corp. * | 4,210 | 1,262,453 |
| | | 42,894,859 |
| |
| Real Estate 7.2% |
| Alexandria Real Estate Equities, Inc. | 9,333 | 1,690,206 |
| American Campus Communities, Inc. | 9,423 | 426,014 |
| American Homes 4 Rent, Class A | 18,784 | 695,759 |
| Americold Realty Trust | 16,359 | 660,740 |
| Apartment Income REIT Corp. | 10,167 | 459,040 |
| Apartment Investment & Management Co., Class A | 9,878 | 68,553 |
| Apple Hospitality REIT, Inc. | 14,438 | 228,987 |
| AvalonBay Communities, Inc. | 9,684 | 1,859,328 |
| Boston Properties, Inc. | 10,701 | 1,170,154 |
| Brandywine Realty Trust | 11,482 | 155,351 |
| Brixmor Property Group, Inc. | 20,392 | 455,557 |
| Brookfield Property REIT, Inc., Class A | 2,770 | 49,818 |
| Camden Property Trust | 6,487 | 781,554 |
| CBRE Group, Inc., Class A * | 22,943 | 1,954,744 |
| CoreSite Realty Corp. | 2,752 | 334,340 |
| Corporate Office Properties Trust | 7,690 | 215,628 |
| Cousins Properties, Inc. | 10,225 | 374,951 |
| CubeSmart | 13,320 | 563,969 |
| CyrusOne, Inc. | 8,246 | 600,556 |
| Douglas Emmett, Inc. | 11,481 | 385,073 |
| Duke Realty Corp. | 25,348 | 1,179,189 |
| Empire State Realty Trust, Inc., Class A | 9,933 | 113,137 |
| EPR Properties * | 5,106 | 243,607 |
| Equity Commonwealth | 8,024 | 231,091 |
| Equity LifeStyle Properties, Inc. | 11,969 | 830,649 |
| Equity Residential | 25,291 | 1,877,351 |
| Essex Property Trust, Inc. | 4,487 | 1,303,563 |
| Extra Space Storage, Inc. | 8,827 | 1,312,487 |
| Federal Realty Investment Trust | 5,251 | 592,523 |
| First Industrial Realty Trust, Inc. | 8,819 | 438,922 |
| Gaming & Leisure Properties, Inc. | 14,952 | 695,119 |
| Healthcare Trust of America, Inc., Class A | 14,973 | 439,757 |
| Healthpeak Properties, Inc. | 37,095 | 1,273,842 |
| Highwoods Properties, Inc. | 7,050 | 315,770 |
| Host Hotels & Resorts, Inc. * | 48,085 | 873,224 |
| Hudson Pacific Properties, Inc. | 10,379 | 291,754 |
| Invitation Homes, Inc. | 38,605 | 1,353,491 |
| Iron Mountain, Inc. | 19,665 | 788,960 |
| JBG SMITH Properties | 8,397 | 273,826 |
| Jones Lang LaSalle, Inc. * | 3,545 | 666,141 |
| Kilroy Realty Corp. | 8,000 | 548,320 |
| Kimco Realty Corp. | 28,455 | 597,555 |
| Lamar Advertising Co., Class A | 5,912 | 585,524 |
| Life Storage, Inc. | 5,067 | 486,736 |
| Medical Properties Trust, Inc. | 39,444 | 869,740 |
| Mid-America Apartment Communities, Inc. | 7,836 | 1,232,838 |
| National Retail Properties, Inc. | 11,917 | 553,187 |
| Omega Healthcare Investors, Inc. | 15,724 | 597,512 |
| Outfront Media, Inc. * | 9,886 | 240,922 |
| Paramount Group, Inc. | 12,777 | 135,564 |
| Park Hotels & Resorts, Inc. * | 16,091 | 358,990 |
| Rayonier, Inc. | 9,128 | 331,164 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Realty Income Corp. | 25,728 | 1,779,091 |
| Regency Centers Corp. | 11,587 | 737,628 |
| Rexford Industrial Realty, Inc. | 8,991 | 499,450 |
| Simon Property Group, Inc. | 22,506 | 2,739,880 |
| SL Green Realty Corp. | 4,820 | 356,728 |
| Spirit Realty Capital, Inc. | 7,880 | 374,615 |
| STORE Capital Corp. | 16,621 | 594,866 |
| Sun Communities, Inc. | 7,279 | 1,214,356 |
| The Howard Hughes Corp. * | 2,700 | 291,438 |
| UDR, Inc. | 20,151 | 936,014 |
| Ventas, Inc. | 25,680 | 1,424,213 |
| VEREIT, Inc. | 15,089 | 721,858 |
| VICI Properties, Inc. | 36,761 | 1,165,324 |
| Vornado Realty Trust | 12,064 | 551,928 |
| Weingarten Realty Investors | 8,323 | 269,166 |
| Welltower, Inc. | 28,775 | 2,158,988 |
| Weyerhaeuser Co. | 51,403 | 1,992,894 |
| WP Carey, Inc. | 11,971 | 896,508 |
| | | 53,467,722 |
| |
| Retailing 4.1% |
| Advance Auto Parts, Inc. | 4,499 | 900,520 |
| AutoNation, Inc. * | 3,959 | 405,718 |
| AutoZone, Inc. * | 1,566 | 2,292,812 |
| Best Buy Co., Inc. | 15,704 | 1,825,904 |
| Burlington Stores, Inc. * | 4,471 | 1,459,021 |
| CarMax, Inc. * | 11,192 | 1,491,222 |
| Carvana Co. * | 3,842 | 1,095,969 |
| Dick's Sporting Goods, Inc. | 4,291 | 354,351 |
| Dollar Tree, Inc. * | 16,150 | 1,855,635 |
| Etsy, Inc. * | 8,118 | 1,613,777 |
| Five Below, Inc. * | 3,754 | 755,568 |
| Floor & Decor Holdings, Inc., Class A * | 6,454 | 715,878 |
| Foot Locker, Inc. | 7,122 | 420,055 |
| Genuine Parts Co. | 9,666 | 1,207,960 |
| GrubHub, Inc. * | 6,323 | 430,217 |
| Kohl's Corp. | 10,836 | 635,640 |
| L Brands, Inc. * | 15,772 | 1,039,375 |
| Leslie's, Inc. * | 5,131 | 145,823 |
| LKQ Corp. * | 20,838 | 973,343 |
| Nordstrom, Inc. * | 7,515 | 275,650 |
| O'Reilly Automotive, Inc. * | 4,827 | 2,668,752 |
| Ollie's Bargain Outlet Holdings, Inc. * | 3,751 | 346,105 |
| Penske Automotive Group, Inc. | 2,190 | 192,041 |
| Petco Health & Wellness Co., Inc. * | 3,611 | 85,292 |
| Pool Corp. | 2,667 | 1,126,861 |
| Qurate Retail, Inc. Class A | 26,088 | 310,447 |
| The Gap, Inc. | 12,564 | 415,868 |
| Tractor Supply Co. | 7,951 | 1,499,559 |
| Ulta Beauty, Inc. * | 3,705 | 1,220,242 |
| Vroom, Inc. * | 7,072 | 327,221 |
| Wayfair, Inc., Class A * | 4,871 | 1,439,721 |
| Williams-Sonoma, Inc. | 5,283 | 902,072 |
| | | 30,428,619 |
| |
| Semiconductors & Semiconductor Equipment 3.4% |
| Allegro MicroSystems, Inc. * | 3,251 | 80,235 |
| Cirrus Logic, Inc. * | 3,959 | 294,589 |
| Cree, Inc. * | 7,593 | 754,896 |
| Enphase Energy, Inc. * | 7,267 | 1,011,930 |
| Entegris, Inc. | 9,215 | 1,037,425 |
| First Solar, Inc. * | 6,330 | 484,435 |
| KLA Corp. | 10,683 | 3,368,884 |
| Marvell Technology, Inc. | 53,487 | 2,418,146 |
| Maxim Integrated Products, Inc. | 18,269 | 1,717,286 |
| Microchip Technology, Inc. | 17,193 | 2,583,936 |
| Security | Number
of Shares | Value ($) |
| MKS Instruments, Inc. | 3,756 | 672,737 |
| Monolithic Power Systems, Inc. | 3,031 | 1,095,343 |
| ON Semiconductor Corp. * | 27,903 | 1,088,217 |
| Qorvo, Inc. * | 7,849 | 1,476,946 |
| Skyworks Solutions, Inc. | 11,342 | 2,056,645 |
| SolarEdge Technologies, Inc. * | 3,361 | 885,758 |
| Teradyne, Inc. | 11,379 | 1,423,285 |
| Universal Display Corp. | 2,955 | 661,004 |
| Xilinx, Inc. | 16,810 | 2,151,008 |
| | | 25,262,705 |
| |
| Software & Services 10.6% |
| Akamai Technologies, Inc. * | 11,002 | 1,195,917 |
| Alliance Data Systems Corp. | 3,204 | 377,591 |
| Alteryx, Inc., Class A * | 3,707 | 303,047 |
| Amdocs Ltd. | 8,893 | 682,449 |
| Anaplan, Inc. * | 9,296 | 554,506 |
| ANSYS, Inc. * | 5,897 | 2,156,297 |
| Aspen Technology, Inc. * | 4,652 | 608,668 |
| Avalara, Inc. * | 5,673 | 803,921 |
| BigCommerce Holdings, Inc. * | 3,019 | 180,959 |
| Bill.com Holdings, Inc. * | 5,100 | 788,613 |
| Black Knight, Inc. * | 10,416 | 754,327 |
| Broadridge Financial Solutions, Inc. | 7,876 | 1,249,370 |
| C3.ai, Inc., Class A *(a) | 1,064 | 70,501 |
| Cadence Design Systems, Inc. * | 18,975 | 2,500,336 |
| CDK Global, Inc. | 8,364 | 448,227 |
| Ceridian HCM Holding, Inc. * | 8,021 | 757,824 |
| Citrix Systems, Inc. | 8,481 | 1,050,372 |
| Cloudflare, Inc., Class A * | 7,996 | 677,581 |
| Concentrix Corp. * | 2,856 | 443,765 |
| Coupa Software, Inc. * | 4,791 | 1,288,971 |
| Crowdstrike Holdings, Inc., Class A * | 10,656 | 2,221,883 |
| Datadog, Inc., Class A * | 10,489 | 899,642 |
| Datto Holding Corp. * | 1,584 | 40,471 |
| DocuSign, Inc. * | 12,474 | 2,780,954 |
| Dolby Laboratories, Inc., Class A | 4,399 | 446,367 |
| Dropbox, Inc., Class A * | 16,882 | 433,867 |
| Duck Creek Technologies, Inc. * | 4,991 | 207,526 |
| DXC Technology Co. * | 17,443 | 574,049 |
| Dynatrace, Inc. * | 12,591 | 655,236 |
| Elastic N.V. * | 4,542 | 547,856 |
| EPAM Systems, Inc. * | 3,657 | 1,673,992 |
| Euronet Worldwide, Inc. * | 3,446 | 494,260 |
| Everbridge, Inc. * | 2,421 | 321,291 |
| Fair Isaac Corp. * | 1,926 | 1,004,236 |
| Fastly, Inc., Class A * | 5,405 | 345,217 |
| FireEye, Inc. * | 15,465 | 307,367 |
| Five9, Inc. * | 4,246 | 798,121 |
| FleetCor Technologies, Inc. * | 5,676 | 1,633,099 |
| Fortinet, Inc. * | 9,149 | 1,868,500 |
| Gartner, Inc. * | 5,956 | 1,166,661 |
| Genpact Ltd. | 12,883 | 612,329 |
| Globant S.A. * | 2,643 | 605,723 |
| GoDaddy, Inc., Class A * | 11,575 | 1,004,941 |
| Guidewire Software, Inc. * | 5,795 | 611,430 |
| HubSpot, Inc. * | 2,847 | 1,498,803 |
| Jack Henry & Associates, Inc. | 5,245 | 854,043 |
| Jamf Holding Corp. * | 2,818 | 102,913 |
| JFrog Ltd. * | 937 | 45,941 |
| Manhattan Associates, Inc. * | 4,364 | 598,915 |
| McAfee Corp., Class A | 2,414 | 58,612 |
| Medallia, Inc. * | 6,119 | 180,449 |
| MongoDB, Inc. * | 3,587 | 1,066,989 |
| nCino, Inc. * | 3,167 | 207,090 |
| New Relic, Inc. * | 3,675 | 236,302 |
| NortonLifeLock, Inc. | 37,198 | 803,849 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Nuance Communications, Inc. * | 19,596 | 1,041,919 |
| Nutanix, Inc., Class A * | 12,950 | 350,168 |
| Okta, Inc. * | 7,996 | 2,156,521 |
| PagerDuty, Inc. * | 4,934 | 209,498 |
| Palo Alto Networks, Inc. * | 6,535 | 2,309,404 |
| Paychex, Inc. | 22,090 | 2,153,554 |
| Paycom Software, Inc. * | 3,343 | 1,285,083 |
| Paylocity Holding Corp. * | 2,622 | 506,675 |
| Pegasystems, Inc. | 2,700 | 342,738 |
| Proofpoint, Inc. * | 3,903 | 671,745 |
| PTC, Inc. * | 7,179 | 940,018 |
| RingCentral, Inc., Class A * | 5,417 | 1,727,752 |
| Sabre Corp. * | 21,769 | 326,100 |
| Slack Technologies, Inc., Class A * | 34,089 | 1,445,374 |
| Smartsheet, Inc., Class A * | 7,759 | 460,109 |
| SolarWinds Corp. * | 3,225 | 54,374 |
| Splunk, Inc. * | 11,141 | 1,408,445 |
| SS&C Technologies Holdings, Inc. | 15,465 | 1,147,812 |
| StoneCo Ltd., Class A * | 13,875 | 896,880 |
| Switch, Inc., Class A | 5,992 | 111,271 |
| Synopsys, Inc. * | 10,409 | 2,571,648 |
| Teradata Corp. * | 7,437 | 367,908 |
| The Trade Desk, Inc., Class A * | 2,844 | 2,074,158 |
| The Western Union Co. | 28,208 | 726,638 |
| Twilio, Inc., Class A * | 9,893 | 3,638,645 |
| Tyler Technologies, Inc. * | 2,729 | 1,159,443 |
| Unity Software, Inc. * | 2,008 | 203,973 |
| VeriSign, Inc. * | 6,952 | 1,520,889 |
| WEX, Inc. * | 3,030 | 621,786 |
| Zendesk, Inc. * | 7,943 | 1,160,869 |
| Zscaler, Inc. * | 4,969 | 932,383 |
| | | 78,325,946 |
| |
| Technology Hardware & Equipment 4.3% |
| Amphenol Corp., Class A | 40,179 | 2,705,654 |
| Arista Networks, Inc. * | 4,038 | 1,272,656 |
| Arrow Electronics, Inc. * | 5,077 | 579,133 |
| Avnet, Inc. | 6,782 | 297,865 |
| CDW Corp. | 9,761 | 1,740,679 |
| Ciena Corp. * | 10,492 | 529,531 |
| Cognex Corp. | 11,527 | 992,705 |
| Coherent, Inc. * | 1,676 | 435,743 |
| CommScope Holding Co., Inc. * | 13,490 | 221,911 |
| Corning, Inc. | 51,592 | 2,280,882 |
| EchoStar Corp., Class A * | 3,375 | 82,519 |
| F5 Networks, Inc. * | 4,243 | 792,423 |
| FLIR Systems, Inc. | 8,996 | 539,490 |
| Hewlett Packard Enterprise Co. | 88,738 | 1,421,583 |
| HP, Inc. | 88,851 | 3,030,708 |
| IPG Photonics Corp. * | 2,436 | 528,880 |
| Jabil, Inc. | 10,121 | 530,543 |
| Juniper Networks, Inc. | 22,592 | 573,611 |
| Keysight Technologies, Inc. * | 12,871 | 1,857,929 |
| Littelfuse, Inc. | 1,617 | 428,893 |
| Lumentum Holdings, Inc. * | 5,188 | 441,239 |
| Motorola Solutions, Inc. | 11,704 | 2,203,863 |
| National Instruments Corp. | 8,888 | 368,052 |
| NCR Corp. * | 8,863 | 405,482 |
| NetApp, Inc. | 15,230 | 1,137,529 |
| Pure Storage, Inc., Class A * | 16,891 | 341,536 |
| SYNNEX Corp. | 2,859 | 346,511 |
| Trimble, Inc. * | 17,156 | 1,406,792 |
| Ubiquiti, Inc. | 584 | 166,633 |
| ViaSat, Inc. * | 4,263 | 220,781 |
| Vontier Corp. * | 10,535 | 330,167 |
| Western Digital Corp. * | 20,954 | 1,479,981 |
| Security | Number
of Shares | Value ($) |
| Xerox Holdings Corp. | 11,532 | 278,383 |
| Zebra Technologies Corp., Class A * | 3,610 | 1,760,741 |
| | | 31,731,028 |
| |
| Telecommunication Services 0.2% |
| Lumen Technologies, Inc. | 75,231 | 965,214 |
| Telephone & Data Systems, Inc. | 6,920 | 159,022 |
| United States Cellular Corp. * | 965 | 32,935 |
| | | 1,157,171 |
| |
| Transportation 2.5% |
| Alaska Air Group, Inc. * | 8,343 | 576,835 |
| AMERCO | 611 | 364,541 |
| American Airlines Group, Inc. * | 42,486 | 922,796 |
| C.H. Robinson Worldwide, Inc. | 9,118 | 885,175 |
| Copa Holdings S.A., Class A * | 2,169 | 187,618 |
| Delta Air Lines, Inc. * | 43,891 | 2,059,366 |
| Expeditors International of Washington, Inc. | 11,619 | 1,276,463 |
| JB Hunt Transport Services, Inc. | 5,769 | 984,826 |
| JetBlue Airways Corp. * | 21,597 | 439,715 |
| Kansas City Southern | 6,237 | 1,822,514 |
| Kirby Corp. * | 4,071 | 259,323 |
| Knight-Swift Transportation Holdings, Inc. | 8,603 | 405,373 |
| Landstar System, Inc. | 2,627 | 452,580 |
| Lyft, Inc., Class A * | 17,330 | 964,588 |
| Macquarie Infrastructure Corp. | 5,102 | 169,948 |
| Old Dominion Freight Line, Inc. | 6,713 | 1,730,678 |
| Ryder System, Inc. | 3,580 | 285,827 |
| Schneider National, Inc., Class B | 4,101 | 99,367 |
| Southwest Airlines Co. * | 40,555 | 2,546,043 |
| United Airlines Holdings, Inc. * | 21,429 | 1,165,738 |
| XPO Logistics, Inc. * | 6,248 | 869,222 |
| | | 18,468,536 |
| |
| Utilities 4.8% |
| Alliant Energy Corp. | 17,184 | 965,225 |
| Ameren Corp. | 16,947 | 1,437,783 |
| American Water Works Co., Inc. | 12,470 | 1,945,195 |
| Atmos Energy Corp. | 8,730 | 904,341 |
| Avangrid, Inc. | 3,910 | 199,019 |
| CenterPoint Energy, Inc. | 34,638 | 848,285 |
| CMS Energy Corp. | 19,656 | 1,265,650 |
| Consolidated Edison, Inc. | 23,595 | 1,826,489 |
| DTE Energy Co. | 13,219 | 1,850,924 |
| Edison International | 24,611 | 1,463,124 |
| Entergy Corp. | 13,823 | 1,510,716 |
| Essential Utilities, Inc. | 15,384 | 725,048 |
| Evergy, Inc. | 15,567 | 995,821 |
| Eversource Energy | 23,633 | 2,037,637 |
| FirstEnergy Corp. | 37,292 | 1,414,113 |
| Hawaiian Electric Industries, Inc. | 7,347 | 316,362 |
| IDACORP, Inc. | 3,480 | 356,630 |
| MDU Resources Group, Inc. | 13,712 | 458,804 |
| National Fuel Gas Co. | 5,982 | 297,066 |
| NiSource, Inc. | 26,342 | 685,419 |
| NRG Energy, Inc. | 16,758 | 600,272 |
| OGE Energy Corp. | 13,716 | 460,309 |
| PG&E Corp. * | 91,102 | 1,031,275 |
| Pinnacle West Capital Corp. | 7,753 | 656,291 |
| PPL Corp. | 53,012 | 1,544,240 |
| Public Service Enterprise Group, Inc. | 34,774 | 2,196,326 |
| The AES Corp. | 45,493 | 1,265,615 |
| UGI Corp. | 14,351 | 627,282 |
| Vistra Corp. | 33,482 | 564,841 |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| WEC Energy Group, Inc. | 21,743 | 2,112,767 |
| Xcel Energy, Inc. | 36,174 | 2,579,206 |
| | | 35,142,075 |
| Total Common Stock |
| (Cost $514,281,160) | | 732,193,613 |
|
| Investment Companies 0.8% of net assets |
| |
| Equity Funds 0.1% |
| iShares Russell Mid-Cap ETF | 9,500 | 738,150 |
| |
| Money Market Fund 0.6% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (b) | 4,874,343 | 4,874,343 |
| |
| Securities Lending Collateral 0.1% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (b) | 483,480 | 483,480 |
| Total Investment Companies |
| (Cost $5,991,470) | | 6,095,973 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Depreciation
($) |
| Futures Contracts | |
| Long | |
| S&P 400 Mid-Cap Index, e-mini, expires 06/18/21 | 20 | 5,440,600 | (7,686) |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $464,583. |
| (b) | The rate shown is the 7-day yield. |
| | |
| ETF — | Exchange-traded fund |
| REIT — | Real Estate Investment Trust |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $732,193,613 | $— | $— | $732,193,613 | |
| Investment Companies1 | 6,095,973 | — | — | 6,095,973 | |
| Liabilities | | | | | |
| Futures Contracts2 | (7,686) | — | — | (7,686) | |
| Total | $738,281,900 | $— | $— | $738,281,900 | |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $519,789,150) including securities on loan of $464,583 | | $737,806,106 |
| Collateral invested for securities on loan, at value (cost $483,480) | | 483,480 |
| Deposit with broker for futures contracts | | 324,000 |
| Receivables: | | |
| Investments sold | | 217,538 |
| Fund shares sold | | 897,319 |
| Dividends | | 252,789 |
| Income from securities on loan | + | 291 |
| Total assets | | 739,981,523 |
| Liabilities |
| Collateral held for securities on loan | | 483,480 |
| Payables: | | |
| Investments bought | | 252,654 |
| Investment adviser fees | | 25,081 |
| Fund shares redeemed | | 517,257 |
| Variation margin on futures contracts | + | 67,017 |
| Total liabilities | | 1,345,489 |
| Net Assets |
| Total assets | | 739,981,523 |
| Total liabilities | – | 1,345,489 |
| Net assets | | $738,636,034 |
| Net Assets by Source | | |
| Capital received from investors | | 533,012,510 |
| Total distributable earnings | | 205,623,524 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $738,636,034 | | 12,300,836 | | $60.05 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $474) | | $4,719,516 |
| Securities on loan, net | + | 17,215 |
| Total investment income | | 4,736,731 |
| Expenses |
| Investment adviser fees | | 123,924 |
| Total expenses | – | 123,924 |
| Net investment income | | 4,612,807 |
| Realized and Unrealized Gains (Losses) |
| Net realized losses on sales of securities - unaffiliated | | (788,288) |
| Net realized gains on futures contracts | + | 1,095,195 |
| Net realized gains | | 306,907 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 171,368,849 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 100,088 |
| Net change in unrealized appreciation (depreciation) | + | 171,468,937 |
| Net realized and unrealized gains | | 171,775,844 |
| Increase in net assets resulting from operations | | $176,388,651 |
Schwab Equity Index Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $4,612,807 | $7,639,807 |
| Net realized gains (losses) | | 306,907 | (9,791,653) |
| Net change in unrealized appreciation (depreciation) | + | 171,468,937 | 20,394,860 |
| Increase in net assets from operations | | 176,388,651 | 18,243,014 |
| Distributions to Shareholders | |
| Total distributions | | ($8,319,433) | ($9,582,557) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,940,296 | $163,301,741 | 7,486,752 | $310,557,071 |
| Shares reinvested | | 134,151 | 7,065,741 | 166,927 | 7,635,275 |
| Shares redeemed | + | (1,511,093) | (82,777,517) | (4,967,958) | (200,471,749) |
| Net transactions in fund shares | | 1,563,354 | $87,589,965 | 2,685,721 | $117,720,597 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 10,737,482 | $482,976,851 | 8,051,761 | $356,595,797 |
| Total increase | + | 1,563,354 | 255,659,183 | 2,685,721 | 126,381,054 |
| End of period | | 12,300,836 | $738,636,034 | 10,737,482 | $482,976,851 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $18.56 | $20.48 | $19.00 | $21.01 | $17.52 | $18.49 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.29 | 0.47 | 0.64 | 0.62 | 0.55 | 0.53 |
| Net realized and unrealized gains (losses) | 4.97 | (1.75) | 1.39 | (2.06) | 3.49 | (1.03) |
| Total from investment operations | 5.26 | (1.28) | 2.03 | (1.44) | 4.04 | (0.50) |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.41) | (0.64) | (0.55) | (0.57) | (0.55) | (0.47) |
| Net asset value at end of period | $23.41 | $18.56 | $20.48 | $19.00 | $21.01 | $17.52 |
| Total return | 28.53% 2 | (6.56%) | 11.27% | (7.11%) | 23.76% | (2.64%) |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.06% 3 | 0.06% | 0.06% | 0.06% | 0.11% 4 | 0.23% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.10% 4 | 0.19% |
| Net investment income (loss) | 2.58% 3 | 2.47% | 3.32% | 2.99% | 2.88% | 3.06% |
| Portfolio turnover rate | 2% 2 | 7% | 5% | 5% | 3% | 4% |
| Net assets, end of period (x 1,000,000) | $8,068 | $5,937 | $5,443 | $4,314 | $4,128 | $2,900 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective March 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective March 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 98.5% of net assets |
| |
| Australia 7.1% |
| Afterpay Ltd. * | 102,871 | 9,265,121 |
| AGL Energy Ltd. | 303,249 | 2,089,481 |
| AMP Ltd. | 1,634,182 | 1,403,350 |
| Ampol Ltd. | 115,943 | 2,285,452 |
| APA Group | 567,990 | 4,388,484 |
| Aristocrat Leisure Ltd. | 277,032 | 7,901,590 |
| ASX Ltd. | 92,390 | 5,191,287 |
| Aurizon Holdings Ltd. | 888,743 | 2,556,886 |
| AusNet Services | 959,766 | 1,404,835 |
| Australia & New Zealand Banking Group Ltd. | 1,356,944 | 29,939,989 |
| BHP Group Ltd. | 1,410,566 | 51,338,795 |
| BlueScope Steel Ltd. | 244,967 | 4,049,710 |
| Brambles Ltd. | 713,606 | 5,716,641 |
| CIMIC Group Ltd. *(a) | 43,905 | 653,642 |
| Cochlear Ltd. | 31,603 | 5,409,793 |
| Coles Group Ltd. | 635,197 | 7,976,594 |
| Commonwealth Bank of Australia | 850,266 | 58,206,300 |
| Computershare Ltd. | 257,617 | 2,800,987 |
| Crown Resorts Ltd. * | 183,105 | 1,719,479 |
| CSL Ltd. | 217,837 | 45,504,932 |
| Dexus | 527,908 | 4,143,964 |
| Evolution Mining Ltd. | 790,768 | 2,799,952 |
| Fortescue Metals Group Ltd. | 813,167 | 14,068,856 |
| Goodman Group | 798,503 | 11,644,216 |
| Insurance Australia Group Ltd. | 1,188,155 | 4,476,731 |
| James Hardie Industries plc | 210,877 | 6,949,317 |
| Lendlease Corp. Ltd. | 330,104 | 3,225,682 |
| Macquarie Group Ltd. | 164,463 | 20,272,116 |
| Magellan Financial Group Ltd. | 59,260 | 2,207,721 |
| Medibank Pvt Ltd. | 1,326,029 | 3,146,233 |
| Mirvac Group | 1,893,492 | 3,923,345 |
| National Australia Bank Ltd. | 1,571,660 | 32,162,725 |
| Newcrest Mining Ltd. | 391,345 | 7,998,325 |
| Northern Star Resources Ltd. | 532,811 | 4,280,835 |
| Oil Search Ltd. | 976,176 | 2,819,586 |
| Orica Ltd. | 197,090 | 2,051,936 |
| Origin Energy Ltd. | 822,521 | 2,630,077 |
| Qantas Airways Ltd. * | 432,843 | 1,641,808 |
| QBE Insurance Group Ltd. | 707,143 | 5,349,233 |
| Ramsay Health Care Ltd. | 87,618 | 4,542,054 |
| REA Group Ltd. | 24,540 | 2,985,653 |
| Rio Tinto Ltd. | 177,069 | 16,457,661 |
| Santos Ltd. | 901,716 | 4,786,679 |
| Scentre Group | 2,499,515 | 5,231,452 |
| SEEK Ltd. * | 162,333 | 3,868,744 |
| Sonic Healthcare Ltd. | 214,453 | 5,927,468 |
| South32 Ltd. | 2,288,246 | 5,037,680 |
| Stockland | 1,127,657 | 4,063,707 |
| Suncorp Group Ltd. | 601,242 | 4,862,578 |
| Sydney Airport * | 643,523 | 3,060,348 |
| Tabcorp Holdings Ltd. | 1,047,839 | 3,995,253 |
| Telstra Corp. Ltd. | 1,995,555 | 5,213,137 |
| The GPT Group | 949,805 | 3,380,616 |
| Security | Number
of Shares | Value ($) |
| TPG Telecom Ltd. | 163,795 | 695,400 |
| Transurban Group | 1,314,245 | 14,330,880 |
| Treasury Wine Estates Ltd. | 347,691 | 2,686,968 |
| Vicinity Centres | 1,861,121 | 2,274,396 |
| Washington H Soul Pattinson & Co., Ltd. | 53,337 | 1,242,338 |
| Wesfarmers Ltd. | 541,584 | 22,576,460 |
| Westpac Banking Corp. | 1,728,886 | 33,316,795 |
| WiseTech Global Ltd. | 73,112 | 1,759,716 |
| Woodside Petroleum Ltd. | 454,808 | 7,932,156 |
| Woolworths Group Ltd. | 606,154 | 18,384,071 |
| Xero Ltd * | 57,713 | 6,287,007 |
| | | 570,495,223 |
| |
| Austria 0.2% |
| Erste Group Bank AG * | 131,871 | 4,686,992 |
| OMV AG | 71,296 | 3,504,802 |
| Raiffeisen Bank International AG | 74,043 | 1,617,663 |
| Verbund AG | 33,678 | 2,765,741 |
| Voestalpine AG | 58,393 | 2,533,339 |
| | | 15,108,537 |
| |
| Belgium 1.0% |
| Ageas S.A./N.V. | 84,176 | 5,090,951 |
| Anheuser-Busch InBev S.A./N.V. | 364,833 | 25,842,018 |
| Argenx SE * | 21,819 | 6,269,841 |
| Elia Group S.A./N.V. | 14,667 | 1,587,686 |
| Etablissements Franz Colruyt N.V. | 26,113 | 1,548,683 |
| Galapagos N.V. * | 21,267 | 1,655,745 |
| Groupe Bruxelles Lambert S.A. | 54,466 | 5,956,032 |
| KBC Group N.V. * | 120,088 | 9,317,452 |
| Proximus SADP | 73,240 | 1,560,375 |
| Sofina S.A. | 7,117 | 2,704,174 |
| Solvay S.A. | 35,000 | 4,450,688 |
| UCB S.A. | 60,629 | 5,614,125 |
| Umicore S.A. | 93,899 | 5,705,546 |
| | | 77,303,316 |
| |
| Denmark 2.4% |
| Ambu A/S, Class B | 77,533 | 4,339,575 |
| AP Moller - Maersk A/S, Series A | 1,504 | 3,533,910 |
| AP Moller - Maersk A/S, Series B | 2,922 | 7,268,846 |
| Carlsberg A/S, Class B | 49,076 | 8,609,895 |
| Chr. Hansen Holding A/S * | 50,016 | 4,591,838 |
| Coloplast A/S, Class B | 56,855 | 9,417,438 |
| Danske Bank A/S | 333,910 | 6,346,868 |
| Demant A/S * | 53,030 | 2,654,777 |
| DSV PANALPINA A/S | 99,483 | 22,163,830 |
| Genmab A/S * | 31,265 | 11,473,068 |
| GN Store Nord A/S | 61,088 | 5,509,355 |
| H. Lundbeck A/S | 33,700 | 1,037,723 |
| Novo Nordisk A/S, Class B | 823,492 | 60,746,901 |
| Novozymes A/S, Class B | 98,419 | 6,980,130 |
| Orsted A/S | 90,381 | 13,138,220 |
| Pandora A/S * | 48,074 | 5,444,324 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Rockwool International A/S, B Shares | 4,028 | 1,801,714 |
| Tryg A/S | 154,868 | 3,541,350 |
| Vestas Wind Systems A/S | 471,590 | 19,685,799 |
| | | 198,285,561 |
| |
| Finland 1.0% |
| Elisa Oyj | 67,056 | 3,801,227 |
| Fortum Oyj | 212,655 | 5,588,317 |
| Kesko Oyj, B Shares | 131,997 | 4,019,222 |
| Kone Oyj, Class B | 162,768 | 12,784,206 |
| Neste Oyj | 201,499 | 12,184,794 |
| Nokia Oyj * | 2,718,120 | 12,875,609 |
| Orion Oyj, Class B | 52,870 | 2,341,023 |
| Sampo Oyj, A Shares | 225,460 | 10,694,609 |
| Stora Enso Oyj, R Shares | 280,946 | 5,375,187 |
| UPM-Kymmene Oyj | 254,434 | 9,950,182 |
| Wartsila Oyj Abp | 217,516 | 2,807,030 |
| | | 82,421,406 |
| |
| France 11.4% |
| Accor S.A. * | 86,522 | 3,483,910 |
| Aeroports de Paris * | 14,660 | 1,879,158 |
| Air Liquide S.A. | 227,129 | 38,249,042 |
| Airbus SE * | 280,801 | 33,769,029 |
| Alstom S.A. * | 128,181 | 7,000,169 |
| Amundi S.A. * | 28,133 | 2,507,171 |
| ArcelorMittal S.A. * | 342,813 | 9,965,786 |
| Arkema S.A. | 33,052 | 4,132,056 |
| Atos SE * | 46,106 | 3,139,801 |
| AXA S.A. (a) | 930,125 | 26,271,402 |
| BioMerieux | 19,865 | 2,362,974 |
| BNP Paribas S.A. * | 536,939 | 34,427,291 |
| Bollore S.A. | 427,639 | 2,159,075 |
| Bouygues S.A. | 108,952 | 4,669,184 |
| Bureau Veritas S.A. * | 141,250 | 4,224,390 |
| Capgemini SE | 76,551 | 14,027,729 |
| Carrefour S.A. | 288,202 | 5,581,606 |
| Cie de Saint-Gobain * | 243,709 | 15,376,851 |
| CNP Assurances | 84,529 | 1,478,474 |
| Compagnie Generale des Etablissements Michelin S.C.A. | 80,572 | 11,658,815 |
| Covivio | 25,565 | 2,280,680 |
| Credit Agricole S.A. * | 550,005 | 8,507,592 |
| Danone S.A. | 294,795 | 20,809,423 |
| Dassault Aviation S.A. * | 1,215 | 1,323,657 |
| Dassault Systemes SE | 63,716 | 14,780,356 |
| Edenred | 118,786 | 6,734,151 |
| Eiffage S.A. * | 40,482 | 4,434,296 |
| Electricite de France S.A. * | 299,033 | 4,363,237 |
| Engie S.A. * | 870,270 | 12,963,058 |
| EssilorLuxottica S.A. | 136,572 | 22,731,012 |
| Eurazeo SE | 19,279 | 1,606,313 |
| Eurofins Scientific SE * | 63,778 | 6,316,668 |
| Faurecia SE *(b) | 47,996 | 2,593,083 |
| Faurecia SE *(b) | 8,358 | 452,174 |
| Gecina S.A. | 21,205 | 3,103,936 |
| Getlink SE * | 215,079 | 3,421,344 |
| Hermes International | 15,185 | 19,058,841 |
| Iliad S.A. | 6,992 | 1,269,659 |
| Ipsen S.A. | 19,550 | 1,889,997 |
| Kering S.A. | 36,246 | 29,044,333 |
| Klepierre S.A. | 95,941 | 2,546,382 |
| L'Oreal S.A. | 120,846 | 49,482,803 |
| La Francaise des Jeux SAEM | 40,410 | 2,070,877 |
| Legrand S.A. | 128,510 | 12,509,145 |
| Security | Number
of Shares | Value ($) |
| LVMH Moet Hennessy Louis Vuitton SE | 133,066 | 100,245,288 |
| Natixis S.A. * | 443,808 | 2,167,115 |
| Orange S.A. | 959,427 | 11,947,949 |
| Orpea S.A. * | 24,543 | 3,158,730 |
| Pernod-Ricard S.A. | 100,192 | 20,576,095 |
| Publicis Groupe S.A. | 107,196 | 6,937,712 |
| Remy Cointreau S.A. | 10,702 | 2,138,280 |
| Renault S.A. * | 91,157 | 3,674,382 |
| Safran S.A. * | 153,345 | 22,895,735 |
| Sanofi | 541,703 | 56,793,370 |
| Sartorius Stedim Biotech | 13,008 | 5,974,392 |
| Schneider Electric SE | 258,402 | 41,229,524 |
| SCOR SE * | 77,294 | 2,497,481 |
| SEB S.A. | 11,685 | 2,128,013 |
| SES S.A. | 190,074 | 1,440,870 |
| Societe Generale S.A. * | 384,070 | 10,925,706 |
| Sodexo S.A. * | 41,682 | 4,170,210 |
| STMicroelectronics N.V. | 305,256 | 11,401,693 |
| Suez S.A. | 163,102 | 3,898,314 |
| Teleperformance | 28,258 | 10,911,665 |
| Thales S.A. | 51,481 | 5,248,297 |
| TOTAL SE | 1,206,894 | 53,342,006 |
| UbiSoft Entertainment S.A. * | 43,639 | 3,274,852 |
| Unibail-Rodamco-Westfield * | 66,509 | 5,477,125 |
| Valeo S.A. | 111,825 | 3,623,797 |
| Veolia Environnement S.A. | 258,494 | 8,244,670 |
| Vinci S.A. | 250,003 | 27,432,752 |
| Vivendi SE * | 394,881 | 13,765,748 |
| Wendel SE | 13,353 | 1,777,435 |
| Worldline S.A. * | 113,733 | 11,166,102 |
| | | 919,122,238 |
| |
| Germany 8.7% |
| adidas AG * | 90,970 | 28,097,069 |
| Allianz SE | 197,941 | 51,388,815 |
| Aroundtown S.A. | 466,328 | 3,590,776 |
| BASF SE | 438,944 | 35,375,050 |
| Bayer AG | 470,772 | 30,462,861 |
| Bayerische Motoren Werke AG | 158,661 | 15,899,445 |
| Bechtle AG | 13,042 | 2,655,709 |
| Beiersdorf AG | 47,736 | 5,387,985 |
| Brenntag SE | 74,574 | 6,694,856 |
| Carl Zeiss Meditec AG | 19,569 | 3,447,497 |
| Commerzbank AG * | 483,819 | 3,190,379 |
| Continental AG | 53,172 | 7,185,628 |
| Covestro AG | 87,643 | 5,731,800 |
| Daimler AG | 409,472 | 36,442,484 |
| Delivery Hero SE * | 61,709 | 9,789,559 |
| Deutsche Bank AG * | 942,225 | 13,126,370 |
| Deutsche Boerse AG | 91,066 | 15,692,973 |
| Deutsche Lufthansa AG *(a) | 149,565 | 1,932,137 |
| Deutsche Post AG | 473,197 | 27,869,956 |
| Deutsche Telekom AG | 1,596,239 | 30,719,676 |
| Deutsche Wohnen SE | 163,972 | 8,870,662 |
| E.ON SE | 1,078,883 | 13,008,986 |
| Evonik Industries AG | 101,015 | 3,536,440 |
| Fresenius Medical Care AG & Co. KGaA | 102,530 | 8,164,081 |
| Fresenius SE & Co. KGaA | 198,992 | 9,780,316 |
| GEA Group AG | 75,783 | 3,327,966 |
| Hannover Rueck SE | 28,921 | 5,340,575 |
| HeidelbergCement AG | 71,017 | 6,507,520 |
| HelloFresh SE * | 70,556 | 5,852,989 |
| Henkel AG & Co. KGaA | 50,040 | 4,971,598 |
| HOCHTIEF AG * | 11,708 | 1,097,871 |
| Infineon Technologies AG | 626,801 | 25,135,054 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| KION Group AG | 33,947 | 3,382,726 |
| Knorr-Bremse AG | 34,662 | 4,248,733 |
| LANXESS AG | 38,868 | 2,860,388 |
| LEG Immobilien SE | 33,979 | 4,727,675 |
| Merck KGaA | 62,124 | 10,914,215 |
| MTU Aero Engines AG | 25,078 | 6,328,615 |
| Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 66,908 | 19,331,994 |
| Nemetschek SE | 29,220 | 2,178,168 |
| Puma SE * | 46,640 | 4,916,892 |
| QIAGEN N.V. * | 109,507 | 5,338,849 |
| Rational AG | 2,460 | 2,046,367 |
| RWE AG | 306,559 | 11,640,613 |
| SAP SE | 499,315 | 69,914,408 |
| Scout24 AG | 51,584 | 4,288,728 |
| Siemens AG | 365,899 | 61,044,715 |
| Siemens Energy AG * | 189,740 | 6,346,222 |
| Siemens Healthineers AG | 128,592 | 7,348,578 |
| Symrise AG | 61,989 | 8,004,944 |
| Teamviewer AG * | 76,391 | 3,631,059 |
| Telefonica Deutschland Holding AG | 523,411 | 1,521,122 |
| Uniper SE | 94,313 | 3,441,310 |
| United Internet AG | 51,096 | 2,148,990 |
| Volkswagen AG | 15,690 | 4,981,141 |
| Vonovia SE | 256,821 | 16,874,351 |
| Zalando SE * | 73,360 | 7,629,335 |
| | | 705,365,221 |
| |
| Hong Kong 3.3% |
| AIA Group Ltd. | 5,795,600 | 73,561,063 |
| ASM Pacific Technology Ltd. | 146,800 | 2,217,182 |
| BOC Hong Kong (Holdings) Ltd. | 1,751,090 | 6,157,266 |
| Budweiser Brewing Co. APAC Ltd. | 822,400 | 2,591,468 |
| CK Asset Holdings Ltd. | 1,235,525 | 7,735,148 |
| CK Hutchison Holdings Ltd. | 1,288,025 | 10,527,158 |
| CK Infrastructure Holdings Ltd. | 320,500 | 1,959,691 |
| CLP Holdings Ltd. | 777,926 | 7,678,684 |
| ESR Cayman Ltd. * | 855,734 | 2,922,502 |
| Galaxy Entertainment Group Ltd. * | 1,037,000 | 9,102,912 |
| Hang Lung Properties Ltd. | 974,000 | 2,657,284 |
| Hang Seng Bank Ltd. | 362,340 | 7,093,556 |
| Henderson Land Development Co., Ltd. | 693,735 | 3,083,461 |
| HK Electric Investments & HK Electric Investments Ltd. | 1,303,104 | 1,305,159 |
| HKT Trust & HKT Ltd. | 1,855,000 | 2,693,432 |
| Hong Kong & China Gas Co., Ltd. | 5,089,473 | 8,163,755 |
| Hong Kong Exchanges & Clearing Ltd. | 575,465 | 34,706,884 |
| Hongkong Land Holdings Ltd. | 559,901 | 2,768,830 |
| Jardine Matheson Holdings Ltd. | 103,706 | 6,963,771 |
| Link REIT | 988,000 | 9,319,863 |
| Melco Resorts & Entertainment Ltd. ADR * | 106,083 | 2,046,341 |
| MTR Corp., Ltd. | 735,091 | 4,094,042 |
| New World Development Co., Ltd. | 714,778 | 3,782,368 |
| PCCW Ltd. | 2,104,000 | 1,217,272 |
| Power Assets Holdings Ltd. | 656,438 | 4,034,339 |
| Sands China Ltd. * | 1,142,000 | 5,404,012 |
| Sino Land Co., Ltd. | 1,501,806 | 2,230,400 |
| SJM Holdings Ltd. | 993,864 | 1,283,432 |
| Sun Hung Kai Properties Ltd. | 625,604 | 9,410,555 |
| Swire Pacific Ltd., A Shares | 248,590 | 2,002,697 |
| Swire Properties Ltd. | 553,200 | 1,650,832 |
| Techtronic Industries Co., Ltd. | 660,500 | 11,984,615 |
| Security | Number
of Shares | Value ($) |
| The Bank of East Asia Ltd. | 650,969 | 1,364,900 |
| WH Group Ltd. | 4,637,000 | 4,040,226 |
| Wharf Real Estate Investment Co., Ltd. | 799,188 | 4,592,957 |
| Wynn Macau Ltd. * | 706,800 | 1,355,509 |
| Xinyi Glass Holdings Ltd. | 874,000 | 3,096,584 |
| | | 266,800,150 |
| |
| Ireland 0.7% |
| CRH plc | 374,898 | 17,689,264 |
| Flutter Entertainment plc * | 78,523 | 16,007,704 |
| Kerry Group plc, Class A | 75,932 | 9,842,434 |
| Kingspan Group plc | 73,769 | 6,561,386 |
| Smurfit Kappa Group plc | 116,805 | 5,971,102 |
| | | 56,071,890 |
| |
| Israel 0.6% |
| Azrieli Group Ltd. | 20,307 | 1,424,955 |
| Bank Hapoalim B.M. * | 546,830 | 4,345,993 |
| Bank Leumi Le-Israel B.M. * | 699,260 | 4,908,619 |
| Check Point Software Technologies Ltd. * | 54,130 | 6,322,925 |
| CyberArk Software Ltd. * | 18,536 | 2,604,308 |
| Elbit Systems Ltd. | 12,524 | 1,717,552 |
| ICL Group Ltd. | 335,751 | 2,148,344 |
| Israel Discount Bank Ltd., Class A * | 552,749 | 2,488,256 |
| Mizrahi Tefahot Bank Ltd. * | 69,011 | 1,939,680 |
| Nice Ltd. * | 29,654 | 7,151,491 |
| Teva Pharmaceutical Industries Ltd. ADR * | 530,797 | 5,679,528 |
| Wix.com Ltd. * | 26,634 | 8,466,416 |
| | | 49,198,067 |
| |
| Italy 2.4% |
| Amplifon S.p.A. * | 59,386 | 2,506,399 |
| Assicurazioni Generali S.p.A. | 524,155 | 10,491,710 |
| Atlantia S.p.A. * | 233,892 | 4,559,773 |
| CNH Industrial N.V. | 493,284 | 7,322,588 |
| Davide Campari-Milano N.V. | 279,009 | 3,292,418 |
| DiaSorin S.p.A. | 12,376 | 2,101,908 |
| Enel S.p.A. | 3,898,993 | 38,714,376 |
| Eni S.p.A. | 1,215,000 | 14,471,733 |
| EXOR N.V. | 51,439 | 4,221,735 |
| Ferrari N.V. | 60,742 | 13,011,954 |
| FinecoBank Banca Fineco S.p.A. * | 290,162 | 4,990,725 |
| Infrastrutture Wireless Italiane S.p.A. | 161,699 | 1,886,617 |
| Intesa Sanpaolo S.p.A. * | 7,906,274 | 22,041,999 |
| Mediobanca Banca di Credito Finanziario S.p.A. * | 299,046 | 3,377,574 |
| Moncler S.p.A. * | 92,395 | 5,662,930 |
| Nexi S.p.A. * | 212,730 | 4,074,922 |
| Poste Italiane S.p.A | 242,430 | 3,173,682 |
| Prysmian S.p.A. | 114,813 | 3,592,104 |
| Recordati Industria Chimica e Farmaceutica S.p.A. | 48,639 | 2,679,939 |
| Snam S.p.A. | 977,449 | 5,500,156 |
| Stellantis N.V. | 976,594 | 16,181,681 |
| Telecom Italia S.p.A. | 3,880,094 | 2,127,340 |
| Telecom Italia S.p.A. - RSP | 2,930,066 | 1,718,665 |
| Tenaris S.A. | 228,574 | 2,450,992 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Terna - Rete Elettrica Nationale S.p.A. | 671,070 | 4,946,758 |
| UniCredit S.p.A. | 1,008,328 | 10,357,528 |
| | | 195,458,206 |
| |
| Japan 23.7% |
| ABC-Mart, Inc. | 14,380 | 770,486 |
| Acom Co., Ltd. | 199,800 | 858,819 |
| Advantest Corp. | 95,798 | 9,056,266 |
| Aeon Co., Ltd. | 314,000 | 8,568,717 |
| Aeon Mall Co., Ltd. | 45,500 | 722,293 |
| AGC, Inc. | 93,093 | 4,244,974 |
| Air Water, Inc. | 87,400 | 1,445,659 |
| Aisin Corp. | 79,300 | 3,052,245 |
| Ajinomoto Co., Inc. | 221,200 | 4,423,660 |
| Alfresa Holdings Corp. | 90,900 | 1,629,445 |
| Amada Co., Ltd. | 155,900 | 1,690,953 |
| ANA Holdings, Inc. * | 77,800 | 1,786,158 |
| Asahi Group Holdings Ltd. | 217,500 | 9,094,337 |
| Asahi Intecc Co., Ltd. | 95,200 | 2,562,485 |
| Asahi Kasei Corp. | 606,800 | 6,392,323 |
| Astellas Pharma, Inc. | 885,550 | 13,328,471 |
| Azbil Corp. | 60,700 | 2,450,900 |
| Bandai Namco Holdings, Inc. | 96,400 | 7,073,923 |
| Bridgestone Corp. | 254,257 | 10,190,144 |
| Brother Industries Ltd. | 105,200 | 2,230,567 |
| Calbee, Inc. | 43,200 | 1,035,235 |
| Canon, Inc. | 475,395 | 11,304,960 |
| Capcom Co., Ltd. | 85,000 | 2,757,656 |
| Casio Computer Co., Ltd. | 94,300 | 1,669,698 |
| Central Japan Railway Co. | 69,400 | 10,167,916 |
| Chubu Electric Power Co., Inc. | 306,400 | 3,713,076 |
| Chugai Pharmaceutical Co., Ltd. | 321,500 | 12,067,471 |
| Coca-Cola Bottlers Japan Holdings, Inc. | 61,900 | 990,429 |
| Concordia Financial Group Ltd. | 493,700 | 1,856,060 |
| Cosmos Pharmaceutical Corp. | 9,400 | 1,349,153 |
| CyberAgent, Inc. | 198,000 | 4,063,442 |
| Dai Nippon Printing Co., Ltd. | 115,848 | 2,295,549 |
| Dai-ichi Life Holdings, Inc. | 517,600 | 9,346,335 |
| Daifuku Co., Ltd. | 49,130 | 4,856,126 |
| Daiichi Sankyo Co., Ltd. | 816,600 | 20,856,299 |
| Daikin Industries Ltd. | 119,000 | 24,004,045 |
| Daito Trust Construction Co., Ltd. | 31,000 | 3,296,321 |
| Daiwa House Industry Co., Ltd. | 268,500 | 7,961,627 |
| Daiwa House REIT Investment Corp. | 904 | 2,421,095 |
| Daiwa Securities Group, Inc. | 684,500 | 3,652,573 |
| Denso Corp. | 206,400 | 13,344,376 |
| Dentsu Group, Inc. | 102,500 | 3,163,523 |
| Disco Corp. | 13,900 | 4,488,601 |
| East Japan Railway Co. | 143,360 | 9,818,387 |
| Eisai Co., Ltd. | 120,300 | 7,846,195 |
| ENEOS Holdings, Inc. | 1,451,800 | 6,244,068 |
| FANUC Corp. | 91,500 | 21,070,869 |
| Fast Retailing Co., Ltd. | 27,900 | 22,890,041 |
| Fuji Electric Co., Ltd. | 62,900 | 2,863,695 |
| FUJIFILM Holdings Corp. | 172,011 | 11,142,048 |
| Fujitsu Ltd. | 93,600 | 14,869,110 |
| Fukuoka Financial Group, Inc. | 83,400 | 1,422,454 |
| GLP J-REIT | 1,917 | 3,213,418 |
| GMO Payment Gateway, Inc. | 20,100 | 2,555,584 |
| Hakuhodo DY Holdings, Inc. | 112,000 | 1,895,523 |
| Hamamatsu Photonics K.K. | 66,500 | 3,854,489 |
| Hankyu Hanshin Holdings, Inc. | 114,300 | 3,604,918 |
| Harmonic Drive Systems, Inc. | 21,707 | 1,459,799 |
| Hikari Tsushin, Inc. | 9,893 | 1,990,075 |
| Hino Motors Ltd. | 141,600 | 1,188,463 |
| Security | Number
of Shares | Value ($) |
| Hirose Electric Co., Ltd. | 15,564 | 2,481,006 |
| Hisamitsu Pharmaceutical Co., Inc. | 23,200 | 1,353,375 |
| Hitachi Construction Machinery Co., Ltd. | 52,453 | 1,612,443 |
| Hitachi Ltd. | 464,015 | 22,967,683 |
| Hitachi Metals Ltd. * | 107,800 | 2,090,029 |
| Honda Motor Co., Ltd. | 779,639 | 23,248,684 |
| Hoshizaki Corp. | 23,700 | 2,105,466 |
| Hoya Corp. | 179,907 | 20,449,179 |
| Hulic Co., Ltd. | 144,300 | 1,646,253 |
| Ibiden Co., Ltd. | 50,400 | 2,379,057 |
| Idemitsu Kosan Co., Ltd. | 91,903 | 2,197,949 |
| Iida Group Holdings Co., Ltd. | 71,700 | 1,746,207 |
| Inpex Corp. | 489,500 | 3,331,049 |
| Isuzu Motors Ltd. | 259,500 | 2,634,999 |
| Ito En Ltd. | 27,100 | 1,500,579 |
| ITOCHU Corp. | 646,300 | 20,176,667 |
| Itochu Techno-Solutions Corp. | 45,387 | 1,570,475 |
| Japan Airlines Co., Ltd. * | 65,300 | 1,398,859 |
| Japan Airport Terminal Co., Ltd. * | 28,600 | 1,284,128 |
| Japan Exchange Group, Inc. | 245,400 | 5,755,468 |
| Japan Metropolitan Fund Invest | 3,432 | 3,382,107 |
| Japan Post Bank Co., Ltd. | 194,200 | 1,775,852 |
| Japan Post Holdings Co., Ltd. * | 763,100 | 6,412,672 |
| Japan Post Insurance Co., Ltd. | 107,100 | 2,064,986 |
| Japan Real Estate Investment Corp. | 636 | 3,942,048 |
| Japan Tobacco, Inc. | 574,500 | 10,776,851 |
| JFE Holdings, Inc. | 241,600 | 3,176,972 |
| JSR Corp. | 97,100 | 2,993,014 |
| Kajima Corp. | 218,600 | 3,023,886 |
| Kakaku.com, Inc. | 63,900 | 1,734,904 |
| Kansai Paint Co., Ltd. | 88,000 | 2,215,752 |
| Kao Corp. | 229,519 | 14,756,588 |
| KDDI Corp. | 769,600 | 23,264,574 |
| Keihan Holdings Co., Ltd. | 44,600 | 1,628,570 |
| Keikyu Corp. | 103,600 | 1,328,269 |
| Keio Corp. | 49,300 | 3,209,323 |
| Keisei Electric Railway Co., Ltd. | 62,356 | 1,947,329 |
| Keyence Corp. | 87,400 | 41,956,606 |
| Kikkoman Corp. | 68,577 | 4,214,339 |
| Kintetsu Group Holdings Co., Ltd. * | 81,000 | 2,905,843 |
| Kirin Holdings Co., Ltd. | 393,700 | 7,393,384 |
| Kobayashi Pharmaceutical Co., Ltd. | 24,100 | 2,152,422 |
| Kobe Bussan Co., Ltd. | 60,700 | 1,621,552 |
| Koei Tecmo Holdings Co., Ltd. | 27,000 | 1,203,794 |
| Koito Manufacturing Co., Ltd. | 50,200 | 3,131,508 |
| Komatsu Ltd. | 419,609 | 12,338,444 |
| Konami Holdings Corp. | 43,300 | 2,582,686 |
| Kose Corp. | 15,500 | 2,333,299 |
| Kubota Corp. | 492,000 | 11,574,676 |
| Kuraray Co., Ltd. | 152,700 | 1,659,881 |
| Kurita Water Industries Ltd. | 47,800 | 2,207,613 |
| Kyocera Corp. | 153,000 | 9,289,113 |
| Kyowa Kirin Co., Ltd. | 127,600 | 3,883,902 |
| Kyushu Electric Power Co., Inc. | 185,300 | 1,698,411 |
| Kyushu Railway Co. | 75,400 | 1,692,680 |
| Lasertec Corp. | 35,700 | 6,286,372 |
| Lawson, Inc. | 24,500 | 1,101,056 |
| Lion Corp. | 110,000 | 2,063,947 |
| Lixil Corp. | 126,487 | 3,426,141 |
| M3, Inc. | 211,900 | 14,638,022 |
| Makita Corp. | 105,600 | 4,755,721 |
| Marubeni Corp. | 779,300 | 6,490,971 |
| Marui Group Co., Ltd. | 89,646 | 1,684,825 |
| Mazda Motor Corp. * | 271,900 | 2,111,359 |
| McDonald's Holdings Co., Japan Ltd. | 32,900 | 1,502,149 |
| Medipal Holdings Corp. | 89,800 | 1,652,364 |
| MEIJI Holdings Co., Ltd. | 54,100 | 3,357,094 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Mercari, Inc. * | 41,096 | 2,017,179 |
| Minebea Mitsumi, Inc. | 173,000 | 4,338,690 |
| MISUMI Group, Inc. | 134,400 | 3,795,950 |
| Mitsubishi Chemical Holdings Corp. | 606,800 | 4,517,311 |
| Mitsubishi Corp. | 642,900 | 17,776,634 |
| Mitsubishi Electric Corp. | 870,900 | 13,419,128 |
| Mitsubishi Estate Co., Ltd. | 571,302 | 9,402,992 |
| Mitsubishi Gas Chemical Co., Inc. | 75,000 | 1,732,852 |
| Mitsubishi HC Capital, Inc. | 312,338 | 1,795,044 |
| Mitsubishi Heavy Industries Ltd. | 155,100 | 4,617,072 |
| Mitsubishi UFJ Financial Group, Inc. | 5,864,709 | 31,200,816 |
| Mitsui & Co., Ltd. | 784,200 | 16,549,470 |
| Mitsui Chemicals, Inc. | 90,300 | 2,842,640 |
| Mitsui Fudosan Co., Ltd. | 437,677 | 9,514,788 |
| Miura Co., Ltd. | 41,100 | 2,156,088 |
| Mizuho Financial Group, Inc. | 1,161,113 | 16,342,002 |
| MonotaRO Co., Ltd. | 122,400 | 3,108,029 |
| MS&AD Insurance Group Holdings, Inc. | 213,562 | 6,058,884 |
| Murata Manufacturing Co., Ltd. | 275,600 | 21,912,236 |
| Nabtesco Corp. | 53,400 | 2,402,975 |
| Nagoya Railroad Co., Ltd. * | 86,100 | 1,977,620 |
| NEC Corp. | 123,000 | 7,150,686 |
| Nexon Co., Ltd. | 230,700 | 7,630,923 |
| NGK Insulators Ltd. | 121,500 | 2,220,586 |
| NGK Spark Plug Co., Ltd. | 76,200 | 1,272,523 |
| NH Foods Ltd. | 37,900 | 1,692,789 |
| Nidec Corp. | 213,900 | 24,698,788 |
| Nihon M&A Center, Inc. | 144,000 | 3,761,963 |
| Nintendo Co., Ltd. | 53,539 | 30,712,797 |
| Nippon Building Fund, Inc. | 713 | 4,679,411 |
| Nippon Express Co., Ltd. | 34,400 | 2,632,763 |
| Nippon Paint Holdings Co., Ltd. | 355,000 | 5,070,760 |
| Nippon Prologis REIT, Inc. | 999 | 3,201,269 |
| Nippon Sanso Holdings Corp. | 75,900 | 1,427,862 |
| Nippon Shinyaku Co., Ltd. | 22,500 | 1,517,705 |
| Nippon Steel Corp. | 385,441 | 6,735,570 |
| Nippon Telegraph & Telephone Corp. | 613,412 | 15,465,880 |
| Nippon Yusen K.K. | 72,600 | 2,853,425 |
| Nissan Chemical Corp. | 60,200 | 3,095,050 |
| Nissan Motor Co., Ltd. * | 1,123,896 | 5,641,898 |
| Nisshin Seifun Group, Inc. | 96,300 | 1,555,466 |
| Nissin Foods Holdings Co., Ltd. | 29,100 | 2,062,055 |
| Nitori Holdings Co., Ltd. | 38,400 | 6,877,647 |
| Nitto Denko Corp. | 75,100 | 6,214,842 |
| Nomura Holdings, Inc. | 1,515,700 | 8,147,120 |
| Nomura Real Estate Holdings, Inc. | 59,300 | 1,461,895 |
| Nomura Real Estate Master Fund, Inc. | 2,020 | 3,191,715 |
| Nomura Research Institute Ltd. | 152,400 | 4,677,012 |
| NSK Ltd. | 171,400 | 1,580,591 |
| NTT Data Corp. | 299,200 | 4,658,828 |
| Obayashi Corp. | 299,500 | 2,740,265 |
| Obic Co., Ltd. | 33,400 | 6,437,046 |
| Odakyu Electric Railway Co., Ltd. | 140,200 | 3,797,171 |
| Oji Holdings Corp. | 403,800 | 2,547,088 |
| Olympus Corp. | 559,600 | 11,517,418 |
| Omron Corp. | 88,900 | 6,732,037 |
| Ono Pharmaceutical Co., Ltd. | 174,900 | 4,405,531 |
| Oracle Corp., Japan | 18,300 | 1,715,717 |
| Oriental Land Co., Ltd. | 95,400 | 13,523,986 |
| ORIX Corp. | 632,000 | 10,202,923 |
| Orix JREIT, Inc. | 1,264 | 2,229,664 |
| Osaka Gas Co., Ltd. | 176,800 | 3,422,135 |
| Otsuka Corp. | 52,000 | 2,615,787 |
| Otsuka Holdings Co., Ltd. | 186,200 | 7,136,030 |
| Pan Pacific International Holdings Corp. | 197,900 | 4,265,800 |
| Security | Number
of Shares | Value ($) |
| Panasonic Corp. | 1,049,412 | 12,322,197 |
| PeptiDream, Inc. * | 43,700 | 1,870,469 |
| Persol Holdings Co., Ltd. | 86,200 | 1,587,480 |
| Pigeon Corp. | 53,700 | 1,822,497 |
| Pola Orbis Holdings, Inc. | 41,700 | 1,079,910 |
| Rakuten Group, Inc. | 414,820 | 5,273,260 |
| Recruit Holdings Co., Ltd. | 651,000 | 29,351,949 |
| Renesas Electronics Corp. * | 368,700 | 4,294,669 |
| Resona Holdings, Inc. | 1,025,585 | 4,221,963 |
| Ricoh Co., Ltd. | 323,300 | 3,454,821 |
| Rinnai Corp. | 17,500 | 1,757,252 |
| Rohm Co., Ltd. | 41,300 | 4,076,832 |
| Ryohin Keikaku Co., Ltd. | 117,602 | 2,476,834 |
| Santen Pharmaceutical Co., Ltd. | 177,300 | 2,270,801 |
| SBI Holdings, Inc. | 119,290 | 3,371,709 |
| SCSK Corp. | 24,800 | 1,439,190 |
| Secom Co., Ltd. | 100,300 | 8,358,436 |
| Sega Sammy Holdings, Inc. | 84,100 | 1,207,061 |
| Seibu Holdings, Inc. * | 108,600 | 1,167,867 |
| Seiko Epson Corp. | 129,700 | 2,212,890 |
| Sekisui Chemical Co., Ltd. | 175,300 | 3,056,423 |
| Sekisui House Ltd. | 293,100 | 5,936,044 |
| Seven & i Holdings Co., Ltd. | 362,003 | 15,629,881 |
| SG Holdings Co., Ltd. | 155,928 | 3,540,990 |
| Sharp Corp. | 101,700 | 1,716,227 |
| Shimadzu Corp. | 106,100 | 3,718,055 |
| Shimamura Co., Ltd. | 10,500 | 1,038,762 |
| Shimano, Inc. | 35,600 | 8,140,112 |
| Shimizu Corp. | 257,600 | 2,110,796 |
| Shin-Etsu Chemical Co., Ltd. | 169,660 | 28,638,956 |
| Shinsei Bank Ltd. * | 77,200 | 1,126,066 |
| Shionogi & Co., Ltd. | 127,600 | 6,726,973 |
| Shiseido Co., Ltd. | 192,200 | 13,986,637 |
| SMC Corp. | 27,300 | 15,863,401 |
| Softbank Corp. | 1,375,500 | 17,730,700 |
| SoftBank Group Corp. | 751,000 | 67,673,066 |
| Sohgo Security Services Co., Ltd. | 34,800 | 1,525,728 |
| Sompo Holdings, Inc. | 161,400 | 5,998,454 |
| Sony Group Corp. | 604,300 | 60,417,250 |
| Square Enix Holdings Co., Ltd. | 45,000 | 2,495,263 |
| Stanley Electric Co., Ltd. | 60,547 | 1,733,242 |
| Subaru Corp. | 291,100 | 5,412,553 |
| Sumco Corp. | 123,900 | 3,204,321 |
| Sumitomo Chemical Co., Ltd. | 700,800 | 3,577,021 |
| Sumitomo Corp. | 575,500 | 7,820,460 |
| Sumitomo Dainippon Pharma Co., Ltd. | 88,400 | 1,534,737 |
| Sumitomo Electric Industries Ltd. | 356,200 | 5,300,221 |
| Sumitomo Metal Mining Co., Ltd. | 110,500 | 4,678,386 |
| Sumitomo Mitsui Financial Group, Inc. | 623,946 | 21,918,424 |
| Sumitomo Mitsui Trust Holdings, Inc. | 160,600 | 5,473,667 |
| Sumitomo Realty & Development Co., Ltd. | 146,900 | 4,903,655 |
| Sundrug Co., Ltd. | 35,000 | 1,192,739 |
| Suntory Beverage & Food Ltd. | 65,700 | 2,217,724 |
| Suzuken Co., Ltd. | 31,100 | 1,120,766 |
| Suzuki Motor Corp. | 177,600 | 6,739,300 |
| Sysmex Corp. | 80,300 | 8,020,647 |
| T&D Holdings, Inc. | 257,700 | 3,162,560 |
| Taiheiyo Cement Corp. | 51,600 | 1,295,507 |
| Taisei Corp. | 91,300 | 3,373,377 |
| Taisho Pharmaceutical Holdings Co., Ltd. | 15,100 | 890,234 |
| Takeda Pharmaceutical Co., Ltd. | 756,090 | 25,253,777 |
| TDK Corp. | 62,000 | 8,407,999 |
| Teijin Ltd. | 87,000 | 1,432,411 |
| Terumo Corp. | 308,300 | 11,657,503 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| The Bank of Kyoto Ltd. | 26,809 | 1,440,234 |
| The Chiba Bank Ltd. | 257,900 | 1,612,702 |
| The Chugoku Electric Power Co., Inc. | 136,700 | 1,529,912 |
| The Kansai Electric Power Co., Inc. | 347,500 | 3,451,627 |
| The Shizuoka Bank Ltd. | 195,700 | 1,501,700 |
| THK Co., Ltd. | 57,042 | 1,945,968 |
| TIS, Inc. | 103,700 | 2,572,825 |
| Tobu Railway Co., Ltd. | 90,300 | 2,325,223 |
| Toho Co., Ltd. | 53,108 | 2,116,510 |
| Toho Gas Co., Ltd. | 35,160 | 1,959,552 |
| Tohoku Electric Power Co., Inc. | 205,500 | 1,815,382 |
| Tokio Marine Holdings, Inc. | 303,299 | 14,545,275 |
| Tokyo Century Corp. | 21,177 | 1,309,196 |
| Tokyo Electric Power Co. Holdings, Inc. * | 667,290 | 1,978,635 |
| Tokyo Electron Ltd. | 71,400 | 32,428,999 |
| Tokyo Gas Co., Ltd. | 183,440 | 3,722,712 |
| Tokyu Corp. | 242,800 | 3,122,595 |
| Tokyu Fudosan Holdings Corp. | 291,400 | 1,621,911 |
| Toppan Printing Co., Ltd. | 126,700 | 2,163,734 |
| Toray Industries, Inc. | 656,900 | 4,084,744 |
| Toshiba Corp. | 185,617 | 7,671,779 |
| Tosoh Corp. | 124,000 | 2,197,891 |
| TOTO Ltd. | 68,100 | 3,540,526 |
| Toyo Suisan Kaisha Ltd. | 43,600 | 1,777,789 |
| Toyoda Gosei Co., Ltd. | 28,600 | 700,994 |
| Toyota Industries Corp. | 70,500 | 5,660,366 |
| Toyota Motor Corp. | 1,015,003 | 75,946,758 |
| Toyota Tsusho Corp. | 102,269 | 4,333,595 |
| Trend Micro, Inc. | 62,600 | 2,979,689 |
| Tsuruha Holdings, Inc. | 17,900 | 2,069,210 |
| Unicharm Corp. | 190,900 | 7,420,345 |
| United Urban Investment Corp. | 1,428 | 2,131,811 |
| USS Co., Ltd. | 102,600 | 1,861,762 |
| Welcia Holdings Co., Ltd. | 44,100 | 1,375,981 |
| West Japan Railway Co. | 79,000 | 4,367,576 |
| Yakult Honsha Co., Ltd. | 62,800 | 3,056,891 |
| Yamada Holdings Co., Ltd. | 344,200 | 1,713,508 |
| Yamaha Corp. | 63,200 | 3,449,173 |
| Yamaha Motor Co., Ltd. | 134,300 | 3,355,565 |
| Yamato Holdings Co., Ltd. | 140,900 | 3,973,919 |
| Yamazaki Baking Co., Ltd. | 60,100 | 952,644 |
| Yaskawa Electric Corp. | 114,800 | 5,291,689 |
| Yokogawa Electric Corp. | 109,600 | 1,989,578 |
| Z Holdings Corp. | 1,282,900 | 5,917,074 |
| ZOZO, Inc. | 54,600 | 1,836,416 |
| | | 1,909,124,837 |
| |
| Netherlands 4.3% |
| ABN AMRO Bank N.V. CVA * | 209,895 | 2,710,191 |
| Adyen N.V. * | 8,722 | 21,465,654 |
| Aegon N.V. | 850,824 | 3,942,995 |
| Akzo Nobel N.V. | 92,619 | 11,120,667 |
| ASM International N.V. | 22,619 | 6,862,084 |
| ASML Holding N.V. | 203,965 | 132,402,142 |
| Coca-Cola European Partners plc | 98,290 | 5,584,838 |
| Heineken Holding N.V. | 55,731 | 5,535,774 |
| Heineken N.V. | 123,339 | 14,307,256 |
| ING Groep N.V. | 1,864,928 | 23,824,417 |
| JDE Peet's N.V. * | 37,481 | 1,457,266 |
| Just Eat Takeaway.com N.V * | 59,719 | 6,170,362 |
| Koninklijke Ahold Delhaize N.V. | 525,651 | 14,146,272 |
| Koninklijke DSM N.V. | 82,592 | 14,808,742 |
| Koninklijke KPN N.V. | 1,693,668 | 5,842,498 |
| Koninklijke Philips N.V. * | 437,123 | 24,716,297 |
| Koninklijke Vopak N.V. | 32,588 | 1,492,146 |
| NN Group N.V. | 141,063 | 7,036,006 |
| Security | Number
of Shares | Value ($) |
| Prosus N.V. * | 233,413 | 25,332,686 |
| Randstad N.V. | 57,260 | 4,131,431 |
| Wolters Kluwer N.V. | 127,385 | 11,522,100 |
| | | 344,411,824 |
| |
| New Zealand 0.3% |
| Auckland International Airport Ltd. * | 584,759 | 3,162,408 |
| Fisher & Paykel Healthcare Corp., Ltd. | 274,339 | 7,070,510 |
| Mercury NZ Ltd. | 329,008 | 1,629,787 |
| Meridian Energy Ltd. | 604,549 | 2,304,570 |
| Ryman Healthcare Ltd. | 184,576 | 1,866,067 |
| Spark New Zealand Ltd. | 898,471 | 2,828,222 |
| The a2 Milk Co., Ltd. * | 357,676 | 1,955,480 |
| | | 20,817,044 |
| |
| Norway 0.6% |
| Adevinta A.S.A. * | 116,481 | 2,131,673 |
| DNB A.S.A. | 445,414 | 9,552,450 |
| Equinor A.S.A. | 467,934 | 9,448,877 |
| Gjensidige Forsikring A.S.A. | 94,149 | 2,138,041 |
| Mowi A.S.A. | 210,181 | 5,185,186 |
| Norsk Hydro A.S.A. | 652,784 | 4,156,786 |
| Orkla A.S.A. | 361,784 | 3,687,707 |
| Schibsted A.S.A., A Shares * | 35,831 | 1,800,645 |
| Schibsted A.S.A., B Shares * | 47,409 | 2,078,842 |
| Telenor A.S.A. | 332,870 | 5,930,073 |
| Yara International A.S.A. | 81,988 | 4,276,668 |
| | | 50,386,948 |
| |
| Portugal 0.1% |
| Banco Espirito Santo S.A. *(c) | 470,491 | — |
| EDP - Energias de Portugal S.A. | 1,314,756 | 7,305,833 |
| Galp Energia, SGPS, S.A. | 240,451 | 2,768,745 |
| Jeronimo Martins, SGPS, S.A. | 120,593 | 2,202,290 |
| | | 12,276,868 |
| |
| Singapore 1.1% |
| Ascendas Real Estate Investment Trust | 1,509,095 | 3,516,672 |
| CapitaLand Integrated Commercial Trust | 2,217,436 | 3,577,529 |
| CapitaLand Ltd. | 1,288,114 | 3,590,825 |
| City Developments Ltd. | 227,700 | 1,346,952 |
| DBS Group Holdings Ltd. | 862,895 | 19,338,380 |
| Genting Singapore Ltd. | 2,963,800 | 1,922,170 |
| Keppel Corp., Ltd. | 682,300 | 2,771,989 |
| Mapletree Commercial Trust | 1,018,600 | 1,670,936 |
| Mapletree Logistics Trust | 1,401,414 | 2,091,804 |
| Oversea-Chinese Banking Corp., Ltd. | 1,618,924 | 14,799,432 |
| Singapore Airlines Ltd. * | 625,050 | 2,368,886 |
| Singapore Exchange Ltd. | 392,700 | 3,076,292 |
| Singapore Technologies Engineering Ltd. | 727,949 | 2,105,923 |
| Singapore Telecommunications Ltd. | 3,939,737 | 7,391,518 |
| Suntec Real Estate Investment Trust | 874,500 | 1,002,167 |
| United Overseas Bank Ltd. | 566,433 | 11,290,572 |
| UOL Group Ltd. | 235,272 | 1,357,560 |
| Venture Corp., Ltd. | 133,300 | 2,011,308 |
| Wilmar International Ltd. | 912,034 | 3,569,359 |
| | | 88,800,274 |
| |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Spain 2.5% |
| ACS Actividades de Construccion y Servicios S.A. | 114,883 | 3,742,972 |
| Aena SME S.A. * | 32,191 | 5,594,653 |
| Amadeus IT Group S.A. * | 215,990 | 14,708,492 |
| Banco Bilbao Vizcaya Argentaria S.A. * | 3,178,100 | 17,796,029 |
| Banco Santander S.A. * | 8,297,060 | 32,006,336 |
| CaixaBank S.A. * | 2,107,721 | 6,742,523 |
| Cellnex Telecom S.A. | 209,673 | 11,859,956 |
| Enagas S.A. | 116,724 | 2,541,137 |
| Endesa S.A. | 151,505 | 3,984,839 |
| Ferrovial S.A. | 231,104 | 6,561,273 |
| Grifols S.A. | 145,653 | 3,945,178 |
| Iberdrola S.A. | 2,928,358 | 39,573,676 |
| Industria de Diseno Textil S.A. (a) | 524,481 | 18,661,393 |
| Naturgy Energy Group S.A. | 138,762 | 3,564,737 |
| Red Electrica Corp. S.A. | 207,137 | 3,802,631 |
| Repsol S.A. | 718,687 | 8,578,452 |
| Siemens Gamesa Renewable Energy S.A. * | 115,655 | 4,177,438 |
| Telefonica S.A. | 2,433,632 | 11,278,227 |
| | | 199,119,942 |
| |
| Sweden 3.6% |
| Alfa Laval AB | 149,971 | 5,064,916 |
| Assa Abloy AB, B Shares | 478,811 | 13,650,698 |
| Atlas Copco AB, A Shares | 322,208 | 19,538,710 |
| Atlas Copco AB, B Shares | 187,572 | 9,732,912 |
| Boliden AB | 128,252 | 4,988,683 |
| Electrolux AB, B Shares | 104,836 | 2,942,400 |
| Epiroc AB, A Shares | 309,481 | 6,696,396 |
| Epiroc AB, B Shares | 189,813 | 3,716,443 |
| EQT AB | 114,709 | 3,865,973 |
| Essity AB, B Shares | 293,387 | 9,575,565 |
| Evolution Gaming Group AB | 76,044 | 15,011,739 |
| Fastighets AB Balder, B Shares * | 48,519 | 2,795,563 |
| H & M Hennes & Mauritz AB, B Shares * | 386,193 | 9,503,196 |
| Hexagon AB, B Shares | 133,955 | 12,795,234 |
| Husqvarna AB, B Shares | 202,568 | 2,820,869 |
| ICA Gruppen AB | 49,490 | 2,281,144 |
| Industrivarden AB, A Shares | 54,001 | 2,070,870 |
| Industrivarden AB, C Shares | 72,739 | 2,623,709 |
| Investment AB Latour, B Shares | 69,599 | 2,126,129 |
| Investor AB, B Shares | 219,013 | 18,591,249 |
| Kinnevik AB, B Shares * | 116,117 | 6,408,684 |
| LE Lundbergfortagen AB, B Shares | 35,969 | 2,053,674 |
| Lundin Energy AB | 86,928 | 2,772,824 |
| Nibe Industrier AB, B Shares | 149,516 | 5,460,476 |
| Nordea Bank Abp (b) | 1,542,143 | 15,983,662 |
| Nordea Bank Abp (b) | 16,453 | 170,206 |
| Sandvik AB | 541,125 | 13,381,721 |
| Securitas AB, B Shares | 153,399 | 2,611,223 |
| Skandinaviska Enskilda Banken AB, A Shares | 782,107 | 10,021,248 |
| Skanska AB, B Shares | 165,774 | 4,489,677 |
| SKF AB, B Shares | 180,677 | 4,667,927 |
| Svenska Cellulosa AB, S.C.A., B Shares | 289,626 | 5,071,749 |
| Svenska Handelsbanken AB, A Shares | 739,781 | 8,566,861 |
| Swedbank AB, A Shares | 435,819 | 7,650,853 |
| Swedish Match AB | 76,884 | 6,294,069 |
| Tele2 AB, B Shares (a) | 237,128 | 3,062,812 |
| Security | Number
of Shares | Value ($) |
| Telefonaktiebolaget LM Ericsson, B Shares | 1,398,633 | 19,209,005 |
| Telia Co. AB | 1,169,981 | 4,848,203 |
| Volvo AB, B Shares | 679,520 | 16,594,265 |
| | | 289,711,537 |
| |
| Switzerland 9.2% |
| ABB Ltd. | 881,821 | 28,643,439 |
| Adecco Group AG | 73,542 | 4,984,644 |
| Alcon, Inc. * | 234,525 | 17,615,343 |
| Baloise Holding AG * | 21,811 | 3,688,100 |
| Banque Cantonale Vaudoise | 14,339 | 1,461,810 |
| Barry Callebaut AG | 1,708 | 3,771,097 |
| Chocoladefabriken Lindt & Spruengli AG * | 50 | 4,943,400 |
| Chocoladefabriken Lindt & Spruengli AG - Participation Certificates * | 478 | 4,433,244 |
| Cie Financiere Richemont S.A. | 249,776 | 25,633,705 |
| Clariant AG | 94,345 | 1,976,186 |
| Credit Suisse Group AG (a) | 1,176,460 | 12,329,272 |
| EMS-Chemie Holding AG | 3,931 | 3,670,421 |
| Geberit AG | 17,757 | 11,684,251 |
| Givaudan S.A. | 4,435 | 18,583,424 |
| Julius Baer Group Ltd. | 105,721 | 6,653,808 |
| Kuehne & Nagel International AG | 25,768 | 7,704,500 |
| LafargeHolcim Ltd. * | 252,290 | 15,568,235 |
| Logitech International S.A. | 79,260 | 8,821,982 |
| Lonza Group AG * | 35,722 | 22,708,980 |
| Nestle S.A. | 1,379,707 | 164,641,390 |
| Novartis AG | 1,063,551 | 90,759,553 |
| Partners Group Holding AG | 8,987 | 12,801,684 |
| Roche Holding AG | 336,093 | 109,618,610 |
| Roche Holding AG - Bearer Shares | 15,613 | 5,428,751 |
| Schindler Holding AG | 9,971 | 2,774,400 |
| Schindler Holding AG - Participation Certificates | 19,030 | 5,415,250 |
| SGS S.A. | 2,899 | 8,577,855 |
| Sika AG | 68,036 | 20,319,805 |
| Sonova Holding AG * | 26,312 | 7,790,983 |
| Straumann Holding AG | 4,922 | 7,034,385 |
| Swiss Life Holding AG | 14,396 | 7,014,183 |
| Swiss Prime Site AG | 35,943 | 3,497,947 |
| Swiss Re AG | 137,480 | 12,763,795 |
| Swisscom AG | 12,527 | 6,801,517 |
| Temenos AG | 31,549 | 4,638,329 |
| The Swatch Group AG | 24,720 | 1,482,844 |
| The Swatch Group AG - Bearer Shares | 14,067 | 4,311,627 |
| UBS Group AG | 1,755,252 | 26,803,747 |
| Vifor Pharma AG | 21,817 | 3,144,336 |
| Zurich Insurance Group AG | 72,251 | 29,641,583 |
| | | 740,138,415 |
| |
| United Kingdom 14.3% |
| 3i Group plc | 467,243 | 8,275,706 |
| Admiral Group plc | 91,631 | 3,959,262 |
| Anglo American plc | 587,134 | 24,894,731 |
| Antofagasta plc | 187,451 | 4,828,762 |
| Ashtead Group plc | 215,112 | 13,821,144 |
| Associated British Foods plc * | 172,613 | 5,507,575 |
| AstraZeneca plc | 628,744 | 66,925,946 |
| Auto Trader Group plc * | 461,827 | 3,635,776 |
| AVEVA Group plc | 55,793 | 2,681,489 |
| Aviva plc | 1,872,962 | 10,354,756 |
| BAE Systems plc | 1,531,678 | 10,699,123 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Barclays plc | 8,309,438 | 20,116,890 |
| Barratt Developments plc | 484,570 | 5,166,599 |
| BHP Group plc | 1,009,655 | 30,405,540 |
| BP plc | 9,707,147 | 40,637,466 |
| British American Tobacco plc | 1,100,646 | 40,837,647 |
| BT Group plc * | 4,294,966 | 9,796,572 |
| Bunzl plc | 160,123 | 5,148,403 |
| Burberry Group plc * | 190,903 | 5,433,722 |
| Coca-Cola HBC AG * | 96,983 | 3,351,918 |
| Compass Group plc * | 852,450 | 18,544,427 |
| Croda International plc | 66,686 | 6,229,799 |
| DCC plc | 48,205 | 4,182,700 |
| Diageo plc | 1,121,058 | 50,325,823 |
| Direct Line Insurance Group plc | 678,602 | 2,670,102 |
| Entain plc * | 281,564 | 6,582,014 |
| Evraz plc | 240,046 | 2,128,805 |
| Experian plc | 438,352 | 16,899,143 |
| Ferguson plc | 107,242 | 13,526,006 |
| Fresnillo plc | 95,255 | 1,083,155 |
| GlaxoSmithKline plc | 2,399,884 | 44,349,241 |
| Glencore plc * | 4,791,205 | 19,516,594 |
| Halma plc | 180,862 | 6,462,668 |
| Hargreaves Lansdown plc | 160,256 | 3,804,740 |
| Hikma Pharmaceuticals plc | 79,388 | 2,675,306 |
| HSBC Holdings plc | 9,734,831 | 60,781,472 |
| Imperial Brands plc | 451,845 | 9,418,037 |
| Informa plc * | 720,269 | 5,598,731 |
| InterContinental Hotels Group plc * | 82,423 | 5,857,227 |
| Intertek Group plc | 77,716 | 6,587,926 |
| J. Sainsbury plc | 869,065 | 2,854,438 |
| JD Sports Fashion plc * | 253,281 | 3,212,742 |
| Johnson Matthey plc | 92,327 | 4,143,116 |
| Kingfisher plc * | 993,405 | 4,904,104 |
| Land Securities Group plc | 343,640 | 3,424,392 |
| Legal & General Group plc | 2,838,364 | 10,656,882 |
| Lloyds Banking Group plc | 33,744,867 | 21,160,709 |
| London Stock Exchange Group plc | 150,622 | 15,388,783 |
| M&G plc | 1,243,739 | 3,733,225 |
| Melrose Industries plc | 2,324,409 | 5,232,695 |
| Mondi plc | 235,971 | 6,405,133 |
| National Grid plc | 1,689,707 | 21,299,670 |
| Natwest Group plc | 2,345,260 | 6,364,595 |
| Next plc * | 62,755 | 6,762,867 |
| NMC Health plc *(c) | 48,950 | 21,856 |
| Ocado Group plc * | 233,685 | 6,764,932 |
| Pearson plc | 366,826 | 4,208,251 |
| Persimmon plc | 153,587 | 6,644,254 |
| Phoenix Group Holdings plc | 264,762 | 2,597,258 |
| Prudential plc | 1,247,137 | 26,407,223 |
| Reckitt Benckiser Group plc | 340,304 | 30,299,852 |
| RELX plc | 924,617 | 23,989,609 |
| Rentokil Initial plc | 886,638 | 6,127,794 |
| Rio Tinto plc | 535,908 | 44,886,133 |
| Rolls-Royce Holdings plc * | 4,019,968 | 5,817,721 |
| Royal Dutch Shell plc, A Shares | 1,966,881 | 37,009,349 |
| Royal Dutch Shell plc, B Shares | 1,775,111 | 31,763,224 |
| RSA Insurance Group plc | 492,011 | 4,633,706 |
| Schroders plc | 60,121 | 2,995,435 |
| Segro plc | 571,904 | 7,945,220 |
| Severn Trent plc | 113,360 | 3,880,345 |
| Smith & Nephew plc | 419,149 | 9,071,955 |
| Smiths Group plc | 187,925 | 4,220,480 |
| Spirax-Sarco Engineering plc | 35,235 | 5,751,193 |
| SSE plc | 497,408 | 10,084,212 |
| St. James's Place plc | 260,092 | 4,891,901 |
| Standard Chartered plc | 1,280,823 | 9,188,544 |
| Standard Life Aberdeen plc | 1,067,146 | 4,089,559 |
| Taylor Wimpey plc | 1,744,835 | 4,328,401 |
| Security | Number
of Shares | Value ($) |
| Tesco plc | 3,720,908 | 11,358,310 |
| The Berkeley Group Holdings plc | 60,130 | 3,842,819 |
| The British Land Co., plc | 424,248 | 3,040,232 |
| The Sage Group plc | 520,091 | 4,582,320 |
| Unilever plc | 1,259,952 | 73,804,314 |
| United Utilities Group plc | 326,325 | 4,364,853 |
| Vodafone Group plc | 12,837,894 | 24,227,656 |
| Whitbread plc * | 95,413 | 4,277,673 |
| WM Morrison Supermarkets plc | 1,130,623 | 2,715,396 |
| WPP plc | 579,977 | 7,819,316 |
| | | 1,156,897,590 |
| Total Common Stock |
| (Cost $5,665,055,693) | | 7,947,315,094 |
|
| Preferred Stock 0.7% of net assets |
| |
| Germany 0.7% |
| Bayerische Motoren Werke AG | 27,325 | 2,237,979 |
| Fuchs Petrolub SE | 32,258 | 1,717,720 |
| Henkel AG & Co. KGaA | 84,857 | 9,747,492 |
| Porsche Automobil Holding SE | 72,867 | 7,681,379 |
| Sartorius AG | 17,117 | 9,657,757 |
| Volkswagen AG | 88,751 | 23,107,162 |
| Total Preferred Stock |
| (Cost $32,990,488) | | 54,149,489 |
|
| Rights 0.0% of net assets |
| |
| Switzerland 0.0% |
Credit Suisse Group AG
expires 05/06/21 *(c) | 1,176,460 | 49,238 |
| Total Rights |
| (Cost $—) | | 49,238 |
|
| Investment Company 0.7% of net assets |
| |
| United States 0.7% |
| Securities Lending Collateral 0.7% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (d) | 57,497,584 | 57,497,584 |
| Total Investment Company |
| (Cost $57,497,584) | | 57,497,584 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Short-Term Investments 0.3% of net assets |
| |
| Time Deposits 0.3% |
| Barclays Bank PLC |
| U.S. Dollar | | |
| 0.01%, 05/03/21 (e) | 17,249,453 | 17,249,453 |
| BNP Paribas S.A. |
| Swiss Franc | | |
| (1.38%), 05/03/21 (e)(f) | 381,601 | 417,849 |
| Brown Brothers Harriman & Co. |
| Australian Dollar | | |
| (0.14%), 05/03/21 (e)(f) | 777,835 | 599,205 |
| Canadian Dollar | | |
| 0.01%, 05/03/21 (e) | 204,174 | 166,110 |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Hong Kong Dollar | | |
| (0.15%), 05/03/21 (e)(f) | 630,599 | 81,182 |
| New Zeland Dollar | | |
| 0.10%, 05/03/21 (e) | 90,589 | 64,825 |
| Singapore Dollar | | |
| 0.00%, 05/03/21 (e) | 214,609 | 161,269 |
| Citibank |
| Euro | | |
| (0.78%), 05/03/21 (e)(f) | 1,753,220 | 2,107,808 |
| Pound Sterling | | |
| 0.01%, 05/04/21 (e) | 294,274 | 406,407 |
| Nordea Bank |
| Norwegian Krone | | |
| (0.25%), 05/03/21 (e)(f) | 2,114,542 | 254,030 |
| Skandinaviska Enskilda Banken AB |
| Swedish Krona | | |
| (0.30%), 05/03/21 (e)(f) | 2,178,148 | 257,295 |
| Sumitomo Mitsui Banking Corp. |
| Japanese Yen | | |
| (0.31%), 05/06/21 (e)(f) | 23,913,068 | 218,804 |
| Total Short-Term Investments |
| (Cost $21,984,237) | | 21,984,237 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Depreciation
($) |
| Futures Contracts | |
| Long | |
| MSCI EAFE Index, expires 06/18/21 | 557 | 62,865,805 | (103,865) |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $54,259,521. |
| (b) | Securities are traded on separate exchanges for the same entity. |
| (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. |
| (f) | Rate is negative due to the current daily overnight rate at the central bank of the denominated currency and therefore is non-income producing. |
| | |
| ADR — | American Depositary Receipt |
| CVA — | Dutch Certificate |
| REIT — | Real Estate Investment Trust |
| RSP — | Risparmio (Convertible Savings Shares) |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $— | $2,064,993,354 | $— | $2,064,993,354 | |
| Belgium | 1,548,683 | 75,754,633 | — | 77,303,316 | |
| Denmark | 19,685,799 | 178,599,762 | — | 198,285,561 | |
| Finland | 2,341,023 | 80,080,383 | — | 82,421,406 | |
| Germany | 5,852,989 | 699,512,232 | — | 705,365,221 | |
| Hong Kong | 3,351,500 | 263,448,650 | — | 266,800,150 | |
| Israel | 23,073,177 | 26,124,890 | — | 49,198,067 | |
| Japan | 5,624,634 | 1,903,500,203 | — | 1,909,124,837 | |
| Netherlands | 5,584,838 | 338,826,986 | — | 344,411,824 | |
| Norway | 2,078,842 | 48,308,106 | — | 50,386,948 | |
| Portugal | 9,508,123 | 2,768,745 | — * | 12,276,868 | |
| Sweden | 2,942,400 | 286,769,137 | — | 289,711,537 | |
| Switzerland | 4,433,244 | 735,705,171 | — | 740,138,415 | |
| United Kingdom | — | 1,156,875,734 | 21,856 | 1,156,897,590 | |
| Preferred Stock1 | — | 54,149,489 | — | 54,149,489 | |
| Rights 1 | | | | | |
| Switzerland | — | — | 49,238 | 49,238 | |
| Investment Company1 | 57,497,584 | — | — | 57,497,584 | |
| Short-Term Investments1 | — | 21,984,237 | — | 21,984,237 | |
| Liabilities | | | | | |
| Futures Contracts2 | (103,865) | — | — | (103,865) | |
| Total | $143,418,971 | $7,937,401,712 | $71,094 | $8,080,891,777 | |
| * | Level 3 amount shown includes securities determined to have no value at April 30, 2021. |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $5,720,030,418) including securities on loan of $54,259,521 | | $8,023,498,058 |
| Collateral invested for securities on loan, at value (cost $57,497,584) | | 57,497,584 |
| Foreign currency, at value (cost $361,764) | | 363,327 |
| Deposit with broker for futures contracts | | 4,775,746 |
| Receivables: | | |
| Investments sold | | 2,210 |
| Dividends | | 26,535,351 |
| Foreign tax reclaims | | 12,251,156 |
| Fund shares sold | | 9,670,799 |
| Income from securities on loan | + | 104,268 |
| Total assets | | 8,134,698,499 |
| Liabilities |
| Collateral held for securities on loan | | 57,497,584 |
| Payables: | | |
| Investments bought | | 605,751 |
| Investment adviser fees | | 419,710 |
| Fund shares redeemed | | 7,232,689 |
| Variation margin on futures contracts | + | 748,398 |
| Total liabilities | | 66,504,132 |
| Net Assets |
| Total assets | | 8,134,698,499 |
| Total liabilities | – | 66,504,132 |
| Net assets | | $8,068,194,367 |
| Net Assets by Source | | |
| Capital received from investors | | 6,123,188,933 |
| Total distributable earnings | | 1,945,005,434 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $8,068,194,367 | | 344,600,903 | | $23.41 |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $10,390,277) | | $98,313,304 |
| Securities on loan, net | + | 181,189 |
| Total investment income | | 98,494,493 |
| Expenses |
| Investment adviser fees | | 2,229,891 |
| Professional fees | + | 53,468* |
| Total expenses | | 2,283,359 |
| Expense reduction by CSIM | – | 53,468* |
| Net expenses | – | 2,229,891 |
| Net investment income | | 96,264,602 |
| Realized and Unrealized Gains (Losses) |
| Net realized losses on sales of securities - unaffiliated | | (14,067,980) |
| Net realized gains on futures contracts | | 9,046,547 |
| Net realized gains on foreign currency transactions | + | 33,004 |
| Net realized losses | | (4,988,429) |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 1,625,549,208 |
| Net change in unrealized appreciation (depreciation) on futures contracts | | 1,601,373 |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 66,889 |
| Net change in unrealized appreciation (depreciation) | + | 1,627,217,470 |
| Net realized and unrealized gains | | 1,622,229,041 |
| Increase in net assets resulting from operations | | $1,718,493,643 |
| * | Professional fees associated with the filing of tax claims in the European Union deemed to be non-routine expenses of the fund. See financial notes 2(d) and 4 for additional information. |
Schwab Equity Index Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $96,264,602 | $140,255,519 |
| Net realized losses | | (4,988,429) | (171,714,124) |
| Net change in unrealized appreciation (depreciation) | + | 1,627,217,470 | (261,951,352) |
| Increase (decrease) in net assets from operations | | 1,718,493,643 | (293,409,957) |
| Distributions to Shareholders | |
| Total distributions | | ($134,266,147) | ($172,919,468) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 47,268,980 | $1,052,841,744 | 137,962,023 | $2,458,528,501 |
| Shares reinvested | | 4,139,456 | 90,364,312 | 6,184,493 | 127,647,953 |
| Shares redeemed | + | (26,705,734) | (596,731,203) | (90,042,895) | (1,625,600,717) |
| Net transactions in fund shares | | 24,702,702 | $546,474,853 | 54,103,621 | $960,575,737 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 319,898,201 | $5,937,492,018 | 265,794,580 | $5,443,245,706 |
| Total increase | + | 24,702,702 | 2,130,702,349 | 54,103,621 | 494,246,312 |
| End of period | | 344,600,903 | $8,068,194,367 | 319,898,201 | $5,937,492,018 |
Schwab Equity Index Funds | Semiannual Report
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 2045 Fund |
| Schwab Small-Cap Index Fund | Schwab Target 2050 Fund |
| Schwab Total Stock Market Index Fund | Schwab Target 2055 Fund |
| Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2060 Fund |
| Schwab U.S. Large-Cap Value Index Fund | Schwab Target 2065 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 Target 2065 Index Fund |
| Schwab Target 2025 Fund | Schwab Monthly Income Fund – Moderate Payout |
| Schwab Target 2030 Fund | Schwab Monthly Income Fund – Enhanced Payout |
| Schwab Target 2035 Fund | Schwab Monthly Income Fund – Maximum Payout |
| Schwab Target 2040 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 High Yield Municipal Bond Fund |
| Schwab Short-Term Bond Index Fund | Schwab Global Real Estate Fund |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in certain mutual funds and exchange-traded funds (ETFs) referred to as “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.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
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 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.
• 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.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
• Cash management sweep time deposits: Balances held in cash management sweep time deposits are accounted for on a cost basis, which approximates fair value.
• 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.
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.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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, mutual funds, 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 underlying securities held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the funds value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
• 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, 2021 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked to-market gains (as well as any gains realized on sale).
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 pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 10% of gross lending revenue, with subsequent breakpoints to a low of 7.5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by Charles Schwab Investment Management, Inc. (CSIM or the investment adviser) or any affiliate of CSIM.
As of April 30, 2021, 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 and Schwab International Index Fund had securities on loan, all of which were classified as common stocks and rights. The value of the securities on loan and the related collateral as of April 30, 2021 are disclosed in each fund’s Portfolio Holdings and 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 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, however, interest rates may be negative due to overnight rates at the central bank of the denominated currency. 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.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange 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 date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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 CSIM 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.
(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 accrued as of April 30, 2021, 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.
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. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
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.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
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. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in the index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for the fund.
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 its respective 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):
A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to 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.
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% |
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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, 2021, as applicable:
| | Underlying Funds |
| | Schwab
S&P 500
Index Fund | Schwab
Small-Cap
Index Fund | Schwab
U.S. Large-Cap
Growth
Index Fund | Schwab
U.S. Mid-Cap
Index Fund | Schwab
International
Index Fund |
| Schwab MarketTrack All Equity Portfolio | 0.4% | 1.3% | 5.6% | —% | 1.4% |
| Schwab MarketTrack Balanced Portfolio | 0.2% | 0.6% | 2.7% | —% | 0.5% |
| Schwab MarketTrack Conservative Portfolio | 0.1% | 0.2% | 0.9% | —% | 0.2% |
| Schwab MarketTrack Growth Portfolio | 0.4% | 1.3% | 4.4% | —% | 1.1% |
| Schwab Target 2010 Fund | 0.0%* | —% | —% | 0.1% | —% |
| Schwab Target 2015 Fund | 0.0%* | —% | —% | 0.1% | —% |
| Schwab Target 2020 Fund | 0.1% | —% | —% | 0.6% | —% |
| Schwab Target 2025 Fund | 0.2% | —% | —% | 0.9% | —% |
| Schwab Target 2030 Fund | 0.3% | —% | —% | 1.9% | —% |
| Schwab Target 2035 Fund | 0.2% | —% | —% | 1.1% | —% |
| Schwab Target 2040 Fund | 0.4% | —% | —% | 2.4% | —% |
| Schwab Target 2045 Fund | 0.1% | —% | —% | 0.5% | —% |
| Schwab Target 2050 Fund | 0.1% | —% | —% | 0.5% | —% |
| Schwab Target 2055 Fund | 0.0%* | —% | —% | 0.3% | —% |
| Schwab Target 2060 Fund | 0.0%* | —% | —% | 0.1% | —% |
| Schwab Target 2065 Fund | 0.0%* | —% | —% | 0.0%* | —% |
Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2 were non-routine expenses. The investment adviser agreed to pay these professional fees, which are subject to reimbursement by the Schwab International Index Fund to the extent the fund is able to successfully recover taxes withheld in the future.
The professional fees incurred by the Schwab International Index Fund were $53,468 and the fund made no reimbursement to the investment adviser during the period ended April 30, 2021.
As of April 30, 2021, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the fund to the investment adviser was $211,815 for the 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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Schwab Equity Index Funds
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 in accordance with procedures adopted by the Board under Rule 17a-7 of the 1940 Act. 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, 2021, 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 | $194,614,945 | ($38,414,970) |
| Schwab 1000 Index Fund | 48,572,450 | 7,113,307 |
| Schwab Small-Cap Index Fund | 55,936,447 | (8,955,022) |
| Schwab Total Stock Market Index Fund | 56,531,138 | (6,948,203) |
| Schwab U.S. Large-Cap Growth Index Fund | 5,025,523 | (7,417) |
| Schwab U.S. Large-Cap Value Index Fund | 2,381,469 | (105,799) |
| Schwab U.S. Mid-Cap Index Fund | 5,701,973 | (485,892) |
| Schwab International Index Fund | 3,309,144 | (1,460,192) |
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 funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to CSIM paying the interest charged on any borrowings by a fund, CSIM paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, CSIM pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.
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:
Certain funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2021 are presented in the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized gains (losses) and net change in unrealized appreciation (depreciation) on futures contracts are presented in the Statement of Operations, if any. Refer to financial note 2(b) for
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
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, 2021, 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 | $293,585,081 | 1,553 |
| Schwab 1000 Index Fund | 62,040,544 | 329 |
| Schwab Small-Cap Index Fund | 36,487,784 | 359 |
| Schwab Total Stock Market Index Fund | 86,599,845 | 522 |
| Schwab U.S. Large-Cap Growth Index Fund | 3,261,251 | 26 |
| Schwab U.S. Large-Cap Value Index Fund | 2,051,560 | 28 |
| Schwab U.S. Mid-Cap Index Fund | 3,655,247 | 15 |
| Schwab International Index Fund | 44,642,595 | 423 |
8. Purchases and Sales of Investment Securities:
For the period ended April 30, 2021, purchases and sales of securities (excluding short-term obligations) were as follows:
| | Purchases
of Securities | Sales
of Securities |
| Schwab S&P 500 Index Fund | $3,403,943,887 | $939,711,948 |
| Schwab 1000 Index Fund | 673,781,536 | 365,853,640 |
| Schwab Small-Cap Index Fund | 637,371,090 | 178,184,802 |
| Schwab Total Stock Market Index Fund | 1,136,736,094 | 185,169,705 |
| Schwab U.S. Large-Cap Growth Index Fund | 107,948,434 | 16,290,067 |
| Schwab U.S. Large-Cap Value Index Fund | 76,711,235 | 12,723,584 |
| Schwab U.S. Mid-Cap Index Fund | 109,650,311 | 24,081,493 |
| Schwab International Index Fund | 616,387,860 | 128,851,849 |
9. Federal Income Taxes:
As of April 30, 2021, 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 | $23,695,772,014 | $2,970,878,575 | | $3,807,012,037 | | $7,561,504,712 | | $465,765,522 | |
| Gross unrealized appreciation | $35,896,499,690 | $10,069,776,960 | | $2,752,035,898 | | $8,597,458,420 | | $236,927,879 | |
| Gross unrealized depreciation | (498,524,201) | (106,603,231) | | (242,133,087) | | (214,379,490) | | (1,784,463) | |
| Net unrealized appreciation (depreciation) | $35,397,975,489 | $9,963,173,729 | | $2,509,902,811 | | $8,383,078,930 | | $235,143,416 | |
| | Schwab
U.S. Large-Cap
Value
Index Fund | | Schwab
U.S. Mid-Cap
Index Fund | | Schwab
International
Index Fund |
| Tax cost | $401,354,696 | | $533,984,709 | | $5,988,270,100 |
| Gross unrealized appreciation | $116,404,158 | | $212,370,960 | | $2,375,683,231 |
| Gross unrealized depreciation | (995,226) | | (8,073,769) | | (283,061,554) |
| Net unrealized appreciation (depreciation) | $115,408,932 | | $204,297,191 | | $2,092,621,677 |
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
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, 2020, 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 | $177,404,555 | | $— | | $— | | $21,117,724 | | $5,572,385 |
| Total | $177,404,555 | | $— | | $— | | $21,117,724 | | $5,572,385 |
| Expiration Date | Schwab
U.S. Large-Cap
Value
Index Fund | | Schwab
U.S. Mid-Cap
Index Fund | | Schwab
International
Index Fund |
| No expiration | $1,090,145 | | $3,129,145 | | $202,372,544 |
| Total | $1,090,145 | | $3,129,145 | | $202,372,544 |
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, 2021. The tax-basis components of distributions paid during the fiscal year ended October 31, 2020, 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 | $752,543,848 | $175,073,765 | $71,467,544 | $180,871,651 | $1,890,344 |
| Long-term capital gains | 76,711,728 | 115,680,278 | 187,516,879 | 26,277,147 | — |
| | Schwab
U.S. Large-Cap
Value
Index Fund | Schwab
U.S. Mid-Cap
Index Fund | Schwab
International
Index Fund |
| Ordinary income | $7,613,944 | $7,422,021 | $172,919,468 |
| Long-term capital gains | 2,019,105 | 2,160,536 | — |
As of October 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended October 31, 2020, 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.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
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 103 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. | 103 | 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. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | 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 |
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). | 103 | 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). | 103 | None |
J. Derek Penn
1957
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
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| Interested 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 |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer, Chief Financial Officer and Chief Operating 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) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (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
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr.
1972
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, 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 |
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 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. 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. |
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
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 $300 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 Index 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.
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
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.
Schwab Equity Index Funds | Semiannual Report
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 at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Hedged Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Asset Allocation Funds
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
Funds
Schwab Funds
1-877-824-5615
© 2021 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
| ¹ | State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation. |
| ² | You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
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Semiannual Report | April 30, 2021
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
This page is intentionally left blank.
Schwab Active Equity Funds
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 Portfolio Holdings are sub-categories of Sector classifications.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Total Return for the 6 Months Ended April 30, 2021 |
Schwab Core Equity Fund
(Ticker Symbol: SWANX) | 26.65% |
| S&P 500® Index | 28.85% |
| Fund Category: Morningstar Large Blend1 | 29.35% |
| Performance Details | pages 6-7 |
| |
Schwab Dividend Equity Fund2
(Ticker Symbol: SWDSX) | 34.78% |
| Russell 1000® Value Index | 36.30% |
| Fund Category: Morningstar Large Value1 | 36.15% |
| Performance Details | pages 8-9 |
| |
Schwab Large-Cap Growth Fund
(Ticker Symbol: SWLSX) | 23.10% |
| Russell 1000® Growth Index | 24.31% |
| Fund Category: Morningstar Large Growth1 | 25.20% |
| Performance Details | pages 10-11 |
| |
Schwab Small-Cap Equity Fund
(Ticker Symbol: SWSCX) | 49.95% |
| Russell 2000® Index | 48.06% |
| Fund Category: Morningstar Small Blend1 | 49.00% |
| Performance Details | pages 12-13 |
| Total Return for the 6 Months Ended April 30, 2021 |
Schwab Hedged Equity Fund
(Ticker Symbol: SWHEX) | 17.26% |
| S&P 500® Index | 28.85% |
| Fund Category: Morningstar Long-Short Equity1 | 18.39% |
| Performance Details | pages 14-15 |
| |
Schwab Health Care Fund2
(Ticker Symbol: SWHFX) | 17.52% |
| Dow Jones Global Health Care Index | 17.85% |
| Fund Category: Morningstar Health1 | 21.61% |
| Performance Details | pages 16-17 |
| |
Schwab International Core Equity Fund2
(Ticker Symbol: SICNX) | 22.79% |
| MSCI EAFE® Index (Net)3 | 28.84% |
| Fund Category: Morningstar Foreign Large Blend1 | 27.74% |
| Performance Details | pages 18-19 |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
| 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
The Investment Environment
For the six-month reporting period ended April 30, 2021, U.S. and international equity markets generated solid returns, with major market indices ending the reporting period just shy of record highs. Despite persisting COVID-19 pandemic-driven stresses on the global economy—including widespread business disruptions, high unemployment, and prolonged stay-at-home orders—and a resurgence of COVID-19 cases in the fall and winter, equity markets continued to be buoyed by the extensive emergency rescue and fiscal stimulus measures passed by governments and central banks around the world beginning in March 2020, as well as the initial distribution of COVID-19 vaccines in December 2020 and the expanded rollout in 2021. The COVID-19 vaccine rollout helped fuel the early stages of a shift in the market towards cyclical sectors, beginning in November and December 2020 and continuing through the remainder of the reporting period. The U.S. dollar ended the reporting period weaker against a basket of foreign currencies, generally enhancing the returns of overseas investments in U.S. dollar terms. The S&P 500® Index, a bellwether for the overall U.S. stock market, returned 28.85% for the reporting period. U.S. small-cap stocks significantly outperformed U.S. large-cap stocks, with the Russell 2000® Index and the Russell 1000® Index returning 48.06% and 30.03%, respectively, for the reporting period. Outside the U.S., the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 28.84% for the reporting period.
Bolstered by the extensive emergency rescue and fiscal stimulus measures passed by the U.S. Federal Reserve (Fed) and U.S. Congress, the U.S. economy has held up relatively well, especially given the intensity of the COVID-19 pandemic’s economic impact. After a steep slide in the second quarter of 2020 and subsequent recovery in the third quarter of 2020, U.S. gross domestic product (GDP) grew at an annualized rate of 4.3% for the fourth quarter of 2020 and an annualized rate of 6.4% for the first quarter of 2021. Unemployment, which skyrocketed in April 2020, fell in each subsequent month through March 2021 before experiencing a slight uptick in April 2021. Inflation remained well below the Fed’s traditional target of 2% until March 2021, when it jumped, largely due to supply and demand imbalances in the labor market, increased demand particularly for travel-related services, as well as increasing energy costs.
Asset Class Performance Comparison % returns during the 6 months ended April 30, 2021
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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
The Investment Environment (continued)
Outside the U.S., global economies wrestled with the fallout of the COVID-19 pandemic against the anticipation of its eventual end. In the eurozone, GDP growth jumped in the third quarter of 2020, regaining much of its losses from the second quarter, but turned slightly negative for both the fourth quarter of 2020 and the first quarter of 2021. The United Kingdom, which was particularly hard-hit by the COVID-19 pandemic, suffered its biggest slump in more than three centuries over the course of 2020, effectively wiping out its growth over the past seven years, but posted a small positive gain in GDP for the first quarter of 2021. Japan’s economy, after rebounding sharply in the third quarter of 2020, posted a positive, albeit smaller, gain in the fourth quarter of 2020 on strong exports and consumer spending. China, the only major economy to avoid contraction in the face of COVID-19 pandemic-related shocks, maintained positive GDP growth in the fourth quarter of 2020. China’s growth accelerated sharply for the first quarter of 2021 on rising domestic and global demand, strict COVID-19 containment measures, and continued fiscal and monetary support. India, after plunging into one of the worst recessions of any major economy, saw its first positive gain in GDP in the fourth quarter of 2020, but a huge spike in COVID-19 cases in April 2021 dampened its growth prospects.
Central banks around the world, including the Fed, maintained the low—and for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. In the U.S., the federal funds rate remained in a range of 0.00% to 0.25% throughout the reporting period. The Fed reiterated its intention to continue its support of the economy, and in April 2021 affirmed that despite showing signs of recovery, the U.S. economy still had a way to go before the Fed would consider raising interest rates or tapering its bond-buying policy. The Fed also maintained its revised approach to its interest rate policy, announced in August 2020, that would allow inflation to rise above its previous 2% target for periods of time, even in times of rising employment. Outside the U.S., the European Central Bank held its policy rate at 0.00%, unchanged since March 2016, and maintained its asset purchase program to help counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.01%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
 | 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 Equities 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 (now known as Allianz Global Investors) 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 Barclays Global Investors (now known as BlackRock), 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 the 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 and 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. Prior to joining CSIM in 2014, Ms. Emerson spent nearly 10 years at Algert Coldiron Investors LLC (now known as Algert Global), a quantitative market-neutral hedge fund manager. She held a number of positions at Algert, including assistant portfolio manager and director of operations. In her various roles, she acted as the lead portfolio manager for the Canadian fund, conducted macroeconomic research, and managed relationships with prime brokerage investment banks. |
Schwab Active Equity Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Core Equity Fund (7/1/96) | 26.65% | 39.72% | 14.83% | 11.92% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Fund Category: Morningstar Large Blend3 | 29.35% | 46.51% | 15.87% | 12.66% |
| Fund Expense Ratio4: 0.73% |
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.
| 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 7, 2012, the Schwab Premier Equity 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. 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. |
Schwab Active Equity Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 115 |
| Weighted Average Market Cap (millions) | $542,372 |
| Price/Earnings Ratio (P/E) | 21.5 |
| Price/Book Ratio (P/B) | 4.2 |
| Portfolio Turnover Rate | 48% 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Dividend Equity Fund (9/2/03) | 34.78% | 40.05% | 9.27% | 9.09% |
| Russell 1000® Value Index | 36.30% | 45.92% | 12.15% | 11.13% |
| Dividend Equity Spliced Index | 36.30% | 45.92% | 12.15% | 11.43% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Fund Category: Morningstar Large Value3 | 36.15% | 46.33% | 12.01% | 10.42% |
| Fund Expense Ratios4: Net 0.89%; Gross 0.90% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
| 1 | 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 | The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information. |
| 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 191 |
| Weighted Average Market Cap (millions) | $158,484 |
| Price/Earnings Ratio (P/E) | 16.5 |
| Price/Book Ratio (P/B) | 2.5 |
| Portfolio Turnover Rate | 30% 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Large-Cap Growth Fund (10/3/05) | 23.10% | 44.77% | 18.54% | 13.97% |
| Russell 1000® Growth Index | 24.31% | 51.41% | 22.88% | 17.02% |
| Fund Category: Morningstar Large Growth2 | 25.20% | 52.07% | 21.04% | 15.13% |
| Fund Expense Ratios3: Net 0.99%; Gross 1.02% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 119 |
| Weighted Average Market Cap (millions) | $802,345 |
| Price/Earnings Ratio (P/E) | 30.6 |
| Price/Book Ratio (P/B) | 8.9 |
| Portfolio Turnover Rate | 20% 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Small-Cap Equity Fund (7/1/03) | 49.95% | 72.98% | 12.60% | 11.08% |
| Russell 2000® Index | 48.06% | 74.91% | 16.48% | 11.63% |
| Fund Category: Morningstar Small Blend2 | 49.00% | 72.03% | 13.91% | 10.64% |
| Fund Expense Ratio3: 1.10% |
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.
| 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 355 |
| Weighted Average Market Cap (millions) | $3,619 |
| Price/Earnings Ratio (P/E) | 15.4 |
| Price/Book Ratio (P/B) | 2.4 |
| Portfolio Turnover Rate | 41% 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.
Small-company stocks are subject to greater volatility than many other asset classes.
| 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Hedged Equity Fund (9/3/02) | 17.26% | 13.68% | 4.60% | 5.05% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Fund Category: Morningstar Long-Short Equity2 | 18.39% | 25.18% | 6.76% | 4.57% |
| Fund Expense Ratios3: Net 1.91%; Gross 1.95% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
The 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 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as the 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | |
| Long Holdings | 195 |
| Short Holdings | 124 |
| Weighted Average Market Cap (millions) | |
| Long Holdings | $341,268 |
| Short Holdings | $13,692 |
| Price/Earnings Ratio (P/E) | |
| Long Holdings | 17.9 |
| Short Holdings | 26.8 |
| Price/Book Ratio (P/B) | |
| Long Holdings | 3.2 |
| Short Holdings | 3.1 |
| Portfolio Turnover Rate including short sales | 68% 1 |
| Portfolio Turnover Rate excluding short sales | 32% 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. |
Schwab Active Equity Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Health Care Fund (7/3/00) | 17.52% | 21.78% | 11.84% | 13.65% |
| Dow Jones Global Health Care Index | 17.85% | 22.96% | 12.73% | 13.29% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Fund Category: Morningstar Health3 | 21.61% | 35.59% | 15.21% | 14.86% |
| Fund Expense Ratio4: 0.80% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
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 | The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information. |
| 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. |
Schwab Active Equity Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 97 |
| Weighted Average Market Cap (millions) | $146,436 |
| Price/Earnings Ratio (P/E) | 26.1 |
| Price/Book Ratio (P/B) | 5.1 |
| Portfolio Turnover Rate | 34% 1 |
Industry Weightings % of Investments
Top Equity Holdings % of Net Assets2
Portfolio holdings may have changed since the report date.
Source of Industry Classification: S&P and MSCI.
| 1 | Not annualized. |
| 2 | This list is not a recommendation of any security by the investment adviser. |
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab International Core Equity Fund (5/30/08) | 22.79% | 37.26% | 6.78% | 5.31% |
| MSCI EAFE® Index (Net)3 | 28.84% | 39.88% | 8.87% | 5.22% |
| Fund Category: Morningstar Foreign Large Blend4 | 27.74% | 42.21% | 9.03% | 5.13% |
| Fund Expense Ratios5: Net 0.86%; Gross 0.88% |
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.
| 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 | The fund’s performance relative to the index may be affected by fair-value pricing. 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. |
| 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 144 |
| Weighted Average Market Cap (millions) | $90,094 |
| Price/Earnings Ratio (P/E) | 16.1 |
| Price/Book Ratio (P/B) | 1.7 |
| Portfolio Turnover Rate | 51% 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. |
Schwab Active Equity Funds | Semiannual Report
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.
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, 2020 and held through April 30, 2021.
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 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/21 | Expenses Paid
During Period
11/1/20-4/30/212 |
| Schwab Core Equity Fund | | | | |
| Actual Return | 0.72% | $1,000.00 | $1,266.50 | $4.05 |
| Hypothetical 5% Return | 0.72% | $1,000.00 | $1,021.23 | $3.61 |
| Schwab Dividend Equity Fund | | | | |
| Actual Return | 0.89% | $1,000.00 | $1,347.80 | $5.18 |
| Hypothetical 5% Return | 0.89% | $1,000.00 | $1,020.39 | $4.46 |
| Schwab Large-Cap Growth Fund | | | | |
| Actual Return | 0.99% | $1,000.00 | $1,231.00 | $5.48 |
| Hypothetical 5% Return | 0.99% | $1,000.00 | $1,019.89 | $4.96 |
| Schwab Small-Cap Equity Fund | | | | |
| Actual Return | 1.08% | $1,000.00 | $1,499.50 | $6.69 |
| Hypothetical 5% Return | 1.08% | $1,000.00 | $1,019.44 | $5.41 |
| Schwab Hedged Equity Fund3 | | | | |
| Actual Return | 1.79% | $1,000.00 | $1,172.60 | $9.64 |
| Hypothetical 5% Return | 1.79% | $1,000.00 | $1,015.92 | $8.95 |
| Schwab Health Care Fund | | | | |
| Actual Return | 0.79% | $1,000.00 | $1,175.20 | $4.26 |
| Hypothetical 5% Return | 0.79% | $1,000.00 | $1,020.88 | $3.96 |
| Schwab International Core Equity Fund | | | | |
| Actual Return | 0.86% | $1,000.00 | $1,227.90 | $4.75 |
| Hypothetical 5% Return | 0.86% | $1,000.00 | $1,020.54 | $4.31 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 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 stock loan fees and dividend expenses paid on securities sold short. |
Schwab Active Equity Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $22.24 | $21.87 | $22.40 | $24.36 | $19.65 | $23.10 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.11 | 0.20 | 0.21 | 0.26 | 0.34 | 0.38 |
| Net realized and unrealized gains (losses) | 5.67 | 0.82 | 1.99 | 0.41 | 4.71 | (0.52) |
| Total from investment operations | 5.78 | 1.02 | 2.20 | 0.67 | 5.05 | (0.14) |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.20) | (0.20) | (0.27) | (0.34) | (0.34) | (0.36) |
| Distributions from net realized gains | (0.93) | (0.45) | (2.46) | (2.29) | — | (2.95) |
| Total distributions | (1.13) | (0.65) | (2.73) | (2.63) | (0.34) | (3.31) |
| Net asset value at end of period | $26.89 | $22.24 | $21.87 | $22.40 | $24.36 | $19.65 |
| Total return | 26.65% 2 | 4.65% | 12.02% | 2.71% | 26.00% | (0.50%) |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 0.72% 3 | 0.73% | 0.73% | 0.73% | 0.73% | 0.73% |
| Gross operating expenses | 0.72% 3 | 0.73% | 0.73% | 0.73% | 0.74% | 0.73% |
| Net investment income (loss) | 0.87% 3 | 0.91% | 1.01% | 1.12% | 1.53% | 1.93% |
| Portfolio turnover rate | 48% 2 | 97% | 98% | 101% | 86% | 80% |
| Net assets, end of period (x 1,000,000) | $1,804 | $1,957 | $2,182 | $2,138 | $2,353 | $2,075 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.6% of net assets |
| |
| Automobiles & Components 2.2% |
| Ford Motor Co. * | 1,042,544 | 12,030,958 |
| Gentex Corp. | 266,856 | 9,387,994 |
| Tesla, Inc. * | 26,867 | 19,060,524 |
| | | 40,479,476 |
| |
| Banks 4.0% |
| Bank of America Corp. | 1,128,891 | 45,753,952 |
| Comerica, Inc. | 52,896 | 3,975,663 |
| Regions Financial Corp. | 468,423 | 10,211,621 |
| Zions Bancorp NA | 209,683 | 11,700,312 |
| | | 71,641,548 |
| |
| Capital Goods 5.6% |
| 3M Co. | 32,943 | 6,494,383 |
| AGCO Corp. | 33,945 | 4,953,254 |
| Illinois Tool Works, Inc. | 116,396 | 26,824,622 |
| Lockheed Martin Corp. | 70,608 | 26,870,581 |
| Masco Corp. | 135,174 | 8,634,915 |
| Otis Worldwide Corp. | 70,995 | 5,528,381 |
| Parker-Hannifin Corp. | 71,835 | 22,542,541 |
| | | 101,848,677 |
| |
| Commercial & Professional Services 0.9% |
| Booz Allen Hamilton Holding Corp. | 86,630 | 7,185,959 |
| ManpowerGroup, Inc. | 68,481 | 8,278,668 |
| | | 15,464,627 |
| |
| Consumer Durables & Apparel 3.5% |
| Deckers Outdoor Corp. * | 43,584 | 14,740,109 |
| Lennar Corp., Class A | 109,112 | 11,304,003 |
| LVMH Moet Hennessy Louis Vuitton SE ADR | 41,872 | 6,316,182 |
| NIKE, Inc., Class B | 55,571 | 7,369,826 |
| Polaris, Inc. | 62,754 | 8,787,442 |
| PulteGroup, Inc. | 248,806 | 14,709,411 |
| | | 63,226,973 |
| |
| Consumer Services 0.1% |
| McDonald's Corp. | 11,632 | 2,746,083 |
| |
| Diversified Financials 6.0% |
| Capital One Financial Corp. | 143,025 | 21,322,167 |
| Evercore, Inc., Class A | 46,772 | 6,554,160 |
| Jefferies Financial Group, Inc. | 238,623 | 7,757,634 |
| Lazard Ltd., Class A | 108,143 | 4,865,354 |
| Morgan Stanley | 212,909 | 17,575,638 |
| Security | Number
of Shares | Value ($) |
| Synchrony Financial | 355,874 | 15,565,929 |
| The Goldman Sachs Group, Inc. | 98,072 | 34,173,188 |
| | | 107,814,070 |
| |
| Energy 2.5% |
| Cimarex Energy Co. | 106,326 | 7,038,781 |
| EOG Resources, Inc. | 110,916 | 8,167,855 |
| Exxon Mobil Corp. | 255,359 | 14,616,749 |
| Kinder Morgan, Inc. | 717,421 | 12,232,028 |
| Targa Resources Corp. | 81,906 | 2,841,319 |
| | | 44,896,732 |
| |
| Food & Staples Retailing 1.9% |
| Walmart, Inc. | 242,460 | 33,922,579 |
| |
| Food, Beverage & Tobacco 2.1% |
| Altria Group, Inc. | 204,679 | 9,773,422 |
| Flowers Foods, Inc. | 525,510 | 12,591,220 |
| Tyson Foods, Inc., Class A | 201,150 | 15,579,067 |
| | | 37,943,709 |
| |
| Health Care Equipment & Services 5.9% |
| Abbott Laboratories | 186,054 | 22,341,364 |
| Anthem, Inc. | 34,808 | 13,205,807 |
| Cerner Corp. | 84,566 | 6,346,678 |
| Hill-Rom Holdings, Inc. | 48,678 | 5,365,289 |
| Hologic, Inc. * | 77,167 | 5,058,297 |
| McKesson Corp. | 77,440 | 14,524,646 |
| Molina Healthcare, Inc. * | 18,467 | 4,710,932 |
| ResMed, Inc. | 39,350 | 7,396,620 |
| UnitedHealth Group, Inc. | 69,396 | 27,675,125 |
| | | 106,624,758 |
| |
| Household & Personal Products 1.2% |
| The Procter & Gamble Co. | 156,516 | 20,882,365 |
| |
| Insurance 3.0% |
| Aflac, Inc. | 455,245 | 24,460,314 |
| Fidelity National Financial, Inc. | 114,987 | 5,245,707 |
| The Allstate Corp. | 193,494 | 24,535,039 |
| | | 54,241,060 |
| |
| Materials 2.6% |
| Linde plc | 23,368 | 6,679,509 |
| Louisiana-Pacific Corp. | 139,007 | 9,157,781 |
| RPM International, Inc. | 19,760 | 1,874,039 |
| The Sherwin-Williams Co. | 109,293 | 29,932,074 |
| | | 47,643,403 |
| |
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Media & Entertainment 10.8% |
| Activision Blizzard, Inc. | 89,954 | 8,202,905 |
| Alphabet, Inc., Class A * | 32,920 | 77,477,220 |
| Altice USA, Inc., Class A * | 252,328 | 9,162,030 |
| Charter Communications, Inc., Class A * | 29,453 | 19,835,123 |
| Facebook, Inc., Class A * | 97,758 | 31,779,170 |
| Netflix, Inc. * | 21,487 | 11,032,930 |
| News Corp., Class A | 385,974 | 10,110,589 |
| Nintendo Co., Ltd. ADR | 206,727 | 14,861,604 |
| TEGNA, Inc. | 595,733 | 11,950,404 |
| | | 194,411,975 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 5.5% |
| AbbVie, Inc. | 28,699 | 3,199,939 |
| Amgen, Inc. | 73,523 | 17,619,052 |
| Johnson & Johnson | 189,011 | 30,757,760 |
| Mettler-Toledo International, Inc. * | 5,411 | 7,106,375 |
| Novo Nordisk A/S ADR | 92,930 | 6,872,173 |
| Pfizer, Inc. | 162,310 | 6,273,281 |
| Roche Holding AG ADR | 288,704 | 11,753,140 |
| Thermo Fisher Scientific, Inc. | 20,080 | 9,442,218 |
| Zoetis, Inc. | 38,317 | 6,629,991 |
| | | 99,653,929 |
| |
| Real Estate 3.1% |
| American Homes 4 Rent, Class A | 71,679 | 2,654,990 |
| American Tower Corp. | 40,546 | 10,329,904 |
| Mid-America Apartment Communities, Inc. | 66,399 | 10,446,555 |
| PotlatchDeltic Corp. | 146,802 | 8,714,167 |
| SBA Communications Corp. | 34,413 | 10,314,264 |
| Weyerhaeuser Co. | 336,254 | 13,036,568 |
| | | 55,496,448 |
| |
| Retailing 6.8% |
| Amazon.com, Inc. * | 23,161 | 80,308,915 |
| eBay, Inc. | 142,623 | 7,956,937 |
| Etsy, Inc. * | 23,560 | 4,683,492 |
| Lowe's Cos., Inc. | 71,786 | 14,088,003 |
| The Home Depot, Inc. | 46,820 | 15,154,229 |
| | | 122,191,576 |
| |
| Semiconductors & Semiconductor Equipment 4.9% |
| Applied Materials, Inc. | 98,892 | 13,123,957 |
| Broadcom, Inc. | 60,384 | 27,547,181 |
| Intel Corp. | 325,233 | 18,710,654 |
| KLA Corp. | 46,169 | 14,559,394 |
| QUALCOMM, Inc. | 60,022 | 8,331,054 |
| Texas Instruments, Inc. | 38,100 | 6,877,431 |
| | | 89,149,671 |
| |
| Software & Services 15.6% |
| Accenture plc, Class A | 126,942 | 36,809,372 |
| Adobe, Inc. * | 65,948 | 33,524,006 |
| Security | Number
of Shares | Value ($) |
| Citrix Systems, Inc. | 32,919 | 4,077,018 |
| Cognizant Technology Solutions Corp., Class A | 139,080 | 11,182,032 |
| Fair Isaac Corp. * | 11,365 | 5,925,825 |
| Gartner, Inc. * | 82,184 | 16,098,202 |
| GoDaddy, Inc., Class A * | 57,743 | 5,013,247 |
| Infosys Ltd. ADR | 412,092 | 7,450,623 |
| International Business Machines Corp. | 59,742 | 8,476,195 |
| Mastercard, Inc., Class A | 23,796 | 9,091,500 |
| Microsoft Corp. | 479,905 | 121,022,443 |
| PayPal Holdings, Inc. * | 18,967 | 4,974,854 |
| The Western Union Co. | 420,034 | 10,820,076 |
| VeriSign, Inc. * | 32,583 | 7,128,183 |
| | | 281,593,576 |
| |
| Technology Hardware & Equipment 7.6% |
| Apple Inc. | 908,699 | 119,457,571 |
| Cisco Systems, Inc. | 341,344 | 17,377,823 |
| | | 136,835,394 |
| |
| Telecommunication Services 1.4% |
| Verizon Communications, Inc. | 442,122 | 25,550,230 |
| |
| Transportation 1.1% |
| Ryder System, Inc. | 41,590 | 3,320,545 |
| Union Pacific Corp. | 70,654 | 15,691,547 |
| | | 19,012,092 |
| |
| Utilities 1.3% |
| Duke Energy Corp. | 38,006 | 3,826,824 |
| NextEra Energy, Inc. | 109,424 | 8,481,454 |
| NRG Energy, Inc. | 227,842 | 8,161,301 |
| UGI Corp. | 86,770 | 3,792,717 |
| | | 24,262,296 |
| Total Common Stock |
| (Cost $1,193,454,114) | | 1,797,533,247 |
|
| Investment Company 0.2% of net assets |
| |
| Money Market Fund 0.2% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (a) | 2,720,447 | 2,720,447 |
| Total Investment Company |
| (Cost $2,720,447) | | 2,720,447 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| | |
| ADR — | American Depositary Receipt |
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $1,797,533,247 | $— | $— | $1,797,533,247 | |
| Investment Company1 | 2,720,447 | — | — | 2,720,447 | |
| Total | $1,800,253,694 | $— | $— | $1,800,253,694 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Active Equity Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $1,196,174,561) | | $1,800,253,694 |
| Receivables: | | |
| Investments sold | | 6,096,001 |
| Dividends | | 1,274,415 |
| Foreign tax reclaims | | 502,895 |
| Fund shares sold | | 39,261 |
| Prepaid expenses | + | 23,456 |
| Total assets | | 1,808,189,722 |
| Liabilities |
| Payables: | | |
| Investment adviser and administrator fees | | 738,311 |
| Shareholder service fees | | 376,318 |
| Independent trustees’ fees | | 723 |
| Fund shares redeemed | | 3,038,441 |
| Accrued expenses | + | 136,012 |
| Total liabilities | | 4,289,805 |
| Net Assets |
| Total assets | | 1,808,189,722 |
| Total liabilities | – | 4,289,805 |
| Net assets | | $1,803,899,917 |
| Net Assets by Source | | |
| Capital received from investors | | 877,561,923 |
| Total distributable earnings | | 926,337,994 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,803,899,917 | | 67,095,495 | | $26.89 |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $133,778) | | $16,366,656 |
| Securities on loan, net | + | 2,957 |
| Total investment income | | 16,369,613 |
| Expenses |
| Investment adviser and administrator fees | | 4,808,438 |
| Shareholder service fees | | 2,484,592 |
| Portfolio accounting fees | | 33,993 |
| Shareholder reports | | 28,252 |
| Professional fees | | 18,899 |
| Registration fees | | 16,391 |
| Custodian fees | | 14,335 |
| Transfer agent fees | | 13,373 |
| Independent trustees’ fees | | 7,281 |
| Other expenses | + | 10,293 |
| Total expenses | | 7,435,847 |
| Expense reduction by CSIM and its affiliates | – | 13,373 |
| Net expenses | – | 7,422,474 |
| Net investment income | | 8,947,139 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 324,474,547 |
| Net realized losses on futures contracts | + | (4,129,412) |
| Net realized gains | | 320,345,135 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 140,290,739 |
| Net realized and unrealized gains | | 460,635,874 |
| Increase in net assets resulting from operations | | $469,583,013 |
Schwab Active Equity Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $8,947,139 | $18,727,365 |
| Net realized gains | | 320,345,135 | 77,674,196 |
| Net change in unrealized appreciation (depreciation) | + | 140,290,739 | (9,143,636) |
| Increase in net assets from operations | | 469,583,013 | 87,257,925 |
| Distributions to Shareholders | |
| Total distributions | | ($97,998,756) | ($63,919,641) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,774,235 | $68,566,686 | 4,154,672 | $86,639,129 |
| Shares reinvested | | 3,088,327 | 73,440,411 | 2,083,874 | 46,553,727 |
| Shares redeemed | + | (26,764,768) | (666,596,126) | (18,036,297) | (381,670,564) |
| Net transactions in fund shares | | (20,902,206) | ($524,589,029) | (11,797,751) | ($248,477,708) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 87,997,701 | $1,956,904,689 | 99,795,452 | $2,182,044,113 |
| Total decrease | + | (20,902,206) | (153,004,772) | (11,797,751) | (225,139,424) |
| End of period | | 67,095,495 | $1,803,899,917 | 87,997,701 | $1,956,904,689 |
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $12.14 | $15.07 | $15.43 | $17.21 | $14.39 | $16.43 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.16 | 0.28 | 0.23 | 0.22 | 0.29 | 0.31 |
| Net realized and unrealized gains (losses) | 4.04 | (2.15) | 0.93 | (0.27) | 2.75 | (0.29) |
| Total from investment operations | 4.20 | (1.87) | 1.16 | (0.05) | 3.04 | 0.02 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.15) | (0.26) | (0.24) | (0.30) | (0.22) | (0.32) |
| Distributions from net realized gains | — | (0.80) | (1.28) | (1.43) | — | (1.74) |
| Total distributions | (0.15) | (1.06) | (1.52) | (1.73) | (0.22) | (2.06) |
| Net asset value at end of period | $16.19 | $12.14 | $15.07 | $15.43 | $17.21 | $14.39 |
| Total return | 34.78% 2 | (13.30%) | 8.78% | (0.63%) | 21.19% | 0.26% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 0.89% 3 | 0.89% | 0.89% | 0.88% | 0.88% | 0.88% |
| Gross operating expenses | 0.89% 3 | 0.90% | 0.89% | 0.88% | 0.88% | 0.89% |
| Net investment income (loss) | 2.17% 3 | 2.16% | 1.58% | 1.36% | 1.78% | 2.18% |
| Portfolio turnover rate | 30% 2 | 70% | 70% | 79% | 70% | 74% |
| Net assets, end of period (x 1,000,000) | $638 | $577 | $847 | $1,249 | $1,469 | $1,560 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.5% of net assets |
| |
| Automobiles & Components 0.7% |
| Honda Motor Co., Ltd. | 64,800 | 1,932,324 |
| Magna International, Inc. | 28,201 | 2,663,281 |
| | | 4,595,605 |
| |
| Banks 8.6% |
| Bank of America Corp. | 351,691 | 14,254,036 |
| Citigroup, Inc. | 96,637 | 6,884,420 |
| Citizens Financial Group, Inc. | 77,410 | 3,582,535 |
| East West Bancorp, Inc. | 16,800 | 1,279,320 |
| Fifth Third Bancorp | 30 | 1,216 |
| Hancock Whitney Corp. | 66,653 | 3,082,035 |
| International Bancshares Corp. | 34,729 | 1,645,807 |
| JPMorgan Chase & Co. | 116,949 | 17,987,926 |
| UMB Financial Corp. | 2,500 | 242,575 |
| Zions Bancorp NA | 105,210 | 5,870,718 |
| | | 54,830,588 |
| |
| Capital Goods 8.9% |
| AGCO Corp. | 28,502 | 4,159,012 |
| Boise Cascade Co. | 28,900 | 1,928,208 |
| Dover Corp. | 53,158 | 7,930,642 |
| EMCOR Group, Inc. | 29,800 | 3,570,040 |
| Emerson Electric Co. | 46,700 | 4,225,883 |
| Hillenbrand, Inc. | 57,277 | 2,811,728 |
| Illinois Tool Works, Inc. | 18,181 | 4,189,993 |
| Lockheed Martin Corp. | 16,178 | 6,156,700 |
| Masco Corp. | 91,352 | 5,835,566 |
| Masonite International Corp. * | 13,228 | 1,670,564 |
| Mueller Industries, Inc. | 120,000 | 5,384,400 |
| Owens Corning | 16,600 | 1,607,046 |
| Parker-Hannifin Corp. | 18,592 | 5,834,355 |
| Raytheon Technologies Corp. | 19,925 | 1,658,557 |
| | | 56,962,694 |
| |
| Commercial & Professional Services 2.0% |
| ABM Industries, Inc. | 12,334 | 634,091 |
| Booz Allen Hamilton Holding Corp. | 13,400 | 1,111,530 |
| CACI International, Inc., Class A * | 7,900 | 2,013,394 |
| ManpowerGroup, Inc. | 65,808 | 7,955,529 |
| Republic Services, Inc. | 8,900 | 946,070 |
| | | 12,660,614 |
| |
| Consumer Durables & Apparel 3.0% |
| Capri Holdings Ltd. * | 28,360 | 1,562,069 |
| Crocs, Inc. * | 28,203 | 2,823,684 |
| Deckers Outdoor Corp. * | 6,411 | 2,168,200 |
| Hanesbrands, Inc. | 60,269 | 1,269,265 |
| Kontoor Brands, Inc. | 19,239 | 1,208,786 |
| Lennar Corp., Class A | 11,838 | 1,226,417 |
| Newell Brands, Inc. | 46,503 | 1,253,721 |
| Security | Number
of Shares | Value ($) |
| Polaris, Inc. | 30,485 | 4,268,815 |
| Tri Pointe Homes, Inc. * | 48,673 | 1,159,391 |
| Whirlpool Corp. | 6,700 | 1,584,215 |
| Wolverine World Wide, Inc. | 15,984 | 666,852 |
| | | 19,191,415 |
| |
| Consumer Services 1.1% |
| Bloomin' Brands, Inc. * | 44,383 | 1,402,503 |
| Darden Restaurants, Inc. | 6,500 | 953,680 |
| Papa John's International, Inc. | 12,421 | 1,201,359 |
| Starbucks Corp. | 26,021 | 2,979,144 |
| Travel & Leisure Co. | 8,286 | 534,696 |
| | | 7,071,382 |
| |
| Diversified Financials 9.1% |
| Capital One Financial Corp. | 29,000 | 4,323,320 |
| Credit Suisse Group AG | 58,794 | 616,160 |
| Evercore, Inc., Class A | 14,651 | 2,053,045 |
| Federated Hermes, Inc. | 65,288 | 1,880,294 |
| Jefferies Financial Group, Inc. | 45,908 | 1,492,469 |
| Lazard Ltd., Class A | 145,675 | 6,553,918 |
| Morgan Stanley | 142,603 | 11,771,878 |
| Navient Corp. | 177,589 | 2,988,823 |
| Nomura Holdings, Inc. | 198,500 | 1,066,968 |
| OneMain Holdings, Inc. | 90,519 | 5,147,815 |
| S&P Global, Inc. | 366 | 142,883 |
| Santander Consumer USA Holdings, Inc. | 76,000 | 2,579,440 |
| Synchrony Financial | 78,699 | 3,442,294 |
| T. Rowe Price Group, Inc. | 32,687 | 5,857,510 |
| The Goldman Sachs Group, Inc. | 21,000 | 7,317,450 |
| UBS Group AG | 39,631 | 605,189 |
| | | 57,839,456 |
| |
| Energy 4.9% |
| Chevron Corp. | 130,524 | 13,453,109 |
| Cimarex Energy Co. | 12,975 | 858,945 |
| ConocoPhillips | 20,999 | 1,073,889 |
| Exxon Mobil Corp. | 171,825 | 9,835,263 |
| Kinder Morgan, Inc. | 71,943 | 1,226,628 |
| Marathon Petroleum Corp. | 36,178 | 2,013,306 |
| Valero Energy Corp. | 11,296 | 835,452 |
| World Fuel Services Corp. | 60,362 | 1,866,996 |
| | | 31,163,588 |
| |
| Food & Staples Retailing 1.0% |
| Albertsons Cos., Inc., Class A (a) | 31,600 | 586,812 |
| Koninklijke Ahold Delhaize N.V. | 74,358 | 2,001,116 |
| The Kroger Co. | 45,969 | 1,679,707 |
| Walmart, Inc. | 15,503 | 2,169,025 |
| | | 6,436,660 |
| |
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Food, Beverage & Tobacco 3.6% |
| Altria Group, Inc. | 166,301 | 7,940,873 |
| Flowers Foods, Inc. | 158,011 | 3,785,944 |
| General Mills, Inc. | 77,812 | 4,735,638 |
| Imperial Brands plc | 128,391 | 2,676,119 |
| Ingredion, Inc. | 2,893 | 270,235 |
| The JM Smucker Co. | 28,708 | 3,760,461 |
| | | 23,169,270 |
| |
| Health Care Equipment & Services 6.3% |
| Abbott Laboratories | 32,828 | 3,941,986 |
| Anthem, Inc. | 7,024 | 2,664,835 |
| Cardinal Health, Inc. | 39,306 | 2,371,724 |
| Danaher Corp. | 15,000 | 3,809,100 |
| Hill-Rom Holdings, Inc. | 46,833 | 5,161,933 |
| Hologic, Inc. * | 29,456 | 1,930,841 |
| McKesson Corp. | 18,759 | 3,518,438 |
| Medtronic plc | 68,360 | 8,949,691 |
| Merit Medical Systems, Inc. * | 28,708 | 1,825,829 |
| STERIS plc | 11,453 | 2,416,812 |
| UnitedHealth Group, Inc. | 8,117 | 3,237,060 |
| | | 39,828,249 |
| |
| Household & Personal Products 1.1% |
| The Procter & Gamble Co. | 54,585 | 7,282,731 |
| |
| Insurance 3.6% |
| American Financial Group, Inc. | 20,000 | 2,457,200 |
| American National Group, Inc. | 12,023 | 1,362,807 |
| Fidelity National Financial, Inc. | 61,095 | 2,787,154 |
| First American Financial Corp. | 42,059 | 2,712,805 |
| MetLife, Inc. | 1,765 | 112,307 |
| The Allstate Corp. | 96,891 | 12,285,779 |
| The Hartford Financial Services Group, Inc. | 16,600 | 1,094,936 |
| | | 22,812,988 |
| |
| Materials 5.4% |
| Axalta Coating Systems Ltd. * | 42,344 | 1,350,350 |
| Berry Global Group, Inc. * | 34,649 | 2,204,370 |
| BHP Group plc | 91,371 | 2,751,618 |
| China Resources Cement Holdings Ltd. | 1,360,000 | 1,481,479 |
| Dow, Inc. | 12,500 | 781,250 |
| Fortescue Metals Group Ltd. | 50,855 | 879,858 |
| Kumba Iron Ore Ltd. | 22,516 | 1,020,361 |
| Louisiana-Pacific Corp. | 62,962 | 4,147,937 |
| Minerals Technologies, Inc. | 23,117 | 1,806,362 |
| PPG Industries, Inc. | 31,118 | 5,328,646 |
| Rio Tinto plc | 10,588 | 886,821 |
| RPM International, Inc. | 22,025 | 2,088,851 |
| The Chemours Co. | 28,800 | 869,760 |
| The Sherwin-Williams Co. | 21,840 | 5,981,321 |
| WestRock Co. | 54,800 | 3,055,100 |
| | | 34,634,084 |
| |
| Media & Entertainment 4.4% |
| Activision Blizzard, Inc. | 34,150 | 3,114,139 |
| Alphabet, Inc., Class A * | 2,115 | 4,977,652 |
| Comcast Corp., Class A | 68,021 | 3,819,379 |
| Electronic Arts, Inc. | 10,000 | 1,420,800 |
| News Corp., Class A | 49,613 | 1,299,613 |
| Security | Number
of Shares | Value ($) |
| Nintendo Co., Ltd. | 5,300 | 3,040,360 |
| Omnicom Group, Inc. | 5,370 | 441,736 |
| TEGNA, Inc. | 92,654 | 1,858,639 |
| The Interpublic Group of Cos., Inc. | 51,200 | 1,625,600 |
| The Walt Disney Co. * | 34,037 | 6,331,563 |
| | | 27,929,481 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 6.0% |
| Amgen, Inc. | 1,862 | 446,210 |
| Gilead Sciences, Inc. | 76,028 | 4,825,497 |
| Johnson & Johnson | 97,864 | 15,925,409 |
| Novartis AG | 11,522 | 983,245 |
| Novo Nordisk A/S, Class B | 31,250 | 2,305,233 |
| Pfizer, Inc. | 228,416 | 8,828,278 |
| Regeneron Pharmaceuticals, Inc. * | 2,856 | 1,374,593 |
| Roche Holding AG | 11,787 | 3,844,396 |
| | | 38,532,861 |
| |
| Real Estate 6.3% |
| American Homes 4 Rent, Class A | 145,239 | 5,379,652 |
| American Tower Corp. | 7,484 | 1,906,699 |
| Apple Hospitality REIT, Inc. | 51,600 | 818,376 |
| Corporate Office Properties Trust | 106,568 | 2,988,167 |
| Cousins Properties, Inc. | 62,308 | 2,284,834 |
| Global Net Lease, Inc. | 113,180 | 2,173,056 |
| Highwoods Properties, Inc. | 26,000 | 1,164,540 |
| Invitation Homes, Inc. | 10,800 | 378,648 |
| Mid-America Apartment Communities, Inc. | 26,864 | 4,226,513 |
| National Storage Affiliates Trust | 45,197 | 2,053,752 |
| Omega Healthcare Investors, Inc. | 77,179 | 2,932,802 |
| Piedmont Office Realty Trust, Inc., Class A | 100,700 | 1,875,034 |
| PotlatchDeltic Corp. | 73,808 | 4,381,243 |
| Service Properties Trust | 163,886 | 2,018,256 |
| Sunac China Holdings Ltd. | 310,000 | 1,202,416 |
| Weyerhaeuser Co. | 116,300 | 4,508,951 |
| | | 40,292,939 |
| |
| Retailing 1.5% |
| Best Buy Co., Inc. | 3,040 | 353,461 |
| eBay, Inc. | 9,900 | 552,321 |
| Genuine Parts Co. | 12,900 | 1,612,113 |
| The Home Depot, Inc. | 16,940 | 5,482,970 |
| The TJX Cos., Inc. | 22,967 | 1,630,657 |
| | | 9,631,522 |
| |
| Semiconductors & Semiconductor Equipment 3.4% |
| Applied Materials, Inc. | 17,700 | 2,348,967 |
| Broadcom, Inc. | 8,760 | 3,996,312 |
| Intel Corp. | 150,905 | 8,681,565 |
| KLA Corp. | 5,503 | 1,735,371 |
| QUALCOMM, Inc. | 33,522 | 4,652,853 |
| | | 21,415,068 |
| |
| Software & Services 4.7% |
| Accenture plc, Class A | 25,666 | 7,442,370 |
| Adobe, Inc. * | 2,000 | 1,016,680 |
| Amdocs Ltd. | 17,480 | 1,341,415 |
| Citrix Systems, Inc. | 8,678 | 1,074,770 |
| Cognizant Technology Solutions Corp., Class A | 23,111 | 1,858,125 |
| EVERTEC, Inc. | 45,927 | 1,832,487 |
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| International Business Machines Corp. | 52,932 | 7,509,992 |
| Microsoft Corp. | 15,109 | 3,810,188 |
| The Western Union Co. | 151,930 | 3,913,717 |
| | | 29,799,744 |
| |
| Technology Hardware & Equipment 3.1% |
| Apple Inc. | 48,034 | 6,314,550 |
| Cisco Systems, Inc. | 36,700 | 1,868,397 |
| HP, Inc. | 65,756 | 2,242,937 |
| Jabil, Inc. | 93,480 | 4,900,221 |
| Lenovo Group Ltd. | 350,000 | 478,224 |
| Samsung Electronics Co., Ltd. | 57,499 | 4,190,842 |
| | | 19,995,171 |
| |
| Telecommunication Services 4.4% |
| AT&T, Inc. | 325,057 | 10,210,040 |
| Verizon Communications, Inc. | 308,741 | 17,842,143 |
| | | 28,052,183 |
| |
| Transportation 1.9% |
| Ryder System, Inc. | 84,603 | 6,754,703 |
| Schneider National, Inc., Class B | 55,811 | 1,352,301 |
| Southwest Airlines Co. * | 24,764 | 1,554,684 |
| Union Pacific Corp. | 10,400 | 2,309,736 |
| | | 11,971,424 |
| |
| Utilities 4.5% |
| Exelon Corp. | 212,958 | 9,570,333 |
| NextEra Energy, Inc. | 16,022 | 1,241,865 |
| NRG Energy, Inc. | 121,295 | 4,344,787 |
| OGE Energy Corp. | 161,752 | 5,428,397 |
| The AES Corp. | 31,000 | 862,420 |
| UGI Corp. | 115,893 | 5,065,683 |
| Vistra Corp. | 143,830 | 2,426,412 |
| | | 28,939,897 |
| Total Common Stock |
| (Cost $479,479,540) | | 635,039,614 |
|
| Rights 0.0% of net assets |
| |
| Diversified Financials 0.0% |
Credit Suisse Group AG
expires 05/06/21 *(b) | 58,794 | 2,461 |
| Total Rights |
| (Cost $—) | | 2,461 |
| Security | Number
of Shares | Value ($) |
| Investment Company 0.1% of net assets |
| |
| Securities Lending Collateral 0.1% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 591,535 | 591,535 |
| Total Investment Company |
| (Cost $591,535) | | 591,535 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Short-Term Investments 0.6% of net assets |
| |
| Time Deposits 0.6% |
| Australia & New Zealand Banking Group Ltd. |
| U.S. Dollar | | |
| 0.01%, 05/03/21 (d) | 3,516,999 | 3,516,999 |
| BNP Paribas S.A. |
| Euro | | |
| (0.78%), 05/03/21 (d)(e) | 25,282 | 30,395 |
| Total Short-Term Investments |
| (Cost $3,547,394) | | 3,547,394 |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $557,100. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (c) | The rate shown is the 7-day yield. |
| (d) | The rate shown is the current daily overnight rate. |
| (e) | Rate is negative due to the current daily overnight rate at the central bank of the denominated currency and therefore is non-income producing. |
| | |
| REIT — | Real Estate Investment Trust |
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $381,614,087 | $— | $— | $381,614,087 | |
| Automobiles & Components | 2,663,281 | 1,932,324 | — | 4,595,605 | |
| Diversified Financials | 55,551,139 | 2,288,317 | — | 57,839,456 | |
| Food & Staples Retailing | 4,435,544 | 2,001,116 | — | 6,436,660 | |
| Food, Beverage & Tobacco | 20,493,151 | 2,676,119 | — | 23,169,270 | |
| Materials | 27,613,947 | 7,020,137 | — | 34,634,084 | |
| Media & Entertainment | 24,889,121 | 3,040,360 | — | 27,929,481 | |
| Pharmaceuticals, Biotechnology & Life Sciences | 31,399,987 | 7,132,874 | — | 38,532,861 | |
| Real Estate | 39,090,523 | 1,202,416 | — | 40,292,939 | |
| Technology Hardware & Equipment | 15,326,105 | 4,669,066 | — | 19,995,171 | |
| Rights 1 | | | | | |
| Diversified Financials | — | — | 2,461 | 2,461 | |
| Investment Company | 591,535 | — | — | 591,535 | |
| Short-Term Investments1 | — | 3,547,394 | — | 3,547,394 | |
| Total | $603,668,420 | $35,510,123 | $2,461 | $639,181,004 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $483,026,934) including securities on loan of $557,100 | | $638,589,469 |
| Collateral invested for securities on loan, at value (cost $591,535) | | 591,535 |
| Receivables: | | |
| Dividends | | 885,130 |
| Foreign tax reclaims | | 180,010 |
| Fund shares sold | | 73,911 |
| Income from securities on loan | | 628 |
| Prepaid expenses | + | 10,726 |
| Total assets | | 640,331,409 |
| Liabilities |
| Collateral held for securities on loan | | 591,535 |
| Payables: | | |
| Investment adviser and administrator fees | | 345,013 |
| Shareholder service fees | | 132,380 |
| Independent trustees’ fees | | 421 |
| Fund shares redeemed | | 1,045,761 |
| Accrued expenses | + | 101,149 |
| Total liabilities | | 2,216,259 |
| Net Assets |
| Total assets | | 640,331,409 |
| Total liabilities | – | 2,216,259 |
| Net assets | | $638,115,150 |
| Net Assets by Source | | |
| Capital received from investors | | 458,179,516 |
| Total distributable earnings | | 179,935,634 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $638,115,150 | | 39,413,608 | | $16.19 |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $89,222) | | $9,564,675 |
| Interest received from securities - unaffiliated | | 197 |
| Securities on loan, net | + | 4,729 |
| Total investment income | | 9,569,601 |
| Expenses |
| Investment adviser and administrator fees | | 1,936,404 |
| Shareholder service fees | | 746,629 |
| Portfolio accounting fees | | 42,781 |
| Professional fees | | 16,839 |
| Shareholder reports | | 15,764 |
| Registration fees | | 13,026 |
| Independent trustees’ fees | | 4,618 |
| Transfer agent fees | | 4,336 |
| Custodian fees | | 3,869 |
| Other expenses | + | 4,616 |
| Total expenses | | 2,788,882 |
| Expense reduction by CSIM and its affiliates | – | 9,167 |
| Net expenses | – | 2,779,715 |
| Net investment income | | 6,789,886 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 53,828,197 |
| Net realized losses on futures contracts | | (1,847,114) |
| Net realized losses on foreign currency transactions | + | (1,061) |
| Net realized gains | | 51,980,022 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 123,855,678 |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 1,043 |
| Net change in unrealized appreciation (depreciation) | + | 123,856,721 |
| Net realized and unrealized gains | | 175,836,743 |
| Increase in net assets resulting from operations | | $182,626,629 |
Schwab Active Equity Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $6,789,886 | $14,918,815 |
| Net realized gains (losses) | | 51,980,022 | (28,745,649) |
| Net change in unrealized appreciation (depreciation) | + | 123,856,721 | (91,563,439) |
| Increase (decrease) in net assets from operations | | 182,626,629 | (105,390,273) |
| Distributions to Shareholders | |
| Total distributions | | ($6,686,971) | ($57,745,153) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,197,826 | $17,644,545 | 3,025,001 | $39,046,505 |
| Shares reinvested | | 341,476 | 4,947,775 | 3,317,070 | 46,974,063 |
| Shares redeemed | + | (9,644,524) | (137,118,216) | (15,016,968) | (193,138,459) |
| Net transactions in fund shares | | (8,105,222) | ($114,525,896) | (8,674,897) | ($107,117,891) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 47,518,830 | $576,701,388 | 56,193,727 | $846,954,705 |
| Total increase (decrease) | + | (8,105,222) | 61,413,762 | (8,674,897) | (270,253,317) |
| End of period | | 39,413,608 | $638,115,150 | 47,518,830 | $576,701,388 |
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $20.85 | $18.07 | $18.04 | $18.65 | $15.20 | $17.68 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | (0.03) | 0.00 2 | 0.06 | 0.06 | 0.08 | 0.20 |
| Net realized and unrealized gains (losses) | 4.82 | 3.76 | 1.79 | 0.75 | 4.04 | (0.12) |
| Total from investment operations | 4.79 | 3.76 | 1.85 | 0.81 | 4.12 | 0.08 |
| Less distributions: | | | | | | |
| Distributions from net investment income | — | (0.03) | (0.07) | (0.07) | (0.17) | (0.20) |
| Distributions from net realized gains | (0.25) | (0.95) | (1.75) | (1.35) | (0.50) | (2.36) |
| Total distributions | (0.25) | (0.98) | (1.82) | (1.42) | (0.67) | (2.56) |
| Net asset value at end of period | $25.39 | $20.85 | $18.07 | $18.04 | $18.65 | $15.20 |
| Total return | 23.10% 3 | 21.60% | 12.18% | 4.46% | 28.10% | 0.54% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 0.99% 4 | 0.99% | 0.99% | 0.99% | 0.99% | 1.00% 5 |
| Gross operating expenses | 1.00% 4 | 1.02% | 1.03% | 1.02% | 1.04% | 1.04% |
| Net investment income (loss) | (0.25%) 4 | 0.01% | 0.34% | 0.30% | 0.48% | 1.32% |
| Portfolio turnover rate | 20% 3 | 65% | 67% | 88% | 81% | 84% |
| Net assets, end of period (x 1,000,000) | $254 | $210 | $181 | $243 | $257 | $219 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Per-share amount was less than $0.005.
3
Not annualized.
4
Annualized.
5
The ratio of net operating expenses would have been 0.99%, if certain non-routine expenses had not been incurred.
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.6% of net assets |
| |
| Automobiles & Components 2.2% |
| Tesla, Inc. * | 7,986 | 5,665,588 |
| |
| Banks 0.8% |
| Regions Financial Corp. | 49,140 | 1,071,252 |
| Western Alliance Bancorp | 8,008 | 841,401 |
| | | 1,912,653 |
| |
| Capital Goods 4.3% |
| AGCO Corp. | 14,469 | 2,111,317 |
| Generac Holdings, Inc. * | 1,176 | 380,965 |
| Illinois Tool Works, Inc. | 3,245 | 747,843 |
| Lockheed Martin Corp. | 4,439 | 1,689,306 |
| Masco Corp. | 15,388 | 982,985 |
| Owens Corning | 5,277 | 510,866 |
| Parker-Hannifin Corp. | 7,343 | 2,304,307 |
| Quanta Services, Inc. | 11,183 | 1,080,725 |
| Regal Beloit Corp. | 6,998 | 1,010,721 |
| | | 10,819,035 |
| |
| Commercial & Professional Services 0.9% |
| ABM Industries, Inc. | 21,492 | 1,104,904 |
| Booz Allen Hamilton Holding Corp. | 14,431 | 1,197,051 |
| | | 2,301,955 |
| |
| Consumer Durables & Apparel 2.7% |
| Crocs, Inc. * | 10,119 | 1,013,114 |
| Lennar Corp., Class A | 5,558 | 575,809 |
| NIKE, Inc., Class B | 9,384 | 1,244,506 |
| PulteGroup, Inc. | 12,481 | 737,877 |
| Sony Corp. ADR | 14,759 | 1,478,261 |
| Whirlpool Corp. | 1,827 | 431,994 |
| YETI Holdings, Inc. * | 15,892 | 1,357,495 |
| | | 6,839,056 |
| |
| Consumer Services 1.1% |
| Domino's Pizza, Inc. | 2,647 | 1,117,934 |
| Papa John's International, Inc. | 13,036 | 1,260,842 |
| Starbucks Corp. | 4,349 | 497,917 |
| | | 2,876,693 |
| |
| Diversified Financials 2.4% |
| Evercore, Inc., Class A | 10,909 | 1,528,678 |
| Lazard Ltd., Class A | 25,002 | 1,124,840 |
| Morgan Stanley | 17,606 | 1,453,375 |
| MSCI, Inc. | 1,290 | 626,643 |
| Security | Number
of Shares | Value ($) |
| S&P Global, Inc. | 1,790 | 698,798 |
| T. Rowe Price Group, Inc. | 4,248 | 761,242 |
| | | 6,193,576 |
| |
| Food & Staples Retailing 0.7% |
| Sprouts Farmers Market, Inc. * | 23,482 | 601,374 |
| The Kroger Co. | 19,722 | 720,642 |
| Walmart, Inc. | 3,459 | 483,949 |
| | | 1,805,965 |
| |
| Food, Beverage & Tobacco 2.0% |
| Constellation Brands, Inc., Class A | 2,198 | 528,223 |
| Flowers Foods, Inc. | 41,556 | 995,682 |
| General Mills, Inc. | 2,190 | 133,283 |
| Monster Beverage Corp. * | 20,074 | 1,948,182 |
| PepsiCo, Inc. | 10,160 | 1,464,666 |
| | | 5,070,036 |
| |
| Health Care Equipment & Services 6.4% |
| Abbott Laboratories | 28,139 | 3,378,931 |
| Cardinal Health, Inc. | 3,373 | 203,527 |
| Cerner Corp. | 5,797 | 435,065 |
| Hologic, Inc. * | 38,748 | 2,539,932 |
| IDEXX Laboratories, Inc. * | 3,166 | 1,738,102 |
| McKesson Corp. | 7,306 | 1,370,313 |
| Merit Medical Systems, Inc. * | 25,025 | 1,591,590 |
| ResMed, Inc. | 3,954 | 743,233 |
| UnitedHealth Group, Inc. | 9,246 | 3,687,305 |
| West Pharmaceutical Services, Inc. | 1,735 | 569,982 |
| | | 16,257,980 |
| |
| Materials 1.9% |
| Berry Global Group, Inc. * | 10,893 | 693,013 |
| Louisiana-Pacific Corp. | 13,714 | 903,478 |
| The Scotts Miracle-Gro Co. | 2,106 | 486,823 |
| The Sherwin-Williams Co. | 9,750 | 2,670,232 |
| | | 4,753,546 |
| |
| Media & Entertainment 12.7% |
| Activision Blizzard, Inc. | 6,390 | 582,704 |
| Alphabet, Inc., Class A * | 6,012 | 14,149,242 |
| Altice USA, Inc., Class A * | 23,756 | 862,580 |
| Charter Communications, Inc., Class A * | 201 | 135,364 |
| Facebook, Inc., Class A * | 32,865 | 10,683,754 |
| Netflix, Inc. * | 4,357 | 2,237,189 |
| Nintendo Co., Ltd. ADR | 22,779 | 1,637,582 |
| Take-Two Interactive Software, Inc. * | 2,172 | 380,925 |
| Tencent Holdings Ltd. ADR | 17,936 | 1,428,782 |
| | | 32,098,122 |
| |
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Pharmaceuticals, Biotechnology & Life Sciences 5.2% |
| Amgen, Inc. | 5,988 | 1,434,964 |
| Avantor, Inc. * | 42,441 | 1,359,810 |
| Charles River Laboratories International, Inc. * | 5,962 | 1,982,067 |
| Eli Lilly & Co. | 2,996 | 547,579 |
| Emergent BioSolutions, Inc. * | 6,650 | 405,517 |
| Jazz Pharmaceuticals plc * | 6,931 | 1,139,456 |
| Johnson & Johnson | 2,957 | 481,193 |
| Medpace Holdings, Inc. * | 2,912 | 494,108 |
| Novartis AG ADR | 3,443 | 293,481 |
| Novo Nordisk A/S ADR | 15,880 | 1,174,326 |
| Pfizer, Inc. | 23,006 | 889,182 |
| Regeneron Pharmaceuticals, Inc. * | 1,809 | 870,672 |
| Roche Holding AG ADR | 53,720 | 2,186,941 |
| | | 13,259,296 |
| |
| Real Estate 1.3% |
| American Homes 4 Rent, Class A | 35,181 | 1,303,104 |
| American Tower Corp. | 4,054 | 1,032,838 |
| Weyerhaeuser Co. | 23,362 | 905,745 |
| | | 3,241,687 |
| |
| Retailing 11.1% |
| Amazon.com, Inc. * | 5,992 | 20,776,781 |
| Best Buy Co., Inc. | 5,523 | 642,159 |
| eBay, Inc. | 16,550 | 923,325 |
| Etsy, Inc. * | 4,359 | 866,526 |
| Lowe's Cos., Inc. | 11,134 | 2,185,047 |
| The Home Depot, Inc. | 8,517 | 2,756,697 |
| | | 28,150,535 |
| |
| Semiconductors & Semiconductor Equipment 6.6% |
| Advanced Micro Devices, Inc. * | 7,062 | 576,400 |
| Applied Materials, Inc. | 24,484 | 3,249,272 |
| Broadcom, Inc. | 6,850 | 3,124,970 |
| KLA Corp. | 5,595 | 1,764,383 |
| Lam Research Corp. | 1,650 | 1,023,743 |
| Monolithic Power Systems, Inc. | 2,629 | 950,068 |
| NVIDIA Corp. | 6,008 | 3,607,083 |
| QUALCOMM, Inc. | 12,585 | 1,746,798 |
| Teradyne, Inc. | 5,280 | 660,422 |
| | | 16,703,139 |
| |
| Software & Services 25.4% |
| Accenture plc, Class A | 14,999 | 4,349,260 |
| Adobe, Inc. * | 10,664 | 5,420,938 |
| Security | Number
of Shares | Value ($) |
| Autodesk, Inc. * | 2,216 | 646,873 |
| Cadence Design Systems, Inc. * | 17,495 | 2,305,316 |
| Citrix Systems, Inc. | 4,091 | 506,670 |
| DocuSign, Inc. * | 4,372 | 974,694 |
| EPAM Systems, Inc. * | 2,342 | 1,072,050 |
| Fair Isaac Corp. * | 2,156 | 1,124,160 |
| Fortinet, Inc. * | 4,929 | 1,006,650 |
| Gartner, Inc. * | 6,604 | 1,293,592 |
| GoDaddy, Inc., Class A * | 13,478 | 1,170,160 |
| Intuit, Inc. | 4,573 | 1,884,808 |
| Manhattan Associates, Inc. * | 6,539 | 897,412 |
| Mastercard, Inc., Class A | 11,271 | 4,306,198 |
| Microsoft Corp. | 99,364 | 25,057,613 |
| Oracle Corp. | 5,733 | 434,504 |
| Palo Alto Networks, Inc. * | 3,892 | 1,375,394 |
| PayPal Holdings, Inc. * | 10,159 | 2,664,604 |
| ServiceNow, Inc. * | 2,408 | 1,219,339 |
| Synopsys, Inc. * | 6,567 | 1,622,443 |
| The Western Union Co. | 43,328 | 1,116,129 |
| Visa, Inc., Class A | 17,248 | 4,028,443 |
| | | 64,477,250 |
| |
| Technology Hardware & Equipment 11.3% |
| Apple Inc. | 217,917 | 28,647,369 |
| |
| Transportation 0.6% |
| Knight-Swift Transportation Holdings, Inc. | 11,187 | 527,132 |
| Union Pacific Corp. | 2,059 | 457,283 |
| Werner Enterprises, Inc. | 9,651 | 446,166 |
| | | 1,430,581 |
| Total Common Stock |
| (Cost $122,549,883) | | 252,504,062 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.4% of net assets |
| |
| Time Deposit 0.4% |
| Sumitomo Mitsui Banking Corp. |
| 0.01%, 05/03/21 (a) | 1,106,361 | 1,106,361 |
| Total Short-Term Investment |
| (Cost $1,106,361) | | 1,106,361 |
| * | Non-income producing security. |
| (a) | The rate shown is the current daily overnight rate. |
| | |
| ADR — | American Depositary Receipt |
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $252,504,062 | $— | $— | $252,504,062 | |
| Short-Term Investment1 | — | 1,106,361 | — | 1,106,361 | |
| Total | $252,504,062 | $1,106,361 | $— | $253,610,423 | |
| 1 | As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $123,656,244) | | $253,610,423 |
| Deposit with broker for futures contracts | | 44,000 |
| Receivables: | | |
| Fund shares sold | | 64,257 |
| Dividends | | 56,289 |
| Foreign tax reclaims | | 21,096 |
| Prepaid expenses | + | 11,703 |
| Total assets | | 253,807,768 |
| Liabilities |
| Payables: | | |
| Investment adviser and administrator fees | | 156,480 |
| Shareholder service fees | | 50,345 |
| Independent trustees’ fees | | 199 |
| Fund shares redeemed | | 21,519 |
| Accrued expenses | + | 32,964 |
| Total liabilities | | 261,507 |
| Net Assets |
| Total assets | | 253,807,768 |
| Total liabilities | – | 261,507 |
| Net assets | | $253,546,261 |
| Net Assets by Source | | |
| Capital received from investors | | 114,700,795 |
| Total distributable earnings | | 138,845,466 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $253,546,261 | | 9,987,126 | | $25.39 |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $15,781) | | $878,904 |
| Interest received from securities - unaffiliated | + | 79 |
| Total investment income | | 878,983 |
| Expenses |
| Investment adviser and administrator fees | | 853,426 |
| Shareholder service fees | | 280,734 |
| Professional fees | | 16,625 |
| Registration fees | | 13,483 |
| Portfolio accounting fees | | 10,463 |
| Shareholder reports | | 6,571 |
| Independent trustees’ fees | | 3,792 |
| Custodian fees | | 3,125 |
| Transfer agent fees | | 1,746 |
| Other expenses | + | 2,046 |
| Total expenses | | 1,192,011 |
| Expense reduction by CSIM and its affiliates | – | 18,550 |
| Net expenses | – | 1,173,461 |
| Net investment loss | | (294,478) |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 8,991,756 |
| Net realized gains on futures contracts | + | 291,569 |
| Net realized gains | | 9,283,325 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 38,982,780 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 75,079 |
| Net change in unrealized appreciation (depreciation) | + | 39,057,859 |
| Net realized and unrealized gains | | 48,341,184 |
| Increase in net assets resulting from operations | | $48,046,706 |
Schwab Active Equity Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income (loss) | | ($294,478) | $9,938 |
| Net realized gains | | 9,283,325 | 2,658,271 |
| Net change in unrealized appreciation (depreciation) | + | 39,057,859 | 34,053,845 |
| Increase in net assets from operations | | 48,046,706 | 36,722,054 |
| Distributions to Shareholders | |
| Total distributions | | ($2,530,978) | ($9,705,767) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,119,617 | $26,347,620 | 2,205,536 | $41,760,250 |
| Shares reinvested | | 94,152 | 2,163,612 | 459,787 | 8,322,151 |
| Shares redeemed | + | (1,297,888) | (30,513,711) | (2,598,754) | (47,874,418) |
| Net transactions in fund shares | | (84,119) | ($2,002,479) | 66,569 | $2,207,983 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 10,071,245 | $210,033,012 | 10,004,676 | $180,808,742 |
| Total increase (decrease) | + | (84,119) | 43,513,249 | 66,569 | 29,224,270 |
| End of period | | 9,987,126 | $253,546,261 | 10,071,245 | $210,033,012 |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $15.02 | $16.68 | $20.87 | $23.58 | $18.81 | $21.19 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.02 | 0.03 | 0.02 | 0.01 | (0.00) 2 | 0.07 |
| Net realized and unrealized gains (losses) | 7.47 | (1.67) | (0.35) 3 | 0.32 | 4.86 | 0.12 |
| Total from investment operations | 7.49 | (1.64) | (0.33) | 0.33 | 4.86 | 0.19 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.03) | (0.02) | (0.01) | — | (0.09) | (0.04) |
| Distributions from net realized gains | — | — | (3.85) | (3.04) | — | (2.53) |
| Total distributions | (0.03) | (0.02) | (3.86) | (3.04) | (0.09) | (2.57) |
| Net asset value at end of period | $22.48 | $15.02 | $16.68 | $20.87 | $23.58 | $18.81 |
| Total return | 49.95% 4 | (9.86%) | 0.08% | 1.37% | 25.87% | 1.47% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 1.08% 5 | 1.09% | 1.09% | 1.09% | 1.10% | 1.09% |
| Gross operating expenses | 1.08% 5 | 1.10% | 1.09% | 1.09% | 1.10% | 1.10% |
| Net investment income (loss) | 0.19% 5 | 0.17% | 0.09% | 0.06% | (0.01%) | 0.37% |
| Portfolio turnover rate | 41% 4 | 113% | 117% | 111% | 99% | 85% |
| Net assets, end of period (x 1,000,000) | $646 | $491 | $579 | $573 | $645 | $571 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Per-share amount was less than $0.005.
3
The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
4
Not annualized.
5
Annualized.
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.6% of net assets |
| |
| Automobiles & Components 1.5% |
| American Axle & Manufacturing Holdings, Inc. * | 177,240 | 1,644,787 |
| Modine Manufacturing Co. * | 156,919 | 2,554,641 |
| Patrick Industries, Inc. | 15,964 | 1,430,375 |
| Tenneco, Inc., Class A * | 224,533 | 2,261,047 |
| The Goodyear Tire & Rubber Co. * | 68,050 | 1,171,141 |
| Winnebago Industries, Inc. | 8,264 | 660,707 |
| | | 9,722,698 |
| |
| Banks 10.0% |
| Amalgamated Financial Corp. | 82,279 | 1,328,806 |
| American National Bankshares, Inc. | 3,839 | 130,641 |
| Ames National Corp. | 7,142 | 180,550 |
| Associated Banc-Corp. | 65,979 | 1,444,280 |
| BancorpSouth Bank | 57,795 | 1,710,154 |
| Civista Bancshares, Inc. | 9,468 | 218,995 |
| Community Trust Bancorp, Inc. | 3,969 | 176,859 |
| Customers Bancorp, Inc. * | 125,341 | 4,326,771 |
| CVB Financial Corp. | 44,219 | 937,885 |
| Financial Institutions, Inc. | 124,529 | 3,976,211 |
| First BanCorp | 371,759 | 4,673,011 |
| First Commonwealth Financial Corp. | 85,979 | 1,245,836 |
| Fulton Financial Corp. | 94,082 | 1,604,098 |
| Great Southern Bancorp, Inc. | 5,826 | 328,645 |
| Hancock Whitney Corp. | 178,977 | 8,275,896 |
| Hanmi Financial Corp. | 58,076 | 1,178,943 |
| Heartland Financial USA, Inc. | 26,068 | 1,310,438 |
| Hope Bancorp, Inc. | 268,916 | 4,036,429 |
| Independent Bank Corp., Michigan | 122,263 | 2,880,516 |
| International Bancshares Corp. | 111,641 | 5,290,667 |
| Mercantile Bank Corp. | 15,656 | 505,376 |
| MGIC Investment Corp. | 95,345 | 1,453,058 |
| Old Second Bancorp, Inc. | 24,840 | 328,136 |
| Premier Financial Corp. | 36,026 | 1,138,061 |
| QCR Holdings, Inc. | 20,477 | 987,401 |
| Radian Group, Inc. | 175,227 | 4,317,593 |
| Republic Bancorp, Inc., Class A | 40,737 | 1,830,313 |
| ServisFirst Bancshares, Inc. | 14,491 | 916,411 |
| Texas Capital Bancshares, Inc. * | 13,388 | 918,818 |
| The First of Long Island Corp. | 9,944 | 211,708 |
| Trustmark Corp. | 36,060 | 1,168,705 |
| UMB Financial Corp. | 39,896 | 3,871,109 |
| WesBanco, Inc. | 27,015 | 980,374 |
| WSFS Financial Corp. | 16,418 | 838,796 |
| | | 64,721,490 |
| |
| Capital Goods 11.0% |
| Advanced Drainage Systems, Inc. | 21,829 | 2,437,426 |
| Alamo Group, Inc. | 2,037 | 320,318 |
| Atkore, Inc. * | 53,551 | 4,191,972 |
| Boise Cascade Co. | 64,749 | 4,320,053 |
| Builders FirstSource, Inc. * | 22,403 | 1,090,354 |
| Security | Number
of Shares | Value ($) |
| Comfort Systems USA, Inc. | 13,648 | 1,124,049 |
| Cornerstone Building Brands, Inc. * | 97,343 | 1,368,643 |
| Ducommun, Inc. * | 30,697 | 1,808,974 |
| Dycom Industries, Inc. * | 20,669 | 1,938,959 |
| EMCOR Group, Inc. | 45,807 | 5,487,679 |
| Evoqua Water Technologies Corp. * | 97,594 | 2,789,236 |
| Franklin Electric Co., Inc. | 10,295 | 836,675 |
| Generac Holdings, Inc. * | 10,367 | 3,358,390 |
| GrafTech International Ltd. | 171,182 | 2,177,435 |
| Hillenbrand, Inc. | 62,394 | 3,062,921 |
| IES Holdings, Inc. * | 24,201 | 1,277,571 |
| Masonite International Corp. * | 39,742 | 5,019,017 |
| MasTec, Inc. * | 5,627 | 587,234 |
| Moog, Inc., Class A | 55,403 | 4,795,130 |
| Mueller Industries, Inc. | 160,123 | 7,184,719 |
| MYR Group, Inc. * | 64,562 | 5,029,380 |
| Plug Power, Inc. * | 37,974 | 1,082,639 |
| Preformed Line Products Co. | 1,881 | 124,522 |
| SiteOne Landscape Supply, Inc. * | 8,363 | 1,500,155 |
| SPX Corp. * | 68,012 | 4,125,608 |
| The Shyft Group, Inc. | 55,734 | 1,974,098 |
| Titan Machinery, Inc. * | 32,242 | 841,839 |
| Vectrus, Inc. * | 27,765 | 1,453,498 |
| | | 71,308,494 |
| |
| Commercial & Professional Services 2.6% |
| ABM Industries, Inc. | 15,212 | 782,049 |
| ASGN, Inc. * | 32,677 | 3,436,967 |
| CACI International, Inc., Class A * | 10,840 | 2,762,682 |
| Herman Miller, Inc. | 22,933 | 951,720 |
| HNI Corp. | 13,097 | 554,527 |
| Kforce, Inc. | 17,087 | 957,555 |
| Mastech Digital, Inc. * | 38,217 | 603,446 |
| Matthews International Corp., Class A | 73,055 | 3,023,016 |
| Pitney Bowes, Inc. | 98,649 | 736,908 |
| TriNet Group, Inc. * | 34,546 | 2,719,116 |
| | | 16,527,986 |
| |
| Consumer Durables & Apparel 4.5% |
| Beazer Homes USA, Inc. * | 81,355 | 1,815,030 |
| Crocs, Inc. * | 43,809 | 4,386,157 |
| Deckers Outdoor Corp. * | 14,479 | 4,896,798 |
| Helen of Troy Ltd. * | 3,206 | 677,139 |
| Installed Building Products, Inc. | 7,213 | 971,231 |
| Lakeland Industries, Inc. * | 47,378 | 1,336,533 |
| Meritage Homes Corp. * | 9,642 | 1,025,812 |
| Nautilus, Inc. * | 49,523 | 830,006 |
| Rocky Brands, Inc. | 17,277 | 909,634 |
| Sonos, Inc. * | 45,213 | 1,809,876 |
| Tempur Sealy International, Inc. | 112,000 | 4,271,680 |
| Tri Pointe Homes, Inc. * | 72,962 | 1,737,955 |
| Tupperware Brands Corp. * | 31,419 | 765,681 |
| Vista Outdoor, Inc. * | 38,452 | 1,253,920 |
| YETI Holdings, Inc. * | 27,177 | 2,321,459 |
| | | 29,008,911 |
| |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Consumer Services 3.7% |
| Bloomin' Brands, Inc. * | 22,154 | 700,066 |
| Boyd Gaming Corp. * | 26,784 | 1,771,762 |
| Brinker International, Inc. * | 35,544 | 2,386,069 |
| Carrols Restaurant Group, Inc. * | 121,533 | 715,829 |
| Del Taco Restaurants, Inc. | 297,457 | 3,391,010 |
| International Game Technology plc * | 150,395 | 2,589,802 |
| Jack in the Box, Inc. | 11,815 | 1,425,480 |
| Marriott Vacations Worldwide Corp. * | 2,898 | 514,772 |
| Papa John's International, Inc. | 40,080 | 3,876,537 |
| Perdoceo Education Corp. * | 145,806 | 1,700,098 |
| PlayAGS, Inc. * | 48,382 | 433,019 |
| Red Rock Resorts, Inc., Class A * | 61,225 | 2,242,672 |
| Scientific Games Corp., Class A * | 32,548 | 1,904,709 |
| | | 23,651,825 |
| |
| Diversified Financials 3.7% |
| A-Mark Precious Metals, Inc. | 24,796 | 924,147 |
| Artisan Partners Asset Management, Inc., Class A | 28,249 | 1,438,439 |
| Cowen, Inc., Class A | 8,382 | 331,005 |
| Enova International, Inc. * | 21,155 | 724,347 |
| Federated Hermes, Inc. | 26,573 | 765,302 |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 50,364 | 2,639,074 |
| Navient Corp. | 102,404 | 1,723,459 |
| OneMain Holdings, Inc. | 83,524 | 4,750,010 |
| Oppenheimer Holdings, Inc., Class A | 41,338 | 2,115,266 |
| PROG Holdings, Inc. | 39,510 | 2,012,639 |
| Regional Management Corp. | 37,864 | 1,466,473 |
| Stifel Financial Corp. | 41,142 | 2,846,615 |
| Virtus Investment Partners, Inc. | 8,263 | 2,259,600 |
| | | 23,996,376 |
| |
| Energy 3.2% |
| Antero Resources Corp. * | 73,008 | 658,532 |
| ChampionX Corp. * | 96,506 | 2,027,591 |
| Cimarex Energy Co. | 76,345 | 5,054,039 |
| DHT Holdings, Inc. | 233,584 | 1,378,146 |
| Magnolia Oil & Gas Corp., Class A * | 77,669 | 874,553 |
| National Energy Services Reunited Corp. * | 55,500 | 704,295 |
| Oceaneering International, Inc. * | 64,912 | 697,804 |
| Oil States International, Inc. * | 263,999 | 1,481,035 |
| Ovintiv, Inc. | 47,353 | 1,133,158 |
| PDC Energy, Inc. * | 63,463 | 2,317,034 |
| Renewable Energy Group, Inc. * | 10,839 | 601,781 |
| SM Energy Co. | 85,939 | 1,357,836 |
| Southwestern Energy Co. * | 305,023 | 1,302,448 |
| Teekay Corp. * | 207,460 | 668,021 |
| World Fuel Services Corp. | 15,514 | 479,848 |
| | | 20,736,121 |
| |
| Food & Staples Retailing 0.5% |
| BJ's Wholesale Club Holdings, Inc. * | 48,067 | 2,147,153 |
| Sprouts Farmers Market, Inc. * | 49,605 | 1,270,384 |
| | | 3,417,537 |
| |
| Food, Beverage & Tobacco 1.7% |
| B&G Foods, Inc. (a) | 32,930 | 960,898 |
| Coca-Cola Consolidated, Inc. | 13,945 | 4,089,371 |
| Darling Ingredients, Inc. * | 38,271 | 2,657,921 |
| National Beverage Corp. | 33,388 | 1,622,323 |
| Security | Number
of Shares | Value ($) |
| Sanderson Farms, Inc. | 8,542 | 1,405,415 |
| Seneca Foods Corp., Class A * | 8,855 | 407,861 |
| | | 11,143,789 |
| |
| Health Care Equipment & Services 4.3% |
| Accuray, Inc. * | 283,668 | 1,333,240 |
| Cerus Corp. * | 118,178 | 720,886 |
| Co-Diagnostics, Inc. * | 42,974 | 380,750 |
| Electromed, Inc. * | 77,737 | 759,490 |
| Globus Medical, Inc., Class A * | 23,138 | 1,660,614 |
| Inovalon Holdings, Inc., Class A * | 19,620 | 592,720 |
| Integer Holdings Corp. * | 27,158 | 2,549,593 |
| LeMaitre Vascular, Inc. | 15,758 | 826,822 |
| Meridian Bioscience, Inc. * | 117,491 | 2,300,474 |
| Merit Medical Systems, Inc. * | 60,473 | 3,846,083 |
| Natus Medical, Inc. * | 40,947 | 1,046,196 |
| Nevro Corp. * | 3,170 | 547,808 |
| NextGen Healthcare, Inc. * | 107,321 | 1,965,047 |
| Novocure Ltd. * | 1,860 | 379,626 |
| Owens & Minor, Inc. | 46,513 | 1,678,654 |
| Quidel Corp. * | 14,818 | 1,552,778 |
| Retractable Technologies, Inc. *(a) | 46,554 | 452,039 |
| Tenet Healthcare Corp. * | 62,106 | 3,680,402 |
| Tivity Health, Inc. * | 31,226 | 755,045 |
| Utah Medical Products, Inc. | 7,950 | 693,717 |
| | | 27,721,984 |
| |
| Household & Personal Products 0.6% |
| Medifast, Inc. | 9,964 | 2,262,725 |
| Nu Skin Enterprises, Inc., Class A | 28,740 | 1,519,196 |
| | | 3,781,921 |
| |
| Insurance 1.4% |
| American National Group, Inc. | 24,579 | 2,786,030 |
| Assured Guaranty Ltd. | 12,404 | 630,743 |
| Donegal Group, Inc., Class A | 11,708 | 180,654 |
| Employers Holdings, Inc. | 10,849 | 439,167 |
| Global Indemnity Group LLC, Class A | 10,552 | 303,476 |
| Investors Title Co. | 2,235 | 394,321 |
| Mercury General Corp. | 20,280 | 1,262,836 |
| National Western Life Group, Inc., Class A | 6,826 | 1,565,202 |
| Safety Insurance Group, Inc. | 15,569 | 1,277,125 |
| | | 8,839,554 |
| |
| Materials 4.5% |
| Alcoa Corp. * | 74,808 | 2,740,965 |
| Caledonia Mining Corp. plc | 36,367 | 505,865 |
| Clearwater Paper Corp. * | 44,841 | 1,500,380 |
| Coeur Mining, Inc. * | 128,123 | 1,035,234 |
| H.B. Fuller Co. | 5,241 | 350,204 |
| Hawkins, Inc. | 33,775 | 1,126,396 |
| Hecla Mining Co. | 176,777 | 1,044,752 |
| Ingevity Corp. * | 32,427 | 2,531,900 |
| Koppers Holdings, Inc. * | 87,157 | 2,897,099 |
| Kraton Corp. * | 23,496 | 840,217 |
| Louisiana-Pacific Corp. | 133,525 | 8,796,627 |
| Rayonier Advanced Materials, Inc. * | 27,938 | 253,956 |
| Schnitzer Steel Industries, Inc., Class A | 28,979 | 1,368,099 |
| Stepan Co. | 15,378 | 2,009,289 |
| Tredegar Corp. | 37,276 | 544,975 |
| Trinseo S.A. | 15,770 | 976,321 |
| Tronox Holdings plc, Class A | 25,718 | 545,222 |
| | | 29,067,501 |
| |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Media & Entertainment 1.9% |
| Cars.com, Inc. * | 118,833 | 1,569,784 |
| Gray Television, Inc. | 76,997 | 1,564,579 |
| Lions Gate Entertainment Corp., Class A * | 225,649 | 3,265,141 |
| Sinclair Broadcast Group, Inc., Class A | 51,329 | 1,666,652 |
| TEGNA, Inc. | 50,280 | 1,008,617 |
| World Wrestling Entertainment, Inc., Class A | 54,535 | 3,005,424 |
| | | 12,080,197 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 15.0% |
| Affimed N.V. * | 127,787 | 1,366,043 |
| Amicus Therapeutics, Inc. * | 152,254 | 1,498,179 |
| Amneal Pharmaceuticals, Inc. * | 181,436 | 999,712 |
| Anika Therapeutics, Inc. * | 14,350 | 576,583 |
| Aquestive Therapeutics, Inc. *(a) | 129,345 | 526,434 |
| Arcus Biosciences, Inc. * | 33,510 | 1,130,963 |
| Ardelyx, Inc. * | 59,788 | 437,050 |
| BioDelivery Sciences International, Inc. * | 422,956 | 1,463,428 |
| Blueprint Medicines Corp. * | 37,136 | 3,576,940 |
| Cara Therapeutics, Inc. * | 56,673 | 733,915 |
| CareDx, Inc. * | 36,858 | 2,914,362 |
| Catalyst Pharmaceuticals, Inc. * | 354,149 | 1,622,002 |
| ChemoCentryx, Inc. * | 33,552 | 1,621,568 |
| Chimerix, Inc. * | 52,159 | 454,305 |
| Coherus Biosciences, Inc. * | 46,148 | 682,990 |
| Corcept Therapeutics, Inc. * | 86,337 | 1,967,620 |
| Cymabay Therapeutics, Inc. * | 97,141 | 420,621 |
| Cytokinetics, Inc. * | 26,116 | 664,391 |
| CytomX Therapeutics, Inc. * | 53,284 | 498,738 |
| Denali Therapeutics, Inc. * | 29,645 | 1,791,744 |
| Dicerna Pharmaceuticals, Inc. * | 87,848 | 2,739,979 |
| Emergent BioSolutions, Inc. * | 40,073 | 2,443,652 |
| Fate Therapeutics, Inc. * | 2,448 | 213,931 |
| FibroGen, Inc. * | 56,447 | 1,259,897 |
| Halozyme Therapeutics, Inc. * | 108,873 | 5,438,206 |
| Harpoon Therapeutics, Inc. * | 24,668 | 558,484 |
| Horizon Therapeutics plc * | 26,224 | 2,481,315 |
| ImmunoGen, Inc. * | 88,879 | 716,365 |
| Innoviva, Inc. * | 116,847 | 1,337,898 |
| Insmed, Inc. * | 35,684 | 1,203,621 |
| Ironwood Pharmaceuticals, Inc. * | 95,370 | 1,052,885 |
| Jounce Therapeutics, Inc. * | 57,098 | 538,434 |
| La Jolla Pharmaceutical Co. *(a) | 140,978 | 625,942 |
| Ligand Pharmaceuticals, Inc. * | 18,232 | 2,659,867 |
| MacroGenics, Inc. * | 25,684 | 831,134 |
| Medpace Holdings, Inc. * | 32,177 | 5,459,793 |
| MEI Pharma, Inc. * | 515,846 | 1,882,838 |
| Natera, Inc. * | 17,886 | 1,967,818 |
| Novavax, Inc. * | 16,084 | 3,810,782 |
| Ocular Therapeutix, Inc. * | 59,092 | 1,086,111 |
| OPKO Health, Inc. * | 697,748 | 2,860,767 |
| Organogenesis Holdings, Inc. * | 66,627 | 1,489,780 |
| Pacira BioSciences, Inc. * | 18,837 | 1,190,122 |
| Prestige Consumer Healthcare, Inc. * | 73,686 | 3,209,762 |
| PTC Therapeutics, Inc. * | 13,221 | 544,837 |
| Puma Biotechnology, Inc. * | 43,039 | 424,365 |
| Quanterix Corp. * | 21,539 | 1,316,894 |
| Radius Health, Inc. * | 47,598 | 1,061,435 |
| REGENXBIO, Inc. * | 15,297 | 530,653 |
| Repligen Corp. * | 4,836 | 1,023,830 |
| Sangamo Therapeutics, Inc. * | 87,588 | 1,031,787 |
| Supernus Pharmaceuticals, Inc. * | 59,839 | 1,822,098 |
| Syneos Health, Inc. * | 24,077 | 2,042,933 |
| Translate Bio, Inc. * | 74,687 | 1,734,232 |
| Travere Therapeutics, Inc. * | 219,213 | 5,418,945 |
| Twist Bioscience Corp. * | 2,336 | 313,468 |
| Security | Number
of Shares | Value ($) |
| Ultragenyx Pharmaceutical, Inc. * | 27,746 | 3,097,563 |
| Vanda Pharmaceuticals, Inc. * | 141,763 | 2,353,266 |
| Veracyte, Inc. * | 18,259 | 908,385 |
| Vericel Corp. * | 23,440 | 1,463,125 |
| | | 97,094,787 |
| |
| Real Estate 7.2% |
| Apple Hospitality REIT, Inc. | 111,528 | 1,768,834 |
| Bluerock Residential Growth REIT, Inc. | 89,831 | 851,598 |
| CareTrust REIT, Inc. | 89,793 | 2,171,195 |
| Chatham Lodging Trust * | 119,288 | 1,654,525 |
| CorePoint Lodging, Inc. * | 117,702 | 1,175,843 |
| Corporate Office Properties Trust | 91,102 | 2,554,500 |
| Easterly Government Properties, Inc. | 40,551 | 869,008 |
| EastGroup Properties, Inc. | 22,411 | 3,555,729 |
| eXp World Holdings, Inc. * | 45,170 | 1,552,041 |
| Healthcare Realty Trust, Inc. | 87,501 | 2,814,032 |
| Industrial Logistics Properties Trust | 38,169 | 946,591 |
| National Storage Affiliates Trust | 49,176 | 2,234,558 |
| New Senior Investment Group, Inc. | 101,922 | 674,724 |
| Office Properties Income Trust | 112,499 | 3,121,847 |
| Piedmont Office Realty Trust, Inc., Class A | 124,057 | 2,309,941 |
| PotlatchDeltic Corp. | 72,212 | 4,286,504 |
| Realogy Holdings Corp. * | 147,429 | 2,547,573 |
| Retail Value, Inc. | 53,655 | 999,593 |
| Sabra Health Care REIT, Inc. | 157,959 | 2,870,115 |
| Service Properties Trust | 290,384 | 3,576,079 |
| Sunstone Hotel Investors, Inc. * | 158,319 | 2,083,478 |
| UMH Properties, Inc. | 54,291 | 1,168,885 |
| Urban Edge Properties | 45,418 | 856,129 |
| | | 46,643,322 |
| |
| Retailing 5.1% |
| 1-800-Flowers.com, Inc., Class A * | 87,445 | 2,796,054 |
| At Home Group, Inc. * | 38,594 | 1,218,799 |
| AutoNation, Inc. * | 38,962 | 3,992,826 |
| Big Lots, Inc. | 14,233 | 981,223 |
| Camping World Holdings, Inc., Class A | 61,098 | 2,660,207 |
| Group 1 Automotive, Inc. | 22,201 | 3,644,516 |
| Hibbett Sports, Inc. * | 22,740 | 1,806,693 |
| Lithia Motors, Inc., Class A | 5,571 | 2,141,381 |
| MarineMax, Inc. * | 27,265 | 1,548,652 |
| OneWater Marine, Inc., Class A * | 8,215 | 420,854 |
| Overstock.com, Inc. * | 3,193 | 260,229 |
| Rent-A-Center, Inc. | 24,381 | 1,403,127 |
| RH * | 4,949 | 3,405,011 |
| Shutterstock, Inc. | 19,440 | 1,694,779 |
| Sleep Number Corp. * | 5,766 | 645,158 |
| Stamps.com, Inc. * | 14,385 | 2,954,247 |
| The Aaron's Co., Inc. | 19,755 | 610,232 |
| The Container Store Group, Inc. * | 46,502 | 655,213 |
| | | 32,839,201 |
| |
| Semiconductors & Semiconductor Equipment 3.2% |
| Advanced Energy Industries, Inc. | 33,416 | 3,686,119 |
| Amkor Technology, Inc. | 125,552 | 2,538,661 |
| Axcelis Technologies, Inc. * | 21,139 | 877,903 |
| Cirrus Logic, Inc. * | 40,132 | 2,986,222 |
| FormFactor, Inc. * | 60,370 | 2,363,485 |
| MACOM Technology Solutions Holdings, Inc. * | 49,359 | 2,794,213 |
| MaxLinear, Inc. * | 58,671 | 2,111,569 |
| NeoPhotonics Corp. * | 56,307 | 527,034 |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Synaptics, Inc. * | 6,455 | 902,861 |
| Ultra Clean Holdings, Inc. * | 34,330 | 1,753,233 |
| | | 20,541,300 |
| |
| Software & Services 7.4% |
| A10 Networks, Inc. * | 225,371 | 1,956,220 |
| Agilysys, Inc. * | 34,789 | 1,753,713 |
| Alarm.com Holdings, Inc. * | 11,215 | 1,006,658 |
| Avaya Holdings Corp. * | 98,779 | 2,841,872 |
| BM Technologies, Inc. *(b) | 13,582 | 110,066 |
| Box, Inc., Class A * | 295,125 | 6,286,162 |
| Brightcove, Inc. * | 22,711 | 329,764 |
| ChannelAdvisor Corp. * | 96,671 | 2,044,592 |
| Digital Turbine, Inc. * | 31,122 | 2,347,532 |
| Domo, Inc., Class B * | 54,004 | 3,471,917 |
| eGain Corp. * | 224,819 | 2,209,971 |
| EVERTEC, Inc. | 53,390 | 2,130,261 |
| j2 Global, Inc. * | 35,386 | 4,281,706 |
| Mimecast Ltd. * | 51,033 | 2,215,853 |
| Mitek Systems, Inc. * | 208,413 | 3,378,375 |
| Progress Software Corp. | 37,866 | 1,653,230 |
| Qualys, Inc. * | 5,461 | 553,527 |
| Sykes Enterprises, Inc. * | 79,896 | 3,501,842 |
| Synchronoss Technologies, Inc. * | 144,079 | 481,224 |
| Tenable Holdings, Inc. * | 92,178 | 3,456,214 |
| Workiva, Inc. * | 17,508 | 1,645,752 |
| | | 47,656,451 |
| |
| Technology Hardware & Equipment 2.8% |
| Avid Technology, Inc. * | 85,662 | 1,947,954 |
| Badger Meter, Inc. | 11,260 | 1,051,571 |
| Calix, Inc. * | 51,374 | 2,172,606 |
| Cambium Networks Corp. * | 16,282 | 976,920 |
| Casa Systems, Inc. * | 115,974 | 909,816 |
| CommScope Holding Co., Inc. * | 133,986 | 2,204,070 |
| Corsair Gaming, Inc. *(a) | 45,690 | 1,515,994 |
| Extreme Networks, Inc. * | 260,044 | 2,959,301 |
| II-VI, Inc. * | 43,882 | 2,946,237 |
| Methode Electronics, Inc. | 13,950 | 626,774 |
| Sanmina Corp. * | 24,257 | 990,656 |
| | | 18,301,899 |
| |
| Telecommunication Services 0.2% |
| Ooma, Inc. * | 26,362 | 435,764 |
| Vonage Holdings Corp. * | 53,769 | 728,570 |
| | | 1,164,334 |
| |
| Transportation 1.9% |
| Air Transport Services Group, Inc. * | 52,260 | 1,375,483 |
| Atlas Air Worldwide Holdings, Inc. * | 57,876 | 3,930,359 |
| Security | Number
of Shares | Value ($) |
| Costamare, Inc. | 202,295 | 2,128,143 |
| Echo Global Logistics, Inc. * | 33,091 | 1,082,076 |
| Matson, Inc. | 44,756 | 2,923,910 |
| Mesa Air Group, Inc. * | 71,030 | 799,798 |
| | | 12,239,769 |
| |
| Utilities 1.7% |
| Black Hills Corp. | 10,321 | 711,943 |
| Clearway Energy, Inc., Class A | 118,176 | 3,141,118 |
| Consolidated Water Co., Ltd. | 52,800 | 621,456 |
| Genie Energy Ltd., Class B | 67,052 | 375,491 |
| Portland General Electric Co. | 75,196 | 3,824,468 |
| Spark Energy, Inc., Class A | 216,017 | 2,285,460 |
| | | 10,959,936 |
| Total Common Stock |
| (Cost $468,470,183) | | 643,167,383 |
|
| Investment Company 0.6% of net assets |
| �� |
| Securities Lending Collateral 0.6% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 4,060,894 | 4,060,894 |
| Total Investment Company |
| (Cost $4,060,894) | | 4,060,894 |
Security
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.6% of net assets |
| |
| Time Deposit 0.6% |
| DnB Bank ASA |
| 0.01%, 05/03/21 (d) | 3,540,334 | 3,540,334 |
| Total Short-Term Investment |
| (Cost $3,540,334) | | 3,540,334 |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $3,876,671. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (c) | The rate shown is the 7-day yield. |
| (d) | The rate shown is the current daily overnight rate. |
| | |
| REIT — | Real Estate Investment Trust |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $595,510,932 | $— | $— | $595,510,932 | |
| Software & Services | 47,546,385 | — | 110,066 | 47,656,451 | |
| Investment Company1 | 4,060,894 | — | — | 4,060,894 | |
| Short-Term Investment1 | — | 3,540,334 | — | 3,540,334 | |
| Total | $647,118,211 | $3,540,334 | $110,066 | $650,768,611 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $472,010,517) including securities on loan of $3,876,671 | | $646,707,717 |
| Collateral invested for securities on loan, at value (cost $4,060,894) | | 4,060,894 |
| Receivables: | | |
| Investments sold | | 1,240,592 |
| Dividends | | 305,438 |
| Fund shares sold | | 111,125 |
| Income from securities on loan | | 4,990 |
| Prepaid expenses | + | 9,551 |
| Total assets | | 652,440,307 |
| Liabilities |
| Collateral held for securities on loan | | 4,060,894 |
| Payables: | | |
| Investments bought | | 1,837,760 |
| Investment adviser and administrator fees | | 455,123 |
| Shareholder service fees | | 135,806 |
| Independent trustees’ fees | | 210 |
| Fund shares redeemed | | 170,556 |
| Accrued expenses | + | 80,744 |
| Total liabilities | | 6,741,093 |
| Net Assets |
| Total assets | | 652,440,307 |
| Total liabilities | – | 6,741,093 |
| Net assets | | $645,699,214 |
| Net Assets by Source | | |
| Capital received from investors | | 475,345,256 |
| Total distributable earnings | | 170,353,958 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $645,699,214 | | 28,723,326 | | $22.48 |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $5,757) | | $3,828,042 |
| Interest received from securities - unaffiliated | | 148 |
| Securities on loan, net | + | 71,477 |
| Total investment income | | 3,899,667 |
| Expenses |
| Investment adviser and administrator fees | | 2,470,884 |
| Shareholder service fees | | 747,574 |
| Portfolio accounting fees | | 27,442 |
| Professional fees | | 17,426 |
| Shareholder reports | | 14,283 |
| Registration fees | | 12,988 |
| Custodian fees | | 9,435 |
| Independent trustees’ fees | | 4,372 |
| Transfer agent fees | | 3,081 |
| Other expenses | + | 3,555 |
| Total expenses | | 3,311,040 |
| Expense reduction by CSIM and its affiliates | – | 3,081 |
| Net expenses | – | 3,307,959 |
| Net investment income | | 591,708 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 86,410,872 |
| Net realized gains on futures contracts | + | 60,792 |
| Net realized gains | | 86,471,664 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 148,094,360 |
| Net realized and unrealized gains | | 234,566,024 |
| Increase in net assets resulting from operations | | $235,157,732 |
Schwab Active Equity Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $591,708 | $844,059 |
| Net realized gains (losses) | | 86,471,664 | (48,940,704) |
| Net change in unrealized appreciation (depreciation) | + | 148,094,360 | (5,706,272) |
| Increase (decrease) in net assets from operations | | 235,157,732 | (53,802,917) |
| Distributions to Shareholders | |
| Total distributions | | ($1,114,839) | ($635,564) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,283,359 | $25,214,701 | 5,747,653 | $80,000,238 |
| Shares reinvested | | 44,417 | 820,369 | 28,552 | 496,524 |
| Shares redeemed | + | (5,332,930) | (105,856,669) | (7,764,392) | (113,723,120) |
| Net transactions in fund shares | | (4,005,154) | ($79,821,599) | (1,988,187) | ($33,226,358) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 32,728,480 | $491,477,920 | 34,716,667 | $579,142,759 |
| Total increase (decrease) | + | (4,005,154) | 154,221,294 | (1,988,187) | (87,664,839) |
| End of period | | 28,723,326 | $645,699,214 | 32,728,480 | $491,477,920 |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $13.96 | $15.49 | $16.89 | $17.65 | $16.25 | $17.46 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | (0.03) | (0.01) | 0.07 | 0.08 | 0.03 | 0.03 |
| Net realized and unrealized gains (losses) | 2.44 | (1.42) | (0.34) | 0.24 | 1.85 | 0.49 |
| Total from investment operations | 2.41 | (1.43) | (0.27) | 0.32 | 1.88 | 0.52 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.01) | (0.10) | (0.08) | (0.01) | — | (0.12) |
| Distributions from net realized gains | — | — | (1.05) | (1.07) | (0.48) | (1.61) |
| Total distributions | (0.01) | (0.10) | (1.13) | (1.08) | (0.48) | (1.73) |
| Net asset value at end of period | $16.36 | $13.96 | $15.49 | $16.89 | $17.65 | $16.25 |
| Total return | 17.26% 2 | (9.33%) | (1.31%) | 1.75% | 11.71% | 3.55% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses (including dividend expense on short sales) | 1.79% 3 | 1.92% | 1.93% | 1.66% | 1.64% | 1.85% |
| Net operating expenses (excluding dividend expense on short sales) | 1.44% 3,4 | 1.34% 5 | 1.34% 5 | 1.33% | 1.33% | 1.57% 4 |
| Gross operating expenses | 1.88% 3 | 1.96% | 1.95% | 1.67% | 1.65% | 1.87% |
| Net investment income (loss) | (0.37%) 3 | (0.04%) | 0.46% | 0.43% | 0.16% | 0.22% |
| Portfolio turnover rate | 68% 2 | 168% | 176% | 180% | 163% | 142% |
| Net assets, end of period (x 1,000,000) | $66 | $67 | $182 | $300 | $252 | $204 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
The ratios of net operating expenses would have been 1.33%, if stock loan fees on short sales had not been incurred.
5
The ratios of net operating expenses would have been 1.33%, if interest expense had not been incurred.
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.3% of net assets |
| |
| Automobiles & Components 0.7% |
| American Axle & Manufacturing Holdings, Inc. * | 10,469 | 97,152 |
| Patrick Industries, Inc. | 2,781 | 249,178 |
| Thor Industries, Inc. | 765 | 108,316 |
| | | 454,646 |
| |
| Banks 5.7% |
| Bank of America Corp. | 8,661 | 351,030 |
| Citigroup, Inc. (a) | 14,317 | 1,019,943 |
| Fifth Third Bancorp | 3,181 | 128,958 |
| First BanCorp (a) | 26,721 | 335,883 |
| Hancock Whitney Corp. | 5,036 | 232,864 |
| Hope Bancorp, Inc. | 17,239 | 258,757 |
| JPMorgan Chase & Co. | 965 | 148,427 |
| PennyMac Financial Services, Inc. | 1,852 | 111,509 |
| Popular, Inc. | 7,733 | 571,933 |
| Wells Fargo & Co. | 6,313 | 284,401 |
| Zions Bancorp NA | 5,444 | 303,775 |
| | | 3,747,480 |
| |
| Capital Goods 3.0% |
| AGCO Corp. | 2,918 | 425,795 |
| Atkore, Inc. * | 1,257 | 98,398 |
| EMCOR Group, Inc. | 1,115 | 133,577 |
| Herc Holdings, Inc. * | 558 | 58,925 |
| Lockheed Martin Corp. (a) | 1,871 | 712,028 |
| Masonite International Corp. * | 1,214 | 153,316 |
| Moog, Inc., Class A | 1,648 | 142,634 |
| Mueller Industries, Inc. | 4,859 | 218,023 |
| | | 1,942,696 |
| |
| Commercial & Professional Services 1.3% |
| ABM Industries, Inc. | 8,847 | 454,824 |
| ASGN, Inc. * | 849 | 89,298 |
| CACI International, Inc., Class A *(a) | 1,279 | 325,966 |
| | | 870,088 |
| |
| Consumer Durables & Apparel 3.6% |
| Crocs, Inc. * | 2,354 | 235,683 |
| Deckers Outdoor Corp. * | 1,065 | 360,183 |
| Polaris, Inc. | 3,729 | 522,172 |
| PulteGroup, Inc. | 2,210 | 130,655 |
| Tempur Sealy International, Inc. (a) | 10,829 | 413,018 |
| Tri Pointe Homes, Inc. *(a) | 28,734 | 684,444 |
| YETI Holdings, Inc. * | 477 | 40,745 |
| | | 2,386,900 |
| |
| Consumer Services 2.3% |
| Brinker International, Inc. * | 1,285 | 86,262 |
| International Game Technology plc * | 18,156 | 312,646 |
| Security | Number
of Shares | Value ($) |
| Papa John's International, Inc. | 1,107 | 107,069 |
| Perdoceo Education Corp. * | 15,989 | 186,432 |
| Red Rock Resorts, Inc., Class A * | 5,492 | 201,172 |
| Scientific Games Corp., Class A * | 2,039 | 119,322 |
| Starbucks Corp. | 1,075 | 123,077 |
| Vivint Smart Home, Inc. * | 11,498 | 137,746 |
| Wingstop, Inc. | 791 | 125,302 |
| Yum! Brands, Inc. | 970 | 115,935 |
| | | 1,514,963 |
| |
| Diversified Financials 5.1% |
| Ally Financial, Inc. | 2,257 | 116,123 |
| Capital One Financial Corp. (a) | 5,946 | 886,430 |
| Jefferies Financial Group, Inc. | 4,333 | 140,866 |
| Lazard Ltd., Class A | 9,730 | 437,753 |
| Morgan Stanley | 1,418 | 117,056 |
| OneMain Holdings, Inc. | 3,622 | 205,983 |
| Synchrony Financial | 3,790 | 165,774 |
| T. Rowe Price Group, Inc. | 1,149 | 205,901 |
| The Goldman Sachs Group, Inc. (a) | 2,788 | 971,478 |
| Virtus Investment Partners, Inc. | 503 | 137,550 |
| | | 3,384,914 |
| |
| Energy 2.4% |
| APA Corp. | 10,533 | 210,660 |
| Cimarex Energy Co. (a) | 10,922 | 723,036 |
| Ovintiv, Inc. | 2,821 | 67,507 |
| Renewable Energy Group, Inc. * | 610 | 33,867 |
| Schlumberger N.V. | 1,258 | 34,029 |
| Targa Resources Corp. | 13,851 | 480,491 |
| | | 1,549,590 |
| |
| Food & Staples Retailing 1.4% |
| BJ's Wholesale Club Holdings, Inc. * | 3,465 | 154,782 |
| Sprouts Farmers Market, Inc. * | 8,730 | 223,575 |
| Walmart, Inc. | 4,078 | 570,553 |
| | | 948,910 |
| |
| Food, Beverage & Tobacco 2.2% |
| Coca-Cola Consolidated, Inc. | 1,646 | 482,690 |
| Constellation Brands, Inc., Class A | 482 | 115,834 |
| Flowers Foods, Inc. | 18,490 | 443,020 |
| National Beverage Corp. | 668 | 32,458 |
| Tyson Foods, Inc., Class A | 4,984 | 386,011 |
| | | 1,460,013 |
| |
| Health Care Equipment & Services 6.7% |
| Abbott Laboratories | 1,058 | 127,045 |
| Cerner Corp. (a) | 7,747 | 581,412 |
| Danaher Corp. | 2,976 | 755,725 |
| HCA Healthcare, Inc. (a) | 1,713 | 344,416 |
| Hill-Rom Holdings, Inc. | 4,264 | 469,978 |
| Hologic, Inc. *(a) | 11,832 | 775,587 |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| IDEXX Laboratories, Inc. * | 211 | 115,837 |
| McKesson Corp. | 2,619 | 491,220 |
| Meridian Bioscience, Inc. * | 1,791 | 35,068 |
| Merit Medical Systems, Inc. * | 613 | 38,987 |
| ModivCare, Inc. * | 345 | 48,328 |
| NextGen Healthcare, Inc. * | 20,269 | 371,125 |
| ResMed, Inc. | 826 | 155,263 |
| Tivity Health, Inc. * | 2,888 | 69,832 |
| | | 4,379,823 |
| |
| Household & Personal Products 2.2% |
| Medifast, Inc. | 1,881 | 427,156 |
| Nu Skin Enterprises, Inc., Class A | 2,084 | 110,160 |
| Spectrum Brands Holdings, Inc. | 1,533 | 135,119 |
| The Procter & Gamble Co. | 3,262 | 435,216 |
| Unilever PLC | 2,941 | 172,695 |
| USANA Health Sciences, Inc. * | 1,521 | 136,875 |
| | | 1,417,221 |
| |
| Insurance 2.8% |
| Aflac, Inc. | 3,375 | 181,339 |
| Fidelity National Financial, Inc. | 4,956 | 226,093 |
| First American Financial Corp. | 3,044 | 196,338 |
| The Allstate Corp. (a) | 9,884 | 1,253,291 |
| | | 1,857,061 |
| |
| Materials 3.2% |
| Axalta Coating Systems Ltd. *(a) | 4,210 | 134,257 |
| Berry Global Group, Inc. * | 10,379 | 660,312 |
| Companhia Siderurgica Nacional S.A. ADR | 5,419 | 48,880 |
| Fortescue Metals Group Ltd. ADR | 1,732 | 60,308 |
| Louisiana-Pacific Corp. | 3,385 | 223,004 |
| The Sherwin-Williams Co. | 1,491 | 408,340 |
| Vale S.A. ADR | 27,267 | 548,612 |
| | | 2,083,713 |
| |
| Media & Entertainment 8.5% |
| Activision Blizzard, Inc. (a) | 7,631 | 695,871 |
| Alphabet, Inc., Class A *(a) | 714 | 1,680,399 |
| Charter Communications, Inc., Class A *(a) | 1,133 | 763,019 |
| Facebook, Inc., Class A *(a) | 3,368 | 1,094,869 |
| Gray Television, Inc. | 5,321 | 108,123 |
| Netflix, Inc. * | 257 | 131,962 |
| News Corp., Class A | 12,251 | 320,915 |
| Sinclair Broadcast Group, Inc., Class A | 8,494 | 275,800 |
| TEGNA, Inc. | 10,324 | 207,099 |
| World Wrestling Entertainment, Inc., Class A | 5,909 | 325,645 |
| | | 5,603,702 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 6.4% |
| AbbVie, Inc. | 3,066 | 341,859 |
| Amgen, Inc. | 742 | 177,813 |
| Bristol-Myers Squibb Co. (a) | 9,533 | 595,050 |
| Eli Lilly & Co. | 643 | 117,521 |
| Emergent BioSolutions, Inc. * | 2,580 | 157,328 |
| Gilead Sciences, Inc. | 2,369 | 150,360 |
| Johnson & Johnson | 814 | 132,462 |
| Moderna, Inc. * | 1,700 | 303,994 |
| Novartis AG ADR (a) | 8,356 | 712,265 |
| OPKO Health, Inc. * | 17,812 | 73,029 |
| PerkinElmer, Inc. | 839 | 108,760 |
| Regeneron Pharmaceuticals, Inc. * | 256 | 123,213 |
| Roche Holding AG ADR | 11,167 | 454,609 |
| Security | Number
of Shares | Value ($) |
| Seagen, Inc. * | 452 | 64,980 |
| Thermo Fisher Scientific, Inc. | 216 | 101,570 |
| Translate Bio, Inc. * | 2,113 | 49,064 |
| Travere Therapeutics, Inc. * | 2,495 | 61,676 |
| United Therapeutics Corp. * | 1,873 | 377,522 |
| Vertex Pharmaceuticals, Inc. * | 440 | 96,008 |
| | | 4,199,083 |
| |
| Real Estate 4.1% |
| Alexander & Baldwin, Inc. | 5,134 | 94,106 |
| American Homes 4 Rent, Class A | 2,552 | 94,526 |
| Apple Hospitality REIT, Inc. | 7,581 | 120,235 |
| CareTrust REIT, Inc. | 4,019 | 97,180 |
| Corporate Office Properties Trust (a) | 25,484 | 714,571 |
| EastGroup Properties, Inc. (a) | 2,294 | 363,966 |
| eXp World Holdings, Inc. * | 1,177 | 40,442 |
| Highwoods Properties, Inc. | 1,922 | 86,086 |
| Office Properties Income Trust | 4,131 | 114,635 |
| PotlatchDeltic Corp. | 2,481 | 147,272 |
| Realogy Holdings Corp. * | 1,192 | 20,598 |
| Service Properties Trust | 23,382 | 287,949 |
| Weyerhaeuser Co. | 12,776 | 495,326 |
| | | 2,676,892 |
| |
| Retailing 9.2% |
| 1-800-Flowers.com, Inc., Class A * | 3,652 | 116,773 |
| Amazon.com, Inc. *(a) | 730 | 2,531,217 |
| At Home Group, Inc. * | 3,846 | 121,457 |
| AutoNation, Inc. * | 2,931 | 300,369 |
| Best Buy Co., Inc. (a) | 5,800 | 674,366 |
| Camping World Holdings, Inc., Class A | 5,272 | 229,543 |
| Dollar General Corp. | 1,075 | 230,856 |
| Etsy, Inc. * | 633 | 125,834 |
| Lowe's Cos., Inc. | 3,202 | 628,392 |
| Qurate Retail, Inc. Class A | 6,262 | 74,518 |
| Target Corp. (a) | 3,704 | 767,691 |
| The Aaron's Co., Inc. | 1,746 | 53,934 |
| The Home Depot, Inc. | 104 | 33,662 |
| Williams-Sonoma, Inc. | 1,158 | 197,728 |
| | | 6,086,340 |
| |
| Semiconductors & Semiconductor Equipment 3.4% |
| Advanced Energy Industries, Inc. | 2,043 | 225,363 |
| Amkor Technology, Inc. | 17,681 | 357,510 |
| Applied Materials, Inc. | 847 | 112,405 |
| Broadcom, Inc. | 859 | 391,876 |
| Cirrus Logic, Inc. *(a) | 1,424 | 105,960 |
| Intel Corp. | 5,334 | 306,865 |
| Qorvo, Inc. *(a) | 3,891 | 732,170 |
| | | 2,232,149 |
| |
| Software & Services 12.7% |
| Accenture plc, Class A | 2,072 | 600,818 |
| Adobe, Inc. * | 776 | 394,472 |
| Autodesk, Inc. * | 135 | 39,408 |
| Avaya Holdings Corp. * | 5,251 | 151,071 |
| Box, Inc., Class A * | 24,746 | 527,090 |
| Cadence Design Systems, Inc. *(a) | 1,842 | 242,720 |
| Citrix Systems, Inc. | 1,064 | 131,776 |
| Domo, Inc., Class B * | 2,968 | 190,813 |
| Dropbox, Inc., Class A * | 25,799 | 663,034 |
| Fair Isaac Corp. * | 246 | 128,267 |
| Fortinet, Inc. *(a) | 2,561 | 523,033 |
| Microsoft Corp. (a) | 10,573 | 2,666,299 |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Mimecast Ltd. * | 816 | 35,431 |
| Oracle Corp. | 982 | 74,426 |
| Progress Software Corp. (a) | 6,815 | 297,543 |
| SS&C Technologies Holdings, Inc. (a) | 3,816 | 283,224 |
| Sykes Enterprises, Inc. * | 14,693 | 643,994 |
| Synopsys, Inc. *(a) | 3,007 | 742,909 |
| Tenable Holdings, Inc. * | 1,122 | 42,069 |
| | | 8,378,397 |
| |
| Technology Hardware & Equipment 6.7% |
| Apple Inc. (a) | 20,769 | 2,730,293 |
| CommScope Holding Co., Inc. * | 7,400 | 121,730 |
| Extreme Networks, Inc. * | 23,109 | 262,980 |
| Jabil, Inc. (a) | 22,362 | 1,172,216 |
| Plantronics, Inc. * | 2,717 | 108,653 |
| | | 4,395,872 |
| |
| Telecommunication Services 0.1% |
| Verizon Communications, Inc. | 798 | 46,116 |
| |
| Transportation 4.4% |
| Air Transport Services Group, Inc. * | 15,320 | 403,222 |
| Atlas Air Worldwide Holdings, Inc. * | 9,623 | 653,498 |
| FedEx Corp. | 2,257 | 655,230 |
| Marten Transport Ltd. | 19,800 | 331,056 |
| Matson, Inc. | 2,022 | 132,097 |
| Ryder System, Inc. | 1,976 | 157,764 |
| United Parcel Service, Inc., Class B | 622 | 126,801 |
| Werner Enterprises, Inc. | 9,904 | 457,862 |
| | | 2,917,530 |
| |
| Utilities 1.2% |
| NRG Energy, Inc. (a) | 17,856 | 639,602 |
| Vistra Corp. (a) | 10,001 | 168,717 |
| | | 808,319 |
| Total Common Stock |
| (Cost $45,103,265) | | 65,342,418 |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
In addition to the above, the fund had the following short sale positions at April 30, 2021:
| Security | Number
of Shares | Value ($) |
| Short Sales (38.4%) of net assets |
| |
| Automobiles & Components (0.7%) |
| Fox Factory Holding Corp. | 2,269 | (347,679) |
| Tesla, Inc. | 130 | (92,227) |
| | | (439,906) |
| |
| Banks (0.7%) |
| Cullen/Frost Bankers, Inc. | 1,584 | (190,175) |
| First Hawaiian, Inc. | 2,905 | (79,771) |
| Live Oak Bancshares, Inc. | 1,853 | (118,518) |
| Triumph Bancorp, Inc. | 671 | (59,471) |
| Truist Financial Corp. | 553 | (32,798) |
| | | (480,733) |
| |
| Capital Goods (3.5%) |
| Air Lease Corp. | 1,795 | (83,845) |
| Bloom Energy Corp., Class A | 1,301 | (33,787) |
| Enerpac Tool Group Corp. | 3,704 | (98,526) |
| FuelCell Energy, Inc. | 14,185 | (137,736) |
| GATX Corp. | 5,802 | (566,913) |
| Hexcel Corp. | 3,846 | (216,953) |
| Kennametal, Inc. | 2,529 | (101,565) |
| Kratos Defense & Security Solutions, Inc. | 9,450 | (252,693) |
| Spirit AeroSystems Holdings, Inc., Class A | 2,009 | (91,791) |
| The Boeing Co. | 707 | (165,657) |
| Trex Co., Inc. | 639 | (69,006) |
| Vicor Corp. | 2,842 | (262,118) |
| Virgin Galactic Holdings, Inc. | 9,032 | (200,059) |
| | | (2,280,649) |
| |
| Commercial & Professional Services (1.0%) |
| MSA Safety, Inc. | 888 | (142,755) |
| The Brink's Co. | 6,687 | (534,425) |
| | | (677,180) |
| |
| Consumer Durables & Apparel (1.0%) |
| Garmin Ltd. | 309 | (42,407) |
| Hasbro, Inc. | 3,273 | (325,500) |
| Under Armour, Inc., Class A | 11,503 | (279,638) |
| | | (647,545) |
| |
| Consumer Services (2.6%) |
| Bright Horizons Family Solutions, Inc. | 2,418 | (350,199) |
| Expedia Group, Inc. | 956 | (168,476) |
| Hyatt Hotels Corp., Class A | 6,498 | (534,980) |
| Las Vegas Sands Corp. | 1,888 | (115,659) |
| MGM Resorts International | 2,600 | (105,872) |
| Planet Fitness, Inc., Class A | 923 | (77,523) |
| Royal Caribbean Cruises Ltd. | 1,945 | (169,118) |
| Vail Resorts, Inc. | 642 | (208,752) |
| | | (1,730,579) |
| |
| Diversified Financials (3.3%) |
| American Express Co. | 1,411 | (216,377) |
| Cannae Holdings, Inc. | 17,048 | (676,806) |
| Cboe Global Markets, Inc. | 2,472 | (258,003) |
| CME Group, Inc. | 181 | (36,560) |
| Security | Number
of Shares | Value ($) |
| FirstCash, Inc. | 11,288 | (813,075) |
| Green Dot Corp., Class A | 3,535 | (161,761) |
| | | (2,162,582) |
| |
| Energy (0.3%) |
| Equitrans Midstream Corp. | 5,197 | (42,407) |
| PBF Energy, Inc., Class A | 13,248 | (187,857) |
| | | (230,264) |
| |
| Food & Staples Retailing (0.1%) |
| US Foods Holding Corp. | 1,108 | (45,938) |
| |
| Food, Beverage & Tobacco (2.4%) |
| Beyond Meat, Inc. | 1,217 | (160,255) |
| Cal-Maine Foods, Inc. | 854 | (31,906) |
| Celsius Holdings, Inc. | 2,494 | (142,906) |
| Freshpet, Inc. | 4,043 | (747,227) |
| J & J Snack Foods Corp. | 2,442 | (401,978) |
| McCormick & Co. Inc/MD | 729 | (65,872) |
| | | (1,550,144) |
| |
| Health Care Equipment & Services (2.1%) |
| 1Life Healthcare, Inc. | 1,476 | (64,221) |
| Glaukos Corp. | 1,755 | (165,251) |
| Guardant Health, Inc. | 2,703 | (429,723) |
| Health Catalyst, Inc. | 1,329 | (76,949) |
| Insulet Corp. | 379 | (111,888) |
| Penumbra, Inc. | 304 | (93,021) |
| Premier, Inc., Class A | 7,807 | (275,977) |
| Teladoc Health, Inc. | 177 | (30,506) |
| The Cooper Cos., Inc. | 395 | (162,302) |
| | | (1,409,838) |
| |
| Household & Personal Products (0.7%) |
| Coty, Inc., Class A | 37,462 | (374,995) |
| Inter Parfums, Inc. | 1,469 | (108,118) |
| | | (483,113) |
| |
| Insurance (0.9%) |
| Cincinnati Financial Corp. | 1,460 | (164,513) |
| Palomar Holdings, Inc. | 1,038 | (73,034) |
| Trupanion, Inc. | 1,326 | (107,538) |
| Unum Group | 9,094 | (256,996) |
| | | (602,081) |
| |
| Materials (0.9%) |
| Albemarle Corp. | 1,244 | (209,203) |
| Amyris, Inc. | 8,335 | (121,358) |
| Quaker Chemical Corp. | 1,155 | (279,914) |
| | | (610,475) |
| |
| Media & Entertainment (1.1%) |
| Cardlytics, Inc. | 1,139 | (156,647) |
| Live Nation Entertainment, Inc. | 1,175 | (96,209) |
| Magnite, Inc. | 2,422 | (97,001) |
| TripAdvisor, Inc. | 6,851 | (322,887) |
| Twitter, Inc. | 905 | (49,974) |
| | | (722,718) |
| |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Pharmaceuticals, Biotechnology & Life Sciences (1.4%) |
| Alnylam Pharmaceuticals, Inc. | 351 | (49,365) |
| Arrowhead Pharmaceuticals, Inc. | 1,302 | (94,733) |
| Editas Medicine, Inc. | 1,156 | (42,784) |
| Elanco Animal Health, Inc. | 4,635 | (146,976) |
| Illumina, Inc. | 249 | (97,817) |
| Natera, Inc. | 300 | (33,006) |
| NeoGenomics, Inc. | 3,377 | (165,439) |
| Repligen Corp. | 843 | (178,472) |
| Twist Bioscience Corp. | 659 | (88,431) |
| | | (897,023) |
| |
| Real Estate (3.8%) |
| American Campus Communities, Inc. | 8,570 | (387,450) |
| Americold Realty Trust | 5,000 | (201,950) |
| EPR Properties | 3,584 | (170,993) |
| Equity Commonwealth | 30,845 | (888,336) |
| Federal Realty Investment Trust | 5,681 | (641,044) |
| Rayonier, Inc. | 2,115 | (76,732) |
| Washington Real Estate Investment Trust | 6,066 | (140,852) |
| | | (2,507,357) |
| |
| Retailing (3.8%) |
| Burlington Stores, Inc. | 2,158 | (704,220) |
| Foot Locker, Inc. | 6,667 | (393,220) |
| GameStop Corp. | 999 | (173,416) |
| Monro, Inc. | 3,157 | (222,853) |
| National Vision Holdings, Inc. | 4,884 | (246,202) |
| Nordstrom, Inc. | 1,782 | (65,364) |
| Ross Stores, Inc. | 1,668 | (218,408) |
| The Gap, Inc. | 13,529 | (447,810) |
| | | (2,471,493) |
| |
| Semiconductors & Semiconductor Equipment (1.8%) |
| Brooks Automation, Inc. | 2,398 | (242,989) |
| Cree, Inc. | 3,446 | (342,601) |
| First Solar, Inc. | 1,621 | (124,055) |
| SolarEdge Technologies, Inc. | 134 | (35,314) |
| SunPower Corp. | 6,111 | (156,992) |
| Universal Display Corp. | 1,337 | (299,074) |
| | | (1,201,025) |
| |
| Security | Number
of Shares | Value ($) |
| Software & Services (2.9%) |
| Bill.com Holdings, Inc. | 728 | (112,571) |
| Black Knight, Inc. | 2,107 | (152,589) |
| Ceridian HCM Holding, Inc. | 2,677 | (252,923) |
| Coupa Software, Inc. | 528 | (142,053) |
| Everbridge, Inc. | 583 | (77,370) |
| Guidewire Software, Inc. | 1,385 | (146,131) |
| NortonLifeLock, Inc. | 6,699 | (144,765) |
| Ping Identity Holding Corp. | 3,095 | (75,147) |
| PROS Holdings, Inc. | 7,396 | (317,880) |
| Q2 Holdings, Inc. | 525 | (54,611) |
| Rapid7, Inc. | 2,073 | (168,431) |
| RingCentral, Inc., Class A | 403 | (128,537) |
| StoneCo Ltd., Class A | 431 | (27,860) |
| Twilio, Inc., Class A | 188 | (69,146) |
| Yext, Inc. | 3,816 | (53,233) |
| | | (1,923,247) |
| |
| Technology Hardware & Equipment (2.8%) |
| Cognex Corp. | 5,302 | (456,608) |
| IPG Photonics Corp. | 917 | (199,090) |
| Littelfuse, Inc. | 716 | (189,912) |
| Novanta, Inc. | 3,529 | (464,805) |
| Xerox Holdings Corp. | 21,450 | (517,803) |
| | | (1,828,218) |
| |
| Transportation (0.5%) |
| JetBlue Airways Corp. | 4,802 | (97,769) |
| United Airlines Holdings, Inc. | 3,908 | (212,595) |
| | | (310,364) |
| |
| Utilities (0.1%) |
| Ormat Technologies, Inc. | 941 | (68,128) |
| Total Short Sales |
| (Proceeds $21,084,030) | | (25,280,600) |
| * | Non-income producing security. |
| (a) | All or a portion of this security is held as collateral for short sales. |
| | |
| 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, 2021 (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 | $65,342,418 | $ — | $ — | $65,342,418 | |
| Liabilities | | | | | |
| Short Sales1 | (25,280,600) | — | — | (25,280,600) | |
| Total | $40,061,818 | $— | $— | $40,061,818 | |
| 1 | As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $45,103,265) | | $65,342,418 |
| Deposit with broker for short sales | | 25,419,876 |
| Receivables: | | |
| Investments sold | | 1,290,092 |
| Fund shares sold | | 426,143 |
| Dividends | | 47,618 |
| Foreign tax reclaims | | 10,903 |
| Prepaid expenses | + | 8,276 |
| Total assets | | 92,545,326 |
| Liabilities |
| Securities sold short, at value (proceeds $21,084,030) | | 25,280,600 |
| Payables: | | |
| Investments bought | | 941,487 |
| Investment adviser and administrator fees | | 56,809 |
| Shareholder service fees | | 11,902 |
| Independent trustees’ fees | | 244 |
| Due to custodian | | 327,338 |
| Fund shares redeemed | | 15,434 |
| Dividends on short sales | | 4,936 |
| Accrued expenses | + | 99,867 |
| Total liabilities | | 26,738,617 |
| Net Assets |
| Total assets | | 92,545,326 |
| Total liabilities | – | 26,738,617 |
| Net assets | | $65,806,709 |
| Net Assets by Source | | |
| Capital received from investors | | 65,226,857 |
| Total distributable earnings | | 579,852 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $65,806,709 | | 4,022,314 | | $16.36 |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
Schwab Hedged Equity Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $7,253) | | $471,708 |
| Securities on loan, net | + | 124 |
| Total investment income | | 471,832 |
| Expenses |
| Investment adviser and administrator fees | | 348,869 |
| Shareholder service fees | | 72,895 |
| Dividends on short sales | | 115,881 |
| Stock loan fees on short sales | | 38,071 |
| Professional fees | | 19,211 |
| Registration fees | | 10,767 |
| Portfolio accounting fees | | 8,930 |
| Independent trustees’ fees | | 3,574 |
| Shareholder reports | | 2,526 |
| Transfer agent fees | | 1,148 |
| Custodian fees | | 865 |
| Other expenses | + | 2,037 |
| Total expenses | | 624,774 |
| Expense reduction by CSIM and its affiliates | – | 28,373 |
| Net expenses | – | 596,401 |
| Net investment loss | | (124,569) |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 5,770,613 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 9,698,372 |
| Net change in unrealized appreciation (depreciation) on short sales | + | (4,764,322) |
| Net change in unrealized appreciation (depreciation) | + | 4,934,050 |
| Net realized and unrealized gains | | 10,704,663 |
| Increase in net assets resulting from operations | | $10,580,094 |
Schwab Active Equity Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment loss | | ($124,569) | ($42,449) |
| Net realized gains (losses) | | 5,770,613 | (4,826,680) |
| Net change in unrealized appreciation (depreciation) | + | 4,934,050 | (6,039,850) |
| Increase (decrease) in net assets from operations | | 10,580,094 | (10,908,979) |
| Distributions to Shareholders | |
| Total distributions | | ($38,225) | ($1,081,623) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 124,089 | $1,923,044 | 805,921 | $12,059,020 |
| Shares reinvested | | 2,018 | 29,768 | 39,687 | 632,208 |
| Shares redeemed | + | (921,020) | (13,953,209) | (7,802,666) | (115,824,167) |
| Net transactions in fund shares | | (794,913) | ($12,000,397) | (6,957,058) | ($103,132,939) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 4,817,227 | $67,265,237 | 11,774,285 | $182,388,778 |
| Total decrease | + | (794,913) | (1,458,528) | (6,957,058) | (115,123,541) |
| End of period | | 4,022,314 | $65,806,709 | 4,817,227 | $67,265,237 |
Schwab Active Equity Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $26.27 | $25.08 | $25.85 | $25.44 | $21.56 | $26.68 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.12 | 0.26 | 0.26 | 0.23 | 0.21 | 0.19 |
| Net realized and unrealized gains (losses) | 4.24 | 2.11 | 1.27 | 1.96 | 4.24 | (1.52) |
| Total from investment operations | 4.36 | 2.37 | 1.53 | 2.19 | 4.45 | (1.33) |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.23) | (0.29) | (0.24) | (0.24) | (0.20) | (0.16) |
| Distributions from net realized gains | (2.76) | (0.89) | (2.06) | (1.54) | (0.37) | (3.63) |
| Total distributions | (2.99) | (1.18) | (2.30) | (1.78) | (0.57) | (3.79) |
| Net asset value at end of period | $27.64 | $26.27 | $25.08 | $25.85 | $25.44 | $21.56 |
| Total return | 17.52% 2 | 9.57% | 6.51% | 9.13% | 21.10% | (5.78%) |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 0.79% 3 | 0.80% | 0.80% | 0.80% | 0.81% | 0.80% |
| Gross operating expenses | 0.79% 3 | 0.80% | 0.80% | 0.80% | 0.81% | 0.80% |
| Net investment income (loss) | 0.90% 3 | 1.01% | 1.05% | 0.91% | 0.89% | 0.82% |
| Portfolio turnover rate | 34% 2 | 73% | 45% | 45% | 42% | 54% |
| Net assets, end of period (x 1,000,000) | $823 | $746 | $779 | $826 | $853 | $853 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.2% of net assets |
| |
| Australia 1.2% |
| Ansell Ltd. | 253,626 | 8,250,527 |
| Pro Medicus Ltd. | 39,639 | 1,439,918 |
| | | 9,690,445 |
| |
| China 0.5% |
| Wuxi Biologics Cayman, Inc. * | 293,500 | 4,120,092 |
| |
| Denmark 1.8% |
| Genmab A/S * | 10,948 | 4,017,500 |
| GN Store Nord A/S | 67,535 | 6,090,792 |
| Novo Nordisk A/S, Class B | 68,586 | 5,059,414 |
| | | 15,167,706 |
| |
| France 1.0% |
| Ipsen S.A. | 26,521 | 2,563,918 |
| Sanofi | 45,036 | 4,721,677 |
| Sartorius Stedim Biotech | 1,791 | 822,581 |
| | | 8,108,176 |
| |
| Germany 1.0% |
| Fresenius Medical Care AG & Co. KGaA | 32,236 | 2,566,832 |
| Fresenius SE & Co. KGaA | 62,261 | 3,060,084 |
| Merck KGaA | 12,878 | 2,262,463 |
| | | 7,889,379 |
| |
| Hong Kong 0.3% |
| Alibaba Health Information Technology Ltd. * | 468,000 | 1,424,497 |
| CSPC Pharmaceutical Group Ltd. | 928,000 | 1,145,466 |
| | | 2,569,963 |
| |
| Ireland 4.2% |
| Horizon Therapeutics plc * | 52,936 | 5,008,805 |
| Medtronic plc | 162,373 | 21,257,873 |
| STERIS plc | 37,713 | 7,958,197 |
| | | 34,224,875 |
| |
| Japan 3.6% |
| Eiken Chemical Co., Ltd. | 141,291 | 2,816,494 |
| H.U. Group Holdings, Inc. | 93,000 | 3,042,291 |
| Hoya Corp. | 65,200 | 7,410,976 |
| M3, Inc. | 54,100 | 3,737,220 |
| Olympus Corp. | 40,000 | 823,261 |
| Ono Pharmaceutical Co., Ltd. | 211,500 | 5,327,443 |
| Takeda Pharmaceutical Co., Ltd. | 200,000 | 6,680,098 |
| | | 29,837,783 |
| |
| Security | Number
of Shares | Value ($) |
| Netherlands 0.2% |
| Koninklijke Philips N.V. * | 33,919 | 1,917,886 |
| |
| New Zealand 0.4% |
| Fisher & Paykel Healthcare Corp., Ltd. | 131,378 | 3,385,991 |
| |
| Republic of Korea 1.1% |
| Celltrion, Inc. * | 2,967 | 706,273 |
| Hugel, Inc. * | 41,000 | 6,790,294 |
| Samsung Biologics Co., Ltd. * | 1,870 | 1,343,988 |
| | | 8,840,555 |
| |
| Spain 0.2% |
| Pharma Mar S.A. | 10,948 | 1,250,808 |
| |
| Sweden 1.4% |
| Arjo AB, B Shares | 452,869 | 4,465,329 |
| Getinge AB, B Shares | 215,147 | 7,276,490 |
| | | 11,741,819 |
| |
| Switzerland 4.1% |
| Novartis AG | 115,552 | 9,860,785 |
| Roche Holding AG | 61,173 | 19,951,916 |
| Sonova Holding AG * | 3,348 | 991,343 |
| Tecan Group AG | 6,077 | 2,961,234 |
| | | 33,765,278 |
| |
| Taiwan 0.3% |
| Pegavision Corp. | 168,000 | 2,730,909 |
| |
| United Kingdom 0.6% |
| Genus plc | 11,273 | 791,723 |
| GlaxoSmithKline plc | 246,208 | 4,549,860 |
| | | 5,341,583 |
| |
| United States 77.3% |
| Abbott Laboratories | 343,939 | 41,300,195 |
| AbbVie, Inc. | 355,401 | 39,627,211 |
| Agilent Technologies, Inc. | 79,038 | 10,562,638 |
| Amedisys, Inc. * | 25,108 | 6,775,394 |
| Amgen, Inc. | 95,602 | 22,910,063 |
| Anthem, Inc. | 30,490 | 11,567,601 |
| Avantor, Inc. * | 198,886 | 6,372,307 |
| Becton, Dickinson & Co. | 23,475 | 5,840,815 |
| Bio-Techne Corp. | 9,152 | 3,912,388 |
| Biogen, Inc. * | 17,741 | 4,742,702 |
| Bristol-Myers Squibb Co. | 357,104 | 22,290,432 |
| Cerner Corp. | 28,038 | 2,104,252 |
| Chemed Corp. | 8,098 | 3,859,588 |
| Cigna Corp. | 45,292 | 11,278,161 |
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| CONMED Corp. | 12,541 | 1,767,654 |
| CVS Health Corp. | 128,342 | 9,805,329 |
| Danaher Corp. | 87,349 | 22,181,405 |
| DaVita, Inc. * | 87,908 | 10,243,919 |
| DENTSPLY SIRONA, Inc. | 43,400 | 2,929,934 |
| Eli Lilly & Co. | 126,026 | 23,033,772 |
| Gilead Sciences, Inc. | 184,752 | 11,726,209 |
| Halozyme Therapeutics, Inc. * | 133,568 | 6,671,722 |
| HCA Healthcare, Inc. | 46,493 | 9,347,883 |
| Hologic, Inc. * | 97,487 | 6,390,273 |
| Humana, Inc. | 27,095 | 12,063,778 |
| IDEXX Laboratories, Inc. * | 20,847 | 11,444,794 |
| Intuitive Surgical, Inc. * | 5,687 | 4,919,255 |
| Johnson & Johnson | 299,122 | 48,676,123 |
| McKesson Corp. | 19,121 | 3,586,335 |
| Medpace Holdings, Inc. * | 15,118 | 2,565,222 |
| Merck & Co., Inc. | 375,183 | 27,951,133 |
| Meridian Bioscience, Inc. * | 136,280 | 2,668,362 |
| Mettler-Toledo International, Inc. * | 6,820 | 8,956,842 |
| Moderna, Inc. * | 33,421 | 5,976,343 |
| Molina Healthcare, Inc. * | 25,467 | 6,496,632 |
| Novavax, Inc. * | 3,914 | 927,344 |
| PerkinElmer, Inc. | 30,139 | 3,906,919 |
| Pfizer, Inc. | 812,484 | 31,402,507 |
| Regeneron Pharmaceuticals, Inc. * | 13,343 | 6,421,986 |
| ResMed, Inc. | 46,497 | 8,740,041 |
| Stryker Corp. | 21,523 | 5,652,585 |
| Syneos Health, Inc. * | 26,554 | 2,253,107 |
| Tenet Healthcare Corp. * | 59,895 | 3,549,378 |
| Thermo Fisher Scientific, Inc. | 74,738 | 35,144,050 |
| Travere Therapeutics, Inc. * | 79,572 | 1,967,020 |
| United Therapeutics Corp. * | 15,855 | 3,195,734 |
| UnitedHealth Group, Inc. | 141,433 | 56,403,480 |
| Universal Health Services, Inc., Class B | 21,294 | 3,160,243 |
| Vericel Corp. * | 30,511 | 1,904,497 |
| Security | Number
of Shares | Value ($) |
| Vertex Pharmaceuticals, Inc. * | 27,807 | 6,067,487 |
| Waters Corp. * | 14,726 | 4,415,886 |
| West Pharmaceutical Services, Inc. | 16,198 | 5,321,367 |
| Zimmer Biomet Holdings, Inc. | 33,496 | 5,934,151 |
| Zoetis, Inc. | 98,588 | 17,058,682 |
| | | 635,973,130 |
| Total Common Stock |
| (Cost $519,050,107) | | 816,556,378 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Short-Term Investments 0.6% of net assets |
| |
| Time Deposits 0.6% |
| Brown Brothers Harriman & Co. |
| Euro | | |
| (0.78%), 05/03/21 (a)(b) | 9,593 | 11,533 |
| New Zeland Dollar | | |
| 0.10%, 05/03/21 (a) | 6 | 4 |
| Skandinaviska Enskilda Banken AB |
| Swedish Krona | | |
| (0.30%), 05/03/21 (a)(b) | 548,625 | 64,807 |
| Sumitomo Mitsui Banking Corp. |
| U.S. Dollar | | |
| 0.01%, 05/03/21 (a) | 4,334,987 | 4,334,987 |
| Total Short-Term Investments |
| (Cost $4,411,331) | | 4,411,331 |
| * | Non-income producing security. |
| (a) | The rate shown is the current daily overnight rate. |
| (b) | Rate is negative due to the current daily overnight rate at the central bank of the denominated currency and therefore is non-income producing. |
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $670,198,005 | $— | $— | $670,198,005 | |
| Australia | — | 9,690,445 | — | 9,690,445 | |
| China | — | 4,120,092 | — | 4,120,092 | |
| Denmark | — | 15,167,706 | — | 15,167,706 | |
| France | — | 8,108,176 | — | 8,108,176 | |
| Germany | — | 7,889,379 | — | 7,889,379 | |
| Hong Kong | — | 2,569,963 | — | 2,569,963 | |
| Japan | — | 29,837,783 | — | 29,837,783 | |
| Netherlands | — | 1,917,886 | — | 1,917,886 | |
| New Zealand | — | 3,385,991 | — | 3,385,991 | |
| Republic of Korea | — | 8,840,555 | — | 8,840,555 | |
| Spain | — | 1,250,808 | — | 1,250,808 | |
| Sweden | — | 11,741,819 | — | 11,741,819 | |
| Switzerland | — | 33,765,278 | — | 33,765,278 | |
| Taiwan | — | 2,730,909 | — | 2,730,909 | |
| United Kingdom | — | 5,341,583 | — | 5,341,583 | |
| Short-Term Investments1 | — | 4,411,331 | — | 4,411,331 | |
| Total | $670,198,005 | $150,769,704 | $— | $820,967,709 | |
| 1 | As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $523,461,438) | | $820,967,709 |
| Receivables: | | |
| Investments sold | | 4,886,327 |
| Foreign tax reclaims | | 1,336,127 |
| Dividends | | 1,200,688 |
| Fund shares sold | | 216,294 |
| Prepaid expenses | + | 25,972 |
| Total assets | | 828,633,117 |
| Liabilities |
| Payables: | | |
| Investments bought | | 4,724,063 |
| Investment adviser and administrator fees | | 379,211 |
| Shareholder service fees | | 150,479 |
| Independent trustees’ fees | | 362 |
| Fund shares redeemed | | 340,472 |
| Due to custodian | | 18 |
| Accrued expenses | + | 101,608 |
| Total liabilities | | 5,696,213 |
| Net Assets |
| Total assets | | 828,633,117 |
| Total liabilities | – | 5,696,213 |
| Net assets | | $822,936,904 |
| Net Assets by Source | | |
| Capital received from investors | | 472,182,236 |
| Total distributable earnings | | 350,754,668 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $822,936,904 | | 29,778,472 | | $27.64 |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $223,052) | | $6,775,131 |
| Interest received from securities - unaffiliated | + | 163 |
| Total investment income | | 6,775,294 |
| Expenses |
| Investment adviser and administrator fees | | 2,121,187 |
| Shareholder service fees | | 925,288 |
| Portfolio accounting fees | | 41,947 |
| Custodian fees | | 20,485 |
| Shareholder reports | | 19,720 |
| Registration fees | | 18,427 |
| Professional fees | | 16,491 |
| Transfer agent fees | | 7,318 |
| Independent trustees’ fees | | 4,855 |
| Other expenses | + | 8,090 |
| Total expenses | | 3,183,808 |
| Expense reduction by CSIM and its affiliates | – | 7,318 |
| Net expenses | – | 3,176,490 |
| Net investment income | | 3,598,804 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 50,830,664 |
| Net realized gains on futures contracts | | 374,609 |
| Net realized losses on foreign currency transactions | + | (13,962) |
| Net realized gains | | 51,191,311 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 72,807,147 |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 2,488 |
| Net change in unrealized appreciation (depreciation) | + | 72,809,635 |
| Net realized and unrealized gains | | 124,000,946 |
| Increase in net assets resulting from operations | | $127,599,750 |
Schwab Active Equity Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $3,598,804 | $7,768,310 |
| Net realized gains | | 51,191,311 | 77,524,618 |
| Net change in unrealized appreciation (depreciation) | + | 72,809,635 | (16,756,841) |
| Increase in net assets from operations | | 127,599,750 | 68,536,087 |
| Distributions to Shareholders | |
| Total distributions | | ($84,424,068) | ($35,647,551) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,481,401 | $39,900,851 | 2,950,067 | $75,727,246 |
| Shares reinvested | | 2,869,075 | 73,390,942 | 1,220,267 | 31,165,636 |
| Shares redeemed | + | (2,957,546) | (79,235,864) | (6,832,001) | (172,829,403) |
| Net transactions in fund shares | | 1,392,930 | $34,055,929 | (2,661,667) | ($65,936,521) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 28,385,542 | $745,705,293 | 31,047,209 | $778,753,278 |
| Total increase (decrease) | + | 1,392,930 | 77,231,611 | (2,661,667) | (33,047,985) |
| End of period | | 29,778,472 | $822,936,904 | 28,385,542 | $745,705,293 |
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $9.11 | $10.04 | $9.64 | $11.27 | $9.20 | $9.62 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.09 | 0.14 | 0.24 | 0.24 | 0.22 | 0.22 |
| Net realized and unrealized gains (losses) | 1.98 | (0.71) | 0.41 | (1.58) | 2.08 | (0.45) |
| Total from investment operations | 2.07 | (0.57) | 0.65 | (1.34) | 2.30 | (0.23) |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.11) | (0.36) | (0.25) | (0.26) | (0.23) | (0.19) |
| Distributions from net realized gains | — | — | — | (0.03) | — | — |
| Total distributions | (0.11) | (0.36) | (0.25) | (0.29) | (0.23) | (0.19) |
| Net asset value at end of period | $11.07 | $9.11 | $10.04 | $9.64 | $11.27 | $9.20 |
| Total return | 22.79% 2 | (6.01%) | 7.08% | (12.18%) | 25.58% | (2.41%) |
| 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 | 0.86% 3 | 0.88% | 0.87% | 0.89% | 0.90% | 0.91% |
| Net investment income (loss) | 1.69% 3 | 1.51% | 2.44% | 2.22% | 2.15% | 2.40% |
| Portfolio turnover rate | 51% 2 | 97% | 91% | 98% | 85% | 90% |
| Net assets, end of period (x 1,000,000) | $705 | $664 | $976 | $1,166 | $1,227 | $772 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.0% of net assets |
| |
| Australia 7.6% |
| Australia & New Zealand Banking Group Ltd. | 541,013 | 11,937,061 |
| BHP Group Ltd. | 108,318 | 3,942,329 |
| Breville Group Ltd. | 229,345 | 4,592,986 |
| Codan Ltd. | 148,716 | 2,036,530 |
| Coles Group Ltd. | 213,546 | 2,681,640 |
| Fortescue Metals Group Ltd. | 109,854 | 1,900,618 |
| James Hardie Industries plc | 150,505 | 4,959,796 |
| JB Hi-Fi Ltd. | 51,120 | 1,818,593 |
| Rio Tinto Ltd. | 101,148 | 9,401,191 |
| Santos Ltd. | 730,102 | 3,875,682 |
| Sonic Healthcare Ltd. | 174,272 | 4,816,868 |
| Suncorp Group Ltd. | 220,697 | 1,784,899 |
| | | 53,748,193 |
| |
| Austria 1.1% |
| Raiffeisen Bank International AG | 121,380 | 2,651,864 |
| Wienerberger AG | 132,505 | 5,194,748 |
| | | 7,846,612 |
| |
| Belgium 0.9% |
| bpost S.A. * | 221,636 | 2,355,485 |
| Euronav N.V. | 468,252 | 4,036,016 |
| | | 6,391,501 |
| |
| Canada 0.8% |
| Centerra Gold, Inc. | 179,000 | 1,651,434 |
| Constellation Software, Inc. | 2,700 | 3,962,585 |
| | | 5,614,019 |
| |
| Denmark 3.4% |
| AP Moller - Maersk A/S, Series B | 912 | 2,268,716 |
| Genmab A/S * | 16,077 | 5,899,649 |
| Novo Nordisk A/S, Class B | 211,169 | 15,577,397 |
| | | 23,745,762 |
| |
| Finland 0.5% |
| Nordea Bank Abp | 347,271 | 3,599,318 |
| |
| France 12.2% |
| Air Liquide S.A. | 65,092 | 10,961,641 |
| Carrefour S.A. | 165,031 | 3,196,154 |
| Cie de Saint-Gobain * | 242,555 | 15,304,039 |
| CNP Assurances (a) | 302,333 | 5,288,026 |
| Credit Agricole S.A. * | 535,247 | 8,279,312 |
| L'Oreal S.A. | 46,489 | 19,035,848 |
| Security | Number
of Shares | Value ($) |
| LVMH Moet Hennessy Louis Vuitton SE | 19,196 | 14,461,309 |
| Schneider Electric SE | 57,564 | 9,184,667 |
| | | 85,710,996 |
| |
| Germany 8.4% |
| Bayerische Motoren Werke AG | 73,357 | 7,351,117 |
| Brenntag SE | 75,648 | 6,791,274 |
| Continental AG | 8,668 | 1,171,388 |
| Daimler AG | 148,877 | 13,249,862 |
| Deutsche Post AG | 154,938 | 9,125,407 |
| GEA Group AG | 190,523 | 8,366,706 |
| HelloFresh SE * | 8,331 | 691,100 |
| Hornbach Holding AG & Co. KGaA | 48,617 | 4,542,443 |
| Merck KGaA | 25,742 | 4,522,467 |
| Wacker Chemie AG | 23,373 | 3,525,106 |
| | | 59,336,870 |
| |
| Hong Kong 2.3% |
| AIA Group Ltd. | 398,400 | 5,056,720 |
| China Feihe Ltd. | 500,000 | 1,420,702 |
| CK Asset Holdings Ltd. | 401,500 | 2,513,638 |
| Longfor Group Holdings Ltd. | 251,460 | 1,561,936 |
| Tencent Holdings Ltd. | 32,206 | 2,569,137 |
| Topsports International Holdings Ltd. | 2,076,000 | 2,794,460 |
| Xinyi Glass Holdings Ltd. | 100,000 | 354,300 |
| | | 16,270,893 |
| |
| Ireland 0.3% |
| Smurfit Kappa Group plc | 47,062 | 2,405,822 |
| |
| Italy 1.5% |
| Banca IFIS S.p.A. * | 163,268 | 2,231,365 |
| Enel S.p.A. | 289,093 | 2,870,499 |
| Eni S.p.A. | 315,516 | 3,758,077 |
| Tenaris S.A. | 171,436 | 1,838,303 |
| | | 10,698,244 |
| |
| Japan 23.3% |
| Bridgestone Corp. | 71,600 | 2,869,594 |
| Fuji Corp. | 162,600 | 4,328,200 |
| Fujitsu Ltd. | 34,000 | 5,401,172 |
| H.U. Group Holdings, Inc. | 90,000 | 2,944,152 |
| Hitachi Transport System Ltd. | 63,900 | 1,985,239 |
| Honda Motor Co., Ltd. | 280,400 | 8,361,474 |
| Hoya Corp. | 77,503 | 8,809,400 |
| Iida Group Holdings Co., Ltd. | 72,700 | 1,770,561 |
| Japan Excellent, Inc. | 582 | 813,833 |
| Japan Logistics Fund, Inc. | 1,550 | 4,432,550 |
| Japan Tobacco, Inc. | 325,982 | 6,114,986 |
| KDDI Corp. | 114,000 | 3,446,156 |
| Kintetsu World Express, Inc. | 152,300 | 3,674,615 |
| Life Corp. | 65,900 | 2,150,240 |
| M3, Inc. | 64,600 | 4,462,559 |
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Macnica Fuji Electronics Holdings, Inc. | 73,800 | 1,486,969 |
| Megachips Corp. | 38,000 | 1,299,405 |
| Mitsubishi Electric Corp. | 292,000 | 4,499,237 |
| Nabtesco Corp. | 65,300 | 2,938,469 |
| Nintendo Co., Ltd. | 25,200 | 14,456,050 |
| Nippon Express Co., Ltd. | 71,000 | 5,433,900 |
| Nippon Gas Co., Ltd. | 159,300 | 2,802,793 |
| Nippon Yusen K.K. | 59,000 | 2,318,899 |
| Nomura Holdings, Inc. | 1,524,800 | 8,196,034 |
| Omron Corp. | 52,000 | 3,937,750 |
| Ono Pharmaceutical Co., Ltd. | 108,800 | 2,740,547 |
| Panasonic Corp. | 216,000 | 2,536,272 |
| Seino Holdings Co., Ltd. | 108,000 | 1,485,046 |
| Senko Group Holdings Co., Ltd. (a) | 255,000 | 2,347,921 |
| SMC Corp. | 7,100 | 4,125,646 |
| SoftBank Group Corp. | 28,400 | 2,559,141 |
| Sony Group Corp. | 113,768 | 11,374,400 |
| Sumitomo Realty & Development Co., Ltd. | 40,000 | 1,335,236 |
| T&D Holdings, Inc. | 632,000 | 7,756,065 |
| The Shizuoka Bank Ltd. | 180,000 | 1,381,227 |
| Tokyo Electron Ltd. | 23,200 | 10,537,154 |
| ZOZO, Inc. | 215,900 | 7,261,581 |
| | | 164,374,473 |
| |
| Netherlands 4.0% |
| ASML Holding N.V. | 9,539 | 6,192,161 |
| Koninklijke Ahold Delhaize N.V. | 517,390 | 13,923,952 |
| NN Group N.V. | 81,018 | 4,041,053 |
| Signify N.V. * | 73,892 | 4,196,258 |
| | | 28,353,424 |
| |
| Norway 0.3% |
| BW LPG Ltd. | 189,250 | 1,400,094 |
| Gjensidige Forsikring A.S.A. | 31,557 | 716,632 |
| | | 2,116,726 |
| |
| Republic of Korea 2.9% |
| Hugel, Inc. * | 11,300 | 1,871,471 |
| NCSoft Corp. | 2,500 | 1,859,693 |
| Samsung Electronics Co., Ltd. | 177,081 | 12,906,634 |
| Samsung SDI Co., Ltd. | 1,700 | 992,256 |
| SK Hynix, Inc. | 22,000 | 2,509,788 |
| | | 20,139,842 |
| |
| Spain 3.9% |
| Banco Santander S.A. * | 1,327,633 | 5,121,412 |
| CaixaBank S.A. * | 1,765,212 | 5,646,849 |
| Endesa S.A. | 101,344 | 2,665,520 |
| Iberdrola S.A. | 681,159 | 9,205,147 |
| Industria de Diseno Textil S.A. | 3,320 | 118,128 |
| Pharma Mar S.A. | 17,644 | 2,015,826 |
| Telefonica S.A. | 598,122 | 2,771,888 |
| | | 27,544,770 |
| |
| Sweden 2.5% |
| Boliden AB (a) | 52,024 | 2,023,604 |
| Castellum AB | 58,900 | 1,434,338 |
| Lundin Energy AB | 139,411 | 4,446,923 |
| Sandvik AB | 152,704 | 3,776,285 |
| Telefonaktiebolaget LM Ericsson, B Shares | 427,527 | 5,871,711 |
| | | 17,552,861 |
| |
| Security | Number
of Shares | Value ($) |
| Switzerland 8.8% |
| ALSO Holding AG * | 9,298 | 2,812,093 |
| Credit Suisse Group AG | 344,873 | 3,614,261 |
| Geberit AG | 8,281 | 5,448,965 |
| Nestle S.A. | 90,847 | 10,840,835 |
| Novartis AG | 183,089 | 15,624,146 |
| Partners Group Holding AG | 2,381 | 3,391,656 |
| Roche Holding AG | 47,885 | 15,617,960 |
| UBS Group AG | 283,684 | 4,332,024 |
| | | 61,681,940 |
| |
| Taiwan 1.3% |
| MediaTek, Inc. | 122,000 | 5,114,552 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 193,148 | 4,067,621 |
| | | 9,182,173 |
| |
| United Kingdom 13.0% |
| 3i Group plc | 299,263 | 5,300,481 |
| Ashtead Group plc | 22,030 | 1,415,448 |
| Barclays plc | 3,249,485 | 7,866,902 |
| BHP Group plc | 423,784 | 12,762,163 |
| Diageo plc | 57,230 | 2,569,133 |
| Entain plc * | 202,504 | 4,733,859 |
| Ferguson plc | 29,122 | 3,673,042 |
| Games Workshop Group plc | 44,970 | 6,738,223 |
| GlaxoSmithKline plc | 367,584 | 6,792,858 |
| IG Group Holdings plc | 402,271 | 5,089,108 |
| Imperial Brands plc | 82,432 | 1,718,172 |
| JD Sports Fashion plc * | 229,457 | 2,910,546 |
| Kainos Group plc | 92,726 | 1,956,744 |
| LondonMetric Property plc | 556,288 | 1,733,309 |
| Rio Tinto plc | 61,267 | 5,131,550 |
| Royal Dutch Shell plc, A Shares | 588,448 | 11,072,392 |
| Segro plc | 116,340 | 1,616,262 |
| Standard Chartered plc | 632,285 | 4,535,973 |
| Vodafone Group plc | 2,184,920 | 4,123,378 |
| | | 91,739,543 |
| Total Common Stock |
| (Cost $551,564,036) | | 698,053,982 |
|
| Rights 0.0% of net assets |
| |
| Switzerland 0.0% |
Credit Suisse Group AG
expires 05/06/21 *(b) | 512,995 | 21,470 |
| Total Rights |
| (Cost $—) | | 21,470 |
|
| Investment Companies 1.4% of net assets |
| |
| Money Market Fund 0.1% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (c) | 936,777 | 936,777 |
| |
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Securities Lending Collateral 1.3% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 8,771,648 | 8,771,648 |
| Total Investment Companies |
| (Cost $9,708,425) | | 9,708,425 |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $8,231,635. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (c) | The rate shown is the 7-day yield. |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $— | $541,363,550 | $— | $541,363,550 | |
| Canada | 5,614,019 | — | — | 5,614,019 | |
| Germany | 691,100 | 58,645,770 | — | 59,336,870 | |
| United Kingdom | 1,956,744 | 89,782,799 | — | 91,739,543 | |
| Investment Companies1 | 9,708,425 | — | — | 9,708,425 | |
| Rights 1 | | | | | |
| Switzerland | — | — | 21,470 | 21,470 | |
| Total | $17,970,288 | $689,792,119 | $21,470 | $707,783,877 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $552,500,813) including securities on loan of $8,231,635 | | $699,012,229 |
| Collateral invested for securities on loan, at value (cost $8,771,648) | | 8,771,648 |
| Foreign currency, at value (cost $4,357,032) | | 4,338,762 |
| Receivables: | | |
| Investments sold | | 3,748,445 |
| Foreign tax reclaims | | 1,939,949 |
| Dividends | | 1,736,422 |
| Fund shares sold | | 41,799 |
| Income from securities on loan | | 7,978 |
| Prepaid expenses | + | 21,755 |
| Total assets | | 719,618,987 |
| Liabilities |
| Collateral held for securities on loan | | 8,771,648 |
| Payables: | | |
| Investments bought | | 5,224,180 |
| Investment adviser and administrator fees | | 359,862 |
| Shareholder service fees | | 146,598 |
| Independent trustees’ fees | | 421 |
| Fund shares redeemed | | 242,766 |
| Accrued expenses | + | 227,281 |
| Total liabilities | | 14,972,756 |
| Net Assets |
| Total assets | | 719,618,987 |
| Total liabilities | – | 14,972,756 |
| Net assets | | $704,646,231 |
| Net Assets by Source | | |
| Capital received from investors | | 673,616,714 |
| Total distributable earnings | | 31,029,517 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $704,646,231 | | 63,629,201 | | $11.07 |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $1,108,916) | | $9,172,996 |
| Securities on loan, net | + | 12,736 |
| Total investment income | | 9,185,732 |
| Expenses |
| Investment adviser and administrator fees | | 2,090,234 |
| Shareholder service fees | | 879,889 |
| Portfolio accounting fees | | 42,189 |
| Professional fees | | 38,854* |
| Registration fees | | 16,190 |
| Shareholder reports | | 15,743 |
| Custodian fees | | 11,523 |
| Transfer agent fees | | 9,988 |
| Independent trustees’ fees | | 4,798 |
| Other expenses | + | 9,456 |
| Total expenses | | 3,118,864 |
| Expense reduction by CSIM and its affiliates | – | 28,397* |
| Net expenses | – | 3,090,467 |
| Net investment income | | 6,095,265 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 60,821,815 |
| Net realized losses on futures contracts | | (166,883) |
| Net realized gains on foreign currency transactions | + | 42,890 |
| Net realized gains | | 60,697,822 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 80,271,582 |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 22,435 |
| Net change in unrealized appreciation (depreciation) | + | 80,294,017 |
| Net realized and unrealized gains | | 140,991,839 |
| Increase in net assets resulting from operations | | $147,087,104 |
| * | Includes professional fees of $18,409 associated with the filing of tax claims in the European Union deemed to be non-routine expenses of the fund. See financial notes 2(d) and 4 for additional information. |
Schwab Active Equity Funds | Semiannual Report
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 | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $6,095,265 | $11,945,149 |
| Net realized gains (losses) | | 60,697,822 | (49,478,718) |
| Net change in unrealized appreciation (depreciation) | + | 80,294,017 | (22,678,303) |
| Increase (decrease) in net assets from operations | | 147,087,104 | (60,211,872) |
| Distributions to Shareholders | |
| Total distributions | | ($7,674,015) | ($34,016,026) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,484,511 | $26,421,138 | 10,774,447 | $93,817,527 |
| Shares reinvested | | 602,440 | 6,235,261 | 2,656,064 | 26,826,251 |
| Shares redeemed | + | (12,429,469) | (131,909,817) | (37,617,681) | (337,440,372) |
| Net transactions in fund shares | | (9,342,518) | ($99,253,418) | (24,187,170) | ($216,796,594) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 72,971,719 | $664,486,560 | 97,158,889 | $975,511,052 |
| Total increase (decrease) | + | (9,342,518) | 40,159,671 | (24,187,170) | (311,024,492) |
| End of period | | 63,629,201 | $704,646,231 | 72,971,719 | $664,486,560 |
Schwab Active Equity Funds | Semiannual Report
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 2045 Fund |
| Schwab Dividend Equity Fund | Schwab Target 2050 Fund |
| Schwab Large-Cap Growth Fund | Schwab Target 2055 Fund |
| Schwab Small-Cap Equity Fund | Schwab Target 2060 Fund |
| Schwab Hedged Equity Fund | Schwab Target 2065 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 Target 2065 Index Fund |
| Schwab Target 2025 Fund | Schwab Monthly Income Fund - Moderate Payout |
| Schwab Target 2030 Fund | Schwab Monthly Income Fund - Enhanced Payout |
| Schwab Target 2035 Fund | Schwab Monthly Income Fund - Maximum Payout |
| Schwab Target 2040 Fund | |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in certain mutual funds and exchange-traded funds (ETFs) referred to as “underlying funds”. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
(a) Security Valuation:
Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at 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.
• 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.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Cash management sweep time deposits: Balances held in cash management sweep time deposits are accounted for on a cost basis, which approximates fair value.
• 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.
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 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.
• 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
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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, 2021 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked to-market gains (as well as any gains realized on sale).
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 10% of gross lending revenue, with subsequent breakpoints to a low of 7.5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by Charles Schwab Investment Management, Inc. (CSIM or the investment adviser) or any affiliate of CSIM.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
As of April 30, 2021, Schwab Dividend Equity Fund, Schwab Small-Cap Equity Fund and Schwab International Core Equity Fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2021 are disclosed in each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Cash Management Transactions: The funds 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 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.
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.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange 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.
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.
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 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.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(d) Investment Income:
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab International Core Equity 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:
Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.
(f) Distributions to Shareholders:
The funds make distributions from net investment income, if any, once a year, with the exception of Schwab Dividend Equity Fund which typically pays quarterly distributions. The funds make distributions from net realized capital gains, if any, once a year.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their 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 accrued as of April 30, 2021, 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.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
3. Risk Factors:
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Management Risk. The funds’ investment adviser makes investment decisions for the funds using a strategy based largely on historical information. There is no guarantee that a strategy based on historical information will produce the desired results in the future. In addition, the portfolio optimization process used by each fund to assist in constructing the fund’s portfolio does not assure successful investment. Securities selected with the assistance of the process may be negatively impacted by factors or events not foreseen in developing the process. As a result, a fund may have a lower return than if it were managed using another process or strategy.
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.
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.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
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 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.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities may also include American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), which may be less liquid than the underlying shares in their primary trading market and GDRs, many of which are issued by companies in emerging markets, may be more volatile. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
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.
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.
Portfolio Turnover Risk. The funds buy and sell portfolio securities actively. This may cause a fund’s portfolio turnover rate and transaction costs to rise, which may lower a fund’s performance and may increase the likelihood of capital gains distributions.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions:
Investment Adviser
CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between CSIM and the trust.
For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
| % 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, 2021, 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
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, 2021, as applicable:
| | Underlying Funds | | | |
| | Schwab
Core
Equity Fund | Schwab
Dividend
Equity Fund | Schwab
Small-Cap
Equity Fund | Schwab
International Core
Equity Fund |
| Schwab Balanced Fund | 14.2% | —% | 11.7% | —% |
| Schwab Monthly Income Fund - Enhanced Payout | —% | 2.9% | —% | —% |
| Schwab Monthly Income Fund - Maximum Payout | —% | 1.9% | —% | —% |
| Schwab Monthly Income Fund - Moderate Payout | —% | 2.1% | —% | —% |
| Schwab Target 2010 Fund | 0.1% | —% | 0.1% | 0.2% |
| Schwab Target 2015 Fund | 0.2% | —% | 0.2% | 0.4% |
| Schwab Target 2020 Fund | 1.1% | —% | 1.3% | 2.7% |
| Schwab Target 2025 Fund | 2.0% | —% | 2.2% | 4.4% |
| Schwab Target 2030 Fund | 4.3% | —% | 5.3% | 9.9% |
| Schwab Target 2035 Fund | 2.5% | —% | 3.3% | 5.8% |
| Schwab Target 2040 Fund | 5.4% | —% | 7.9% | 13.0% |
| Schwab Target 2045 Fund | 1.1% | —% | 1.7% | 2.8% |
| Schwab Target 2050 Fund | 1.1% | —% | 1.8% | 2.8% |
| Schwab Target 2055 Fund | 0.7% | —% | 1.2% | 1.8% |
| Schwab Target 2060 Fund | 0.2% | —% | 0.3% | 0.4% |
| Schwab Target 2065 Fund | 0.0%* | —% | 0.0%* | 0.0%* |
Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2 were non-routine expenses. The investment adviser agreed to pay these professional fees on behalf of the Schwab International Core Equity Fund subject to reimbursement to the extent the fund is able to successfully recover taxes withheld in the future.
The professional fees incurred by the Schwab International Core Equity Fund were $18,409 and the fund made no reimbursement to the investment adviser during the period ended April 30, 2021.
As of April 30, 2021, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the fund to the investment adviser was $37,884 for the Schwab International Core Equity 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.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
5. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
6. Borrowing from Banks:
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by 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 funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. 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.
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, 2021, purchases and sales of securities (excluding short-term obligations) were as follows:
| | Purchases
of Securities | Sales
of Securities |
| Schwab Core Equity Fund | $931,519,112 | $1,540,244,717 |
| Schwab Dividend Equity Fund | 182,525,777 | 299,238,607 |
| Schwab Large-Cap Growth Fund | 46,470,051 | 49,798,548 |
| Schwab Small-Cap Equity Fund | 241,327,596 | 322,843,677 |
| Schwab Hedged Equity Fund* | 44,503,968 | 55,763,555 |
| Schwab Health Care Fund | 268,596,046 | 317,271,261 |
| Schwab International Core Equity Fund | 353,611,082 | 456,850,134 |
| * | Including securities sold short. |
8. Derivatives:
The funds, except Schwab Hedged Equity Fund, entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2021, if any, are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized gains (losses) and net change in unrealized appreciation (depreciation) on futures contracts are presented on the Statement of Operations, if any.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
8. Derivatives (continued):
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, 2021, 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 | $75,721,078* | 393* |
| Schwab Dividend Equity Fund | 7,547,964* | 39* |
| Schwab Large-Cap Growth Fund | 1,152,880 | 6 |
| Schwab Small-Cap Equity Fund | 1,665,521 | 16 |
| Schwab Health Care Fund | 1,071,086 | 6 |
| Schwab International Core Equity Fund | 628,000* | 6* |
| * | During the period, the fund did not hold futures contracts at any month-end. The average value and number of contracts were calculated by aggregating the highest daily values held each month during the period. |
9. Federal Income Taxes:
As of April 30, 2021, 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 | $1,197,039,887 | | $483,758,606 | | $123,720,258 | | $476,209,060 | | $24,112,555 | | $523,962,268 | | $562,474,951 |
| Gross unrealized appreciation | $611,331,656 | | $160,594,878 | | $130,489,785 | | $186,641,871 | | $21,229,004 | | $299,942,740 | | $149,779,440 |
| Gross unrealized depreciation | (8,117,849) | | (5,172,480) | | (599,620) | | (12,082,320) | | (5,279,741) | | (2,937,299) | | (4,470,514) |
| Net unrealized appreciation (depreciation) | $603,213,807 | | $155,422,398 | | $129,890,165 | | $174,559,551 | | $15,949,263 | | $297,005,441 | | $145,308,926 |
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2020, the funds had capital loss carryforwards available to offset future net capital gains as follows:
| 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 | $— | | $28,724,068 | | $— | | $90,389,520 | | $20,528,902 |
| Total | $— | | $28,724,068 | | $— | | $90,389,520 | | $20,528,902 |
| Expiration Date | Schwab
Health Care
Fund | | Schwab
International
Core
Equity Fund |
| No expiration | $— | | $179,411,202 |
| Total | $— | | $179,411,202 |
For tax purposes, late-year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended October 31, 2020, the funds had ordinary losses deferred as follows:
| | Schwab
Core
Equity Fund | Schwab
Dividend
Equity Fund | Schwab
Large-Cap
Growth Fund | Schwab
Small-Cap
Equity Fund | Schwab
Hedged
Equity Fund |
| Ordinary losses deferred | $— | $— | $106,728 | $— | $280,648 |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
| | Schwab
Health Care
Fund | Schwab
International
Core
Equity Fund |
| Ordinary losses deferred | $— | $— |
For the fiscal year ended October 31, 2020, the Schwab Hedged Equity Fund had other accumulated losses of $6,827.
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, 2021. The tax-basis components of distributions paid during the fiscal year ended October 31, 2020, 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 |
| Ordinary income | $19,826,971 | $13,605,187 | $244,834 | $635,564 | $1,081,623 |
| Long-term capital gains | 44,092,670 | 44,139,966 | 9,460,933 | — | — |
| | Schwab
Health Care
Fund | Schwab
International
Core
Equity Fund |
| Ordinary income | $8,653,407 | $34,016,026 |
| Long-term capital gains | 26,994,144 | — |
As of October 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended October 31, 2020, the funds did not incur any interest or penalties.
10. Subsequent Events:
Following the reporting period, effective on or about August 10, 2021, Schwab Large-Cap Growth Fund, Schwab Core Equity Fund and Schwab Dividend Equity Fund will undergo changes to their respective portfolio management teams and modify their respective investment strategies to support incorporating a greater degree of fundamental research into each fund’s investment process. For more information please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Other than the planned changes for the Schwab Large-Cap Growth Fund, Schwab Core Equity Fund and Schwab Dividend Equity Fund as discussed above, management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
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 103 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. | 103 | 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. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
| 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 |
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). | 103 | 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). | 103 | None |
J. Derek Penn
1957
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
| Interested 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 |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer, Chief Financial Officer and Chief Operating 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) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (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
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr.
1972
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
| 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 |
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 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. 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. |
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
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 $300 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.
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.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE 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.
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 Index 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.
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.
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.
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.
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity 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 at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Hedged Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Asset Allocation Funds
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
Funds
Schwab Funds
1-877-824-5615
© 2021 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
| ¹ | State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation. |
| ² | You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
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Semiannual Report | April 30, 2021
Schwab Fundamental Index* Funds
Schwab Fundamental
US Large Company Index Fund
Schwab Fundamental
US Small Company Index Fund
Schwab Fundamental International
Large Company Index Fund
Schwab Fundamental International
Small Company Index Fund
Schwab Fundamental Emerging Markets
Large Company Index Fund
| * | SCHWAB is a registered trademark of Charles Schwab & Co., Inc.
FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC. |
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Schwab Fundamental Index Funds
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 Portfolio Holdings are sub-categories of Sector classifications.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Total Return for the 6 Months Ended April 30, 2021 |
Schwab Fundamental US Large Company Index Fund
(Ticker Symbol: SFLNX) | 41.74% |
| Russell RAFITM US Large Company Index | 41.96% |
| Russell 1000® Index | 30.03% |
| Fund Category: Morningstar Large Value1 | 36.15% |
| Performance Details | pages 6-7 |
| |
Schwab Fundamental US Small Company Index Fund
(Ticker Symbol: SFSNX) | 54.66% |
| Russell RAFITM US Small Company Index | 54.84% |
| Russell 2000® Index | 48.06% |
| Fund Category: Morningstar Small Blend1 | 49.00% |
| Performance Details | pages 8-9 |
| |
Schwab Fundamental International Large Company Index Fund2
(Ticker Symbol: SFNNX) | 39.39% |
| Russell RAFITM Developed ex US Large Company Index (Net)3 | 40.16% |
| MSCI EAFE® Index (Net)3 | 28.84% |
| Fund Category: Morningstar Foreign Large Value1 | 33.97% |
| Performance Details | pages 10-11 |
| Total Return for the 6 Months Ended April 30, 2021 |
Schwab Fundamental International Small Company Index Fund2
(Ticker Symbol: SFILX) | 34.58% |
| Russell RAFITM Developed ex US Small Company Index (Net)3 | 35.25% |
| S&P Developed ex-U.S. Small Cap Index (Net)3 | 32.97% |
| Fund Category: Morningstar Foreign Small/Mid Blend1 | 32.48% |
| Performance Details | pages 12-13 |
| |
Schwab Fundamental Emerging Markets Large Company Index Fund2
(Ticker Symbol: SFENX) | 35.50% 4 |
| Russell RAFITM Emerging Markets Large Company Index (Net)3 | 37.08% |
| MSCI Emerging Markets Index (Net)3 | 22.95% |
| Fund Category: Morningstar Diversified Emerging Markets1 | 24.71% |
| Performance Details | pages 14-15 |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for each fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
Index ownership — The funds are not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Index Series (the Indices) or otherwise. The Indices are compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Indices and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. CSIM has obtained full license from Russell to use the Indices. For full disclaimer please see the funds’ statement of additional information.
| 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. |
| 4 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
The Investment Environment
For the six-month reporting period ended April 30, 2021, U.S. and international equity markets generated solid returns, with major market indices ending the reporting period just shy of record highs. Despite persisting COVID-19 pandemic-driven stresses on the global economy—including widespread business disruptions, high unemployment, and prolonged stay-at-home orders—and a resurgence of COVID-19 cases in the fall and winter, equity markets continued to be buoyed by the extensive emergency rescue and fiscal stimulus measures passed by governments and central banks around the world beginning in March 2020, as well as the initial distribution of COVID-19 vaccines in December 2020 and the expanded rollout in 2021. The COVID-19 vaccine rollout helped fuel the early stages of a shift in the market towards cyclical sectors, beginning in November and December 2020 and continuing through the remainder of the reporting period. The U.S. dollar ended the reporting period weaker against a basket of foreign currencies, generally enhancing the returns of overseas investments in U.S. dollar terms. The S&P 500® Index, a bellwether for the overall U.S. stock market, returned 28.85% for the reporting period. U.S. small-cap stocks significantly outperformed U.S. large-cap stocks, with the Russell 2000® Index and the Russell 1000® Index returning 48.06% and 30.03%, respectively, for the reporting period. Outside the U.S., the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 28.84% for the reporting period, while the MSCI Emerging Markets Index (Net)* returned 22.95%.
Bolstered by the extensive emergency rescue and fiscal stimulus measures passed by the U.S. Federal Reserve (Fed) and U.S. Congress, the U.S. economy has held up relatively well, especially given the intensity of the COVID-19 pandemic’s economic impact. After a steep slide in the second quarter of 2020 and subsequent recovery in the third quarter of 2020, U.S. gross domestic product (GDP) grew at an annualized rate of 4.3% for the fourth quarter of 2020 and an annualized rate of 6.4% for the first quarter of 2021. Unemployment, which skyrocketed in April 2020, fell in each subsequent month through March 2021 before experiencing a slight uptick in April 2021. Inflation remained well below the Fed’s traditional target of 2% until March 2021, when it jumped, largely due to supply and demand imbalances in the labor market, increased demand particularly for travel-related services, as well as increasing energy costs.
Asset Class Performance Comparison % returns during the 6 months ended April 30, 2021
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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
The Investment Environment (continued)
Outside the U.S., global economies wrestled with the fallout of the COVID-19 pandemic against the anticipation of its eventual end. In the eurozone, GDP growth jumped in the third quarter of 2020, regaining much from its losses of the second quarter, but turned slightly negative for both the fourth quarter of 2020 and the first quarter of 2021. The United Kingdom, which was particularly hard-hit by the COVID-19 pandemic, suffered its biggest slump in more than three centuries over the course of 2020, effectively wiping out its growth over the past seven years, but posted a small positive gain in GDP for the first quarter of 2021. Japan’s economy, after rebounding sharply in the third quarter of 2020, posted a positive, albeit smaller, gain in the fourth quarter of 2020 on strong exports and consumer spending. China, the only major economy to avoid contraction in the face of COVID-19 pandemic-related shocks, maintained positive GDP growth in the fourth quarter of 2020. China’s growth accelerated sharply for the first quarter of 2021 on rising domestic and global demand, strict COVID-19 containment measures, and continued fiscal and monetary support. India, after plunging into one of the worst recessions of any major economy, saw its first positive gain in GDP in the fourth quarter of 2020, but a huge spike in COVID-19 cases in April 2021 dampened its growth prospects.
Central banks around the world, including the Fed, maintained the low—and for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. In the U.S., the federal funds rate remained in a range of 0.00% to 0.25% throughout the reporting period. The Fed reiterated its intention to continue its support of the economy, and in April 2021 affirmed that despite showing signs of recovery, the U.S. economy still had a way to go before the Fed would consider raising interest rates or tapering its bond-buying policy. The Fed also maintained its revised approach to its interest rate policy, announced in August 2020, that would allow inflation to rise above its previous 2% target for periods of time, even in times of rising employment. Outside the U.S., the European Central Bank held its policy rate at 0.00%, unchanged since March 2016, and maintained its asset purchase program to help counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.01%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program. Central banks in key emerging market economies—including China, India, Russia, and Thailand—also maintained low rates to help counter the effects of the COVID-19 pandemic. Mexico reduced its benchmark interest rate by 0.25% in February 2021.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
 | Christopher Bliss, CFA, Vice President and Head of Passive Equity Strategies, 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. Before 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 the head of the 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 Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company 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 for 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 Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund, and Schwab Fundamental Emerging Markets Large Company 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 Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company 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 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 Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund, and Schwab Fundamental Emerging Markets Large Company 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 Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund, and Schwab Fundamental Emerging Markets Large Company Index Fund. Prior to this role, Mr. Rios was an associate portfolio manager on the Schwab equity index strategies team for four years. His first role with CSIM was as a trade operations specialist. Prior to joining CSIM in 2008, Mr. Rios was 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 Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company 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. Mr. Sinha also spent time as a software consultant at DPM Mellon, LLC and an equity trader at Jane Street Capital. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Fundamental US Large Company Index Fund (4/2/07) | 41.74% | 55.91% | 14.99% | 12.62% |
| Russell RAFITM US Large Company Index | 41.96% | 56.33% | 15.27% | 13.14% |
| Fundamental U.S. Large Company Spliced Index | 41.96% | 56.33% | 15.27% | 12.96% |
| Russell 1000® Index | 30.03% | 49.48% | 17.76% | 14.23% |
| Fund Category: Morningstar Large Value2 | 36.15% | 46.33% | 12.01% | 10.42% |
| Fund Expense Ratio3: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership—The Schwab Fundamental US Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM US Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. CSIM has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
| 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 723 |
| Weighted Average Market Cap (millions) | $267,186 |
| Price/Earnings Ratio (P/E) | 19.6 |
| Price/Book Ratio (P/B) | 2.5 |
| Portfolio Turnover Rate | 10% 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Fundamental US Small Company Index Fund (4/2/07) | 54.66% | 77.84% | 13.89% | 11.08% |
| Russell RAFITM US Small Company Index | 54.84% | 77.97% | 14.08% | 11.57% |
| Fundamental U.S. Small Company Spliced Index | 54.84% | 77.97% | 14.08% | 11.33% |
| Russell 2000® Index | 48.06% | 74.91% | 16.48% | 11.63% |
| Fund Category: Morningstar Small Blend2 | 49.00% | 72.03% | 13.91% | 10.64% |
| Fund Expense Ratio3: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership—The Schwab Fundamental US Small Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM US Small Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. CSIM has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
| 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 956 |
| Weighted Average Market Cap (millions) | $5,234 |
| Price/Earnings Ratio (P/E) | 18.6 |
| Price/Book Ratio (P/B) | 2.1 |
| Portfolio Turnover Rate | 23% 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Fundamental International Large Company Index Fund (4/2/07) | 39.39% | 50.62% | 8.85% | 4.53% |
| Russell RAFITM Developed ex US Large Company Index (Net)3 | 40.16% | 50.28% | 8.77% | 4.88% |
| Fundamental Developed ex-U.S. Large Company Spliced Index | 40.16% | 50.28% | 8.77% | 4.76% |
| MSCI EAFE® Index (Net)3 | 28.84% | 39.88% | 8.87% | 5.22% |
| Fund Category: Morningstar Foreign Large Value4 | 33.97% | 42.73% | 7.00% | 3.65% |
| Fund Expense Ratio5: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership—The Schwab Fundamental International Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Developed ex US Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. CSIM has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | The fund’s performance relative to the index may be affected by fair-value pricing. 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. |
| 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 944 |
| Weighted Average Market Cap (millions) | $66,983 |
| Price/Earnings Ratio (P/E) | 14.6 |
| Price/Book Ratio (P/B) | 1.2 |
| Portfolio Turnover Rate | 12% 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Fundamental International Small Company Index Fund (1/31/08) | 34.58% | 51.95% | 9.49% | 6.68% |
| Russell RAFITM Developed ex US Small Company Index (Net)3 | 35.25% | 51.65% | 9.50% | 7.52% |
| Fundamental Developed ex-U.S. Small Company Spliced Index | 35.25% | 51.65% | 9.50% | 7.15% |
| S&P Developed ex-U.S. Small Cap Index (Net)3 | 32.97% | 55.11% | 10.43% | 7.07% |
| Fund Category: Morningstar Foreign Small/Mid Blend4 | 32.48% | 53.49% | 9.92% | 6.45% |
| Fund Expense Ratio5: 0.39% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership—The Schwab Fundamental International Small Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Developed ex US Small Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. CSIM has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | The fund’s performance relative to the index may be affected by fair-value pricing. 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. |
| 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 1,673 |
| Weighted Average Market Cap (millions) | $4,149 |
| Price/Earnings Ratio (P/E) | 15.3 |
| Price/Book Ratio (P/B) | 1.2 |
| Portfolio Turnover Rate | 21% 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.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
| 1 | 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Fundamental Emerging Markets Large Company Index Fund (1/31/08) | 35.50% 3 | 43.54% | 10.29% | 1.63% |
| Russell RAFITM Emerging Markets Large Company Index (Net)4 | 37.08% | 44.26% | 11.15% | 2.77% |
| Fundamental Emerging Markets Large Company Spliced Index | 37.08% | 44.26% | 11.15% | 2.64% |
| MSCI Emerging Markets Index (Net)4 | 22.95% | 48.71% | 12.50% | 3.59% |
| Fund Category: Morningstar Diversified Emerging Markets5 | 24.71% | 51.66% | 11.81% | 3.64% |
| Fund Expense Ratio6: 0.39% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership—The Schwab Fundamental Emerging Markets Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Emerging Markets Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. CSIM has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
| 1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information. |
| 3 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
| 4 | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
| 5 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 6 | As stated in the prospectus. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 332 |
| Weighted Average Market Cap (millions) | $84,502 |
| Price/Earnings Ratio (P/E) | 11.3 |
| Price/Book Ratio (P/B) | 1.2 |
| Portfolio Turnover Rate | 17% 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. Investing in emerging markets may accentuate these risks.
| 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental 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, 2020 and held through April 30, 2021.
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 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/21 | Expenses Paid
During Period
11/1/20-4/30/212 |
| Schwab Fundamental US Large Company Index Fund | | | | |
| Actual Return | 0.25% | $1,000.00 | $1,417.40 | $1.50 |
| Hypothetical 5% Return | 0.25% | $1,000.00 | $1,023.56 | $1.25 |
| Schwab Fundamental US Small Company Index Fund | | | | |
| Actual Return | 0.25% | $1,000.00 | $1,546.60 | $1.58 |
| Hypothetical 5% Return | 0.25% | $1,000.00 | $1,023.56 | $1.25 |
| Schwab Fundamental International Large Company Index Fund | | | | |
| Actual Return | 0.25% | $1,000.00 | $1,393.90 | $1.48 |
| Hypothetical 5% Return | 0.25% | $1,000.00 | $1,023.56 | $1.25 |
| Schwab Fundamental International Small Company Index Fund | | | | |
| Actual Return | 0.39% | $1,000.00 | $1,345.80 | $2.27 |
| Hypothetical 5% Return | 0.39% | $1,000.00 | $1,022.87 | $1.96 |
| Schwab Fundamental Emerging Markets Large Company Index Fund | | | | |
| Actual Return | 0.39% | $1,000.00 | $1,353.20 | $2.28 |
| Hypothetical 5% Return | 0.39% | $1,000.00 | $1,022.87 | $1.96 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by 365 days of the fiscal year. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $16.28 | $17.56 | $17.47 | $16.89 | $15.12 | $15.14 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.19 | 0.42 | 0.42 | 0.38 | 0.35 | 0.34 |
| Net realized and unrealized gains (losses) | 6.37 | (0.75) | 1.08 | 0.76 | 2.52 | 0.44 |
| Total from investment operations | 6.56 | (0.33) | 1.50 | 1.14 | 2.87 | 0.78 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.44) | (0.43) | (0.42) | (0.36) | (0.34) | (0.34) |
| Distributions from net realized gains | (0.68) | (0.52) | (0.99) | (0.20) | (0.76) | (0.46) |
| Total distributions | (1.12) | (0.95) | (1.41) | (0.56) | (1.10) | (0.80) |
| Net asset value at end of period | $21.72 | $16.28 | $17.56 | $17.47 | $16.89 | $15.12 |
| Total return | 41.74% 2 | (2.33%) | 10.56% | 6.83% | 19.69% | 5.61% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.25% 3 | 0.25% | 0.25% | 0.25% | 0.31% 4 | 0.39% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.30% 4 | 0.35% |
| Net investment income (loss) | 1.98% 3 | 2.57% | 2.53% | 2.17% | 2.19% | 2.33% |
| Portfolio turnover rate | 10% 2 | 13% | 20% | 10% | 15% | 11% |
| Net assets, end of period (x 1,000,000) | $6,416 | $4,547 | $5,237 | $4,887 | $5,367 | $4,569 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective May 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective May 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.6% of net assets |
| |
| Automobiles & Components 2.1% |
| Adient plc * | 102,285 | 4,739,887 |
| Aptiv plc * | 50,403 | 7,252,488 |
| Autoliv, Inc. * | 29,656 | 2,985,173 |
| BorgWarner, Inc. | 107,278 | 5,211,565 |
| Cooper Tire & Rubber Co. | 31,939 | 1,820,204 |
| Dana, Inc. | 82,796 | 2,094,739 |
| Ford Motor Co. * | 3,374,660 | 38,943,576 |
| General Motors Co. * | 830,148 | 47,501,068 |
| Gentex Corp. | 56,272 | 1,979,649 |
| Harley-Davidson, Inc. | 68,607 | 3,318,521 |
| Lear Corp. | 36,062 | 6,629,638 |
| Tesla, Inc. * | 2,296 | 1,628,874 |
| The Goodyear Tire & Rubber Co. * | 448,633 | 7,720,974 |
| Thor Industries, Inc. | 19,532 | 2,765,536 |
| Visteon Corp. * | 24,409 | 2,973,260 |
| | | 137,565,152 |
| |
| Banks 7.5% |
| Bank of America Corp. | 1,744,506 | 70,704,828 |
| CIT Group, Inc. | 92,753 | 4,942,807 |
| Citigroup, Inc. | 1,020,264 | 72,683,607 |
| Citizens Financial Group, Inc. | 155,022 | 7,174,418 |
| Comerica, Inc. | 56,563 | 4,251,275 |
| Credicorp Ltd. * | 15,169 | 1,811,179 |
| East West Bancorp, Inc. | 23,416 | 1,783,128 |
| Fifth Third Bancorp | 263,711 | 10,690,844 |
| First Republic Bank | 10,249 | 1,878,027 |
| Huntington Bancshares, Inc. | 234,955 | 3,599,511 |
| JPMorgan Chase & Co. | 710,107 | 109,221,558 |
| KeyCorp | 234,012 | 5,092,101 |
| M&T Bank Corp. | 41,238 | 6,502,820 |
| New York Community Bancorp, Inc. | 135,078 | 1,615,533 |
| PacWest Bancorp | 47,925 | 2,080,424 |
| People's United Financial, Inc. | 82,663 | 1,498,680 |
| Popular, Inc. | 20,872 | 1,543,693 |
| Regions Financial Corp. | 258,649 | 5,638,548 |
| SVB Financial Group * | 3,613 | 2,066,022 |
| The PNC Financial Services Group, Inc. | 110,011 | 20,566,557 |
| Truist Financial Corp. | 184,986 | 10,971,520 |
| U.S. Bancorp | 414,663 | 24,610,249 |
| Wells Fargo & Co. | 2,358,738 | 106,261,147 |
| Zions Bancorp NA | 39,749 | 2,217,994 |
| | | 479,406,470 |
| |
| Capital Goods 8.1% |
| 3M Co. | 131,708 | 25,964,915 |
| A.O. Smith Corp. | 24,895 | 1,686,636 |
| Acuity Brands, Inc. | 13,804 | 2,560,918 |
| AECOM * | 56,867 | 3,777,675 |
| AerCap Holdings N.V. * | 73,879 | 4,303,452 |
| AGCO Corp. | 26,294 | 3,836,820 |
| Allegion plc | 8,639 | 1,160,909 |
| Security | Number
of Shares | Value ($) |
| Allison Transmission Holdings, Inc. | 48,179 | 1,997,983 |
| AMETEK, Inc. | 24,451 | 3,299,173 |
| Carlisle Cos., Inc. | 13,337 | 2,556,036 |
| Carrier Global Corp. | 141,455 | 6,164,609 |
| Caterpillar, Inc. | 111,198 | 25,365,376 |
| Cummins, Inc. | 41,150 | 10,371,446 |
| Curtiss-Wright Corp. | 10,061 | 1,286,802 |
| Deere & Co. | 53,045 | 19,671,738 |
| Donaldson Co., Inc. | 23,821 | 1,497,864 |
| Dover Corp. | 27,294 | 4,071,992 |
| Eaton Corp. plc | 105,747 | 15,114,419 |
| EMCOR Group, Inc. | 22,383 | 2,681,483 |
| Emerson Electric Co. | 150,181 | 13,589,879 |
| Fastenal Co. | 67,425 | 3,524,979 |
| Flowserve Corp. | 44,777 | 1,774,960 |
| Fluor Corp. * | 301,671 | 6,932,400 |
| Fortive Corp. | 30,432 | 2,155,194 |
| Fortune Brands Home & Security, Inc. | 29,135 | 3,058,592 |
| GATX Corp. | 15,087 | 1,474,151 |
| General Dynamics Corp. | 80,513 | 15,315,988 |
| General Electric Co. | 4,426,257 | 58,072,492 |
| Graco, Inc. | 17,526 | 1,345,997 |
| Hexcel Corp. * | 29,054 | 1,638,936 |
| Honeywell International, Inc. | 110,363 | 24,615,364 |
| Howmet Aerospace, Inc. * | 130,341 | 4,165,698 |
| Hubbell, Inc. | 11,330 | 2,175,473 |
| Huntington Ingalls Industries, Inc. | 14,122 | 2,998,383 |
| IDEX Corp. | 8,052 | 1,805,258 |
| Illinois Tool Works, Inc. | 54,786 | 12,625,982 |
| ITT, Inc. | 16,129 | 1,521,126 |
| Johnson Controls International plc | 191,666 | 11,948,458 |
| L3Harris Technologies, Inc. | 16,969 | 3,550,424 |
| Lennox International, Inc. | 4,156 | 1,393,673 |
| Lincoln Electric Holdings, Inc. | 13,676 | 1,751,212 |
| Lockheed Martin Corp. | 36,551 | 13,909,849 |
| Masco Corp. | 41,902 | 2,676,700 |
| MasTec, Inc. * | 19,699 | 2,055,788 |
| MSC Industrial Direct Co., Inc., Class A | 16,138 | 1,455,002 |
| Nordson Corp. | 5,840 | 1,234,634 |
| Northrop Grumman Corp. | 31,000 | 10,987,640 |
| nVent Electric plc | 46,300 | 1,409,835 |
| Oshkosh Corp. | 23,918 | 2,976,117 |
| Otis Worldwide Corp. | 64,944 | 5,057,189 |
| Owens Corning | 37,356 | 3,616,434 |
| PACCAR, Inc. | 87,061 | 7,825,043 |
| Parker-Hannifin Corp. | 23,321 | 7,318,363 |
| Pentair plc | 34,491 | 2,225,014 |
| Quanta Services, Inc. | 48,015 | 4,640,170 |
| Raytheon Technologies Corp. | 369,112 | 30,724,883 |
| Regal Beloit Corp. | 12,405 | 1,791,654 |
| Rockwell Automation, Inc. | 16,685 | 4,409,178 |
| Roper Technologies, Inc. | 6,312 | 2,817,929 |
| Sensata Technologies Holding plc * | 28,736 | 1,659,217 |
| Snap-on, Inc. | 14,516 | 3,449,002 |
| Spirit AeroSystems Holdings, Inc., Class A | 92,425 | 4,222,898 |
| Stanley Black & Decker, Inc. | 27,231 | 5,630,554 |
| Teledyne Technologies, Inc. * | 2,778 | 1,243,850 |
| Textron, Inc. | 99,969 | 6,422,009 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| The Boeing Co. * | 155,216 | 36,368,661 |
| The Toro Co. | 13,492 | 1,546,183 |
| Trane Technologies plc | 43,501 | 7,561,779 |
| TransDigm Group, Inc. * | 5,850 | 3,590,379 |
| UFP Industries, Inc. | 20,730 | 1,742,149 |
| United Rentals, Inc. * | 23,556 | 7,536,742 |
| Univar Solutions, Inc. * | 68,043 | 1,588,804 |
| W.W. Grainger, Inc. | 10,302 | 4,466,329 |
| Watsco, Inc. | 6,408 | 1,876,647 |
| WESCO International, Inc. * | 50,643 | 4,644,976 |
| Westinghouse Air Brake Technologies Corp. | 19,688 | 1,615,794 |
| Xylem, Inc. | 20,294 | 2,245,531 |
| | | 519,347,791 |
| |
| Commercial & Professional Services 0.9% |
| ABM Industries, Inc. | 28,334 | 1,456,651 |
| Booz Allen Hamilton Holding Corp. | 16,593 | 1,376,389 |
| CACI International, Inc., Class A * | 4,590 | 1,169,807 |
| Cintas Corp. | 8,596 | 2,966,823 |
| Copart, Inc. * | 9,215 | 1,147,360 |
| CoreCivic, Inc. * | 130,215 | 1,011,771 |
| Equifax, Inc. | 11,243 | 2,577,233 |
| IHS Markit Ltd. | 24,690 | 2,656,150 |
| Jacobs Engineering Group, Inc. | 31,411 | 4,196,824 |
| KBR, Inc. | 36,615 | 1,448,489 |
| Kelly Services, Inc., Class A * | 52,627 | 1,318,306 |
| Leidos Holdings, Inc. | 27,921 | 2,827,839 |
| ManpowerGroup, Inc. | 50,989 | 6,164,060 |
| Nielsen Holdings plc | 198,216 | 5,084,240 |
| Republic Services, Inc. | 35,919 | 3,818,190 |
| Robert Half International, Inc. | 39,480 | 3,458,843 |
| Science Applications International Corp. | 12,640 | 1,130,269 |
| Verisk Analytics, Inc. | 8,204 | 1,543,993 |
| Waste Management, Inc. | 70,870 | 9,777,934 |
| | | 55,131,171 |
| |
| Consumer Durables & Apparel 1.7% |
| Brunswick Corp. | 20,578 | 2,204,521 |
| Capri Holdings Ltd. * | 125,947 | 6,937,161 |
| Carter's, Inc. * | 16,073 | 1,748,582 |
| D.R. Horton, Inc. | 63,688 | 6,259,894 |
| Garmin Ltd. | 18,277 | 2,508,335 |
| Hanesbrands, Inc. | 136,101 | 2,866,287 |
| Hasbro, Inc. | 24,701 | 2,456,514 |
| Leggett & Platt, Inc. | 43,101 | 2,140,827 |
| Lennar Corp., Class A | 49,228 | 5,100,021 |
| Lululemon Athletica, Inc. * | 4,722 | 1,583,145 |
| Mattel, Inc. * | 117,798 | 2,527,945 |
| Mohawk Industries, Inc. * | 25,943 | 5,331,286 |
| Newell Brands, Inc. | 114,691 | 3,092,069 |
| NIKE, Inc., Class B | 118,683 | 15,739,739 |
| NVR, Inc. * | 645 | 3,236,675 |
| Polaris, Inc. | 16,712 | 2,340,181 |
| PulteGroup, Inc. | 80,627 | 4,766,668 |
| PVH Corp. * | 47,744 | 5,403,666 |
| Ralph Lauren Corp. * | 25,072 | 3,341,847 |
| Skechers U.S.A., Inc., Class A * | 34,506 | 1,673,196 |
| Tapestry, Inc. * | 131,650 | 6,299,452 |
| Taylor Morrison Home Corp. * | 51,113 | 1,595,237 |
| Toll Brothers, Inc. | 42,178 | 2,644,561 |
| Tri Pointe Homes, Inc. * | 55,159 | 1,313,887 |
| Under Armour, Inc., Class A * | 43,112 | 1,048,053 |
| Under Armour, Inc., Class C * | 44,926 | 894,477 |
| Security | Number
of Shares | Value ($) |
| VF Corp. | 64,713 | 5,672,742 |
| Whirlpool Corp. | 26,746 | 6,324,092 |
| | | 107,051,060 |
| |
| Consumer Services 2.3% |
| Aramark | 88,401 | 3,436,147 |
| Booking Holdings, Inc. * | 5,811 | 14,330,391 |
| Carnival Corp. * | 386,026 | 10,793,287 |
| Chipotle Mexican Grill, Inc. * | 1,685 | 2,514,071 |
| Cracker Barrel Old Country Store, Inc. | 8,600 | 1,440,242 |
| Darden Restaurants, Inc. | 27,745 | 4,070,746 |
| Domino's Pizza, Inc. | 4,722 | 1,994,289 |
| Expedia Group, Inc. * | 27,093 | 4,774,599 |
| Extended Stay America, Inc. | 88,637 | 1,762,990 |
| H&R Block, Inc. | 81,141 | 1,806,199 |
| Hilton Worldwide Holdings, Inc. * | 29,104 | 3,745,685 |
| Las Vegas Sands Corp. * | 89,633 | 5,490,918 |
| Marriott International, Inc., Class A * | 38,871 | 5,773,121 |
| Marriott Vacations Worldwide Corp. * | 7,908 | 1,404,698 |
| McDonald's Corp. | 113,793 | 26,864,251 |
| MGM Resorts International | 144,723 | 5,893,121 |
| Norwegian Cruise Line Holdings Ltd. * | 129,491 | 4,020,696 |
| Royal Caribbean Cruises Ltd. * | 66,257 | 5,761,046 |
| Service Corp. International | 24,712 | 1,320,609 |
| Six Flags Entertainment Corp. * | 42,428 | 1,993,267 |
| Starbucks Corp. | 161,876 | 18,533,183 |
| The Wendy's Co. | 52,870 | 1,193,276 |
| Travel & Leisure Co. | 34,854 | 2,249,129 |
| Vail Resorts, Inc. * | 4,012 | 1,304,542 |
| Wynn Resorts Ltd. * | 21,121 | 2,711,936 |
| Yum China Holdings, Inc. | 51,463 | 3,238,052 |
| Yum! Brands, Inc. | 57,931 | 6,923,913 |
| | | 145,344,404 |
| |
| Diversified Financials 6.1% |
| Affiliated Managers Group, Inc. | 18,687 | 3,011,784 |
| AGNC Investment Corp. | 66,799 | 1,197,706 |
| Ally Financial, Inc. | 245,037 | 12,607,154 |
| American Express Co. | 168,993 | 25,915,077 |
| Ameriprise Financial, Inc. | 38,858 | 10,040,907 |
| Annaly Capital Management, Inc. | 219,702 | 1,994,894 |
| Berkshire Hathaway, Inc., Class A * | 68 | 28,050,000 |
| Berkshire Hathaway, Inc., Class B * | 218,331 | 60,030,108 |
| BlackRock, Inc. | 14,153 | 11,595,553 |
| Capital One Financial Corp. | 243,887 | 36,358,674 |
| Cboe Global Markets, Inc. | 10,323 | 1,077,412 |
| CME Group, Inc. | 24,286 | 4,905,529 |
| Discover Financial Services | 174,543 | 19,897,902 |
| Equitable Holdings, Inc. | 99,776 | 3,415,332 |
| Evercore, Inc., Class A | 14,118 | 1,978,355 |
| Franklin Resources, Inc. | 205,959 | 6,178,770 |
| Intercontinental Exchange, Inc. | 38,971 | 4,587,276 |
| Invesco Ltd. | 232,798 | 6,285,546 |
| Janus Henderson Group plc | 41,973 | 1,443,451 |
| Jefferies Financial Group, Inc. | 74,538 | 2,423,230 |
| KKR & Co., Inc. | 14,796 | 837,158 |
| Lazard Ltd., Class A | 40,669 | 1,829,698 |
| LPL Financial Holdings, Inc. | 16,546 | 2,592,758 |
| Moody's Corp. | 10,373 | 3,388,963 |
| Morgan Stanley | 274,532 | 22,662,617 |
| MSCI, Inc. | 3,345 | 1,624,901 |
| Nasdaq, Inc. | 9,677 | 1,563,223 |
| Navient Corp. | 246,848 | 4,154,452 |
| New Residential Investment Corp. | 196,334 | 2,104,700 |
| Northern Trust Corp. | 34,963 | 3,978,789 |
| OneMain Holdings, Inc. | 27,558 | 1,567,223 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| PROG Holdings, Inc. | 24,123 | 1,228,826 |
| Raymond James Financial, Inc. | 19,006 | 2,485,605 |
| S&P Global, Inc. | 15,182 | 5,926,901 |
| SEI Investments Co. | 22,976 | 1,411,645 |
| Starwood Property Trust, Inc. | 67,952 | 1,754,521 |
| State Street Corp. | 80,686 | 6,773,590 |
| Synchrony Financial | 378,975 | 16,576,367 |
| T. Rowe Price Group, Inc. | 43,223 | 7,745,562 |
| The Bank of New York Mellon Corp. | 274,694 | 13,701,737 |
| The Charles Schwab Corp. (a) | 123,641 | 8,704,326 |
| The Goldman Sachs Group, Inc. | 97,107 | 33,836,934 |
| Voya Financial, Inc. | 56,634 | 3,840,918 |
| | | 393,286,074 |
| |
| Energy 8.2% |
| Antero Resources Corp. * | 346,448 | 3,124,961 |
| APA Corp. | 211,991 | 4,239,820 |
| Baker Hughes Co. | 431,375 | 8,662,010 |
| Cabot Oil & Gas Corp. | 62,365 | 1,039,625 |
| Cheniere Energy, Inc. * | 15,224 | 1,180,164 |
| Chevron Corp. | 818,100 | 84,321,567 |
| ConocoPhillips | 514,746 | 26,324,110 |
| Delek US Holdings, Inc. | 75,405 | 1,789,361 |
| Devon Energy Corp. | 226,884 | 5,304,548 |
| Diamondback Energy, Inc. | 39,577 | 3,234,628 |
| EOG Resources, Inc. | 143,750 | 10,585,750 |
| Exxon Mobil Corp. | 2,638,068 | 151,003,012 |
| Halliburton Co. | 387,261 | 7,574,825 |
| Helmerich & Payne, Inc. | 97,439 | 2,497,362 |
| Hess Corp. | 65,147 | 4,854,103 |
| HollyFrontier Corp. | 169,366 | 5,927,810 |
| Kinder Morgan, Inc. | 679,587 | 11,586,958 |
| Marathon Oil Corp. | 620,206 | 6,983,520 |
| Marathon Petroleum Corp. | 502,275 | 27,951,604 |
| Murphy Oil Corp. | 150,252 | 2,543,766 |
| Nabors Industries Ltd. * | 30,642 | 2,477,406 |
| NOV, Inc. * | 423,148 | 6,326,063 |
| Occidental Petroleum Corp. | 718,457 | 18,220,069 |
| ONEOK, Inc. | 131,336 | 6,874,126 |
| Ovintiv, Inc. | 15,548 | 372,064 |
| Patterson-UTI Energy, Inc. | 266,335 | 1,800,425 |
| PBF Energy, Inc., Class A * | 315,472 | 4,473,393 |
| Peabody Energy Corp. * | 481,020 | 1,779,774 |
| Phillips 66 | 380,000 | 30,745,800 |
| Pioneer Natural Resources Co. | 33,265 | 5,117,155 |
| Schlumberger N.V. | 819,410 | 22,165,040 |
| Targa Resources Corp. | 131,896 | 4,575,472 |
| The Williams Cos., Inc. | 281,332 | 6,853,248 |
| Transocean Ltd. * | 1,023,529 | 3,295,763 |
| Valero Energy Corp. | 440,901 | 32,609,038 |
| World Fuel Services Corp. | 156,208 | 4,831,513 |
| | | 523,245,853 |
| |
| Food & Staples Retailing 2.7% |
| Casey's General Stores, Inc. | 10,625 | 2,360,769 |
| Costco Wholesale Corp. | 71,680 | 26,671,411 |
| Performance Food Group Co. * | 50,085 | 2,939,990 |
| Rite Aid Corp. * | 143,797 | 2,519,323 |
| SpartanNash, Co. | 66,107 | 1,280,493 |
| Sprouts Farmers Market, Inc. * | 50,001 | 1,280,526 |
| Sysco Corp. | 119,373 | 10,114,474 |
| The Kroger Co. | 515,773 | 18,846,345 |
| U.S. Foods Holding Corp. * | 151,344 | 6,274,722 |
| United Natural Foods, Inc. * | 112,281 | 4,138,678 |
| Security | Number
of Shares | Value ($) |
| Walgreens Boots Alliance, Inc. | 641,370 | 34,056,747 |
| Walmart, Inc. | 445,024 | 62,263,308 |
| | | 172,746,786 |
| |
| Food, Beverage & Tobacco 3.7% |
| Altria Group, Inc. | 530,277 | 25,320,727 |
| Archer-Daniels-Midland Co. | 390,659 | 24,662,303 |
| Bunge Ltd. | 146,224 | 12,344,230 |
| Campbell Soup Co. | 33,569 | 1,602,920 |
| Coca-Cola European Partners plc | 58,328 | 3,314,197 |
| Conagra Brands, Inc. | 81,087 | 3,007,517 |
| Constellation Brands, Inc., Class A | 19,117 | 4,594,197 |
| Darling Ingredients, Inc. * | 29,913 | 2,077,458 |
| Flowers Foods, Inc. | 53,029 | 1,270,575 |
| General Mills, Inc. | 118,527 | 7,213,553 |
| Hormel Foods Corp. | 47,753 | 2,206,189 |
| Ingredion, Inc. | 30,871 | 2,883,660 |
| Kellogg Co. | 51,603 | 3,221,059 |
| Keurig Dr Pepper, Inc. | 35,235 | 1,263,175 |
| McCormick & Co., Inc. - Non Voting Shares | 18,450 | 1,667,142 |
| Molson Coors Beverage Co., Class B * | 78,837 | 4,332,093 |
| Mondelez International, Inc., Class A | 286,073 | 17,396,099 |
| Monster Beverage Corp. * | 28,773 | 2,792,420 |
| PepsiCo, Inc. | 213,219 | 30,737,651 |
| Philip Morris International, Inc. | 323,238 | 30,707,610 |
| Post Holdings, Inc. * | 10,668 | 1,213,805 |
| Sanderson Farms, Inc. | 9,959 | 1,638,554 |
| The Coca-Cola Co. | 524,070 | 28,289,298 |
| The Hershey Co. | 19,010 | 3,123,343 |
| The JM Smucker Co. | 32,483 | 4,254,948 |
| The Kraft Heinz Co. | 193,322 | 7,982,265 |
| Tyson Foods, Inc., Class A | 138,395 | 10,718,693 |
| | | 239,835,681 |
| |
| Health Care Equipment & Services 5.4% |
| Abbott Laboratories | 126,876 | 15,235,270 |
| Align Technology, Inc. * | 2,435 | 1,450,116 |
| AmerisourceBergen Corp. | 51,245 | 6,190,396 |
| Anthem, Inc. | 79,630 | 30,210,826 |
| Baxter International, Inc. | 61,669 | 5,284,417 |
| Becton, Dickinson & Co. | 21,668 | 5,391,215 |
| Boston Scientific Corp. * | 75,730 | 3,301,828 |
| Cardinal Health, Inc. | 208,222 | 12,564,115 |
| Centene Corp. * | 106,653 | 6,584,756 |
| Cerner Corp. | 47,815 | 3,588,516 |
| Cigna Corp. | 47,196 | 11,752,276 |
| CVS Health Corp. | 581,568 | 44,431,795 |
| Danaher Corp. | 33,821 | 8,588,505 |
| DaVita, Inc. * | 38,007 | 4,428,956 |
| DENTSPLY SIRONA, Inc. | 38,820 | 2,620,738 |
| Edwards Lifesciences Corp. * | 20,561 | 1,963,987 |
| Encompass Health Corp. | 17,125 | 1,453,227 |
| Envista Holdings Corp. * | 8,257 | 357,363 |
| HCA Healthcare, Inc. | 70,971 | 14,269,429 |
| Henry Schein, Inc. * | 39,891 | 2,892,097 |
| Hologic, Inc. * | 23,800 | 1,560,090 |
| Humana, Inc. | 34,699 | 15,449,383 |
| Intuitive Surgical, Inc. * | 3,739 | 3,234,235 |
| Laboratory Corp. of America Holdings * | 16,496 | 4,385,791 |
| Magellan Health, Inc. * | 14,385 | 1,355,067 |
| McKesson Corp. | 94,928 | 17,804,696 |
| Medtronic plc | 213,405 | 27,938,983 |
| Molina Healthcare, Inc. * | 9,020 | 2,301,002 |
| Patterson Cos., Inc. | 53,655 | 1,724,472 |
| Quest Diagnostics, Inc. | 31,907 | 4,207,895 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| ResMed, Inc. | 7,664 | 1,440,602 |
| STERIS plc | 7,770 | 1,639,625 |
| Stryker Corp. | 27,447 | 7,208,406 |
| Tenet Healthcare Corp. * | 63,311 | 3,751,810 |
| The Cooper Cos., Inc. | 3,251 | 1,335,803 |
| UnitedHealth Group, Inc. | 153,444 | 61,193,467 |
| Universal Health Services, Inc., Class B | 30,519 | 4,529,325 |
| Zimmer Biomet Holdings, Inc. | 22,613 | 4,006,119 |
| | | 347,626,599 |
| |
| Household & Personal Products 1.1% |
| Church & Dwight Co., Inc. | 27,699 | 2,374,912 |
| Colgate-Palmolive Co. | 107,366 | 8,664,436 |
| Kimberly-Clark Corp. | 43,086 | 5,744,226 |
| Nu Skin Enterprises, Inc., Class A | 23,716 | 1,253,628 |
| The Clorox Co. | 12,851 | 2,345,308 |
| The Estee Lauder Cos., Inc., Class A | 16,239 | 5,095,798 |
| The Procter & Gamble Co. | 354,108 | 47,245,089 |
| | | 72,723,397 |
| |
| Insurance 3.8% |
| Aflac, Inc. | 233,481 | 12,544,934 |
| Alleghany Corp. * | 3,332 | 2,262,328 |
| American Financial Group, Inc. | 18,434 | 2,264,801 |
| American International Group, Inc. | 756,493 | 36,652,086 |
| Aon plc, Class A | 34,407 | 8,651,296 |
| Arch Capital Group Ltd. * | 50,521 | 2,006,189 |
| Arthur J. Gallagher & Co. | 18,572 | 2,692,011 |
| Assurant, Inc. | 10,837 | 1,686,237 |
| Assured Guaranty Ltd. | 71,358 | 3,628,554 |
| Athene Holding Ltd., Class A * | 30,399 | 1,813,908 |
| Axis Capital Holdings Ltd. | 27,786 | 1,550,459 |
| Brown & Brown, Inc. | 22,224 | 1,181,872 |
| Chubb Ltd. | 78,694 | 13,503,104 |
| Cincinnati Financial Corp. | 29,426 | 3,315,722 |
| CNO Financial Group, Inc. | 78,836 | 2,012,683 |
| Everest Re Group Ltd. | 10,734 | 2,972,781 |
| Fidelity National Financial, Inc. | 75,923 | 3,463,607 |
| First American Financial Corp. | 30,847 | 1,989,632 |
| Genworth Financial, Inc., Class A * | 433,818 | 1,874,094 |
| Globe Life, Inc. | 22,789 | 2,335,645 |
| Lincoln National Corp. | 95,001 | 6,092,414 |
| Loews Corp. | 101,896 | 5,680,702 |
| Markel Corp. * | 1,567 | 1,843,450 |
| Marsh & McLennan Cos., Inc. | 64,712 | 8,781,419 |
| MetLife, Inc. | 296,520 | 18,867,568 |
| Old Republic International Corp. | 97,815 | 2,408,205 |
| Primerica, Inc. | 8,220 | 1,313,309 |
| Principal Financial Group, Inc. | 84,897 | 5,422,371 |
| Prudential Financial, Inc. | 182,627 | 18,328,446 |
| Reinsurance Group of America, Inc. | 22,255 | 2,904,945 |
| The Allstate Corp. | 111,309 | 14,113,981 |
| The Hanover Insurance Group, Inc. | 9,846 | 1,361,800 |
| The Hartford Financial Services Group, Inc. | 117,254 | 7,734,074 |
| The Progressive Corp. | 73,157 | 7,369,836 |
| The Travelers Cos., Inc. | 139,507 | 21,576,153 |
| Unum Group | 129,691 | 3,665,068 |
| W.R. Berkley Corp. | 28,468 | 2,269,469 |
| Willis Towers Watson plc | 12,039 | 3,116,416 |
| | | 241,251,569 |
| |
| Materials 3.7% |
| Air Products & Chemicals, Inc. | 21,005 | 6,059,522 |
| Albemarle Corp. | 17,954 | 3,019,324 |
| Security | Number
of Shares | Value ($) |
| Alcoa Corp. * | 203,727 | 7,464,557 |
| AptarGroup, Inc. | 8,605 | 1,297,720 |
| Arconic Corp. * | 42,804 | 1,224,194 |
| Ashland Global Holdings, Inc. | 14,800 | 1,275,908 |
| Avery Dennison Corp. | 14,621 | 3,131,380 |
| Axalta Coating Systems Ltd. * | 39,517 | 1,260,197 |
| Ball Corp. | 27,660 | 2,590,082 |
| Berry Global Group, Inc. * | 27,947 | 1,777,988 |
| Celanese Corp. | 29,571 | 4,632,297 |
| CF Industries Holdings, Inc. | 76,336 | 3,712,220 |
| Commercial Metals Co. | 64,032 | 1,871,015 |
| Corteva, Inc. | 97,525 | 4,755,319 |
| Crown Holdings, Inc. | 18,143 | 1,992,101 |
| Domtar Corp. * | 63,921 | 2,519,766 |
| Dow, Inc. | 110,017 | 6,876,063 |
| DuPont de Nemours, Inc. | 253,398 | 19,539,520 |
| Eastman Chemical Co. | 51,424 | 5,933,815 |
| Ecolab, Inc. | 28,372 | 6,358,733 |
| FMC Corp. | 8,175 | 966,612 |
| Freeport-McMoRan, Inc. | 208,175 | 7,850,279 |
| Graphic Packaging Holding Co. | 98,260 | 1,822,723 |
| Huntsman Corp. | 97,637 | 2,799,253 |
| International Flavors & Fragrances, Inc. | 13,473 | 1,915,456 |
| International Paper Co. | 171,283 | 9,934,414 |
| Linde plc | 57,931 | 16,558,997 |
| LyondellBasell Industries N.V., Class A | 146,291 | 15,176,228 |
| Martin Marietta Materials, Inc. | 9,279 | 3,276,601 |
| Newmont Corp. | 62,453 | 3,897,692 |
| Nucor Corp. | 163,040 | 13,411,670 |
| O-I Glass, Inc. * | 144,658 | 2,385,410 |
| Olin Corp. | 97,156 | 4,180,623 |
| Packaging Corp. of America | 23,964 | 3,538,285 |
| PPG Industries, Inc. | 58,036 | 9,938,085 |
| Reliance Steel & Aluminum Co. | 32,836 | 5,263,939 |
| RPM International, Inc. | 19,145 | 1,815,712 |
| Sealed Air Corp. | 55,048 | 2,719,371 |
| Sonoco Products Co. | 29,692 | 1,943,638 |
| Steel Dynamics, Inc. | 99,901 | 5,416,632 |
| The Chemours Co. | 77,956 | 2,354,271 |
| The Mosaic Co. | 250,576 | 8,815,264 |
| The Sherwin-Williams Co. | 18,220 | 4,989,911 |
| United States Steel Corp. | 257,956 | 5,935,568 |
| Vulcan Materials Co. | 15,506 | 2,763,790 |
| WestRock Co. | 151,618 | 8,452,704 |
| | | 235,414,849 |
| |
| Media & Entertainment 4.5% |
| Activision Blizzard, Inc. | 50,115 | 4,569,987 |
| Alphabet, Inc., Class A * | 17,820 | 41,939,370 |
| Alphabet, Inc., Class C * | 17,697 | 42,651,894 |
| Altice USA, Inc., Class A * | 81,667 | 2,965,329 |
| Charter Communications, Inc., Class A * | 19,402 | 13,066,277 |
| Cinemark Holdings, Inc. * | 69,613 | 1,475,796 |
| Comcast Corp., Class A | 922,675 | 51,808,201 |
| Discovery, Inc., Class A * | 36,443 | 1,372,443 |
| Discovery, Inc., Class C * | 80,935 | 2,615,010 |
| DISH Network Corp., Class A * | 64,198 | 2,875,428 |
| Electronic Arts, Inc. | 28,175 | 4,003,104 |
| Facebook, Inc., Class A * | 106,889 | 34,747,476 |
| Fox Corp., Class A | 94,851 | 3,549,324 |
| Fox Corp., Class B | 44,026 | 1,601,666 |
| Liberty Media Corp. - Liberty SiriusXM, Class A * | 39,179 | 1,770,499 |
| Liberty Media Corp. - Liberty SiriusXM, Class C * | 74,457 | 3,367,690 |
| Match Group, Inc. * | 1,774 | 276,088 |
| Netflix, Inc. * | 3,358 | 1,724,232 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| News Corp., Class A | 118,032 | 3,091,848 |
| News Corp., Class B | 37,382 | 908,756 |
| Omnicom Group, Inc. | 66,195 | 5,445,201 |
| The Interpublic Group of Cos., Inc. | 103,461 | 3,284,887 |
| The Walt Disney Co. * | 278,585 | 51,822,382 |
| Twitter, Inc. * | 18,705 | 1,032,890 |
| ViacomCBS, Inc., Class B | 224,169 | 9,195,412 |
| | | 291,161,190 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 5.1% |
| AbbVie, Inc. | 314,461 | 35,062,401 |
| Agilent Technologies, Inc. | 24,934 | 3,332,180 |
| Alexion Pharmaceuticals, Inc. * | 18,041 | 3,043,156 |
| Amgen, Inc. | 112,448 | 26,947,039 |
| Biogen, Inc. * | 30,310 | 8,102,772 |
| Bristol-Myers Squibb Co. | 217,730 | 13,590,707 |
| Eli Lilly & Co. | 59,030 | 10,788,913 |
| Gilead Sciences, Inc. | 477,319 | 30,295,437 |
| ICON plc * | 5,930 | 1,286,514 |
| Illumina, Inc. * | 4,539 | 1,783,101 |
| IQVIA Holdings, Inc. * | 24,541 | 5,759,527 |
| Jazz Pharmaceuticals plc * | 9,440 | 1,551,936 |
| Johnson & Johnson | 395,707 | 64,393,400 |
| Merck & Co., Inc. | 446,366 | 33,254,267 |
| Mettler-Toledo International, Inc. * | 1,707 | 2,241,837 |
| Perrigo Co., plc | 31,367 | 1,305,808 |
| Pfizer, Inc. | 1,402,545 | 54,208,364 |
| Regeneron Pharmaceuticals, Inc. * | 5,005 | 2,408,907 |
| Thermo Fisher Scientific, Inc. | 22,516 | 10,587,699 |
| United Therapeutics Corp. * | 13,033 | 2,626,931 |
| Vertex Pharmaceuticals, Inc. * | 2,615 | 570,593 |
| Viatris, Inc. * | 344,555 | 4,582,581 |
| Waters Corp. * | 8,884 | 2,664,045 |
| Zoetis, Inc. | 19,954 | 3,452,641 |
| | | 323,840,756 |
| |
| Real Estate 2.1% |
| Alexandria Real Estate Equities, Inc. | 6,889 | 1,247,598 |
| American Tower Corp. | 22,376 | 5,700,733 |
| Apartment Income REIT Corp. | 25,837 | 1,166,541 |
| Apple Hospitality REIT, Inc. | 97,919 | 1,552,995 |
| AvalonBay Communities, Inc. | 15,857 | 3,044,544 |
| Boston Properties, Inc. | 30,299 | 3,313,196 |
| Brixmor Property Group, Inc. | 97,735 | 2,183,400 |
| Camden Property Trust | 11,800 | 1,421,664 |
| CBRE Group, Inc., Class A * | 65,183 | 5,553,592 |
| Colony Capital, Inc. * | 439,574 | 3,077,018 |
| Crown Castle International Corp. | 30,853 | 5,833,068 |
| Digital Realty Trust, Inc. | 18,996 | 2,931,273 |
| Diversified Healthcare Trust | 308,013 | 1,359,877 |
| Duke Realty Corp. | 30,751 | 1,430,537 |
| Equinix, Inc. | 4,807 | 3,464,693 |
| Equity Residential | 53,336 | 3,959,131 |
| Essex Property Trust, Inc. | 6,597 | 1,916,560 |
| Extra Space Storage, Inc. | 10,731 | 1,595,592 |
| Healthpeak Properties, Inc. | 80,367 | 2,759,803 |
| Host Hotels & Resorts, Inc. * | 307,304 | 5,580,641 |
| Invitation Homes, Inc. | 36,133 | 1,266,823 |
| Iron Mountain, Inc. | 90,266 | 3,621,472 |
| Jones Lang LaSalle, Inc. * | 18,793 | 3,531,393 |
| Kimco Realty Corp. | 93,513 | 1,963,773 |
| Lamar Advertising Co., Class A | 15,173 | 1,502,734 |
| Mid-America Apartment Communities, Inc. | 12,276 | 1,931,383 |
| Omega Healthcare Investors, Inc. | 30,061 | 1,142,318 |
| Park Hotels & Resorts, Inc. * | 148,082 | 3,303,709 |
| Security | Number
of Shares | Value ($) |
| Prologis, Inc. | 31,962 | 3,724,532 |
| Public Storage | 12,748 | 3,584,228 |
| Realogy Holdings Corp. * | 197,156 | 3,406,856 |
| Realty Income Corp. | 24,458 | 1,691,271 |
| Regency Centers Corp. | 22,401 | 1,426,048 |
| RLJ Lodging Trust | 88,587 | 1,429,794 |
| Service Properties Trust | 173,986 | 2,142,638 |
| Simon Property Group, Inc. | 79,543 | 9,683,565 |
| SL Green Realty Corp. | 30,116 | 2,228,885 |
| The Macerich Co. | 142,217 | 1,961,172 |
| UDR, Inc. | 29,785 | 1,383,513 |
| Ventas, Inc. | 96,207 | 5,335,640 |
| VEREIT, Inc. | 51,163 | 2,447,638 |
| Vornado Realty Trust | 46,092 | 2,108,709 |
| Welltower, Inc. | 84,846 | 6,365,995 |
| Weyerhaeuser Co. | 195,660 | 7,585,738 |
| WP Carey, Inc. | 16,634 | 1,245,720 |
| | | 135,108,003 |
| |
| Retailing 5.9% |
| Advance Auto Parts, Inc. | 16,706 | 3,343,873 |
| Amazon.com, Inc. * | 8,725 | 30,253,239 |
| American Eagle Outfitters, Inc. | 115,960 | 4,008,737 |
| Asbury Automotive Group, Inc. * | 10,066 | 1,999,208 |
| AutoNation, Inc. * | 32,636 | 3,344,537 |
| AutoZone, Inc. * | 2,067 | 3,026,336 |
| Bed Bath & Beyond, Inc. * | 347,587 | 8,800,903 |
| Best Buy Co., Inc. | 76,207 | 8,860,588 |
| Big Lots, Inc. | 30,520 | 2,104,049 |
| Burlington Stores, Inc. * | 5,019 | 1,637,850 |
| CarMax, Inc. * | 37,583 | 5,007,559 |
| Core-Mark Holding Co., Inc. | 61,372 | 2,611,992 |
| Dick's Sporting Goods, Inc. | 39,219 | 3,238,705 |
| Dollar General Corp. | 43,995 | 9,447,926 |
| Dollar Tree, Inc. * | 46,490 | 5,341,701 |
| eBay, Inc. | 154,988 | 8,646,781 |
| Foot Locker, Inc. | 87,950 | 5,187,291 |
| GameStop Corp., Class A * | 298,731 | 51,856,714 |
| Genuine Parts Co. | 41,737 | 5,215,873 |
| Group 1 Automotive, Inc. | 14,731 | 2,418,241 |
| Kohl's Corp. | 282,376 | 16,564,176 |
| L Brands, Inc. * | 119,636 | 7,884,012 |
| Lithia Motors, Inc., Class A | 6,062 | 2,330,112 |
| LKQ Corp. * | 78,496 | 3,666,548 |
| Lowe's Cos., Inc. | 124,015 | 24,337,944 |
| Macy's, Inc. * | 885,946 | 14,688,985 |
| Murphy USA, Inc. | 16,468 | 2,295,639 |
| Nordstrom, Inc. * | 137,728 | 5,051,863 |
| O'Reilly Automotive, Inc. * | 10,650 | 5,888,172 |
| Penske Automotive Group, Inc. | 23,662 | 2,074,921 |
| Qurate Retail, Inc. Class A | 451,815 | 5,376,598 |
| Ross Stores, Inc. | 51,106 | 6,691,820 |
| Signet Jewelers Ltd. * | 81,472 | 4,867,952 |
| Target Corp. | 133,503 | 27,669,832 |
| The Gap, Inc. | 230,878 | 7,642,062 |
| The Home Depot, Inc. | 136,524 | 44,188,723 |
| The ODP Corp. * | 74,187 | 2,999,380 |
| The TJX Cos., Inc. | 230,482 | 16,364,222 |
| Tractor Supply Co. | 20,656 | 3,895,722 |
| Ulta Beauty, Inc. * | 7,493 | 2,467,820 |
| Urban Outfitters, Inc. * | 55,641 | 1,997,512 |
| Williams-Sonoma, Inc. | 17,803 | 3,039,862 |
| | | 378,335,980 |
| |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Semiconductors & Semiconductor Equipment 3.5% |
| Advanced Micro Devices, Inc. * | 8,258 | 674,018 |
| Analog Devices, Inc. | 29,248 | 4,479,624 |
| Applied Materials, Inc. | 135,565 | 17,990,831 |
| Broadcom, Inc. | 33,355 | 15,216,551 |
| Intel Corp. | 1,096,387 | 63,075,144 |
| KLA Corp. | 14,929 | 4,707,860 |
| Lam Research Corp. | 14,272 | 8,855,062 |
| Marvell Technology, Inc. | 34,876 | 1,576,744 |
| Maxim Integrated Products, Inc. | 29,652 | 2,787,288 |
| Microchip Technology, Inc. | 17,969 | 2,700,561 |
| Micron Technology, Inc. * | 253,629 | 21,829,848 |
| NVIDIA Corp. | 13,220 | 7,937,024 |
| NXP Semiconductors N.V. | 43,975 | 8,465,627 |
| ON Semiconductor Corp. * | 73,178 | 2,853,942 |
| Qorvo, Inc. * | 17,563 | 3,304,830 |
| QUALCOMM, Inc. | 206,559 | 28,670,389 |
| Skyworks Solutions, Inc. | 24,850 | 4,506,051 |
| Teradyne, Inc. | 13,854 | 1,732,858 |
| Texas Instruments, Inc. | 120,997 | 21,841,169 |
| Xilinx, Inc. | 24,591 | 3,146,664 |
| | | 226,352,085 |
| |
| Software & Services 5.5% |
| Accenture plc, Class A | 62,001 | 17,978,430 |
| Adobe, Inc. * | 11,766 | 5,981,128 |
| Akamai Technologies, Inc. * | 18,511 | 2,012,146 |
| Alliance Data Systems Corp. | 48,710 | 5,740,473 |
| Amdocs Ltd. | 36,593 | 2,808,147 |
| ANSYS, Inc. * | 3,599 | 1,316,010 |
| Autodesk, Inc. * | 4,398 | 1,283,820 |
| Automatic Data Processing, Inc. | 44,356 | 8,294,128 |
| Broadridge Financial Solutions, Inc. | 12,264 | 1,945,438 |
| Cadence Design Systems, Inc. * | 11,565 | 1,523,920 |
| CDK Global, Inc. | 28,073 | 1,504,432 |
| Check Point Software Technologies Ltd. * | 14,517 | 1,695,731 |
| Citrix Systems, Inc. | 17,548 | 2,173,320 |
| Cognizant Technology Solutions Corp., Class A | 125,902 | 10,122,521 |
| DXC Technology Co. * | 268,648 | 8,841,206 |
| Fidelity National Information Services, Inc. | 35,951 | 5,496,908 |
| Fiserv, Inc. * | 35,357 | 4,247,083 |
| FleetCor Technologies, Inc. * | 6,769 | 1,947,577 |
| Genpact Ltd. | 32,561 | 1,547,624 |
| Global Payments, Inc. | 9,631 | 2,067,102 |
| International Business Machines Corp. | 347,595 | 49,316,779 |
| Intuit, Inc. | 14,028 | 5,781,780 |
| Jack Henry & Associates, Inc. | 7,218 | 1,175,307 |
| Mastercard, Inc., Class A | 37,164 | 14,198,878 |
| MAXIMUS, Inc. | 14,603 | 1,338,219 |
| Microsoft Corp. | 436,928 | 110,184,503 |
| NortonLifeLock, Inc. | 177,576 | 3,837,417 |
| Oracle Corp. | 456,091 | 34,567,137 |
| Paychex, Inc. | 36,551 | 3,563,357 |
| PayPal Holdings, Inc. * | 31,149 | 8,170,071 |
| Sabre Corp. * | 144,718 | 2,167,876 |
| salesforce.com, Inc. * | 12,690 | 2,922,761 |
| SS&C Technologies Holdings, Inc. | 12,973 | 962,856 |
| Synopsys, Inc. * | 6,245 | 1,542,890 |
| Teradata Corp. * | 51,646 | 2,554,928 |
| The Western Union Co. | 117,870 | 3,036,331 |
| VeriSign, Inc. * | 5,243 | 1,147,011 |
| Visa, Inc., Class A | 84,629 | 19,765,949 |
| | | 354,761,194 |
| |
| Security | Number
of Shares | Value ($) |
| Technology Hardware & Equipment 7.0% |
| Amphenol Corp., Class A | 58,700 | 3,952,858 |
| Apple Inc. | 1,888,311 | 248,237,364 |
| Arrow Electronics, Inc. * | 53,080 | 6,054,835 |
| Avnet, Inc. | 179,352 | 7,877,140 |
| CDW Corp. | 21,405 | 3,817,154 |
| Cisco Systems, Inc. | 1,046,268 | 53,265,504 |
| Corning, Inc. | 330,720 | 14,621,131 |
| Dell Technologies, Inc., Class C * | 20,836 | 2,048,804 |
| F5 Networks, Inc. * | 13,320 | 2,487,643 |
| Flex Ltd. * | 254,074 | 4,420,888 |
| FLIR Systems, Inc. | 24,837 | 1,489,475 |
| Hewlett Packard Enterprise Co. | 1,190,465 | 19,071,249 |
| HP, Inc. | 409,428 | 13,965,589 |
| Insight Enterprises, Inc. * | 16,603 | 1,666,443 |
| Jabil, Inc. | 82,972 | 4,349,392 |
| Juniper Networks, Inc. | 169,054 | 4,292,281 |
| Keysight Technologies, Inc. * | 8,319 | 1,200,848 |
| Motorola Solutions, Inc. | 28,776 | 5,418,521 |
| NCR Corp. * | 54,766 | 2,505,544 |
| NetApp, Inc. | 79,555 | 5,941,963 |
| Sanmina Corp. * | 49,094 | 2,004,999 |
| Seagate Technology plc | 103,953 | 9,650,996 |
| SYNNEX Corp. | 15,160 | 1,837,392 |
| TE Connectivity Ltd. | 61,912 | 8,325,307 |
| Trimble, Inc. * | 21,669 | 1,776,858 |
| Western Digital Corp. * | 155,708 | 10,997,656 |
| Xerox Holdings Corp. | 126,062 | 3,043,137 |
| Zebra Technologies Corp., Class A * | 2,605 | 1,270,563 |
| | | 445,591,534 |
| |
| Telecommunication Services 3.1% |
| AT&T, Inc. | 3,043,095 | 95,583,614 |
| Liberty Global plc, Class A * | 86,484 | 2,326,420 |
| Liberty Global plc, Class C * | 197,909 | 5,355,418 |
| Lumen Technologies, Inc. | 1,051,322 | 13,488,461 |
| T-Mobile US, Inc. * | 60,279 | 7,964,664 |
| Telephone & Data Systems, Inc. | 87,698 | 2,015,300 |
| Verizon Communications, Inc. | 1,254,167 | 72,478,311 |
| | | 199,212,188 |
| |
| Transportation 2.4% |
| American Airlines Group, Inc. * | 208,567 | 4,530,075 |
| Avis Budget Group, Inc. * | 83,789 | 7,508,332 |
| C.H. Robinson Worldwide, Inc. | 40,854 | 3,966,106 |
| CSX Corp. | 140,738 | 14,179,353 |
| Delta Air Lines, Inc. * | 99,065 | 4,648,130 |
| Expeditors International of Washington, Inc. | 39,465 | 4,335,625 |
| FedEx Corp. | 81,835 | 23,757,519 |
| JB Hunt Transport Services, Inc. | 16,659 | 2,843,858 |
| Kansas City Southern | 13,136 | 3,838,471 |
| Kirby Corp. * | 20,609 | 1,312,793 |
| Knight-Swift Transportation Holdings, Inc. | 28,600 | 1,347,632 |
| Landstar System, Inc. | 9,340 | 1,609,095 |
| Macquarie Infrastructure Corp. | 38,276 | 1,274,974 |
| Norfolk Southern Corp. | 46,296 | 12,927,695 |
| Old Dominion Freight Line, Inc. | 8,328 | 2,147,042 |
| Ryder System, Inc. | 57,597 | 4,598,544 |
| Southwest Airlines Co. * | 68,237 | 4,283,919 |
| Union Pacific Corp. | 131,597 | 29,226,378 |
| United Airlines Holdings, Inc. * | 66,999 | 3,644,746 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| United Parcel Service, Inc., Class B | 90,335 | 18,415,693 |
| XPO Logistics, Inc. * | 23,472 | 3,265,425 |
| | | 153,661,405 |
| |
| Utilities 3.2% |
| Alliant Energy Corp. | 39,539 | 2,220,906 |
| Ameren Corp. | 49,486 | 4,198,392 |
| American Electric Power Co., Inc. | 111,018 | 9,848,407 |
| American Water Works Co., Inc. | 17,394 | 2,713,290 |
| Atmos Energy Corp. | 18,975 | 1,965,620 |
| CenterPoint Energy, Inc. | 179,405 | 4,393,628 |
| CMS Energy Corp. | 55,604 | 3,580,342 |
| Consolidated Edison, Inc. | 96,170 | 7,444,520 |
| Dominion Energy, Inc. | 131,388 | 10,497,901 |
| DTE Energy Co. | 41,435 | 5,801,729 |
| Duke Energy Corp. | 190,518 | 19,183,257 |
| Edison International | 97,158 | 5,776,043 |
| Entergy Corp. | 46,545 | 5,086,903 |
| Evergy, Inc. | 76,651 | 4,903,364 |
| Eversource Energy | 55,998 | 4,828,148 |
| Exelon Corp. | 368,525 | 16,561,513 |
| FirstEnergy Corp. | 179,532 | 6,807,853 |
| MDU Resources Group, Inc. | 60,974 | 2,040,190 |
| NextEra Energy, Inc. | 192,555 | 14,924,938 |
| NiSource, Inc. | 84,848 | 2,207,745 |
| NRG Energy, Inc. | 47,952 | 1,717,641 |
| OGE Energy Corp. | 49,548 | 1,662,831 |
| PG&E Corp. * | 402,224 | 4,553,176 |
| Pinnacle West Capital Corp. | 31,154 | 2,637,186 |
| Portland General Electric Co. | 26,448 | 1,345,145 |
| PPL Corp. | 237,080 | 6,906,140 |
| Public Service Enterprise Group, Inc. | 121,486 | 7,673,056 |
| Sempra Energy | 45,554 | 6,266,864 |
| Southwest Gas Holdings, Inc. | 15,462 | 1,078,011 |
| The AES Corp. | 263,062 | 7,318,385 |
| Security | Number
of Shares | Value ($) |
| The Southern Co. | 226,065 | 14,958,721 |
| UGI Corp. | 70,321 | 3,073,731 |
| Vistra Corp. | 157,192 | 2,651,829 |
| WEC Energy Group, Inc. | 47,128 | 4,579,428 |
| Xcel Energy, Inc. | 94,267 | 6,721,237 |
| | | 208,128,070 |
| Total Common Stock |
| (Cost $3,328,143,439) | | 6,386,129,261 |
|
| Investment Company 0.7% of net assets |
| |
| Money Market Fund 0.7% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (b) | 46,658,830 | 46,658,830 |
| Total Investment Company |
| (Cost $46,658,830) | | 46,658,830 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
($) |
| Futures Contracts | |
| Long | |
| S&P 500 Index, e-mini, expires 06/18/21 | 146 | 30,473,120 | 77,056 |
| * | Non-income producing security. |
| (a) | Issuer is affiliated with the fund's investment adviser. |
| (b) | The rate shown is the 7-day yield. |
| | |
| REIT — | Real Estate Investment Trust |
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, 2021:
| |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Dividends
Received |
| The Charles Schwab Corp. | $5,308,534 | $439,566 | ($802,884) | $206,158 | $3,552,952 | $8,704,326 | 123,641 | $46,476 |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $6,386,129,261 | $— | $— | $6,386,129,261 | |
| Investment Company1 | 46,658,830 | — | — | 46,658,830 | |
| Futures Contracts2 | 77,056 | — | — | 77,056 | |
| Total | $6,432,865,147 | $— | $— | $6,432,865,147 | |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $3,269,853) | | $8,704,326 |
| Investments in securities, at value - unaffiliated (cost $3,371,532,416) | | 6,424,083,765 |
| Deposit with broker for futures contracts | | 3,663,000 |
| Receivables: | | |
| Fund shares sold | | 7,611,298 |
| Dividends | | 6,273,279 |
| Income from securities on loan | + | 317 |
| Total assets | | 6,450,335,985 |
| Liabilities |
| Payables: | | |
| Investments bought | | 27,154,083 |
| Investment adviser fees | | 1,375,565 |
| Fund shares redeemed | | 5,374,934 |
| Variation margin on futures contracts | + | 195,817 |
| Total liabilities | | 34,100,399 |
| Net Assets |
| Total assets | | 6,450,335,985 |
| Total liabilities | – | 34,100,399 |
| Net assets | | $6,416,235,586 |
| Net Assets by Source | | |
| Capital received from investors | | 3,261,543,456 |
| Total distributable earnings | | 3,154,692,130 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $6,416,235,586 | | 295,371,295 | | $21.72 |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $46,476 |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $6,322) | | 61,380,738 |
| Securities on loan, net | + | 763,926 |
| Total investment income | | 62,191,140 |
| Expenses |
| Investment adviser fees | | 6,968,021 |
| Total expenses | – | 6,968,021 |
| Net investment income | | 55,223,119 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - affiliated | | 206,158 |
| Net realized gains on sales of securities - unaffiliated | | 184,685,531 |
| Net realized gains on futures contracts | + | 7,209,911 |
| Net realized gains | | 192,101,600 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 3,552,952 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 1,615,163,936 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 618,379 |
| Net change in unrealized appreciation (depreciation) | + | 1,619,335,267 |
| Net realized and unrealized gains | | 1,811,436,867 |
| Increase in net assets resulting from operations | | $1,866,659,986 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $55,223,119 | $123,535,000 |
| Net realized gains | | 192,101,600 | 121,884,194 |
| Net change in unrealized appreciation (depreciation) | + | 1,619,335,267 | (397,289,802) |
| Increase (decrease) in net assets from operations | | 1,866,659,986 | (151,870,608) |
| Distributions to Shareholders | |
| Total distributions | | ($308,556,282) | ($280,720,286) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 39,929,130 | $787,697,744 | 65,360,142 | $1,034,311,318 |
| Shares reinvested | | 10,503,858 | 189,909,742 | 9,908,434 | 175,775,620 |
| Shares redeemed | + | (34,390,590) | (666,791,351) | (94,170,173) | (1,467,566,455) |
| Net transactions in fund shares | | 16,042,398 | $310,816,135 | (18,901,597) | ($257,479,517) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 279,328,897 | $4,547,315,747 | 298,230,494 | $5,237,386,158 |
| Total increase (decrease) | + | 16,042,398 | 1,868,919,839 | (18,901,597) | (690,070,411) |
| End of period | | 295,371,295 | $6,416,235,586 | 279,328,897 | $4,547,315,747 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $11.97 | $13.85 | $14.68 | $15.32 | $12.69 | $12.82 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.13 | 0.17 | 0.20 | 0.22 | 0.21 | 0.18 |
| Net realized and unrealized gains (losses) | 6.36 | (1.53) | 0.32 | 0.17 | 2.68 | 0.43 |
| Total from investment operations | 6.49 | (1.36) | 0.52 | 0.39 | 2.89 | 0.61 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.21) | (0.20) | (0.22) | (0.21) | (0.17) | (0.18) |
| Distributions from net realized gains | — | (0.32) | (1.13) | (0.82) | (0.09) | (0.56) |
| Total distributions | (0.21) | (0.52) | (1.35) | (1.03) | (0.26) | (0.74) |
| Net asset value at end of period | $18.25 | $11.97 | $13.85 | $14.68 | $15.32 | $12.69 |
| Total return | 54.66% 2 | (10.42%) | 5.61% | 2.40% | 22.94% | 5.37% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.25% 3 | 0.25% | 0.25% | 0.25% | 0.33% 4 | 0.43% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.30% 4 | 0.35% |
| Net investment income (loss) | 1.65% 3 | 1.43% | 1.50% | 1.42% | 1.43% | 1.50% |
| Portfolio turnover rate | 23% 2 | 28% | 34% | 30% | 27% | 30% |
| Net assets, end of period (x 1,000,000) | $2,079 | $1,394 | $1,908 | $1,782 | $1,727 | $1,361 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective May 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective May 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.4% of net assets |
| |
| Automobiles & Components 1.5% |
| American Axle & Manufacturing Holdings, Inc. * | 445,694 | 4,136,040 |
| Cooper-Standard Holdings, Inc. * | 146,156 | 4,244,370 |
| Dorman Products, Inc. * | 18,062 | 1,791,389 |
| Fox Factory Holding Corp. * | 6,624 | 1,014,996 |
| Gentherm, Inc. * | 27,665 | 1,969,748 |
| LCI Industries | 20,403 | 2,989,039 |
| Modine Manufacturing Co. * | 153,688 | 2,502,041 |
| Patrick Industries, Inc. | 17,751 | 1,590,490 |
| Standard Motor Products, Inc. | 28,639 | 1,226,608 |
| Stoneridge, Inc. * | 29,419 | 978,182 |
| Tenneco, Inc., Class A * | 371,110 | 3,737,078 |
| Veoneer, Inc. * | 115,387 | 2,642,362 |
| Winnebago Industries, Inc. | 21,366 | 1,708,212 |
| | | 30,530,555 |
| |
| Banks 8.5% |
| Ameris Bancorp | 3,481 | 188,287 |
| Associated Banc-Corp. | 142,125 | 3,111,116 |
| Atlantic Union Bankshares Corp. | 31,141 | 1,204,222 |
| Axos Financial, Inc. * | 24,094 | 1,087,844 |
| BancorpSouth Bank | 66,867 | 1,978,595 |
| Bank of Hawaii Corp. | 27,898 | 2,535,649 |
| Bank OZK | 72,956 | 2,990,466 |
| BankUnited, Inc. | 105,086 | 4,898,058 |
| Banner Corp. | 24,709 | 1,404,460 |
| Berkshire Hills Bancorp, Inc. | 45,779 | 1,015,836 |
| BOK Financial Corp. | 21,262 | 1,869,780 |
| Boston Private Financial Holdings, Inc. | 97,927 | 1,441,485 |
| Brookline Bancorp, Inc. | 54,567 | 878,529 |
| Cadence BanCorp | 62,190 | 1,383,728 |
| Capitol Federal Financial, Inc. | 94,479 | 1,221,141 |
| Cathay General Bancorp | 52,574 | 2,128,196 |
| Central Pacific Financial Corp. | 39,521 | 1,065,091 |
| City Holding Co. | 1,810 | 140,094 |
| Columbia Banking System, Inc. | 42,181 | 1,836,139 |
| Commerce Bancshares, Inc. | 37,393 | 2,909,549 |
| Community Bank System, Inc. | 18,434 | 1,431,031 |
| Cullen/Frost Bankers, Inc. | 31,079 | 3,731,345 |
| CVB Financial Corp. | 49,595 | 1,051,910 |
| Eagle Bancorp, Inc. | 17,166 | 916,836 |
| Essent Group Ltd. | 35,458 | 1,864,382 |
| F.N.B. Corp. | 284,877 | 3,672,065 |
| Federal Agricultural Mortgage Corp., Class C | 8,814 | 906,608 |
| First BanCorp | 142,502 | 1,791,250 |
| First Busey Corp. | 6,752 | 168,665 |
| First Citizens BancShares, Inc., Class A | 3,385 | 2,936,352 |
| First Commonwealth Financial Corp. | 73,797 | 1,069,319 |
| First Financial Bancorp | 60,041 | 1,471,605 |
| First Financial Bankshares, Inc. | 25,198 | 1,236,718 |
| First Hawaiian, Inc. | 105,429 | 2,895,080 |
| First Horizon Corp. | 355,341 | 6,499,187 |
| Security | Number
of Shares | Value ($) |
| First Interstate BancSystem, Inc., Class A | 17,812 | 836,630 |
| First Merchants Corp. | 23,075 | 1,066,296 |
| First Midwest Bancorp, Inc. | 71,718 | 1,503,926 |
| Flagstar Bancorp, Inc. | 25,768 | 1,199,243 |
| Fulton Financial Corp. | 156,235 | 2,663,807 |
| Glacier Bancorp, Inc. | 31,525 | 1,858,399 |
| Great Western Bancorp, Inc. | 72,676 | 2,401,942 |
| Hancock Whitney Corp. | 79,765 | 3,688,334 |
| Hanmi Financial Corp. | 7,531 | 152,879 |
| Heartland Financial USA, Inc. | 17,107 | 859,969 |
| Hilltop Holdings, Inc. | 42,703 | 1,503,146 |
| Home BancShares, Inc. | 85,104 | 2,368,444 |
| Hope Bancorp, Inc. | 124,017 | 1,861,495 |
| Independent Bank Corp. | 10,608 | 868,795 |
| Independent Bank Group, Inc. | 2,230 | 168,387 |
| International Bancshares Corp. | 36,840 | 1,745,848 |
| Investors Bancorp, Inc. | 182,296 | 2,668,813 |
| MGIC Investment Corp. | 310,773 | 4,736,181 |
| National Bank Holdings Corp., Class A | 20,597 | 821,820 |
| NBT Bancorp, Inc. | 27,229 | 1,031,707 |
| Northwest Bancshares, Inc. | 86,201 | 1,210,262 |
| OFG Bancorp | 56,266 | 1,332,942 |
| Old National Bancorp | 98,336 | 1,858,550 |
| Pacific Premier Bancorp, Inc. | 3,750 | 165,113 |
| Park National Corp. | 8,353 | 1,044,877 |
| PennyMac Financial Services, Inc. | 3,213 | 193,455 |
| Pinnacle Financial Partners, Inc. | 24,690 | 2,163,832 |
| Prosperity Bancshares, Inc. | 35,100 | 2,574,936 |
| Provident Financial Services, Inc. | 55,466 | 1,307,334 |
| Radian Group, Inc. | 176,485 | 4,348,590 |
| Renasant Corp. | 27,563 | 1,161,229 |
| S&T Bancorp, Inc. | 27,108 | 893,209 |
| Sandy Spring Bancorp, Inc. | 21,923 | 994,427 |
| ServisFirst Bancshares, Inc. | 3,093 | 195,601 |
| Signature Bank | 22,359 | 5,623,512 |
| Simmons First National Corp., Class A | 45,592 | 1,299,372 |
| South State Corp. | 18,695 | 1,576,362 |
| Southside Bancshares, Inc. | 3,831 | 153,815 |
| Sterling Bancorp | 96,575 | 2,426,930 |
| Synovus Financial Corp. | 131,255 | 6,150,609 |
| TCF Financial Corp. | 43,434 | 1,977,116 |
| Texas Capital Bancshares, Inc. * | 32,678 | 2,242,691 |
| The Bank of N.T. Butterfield & Son Ltd. | 35,547 | 1,394,153 |
| Tompkins Financial Corp. | 1,811 | 141,530 |
| Towne Bank | 34,876 | 1,080,458 |
| Trustmark Corp. | 50,989 | 1,652,553 |
| UMB Financial Corp. | 21,743 | 2,109,723 |
| Umpqua Holdings Corp. | 218,182 | 4,066,912 |
| United Bankshares, Inc. | 60,548 | 2,377,720 |
| United Community Banks, Inc. | 39,650 | 1,297,348 |
| Valley National Bancorp | 200,181 | 2,756,492 |
| Walker & Dunlop, Inc. | 22,914 | 2,540,017 |
| Washington Federal, Inc. | 82,154 | 2,674,113 |
| Webster Financial Corp. | 66,231 | 3,504,282 |
| WesBanco, Inc. | 34,608 | 1,255,924 |
| Westamerica Bancorp | 10,176 | 645,158 |
| Western Alliance Bancorp | 30,469 | 3,201,378 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Wintrust Financial Corp. | 36,635 | 2,824,559 |
| WSFS Financial Corp. | 18,049 | 922,123 |
| | | 176,275,886 |
| |
| Capital Goods 12.5% |
| AAON, Inc. | 11,939 | 780,930 |
| AAR Corp. * | 79,518 | 3,199,804 |
| Advanced Drainage Systems, Inc. | 9,694 | 1,082,432 |
| Aegion Corp. * | 65,605 | 1,974,711 |
| Aerojet Rocketdyne Holdings, Inc. | 23,331 | 1,090,024 |
| Air Lease Corp. | 86,149 | 4,024,020 |
| Alamo Group, Inc. | 8,121 | 1,277,027 |
| Albany International Corp., Class A | 17,832 | 1,591,328 |
| Altra Industrial Motion Corp. | 26,162 | 1,543,820 |
| American Woodmark Corp. * | 14,325 | 1,424,765 |
| API Group Corp. * | 16,680 | 354,617 |
| Apogee Enterprises, Inc. | 57,947 | 2,035,678 |
| Applied Industrial Technologies, Inc. | 40,107 | 3,836,636 |
| Arcosa, Inc. | 55,421 | 3,341,332 |
| Argan, Inc. | 19,644 | 985,147 |
| Armstrong World Industries, Inc. | 24,566 | 2,546,266 |
| Astec Industries, Inc. | 25,636 | 1,922,956 |
| Astronics Corp. * | 53,219 | 926,543 |
| Atkore, Inc. * | 35,283 | 2,761,953 |
| AZZ, Inc. | 32,273 | 1,698,851 |
| Barnes Group, Inc. | 50,170 | 2,504,486 |
| Beacon Roofing Supply, Inc. * | 85,234 | 4,801,231 |
| Boise Cascade Co. | 73,978 | 4,935,812 |
| Builders FirstSource, Inc. * | 149,577 | 7,279,913 |
| BWX Technologies, Inc. | 41,913 | 2,804,818 |
| CAI International, Inc. | 23,453 | 997,925 |
| Chart Industries, Inc. * | 12,794 | 2,055,100 |
| CIRCOR International, Inc. * | 26,001 | 893,654 |
| Colfax Corp. * | 89,092 | 4,026,067 |
| Columbus McKinnon Corp. | 18,410 | 911,479 |
| Comfort Systems USA, Inc. | 34,987 | 2,881,529 |
| Crane Co. | 45,659 | 4,294,686 |
| CSW Industrials, Inc. | 1,147 | 155,315 |
| Cubic Corp. | 24,877 | 1,861,795 |
| Douglas Dynamics, Inc. | 17,014 | 761,036 |
| Dycom Industries, Inc. * | 47,158 | 4,423,892 |
| Encore Wire Corp. | 29,507 | 2,203,583 |
| Enerpac Tool Group Corp. | 58,360 | 1,552,376 |
| EnerSys | 41,449 | 3,795,899 |
| EnPro Industries, Inc. | 21,805 | 1,867,598 |
| ESCO Technologies, Inc. | 9,956 | 1,082,815 |
| Evoqua Water Technologies Corp. * | 5,994 | 171,309 |
| Federal Signal Corp. | 35,311 | 1,462,935 |
| Franklin Electric Co., Inc. | 26,349 | 2,141,383 |
| Generac Holdings, Inc. * | 10,887 | 3,526,844 |
| Gibraltar Industries, Inc. * | 16,353 | 1,502,187 |
| GMS, Inc. * | 56,560 | 2,472,238 |
| GrafTech International Ltd. | 10,505 | 133,624 |
| Granite Construction, Inc. | 120,952 | 4,608,271 |
| Great Lakes Dredge & Dock Corp. * | 9,085 | 142,635 |
| Griffon Corp. | 56,663 | 1,536,701 |
| H&E Equipment Services, Inc. | 66,430 | 2,584,127 |
| HEICO Corp. | 6,935 | 976,448 |
| HEICO Corp., Class A | 12,478 | 1,575,722 |
| Helios Technologies, Inc. | 2,412 | 174,339 |
| Herc Holdings, Inc. * | 34,441 | 3,636,970 |
| Hillenbrand, Inc. | 61,903 | 3,038,818 |
| Hyster-Yale Materials Handling, Inc. | 20,647 | 1,669,310 |
| Ingersoll Rand, Inc. * | 39,433 | 1,948,385 |
| JELD-WEN Holding, Inc. * | 80,814 | 2,357,344 |
| John Bean Technologies Corp. | 11,508 | 1,673,033 |
| Kadant, Inc. | 5,097 | 907,419 |
| Security | Number
of Shares | Value ($) |
| Kaman Corp. | 34,605 | 1,846,177 |
| Kennametal, Inc. | 71,919 | 2,888,267 |
| Kratos Defense & Security Solutions, Inc. * | 4,186 | 111,934 |
| Lindsay Corp. | 8,089 | 1,340,994 |
| Masonite International Corp. * | 24,337 | 3,073,520 |
| Matrix Service Co. * | 102,302 | 1,351,409 |
| Maxar Technologies, Inc. | 45,870 | 1,780,215 |
| McGrath RentCorp | 17,177 | 1,408,170 |
| Mercury Systems, Inc. * | 2,436 | 183,285 |
| Meritor, Inc. * | 71,635 | 1,936,294 |
| Moog, Inc., Class A | 47,043 | 4,071,572 |
| MRC Global, Inc. * | 298,453 | 2,811,427 |
| Mueller Industries, Inc. | 82,016 | 3,680,058 |
| Mueller Water Products, Inc., Class A | 118,325 | 1,699,147 |
| MYR Group, Inc. * | 29,079 | 2,265,254 |
| National Presto Industries, Inc. | 6,976 | 717,691 |
| Navistar International Corp. * | 26,565 | 1,175,501 |
| NOW, Inc. * | 354,546 | 3,481,642 |
| Parsons Corp. * | 3,684 | 163,312 |
| PGT Innovations, Inc. * | 6,937 | 182,651 |
| Primoris Services Corp. | 81,218 | 2,652,580 |
| Proto Labs, Inc. * | 5,045 | 565,343 |
| Quanex Building Products Corp. | 54,653 | 1,491,480 |
| Raven Industries, Inc. | 29,030 | 1,179,199 |
| RBC Bearings, Inc. * | 7,710 | 1,537,605 |
| Resideo Technologies, Inc. * | 290,626 | 8,721,686 |
| Rexnord Corp. | 55,511 | 2,771,664 |
| Rush Enterprises, Inc., Class A | 90,513 | 4,467,722 |
| Simpson Manufacturing Co., Inc. | 21,578 | 2,431,841 |
| SiteOne Landscape Supply, Inc. * | 7,830 | 1,404,545 |
| SPX Corp. * | 33,490 | 2,031,503 |
| SPX FLOW, Inc. | 32,131 | 2,139,603 |
| Standex International Corp. | 13,084 | 1,240,625 |
| Tennant Co. | 12,514 | 987,480 |
| Terex Corp. | 130,668 | 6,140,089 |
| Textainer Group Holdings Ltd. * | 67,568 | 1,731,092 |
| The Greenbrier Cos., Inc. | 102,160 | 4,826,038 |
| The Manitowoc Co., Inc. * | 61,915 | 1,416,615 |
| The Middleby Corp. * | 31,156 | 5,649,206 |
| The Timken Co. | 63,835 | 5,353,841 |
| Trex Co., Inc. * | 15,530 | 1,677,085 |
| TriMas Corp. * | 33,741 | 1,074,313 |
| Trinity Industries, Inc. | 164,735 | 4,553,275 |
| Triton International Ltd. | 52,432 | 2,630,513 |
| Tutor Perini Corp. * | 201,816 | 3,249,238 |
| Valmont Industries, Inc. | 25,244 | 6,231,481 |
| Vectrus, Inc. * | 15,594 | 816,346 |
| Wabash National Corp. | 151,289 | 2,664,199 |
| Watts Water Technologies, Inc., Class A | 15,437 | 1,922,678 |
| Welbilt, Inc. * | 111,183 | 2,483,828 |
| Woodward, Inc. | 31,377 | 3,922,439 |
| | | 258,863,563 |
| |
| Commercial & Professional Services 4.9% |
| ACCO Brands Corp. | 205,025 | 1,759,115 |
| ADT, Inc. | 121,947 | 1,121,912 |
| ASGN, Inc. * | 34,716 | 3,651,429 |
| Brady Corp., Class A | 33,723 | 1,840,264 |
| BrightView Holdings, Inc. * | 12,422 | 222,726 |
| CBIZ, Inc. * | 34,211 | 1,149,148 |
| Cimpress plc * | 9,667 | 920,878 |
| Clean Harbors, Inc. * | 43,444 | 3,864,778 |
| CoreLogic, Inc. | 40,791 | 3,251,043 |
| CoStar Group, Inc. * | 2,287 | 1,954,081 |
| Covanta Holding Corp. | 186,497 | 2,804,915 |
| Deluxe Corp. | 117,966 | 5,192,863 |
| Exponent, Inc. | 10,135 | 976,305 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| FTI Consulting, Inc. * | 21,544 | 2,991,384 |
| Harsco Corp. * | 99,932 | 1,791,781 |
| Healthcare Services Group, Inc. | 88,044 | 2,636,918 |
| Heidrick & Struggles International, Inc. | 3,698 | 156,425 |
| Herman Miller, Inc. | 87,027 | 3,611,621 |
| HNI Corp. | 73,310 | 3,103,945 |
| Huron Consulting Group, Inc. * | 17,732 | 997,602 |
| IAA, Inc. * | 33,970 | 2,133,656 |
| ICF International, Inc. | 17,333 | 1,578,343 |
| Insperity, Inc. | 17,412 | 1,524,246 |
| Interface, Inc. | 129,674 | 1,665,014 |
| KAR Auction Services, Inc. * | 138,058 | 2,069,489 |
| Kforce, Inc. | 31,784 | 1,781,175 |
| Knoll, Inc. | 89,399 | 2,136,636 |
| Korn Ferry | 53,771 | 3,650,513 |
| ManTech International Corp., Class A | 21,472 | 1,832,635 |
| Matthews International Corp., Class A | 54,609 | 2,259,720 |
| MSA Safety, Inc. | 10,203 | 1,640,234 |
| Pitney Bowes, Inc. | 806,771 | 6,026,579 |
| Resources Connection, Inc. | 77,641 | 1,095,515 |
| Rollins, Inc. | 43,024 | 1,603,935 |
| SP Plus Corp. * | 44,551 | 1,529,436 |
| Steelcase, Inc., Class A | 192,995 | 2,663,331 |
| Stericycle, Inc. * | 48,884 | 3,728,872 |
| Tetra Tech, Inc. | 25,039 | 3,195,728 |
| The Brink's Co. | 28,444 | 2,273,245 |
| TransUnion | 34,103 | 3,566,833 |
| TriNet Group, Inc. * | 12,419 | 977,500 |
| TrueBlue, Inc. * | 124,705 | 3,529,152 |
| U.S. Ecology, Inc. * | 18,200 | 772,772 |
| UniFirst Corp. | 11,206 | 2,512,273 |
| Viad Corp. * | 50,530 | 2,105,080 |
| | | 101,851,045 |
| |
| Consumer Durables & Apparel 4.3% |
| Acushnet Holdings Corp. | 23,602 | 998,601 |
| Beazer Homes USA, Inc. * | 69,992 | 1,561,522 |
| Callaway Golf Co. | 60,819 | 1,760,710 |
| Cavco Industries, Inc. * | 4,759 | 996,677 |
| Century Communities, Inc. * | 19,677 | 1,454,917 |
| Columbia Sportswear Co. | 21,420 | 2,334,994 |
| Crocs, Inc. * | 18,389 | 1,841,107 |
| Deckers Outdoor Corp. * | 14,694 | 4,969,511 |
| Ethan Allen Interiors, Inc. | 70,550 | 2,025,490 |
| Fossil Group, Inc. * | 429,529 | 5,540,924 |
| G-III Apparel Group Ltd. * | 160,455 | 5,213,183 |
| Helen of Troy Ltd. * | 13,416 | 2,833,593 |
| Installed Building Products, Inc. | 1,402 | 188,779 |
| iRobot Corp. * | 14,287 | 1,554,426 |
| KB Home | 70,996 | 3,424,137 |
| Kontoor Brands, Inc. | 115,628 | 7,264,907 |
| La-Z-Boy, Inc. | 65,854 | 2,927,869 |
| LGI Homes, Inc. * | 8,925 | 1,479,587 |
| M.D.C. Holdings, Inc. | 51,082 | 2,996,470 |
| M/I Homes, Inc. * | 32,688 | 2,279,007 |
| Meritage Homes Corp. * | 33,443 | 3,558,001 |
| Movado Group, Inc. | 48,888 | 1,533,617 |
| Oxford Industries, Inc. | 26,774 | 2,442,592 |
| Skyline Champion Corp. * | 3,037 | 134,934 |
| Smith & Wesson Brands, Inc. | 63,432 | 1,103,717 |
| Steven Madden Ltd. | 104,618 | 4,254,814 |
| Sturm, Ruger & Co., Inc. | 18,670 | 1,212,430 |
| Tempur Sealy International, Inc. | 88,880 | 3,389,883 |
| TopBuild Corp. * | 12,764 | 2,838,458 |
| Tupperware Brands Corp. * | 257,552 | 6,276,542 |
| Universal Electronics, Inc. * | 14,859 | 844,734 |
| Security | Number
of Shares | Value ($) |
| Vista Outdoor, Inc. * | 106,785 | 3,482,259 |
| Wolverine World Wide, Inc. | 102,775 | 4,287,773 |
| | | 89,006,165 |
| |
| Consumer Services 5.6% |
| Adtalem Global Education, Inc. * | 75,881 | 2,603,477 |
| American Public Education, Inc. * | 20,390 | 621,079 |
| Arcos Dorados Holdings, Inc., Class A * | 251,319 | 1,440,058 |
| Bally's Corp. * | 2,347 | 136,032 |
| BJ's Restaurants, Inc. * | 45,558 | 2,778,582 |
| Bloomin' Brands, Inc. * | 176,528 | 5,578,285 |
| Boyd Gaming Corp. * | 64,881 | 4,291,878 |
| Bright Horizons Family Solutions, Inc. * | 17,511 | 2,536,118 |
| Brinker International, Inc. * | 80,603 | 5,410,879 |
| Caesars Entertainment, Inc. * | 62,000 | 6,066,080 |
| Choice Hotels International, Inc. * | 10,339 | 1,176,578 |
| Churchill Downs, Inc. | 13,798 | 2,918,277 |
| Dave & Buster's Entertainment, Inc. * | 80,844 | 3,691,337 |
| Denny's Corp. * | 59,377 | 1,124,600 |
| Dine Brands Global, Inc. * | 17,266 | 1,668,759 |
| Everi Holdings, Inc. * | 227,188 | 4,016,684 |
| frontdoor, Inc. * | 19,364 | 1,036,555 |
| Graham Holdings Co., Class B | 6,824 | 4,337,403 |
| Grand Canyon Education, Inc. * | 20,559 | 2,226,334 |
| Hilton Grand Vacations, Inc. * | 81,936 | 3,651,068 |
| Houghton Mifflin Harcourt Co. * | 561,316 | 5,096,749 |
| Hyatt Hotels Corp., Class A * | 48,654 | 4,005,684 |
| International Game Technology plc * | 249,532 | 4,296,941 |
| Jack in the Box, Inc. | 39,118 | 4,719,587 |
| Laureate Education, Inc., Class A * | 151,602 | 2,084,528 |
| Papa John's International, Inc. | 12,502 | 1,209,193 |
| Penn National Gaming, Inc. * | 49,433 | 4,405,469 |
| Perdoceo Education Corp. * | 51,255 | 597,633 |
| Planet Fitness, Inc., Class A * | 12,445 | 1,045,256 |
| Red Robin Gourmet Burgers, Inc. * | 82,461 | 2,998,282 |
| Red Rock Resorts, Inc., Class A * | 65,936 | 2,415,236 |
| Regis Corp. * | 111,616 | 1,444,311 |
| Ruth's Hospitality Group, Inc. * | 49,687 | 1,297,328 |
| Scientific Games Corp., Class A * | 56,132 | 3,284,845 |
| SeaWorld Entertainment, Inc. * | 40,821 | 2,235,358 |
| Strategic Education, Inc. | 8,282 | 621,647 |
| Stride, Inc. * | 49,688 | 1,422,567 |
| Terminix Global Holdings, Inc. * | 47,921 | 2,438,700 |
| Texas Roadhouse, Inc. | 42,648 | 4,564,189 |
| The Cheesecake Factory, Inc. * | 94,316 | 5,903,238 |
| WW International, Inc. * | 29,062 | 806,180 |
| Wyndham Hotels & Resorts, Inc. | 41,755 | 3,052,708 |
| | | 117,255,692 |
| |
| Diversified Financials 4.1% |
| Apollo Commercial Real Estate Finance, Inc. | 108,823 | 1,655,198 |
| Apollo Global Management, Inc. | 10,552 | 584,264 |
| Arbor Realty Trust, Inc. | 10,307 | 182,228 |
| Ares Management Corp., Class A | 2,874 | 150,943 |
| Artisan Partners Asset Management, Inc., Class A | 34,470 | 1,755,212 |
| BGC Partners, Inc., Class A | 343,797 | 1,822,124 |
| Blackstone Mortgage Trust, Inc., Class A | 71,862 | 2,334,796 |
| Blucora, Inc. * | 9,034 | 130,044 |
| Brightsphere Investment Group, Inc. | 59,571 | 1,340,943 |
| Cannae Holdings, Inc. * | 43,623 | 1,731,833 |
| Capstead Mortgage Corp. | 152,551 | 988,531 |
| Chimera Investment Corp. | 362,737 | 4,766,364 |
| Cohen & Steers, Inc. | 10,921 | 742,846 |
| Colony Credit Real Estate, Inc. | 15,732 | 136,711 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Compass Diversified Holdings | 75,153 | 1,911,892 |
| Credit Acceptance Corp. * | 5,032 | 1,986,583 |
| Donnelley Financial Solutions, Inc. * | 66,054 | 2,018,610 |
| Encore Capital Group, Inc. * | 23,420 | 921,343 |
| Enova International, Inc. * | 48,575 | 1,663,208 |
| FactSet Research Systems, Inc. | 7,699 | 2,588,558 |
| Federated Hermes, Inc. | 104,770 | 3,017,376 |
| FirstCash, Inc. | 31,638 | 2,278,885 |
| Green Dot Corp., Class A * | 19,810 | 906,506 |
| Houlihan Lokey, Inc. | 17,550 | 1,163,039 |
| Interactive Brokers Group, Inc., Class A | 2,092 | 149,620 |
| Invesco Mortgage Capital, Inc. | 425,529 | 1,659,563 |
| Ladder Capital Corp. REIT | 142,010 | 1,688,499 |
| MarketAxess Holdings, Inc. | 2,873 | 1,403,346 |
| MFA Financial, Inc. | 686,067 | 3,018,695 |
| Moelis & Co., Class A | 31,482 | 1,708,843 |
| Morningstar, Inc. | 5,755 | 1,525,133 |
| Nelnet, Inc., Class A | 17,747 | 1,317,360 |
| New York Mortgage Trust, Inc. | 318,815 | 1,463,361 |
| PennyMac Mortgage Investment Trust | 85,889 | 1,722,074 |
| Piper Sandler Cos. | 10,056 | 1,166,395 |
| PRA Group, Inc. * | 35,166 | 1,325,055 |
| Redwood Trust, Inc. | 150,914 | 1,676,655 |
| Santander Consumer USA Holdings, Inc. | 198,949 | 6,752,329 |
| SLM Corp. | 272,391 | 5,355,207 |
| Stifel Financial Corp. | 46,916 | 3,246,118 |
| The Carlyle Group, Inc. | 8,340 | 355,784 |
| TPG RE Finance Trust, Inc. | 13,731 | 171,088 |
| Tradeweb Markets, Inc., Class A | 2,580 | 209,702 |
| Two Harbors Investment Corp. | 319,789 | 2,494,354 |
| Virtu Financial, Inc., Class A | 4,647 | 137,691 |
| Virtus Investment Partners, Inc. | 4,582 | 1,252,994 |
| Waddell & Reed Financial, Inc., Class A | 203,794 | 5,090,774 |
| WisdomTree Investments, Inc. | 169,410 | 1,149,447 |
| World Acceptance Corp. * | 11,912 | 1,557,375 |
| | | 84,375,499 |
| |
| Energy 4.9% |
| Alto Ingredients, Inc. * | 208,904 | 1,161,506 |
| Arch Resources, Inc. * | 69,677 | 3,094,356 |
| Archrock, Inc. | 161,272 | 1,506,280 |
| Callon Petroleum Co. * | 78,289 | 2,927,226 |
| Centennial Resource Development, Inc., Class A * | 819,422 | 3,474,349 |
| ChampionX Corp. * | 133,397 | 2,802,671 |
| Cimarex Energy Co. | 72,425 | 4,794,535 |
| CNX Resources Corp. * | 272,567 | 3,657,849 |
| CONSOL Energy, Inc. * | 256,691 | 2,253,747 |
| Continental Resources, Inc. * | 103,152 | 2,809,860 |
| Core Laboratories N.V. | 61,172 | 1,723,827 |
| CVR Energy, Inc. | 88,725 | 1,888,955 |
| Denbury, Inc. * | 101,085 | 5,500,035 |
| DHT Holdings, Inc. | 31,762 | 187,396 |
| Diamond S Shipping, Inc. * | 16,048 | 158,073 |
| Dril-Quip, Inc. * | 49,388 | 1,513,742 |
| EQT Corp. * | 156,387 | 2,986,992 |
| Equitrans Midstream Corp. | 254,587 | 2,077,430 |
| GasLog Ltd. | 175,467 | 1,019,463 |
| Golar LNG Ltd. * | 32,074 | 368,210 |
| Green Plains, Inc. * | 164,107 | 4,890,389 |
| Helix Energy Solutions Group, Inc. * | 253,939 | 1,089,398 |
| International Seaways, Inc. | 39,132 | 691,854 |
| Kosmos Energy Ltd. * | 633,694 | 1,812,365 |
| Liberty Oilfield Services, Inc., Class A * | 81,517 | 953,749 |
| Magnolia Oil & Gas Corp., Class A * | 99,088 | 1,115,731 |
| Matador Resources Co. | 65,320 | 1,718,569 |
| NexTier Oilfield Solutions, Inc. * | 257,655 | 924,981 |
| Security | Number
of Shares | Value ($) |
| Nordic American Tankers Ltd. (a) | 240,584 | 796,333 |
| Oceaneering International, Inc. * | 610,100 | 6,558,575 |
| Oil States International, Inc. * | 411,785 | 2,310,114 |
| Par Pacific Holdings, Inc. * | 92,630 | 1,407,050 |
| PDC Energy, Inc. * | 106,556 | 3,890,360 |
| ProPetro Holding Corp. * | 142,898 | 1,376,108 |
| Range Resources Corp. * | 287,713 | 2,825,342 |
| Renewable Energy Group, Inc. * | 43,208 | 2,398,908 |
| Scorpio Tankers, Inc. | 74,439 | 1,350,323 |
| SFL Corp., Ltd. | 149,059 | 1,156,698 |
| SM Energy Co. | 883,879 | 13,965,288 |
| Southwestern Energy Co. * | 331,349 | 1,414,860 |
| Teekay Tankers Ltd., Class A * | 54,613 | 732,360 |
| US Silica Holdings, Inc. * | 252,140 | 2,685,291 |
| | | 101,971,148 |
| |
| Food & Staples Retailing 0.6% |
| BJ's Wholesale Club Holdings, Inc. * | 28,836 | 1,288,104 |
| Grocery Outlet Holding Corp. * | 6,032 | 243,632 |
| Ingles Markets, Inc., Class A | 43,064 | 2,639,393 |
| PriceSmart, Inc. | 32,604 | 2,740,040 |
| The Andersons, Inc. | 121,618 | 3,492,869 |
| The Chefs' Warehouse, Inc. * | 35,967 | 1,159,216 |
| Weis Markets, Inc. | 25,242 | 1,308,798 |
| | | 12,872,052 |
| |
| Food, Beverage & Tobacco 2.0% |
| B&G Foods, Inc. (a) | 76,646 | 2,236,530 |
| Brown-Forman Corp., Class B | 67,972 | 5,184,904 |
| Cal-Maine Foods, Inc. | 42,944 | 1,604,388 |
| Calavo Growers, Inc. | 16,326 | 1,275,550 |
| Coca-Cola Consolidated, Inc. | 2,689 | 788,549 |
| Fresh Del Monte Produce, Inc. | 120,746 | 3,405,037 |
| Hostess Brands, Inc. * | 57,473 | 878,762 |
| J&J Snack Foods Corp. | 10,586 | 1,742,562 |
| John B. Sanfilippo & Son, Inc. | 10,204 | 896,932 |
| Lamb Weston Holdings, Inc. | 40,513 | 3,261,297 |
| Lancaster Colony Corp. | 10,311 | 1,904,545 |
| Nomad Foods Ltd. * | 82,859 | 2,416,168 |
| Pilgrim's Pride Corp. * | 103,439 | 2,478,399 |
| The Boston Beer Co., Inc., Class A * | 1,779 | 2,164,136 |
| The Hain Celestial Group, Inc. * | 58,990 | 2,419,180 |
| TreeHouse Foods, Inc. * | 73,314 | 3,489,746 |
| Universal Corp. | 66,942 | 3,764,149 |
| Vector Group Ltd. | 143,048 | 1,866,776 |
| | | 41,777,610 |
| |
| Health Care Equipment & Services 4.3% |
| ABIOMED, Inc. * | 3,872 | 1,241,867 |
| Acadia Healthcare Co., Inc. * | 65,457 | 3,987,640 |
| Addus HomeCare Corp. * | 1,124 | 118,919 |
| Allscripts Healthcare Solutions, Inc. * | 133,623 | 2,079,174 |
| Amedisys, Inc. * | 6,383 | 1,722,452 |
| AMN Healthcare Services, Inc. * | 31,492 | 2,497,316 |
| Avanos Medical, Inc. * | 23,063 | 996,552 |
| Brookdale Senior Living, Inc. * | 586,354 | 3,834,755 |
| Cantel Medical Corp. * | 18,864 | 1,658,334 |
| Change Healthcare, Inc. * | 21,049 | 483,074 |
| Chemed Corp. | 5,594 | 2,666,156 |
| Community Health Systems, Inc. * | 394,731 | 4,401,251 |
| CONMED Corp. | 10,451 | 1,473,068 |
| Covetrus, Inc. * | 134,945 | 3,866,174 |
| Globus Medical, Inc., Class A * | 18,593 | 1,334,420 |
| Haemonetics Corp. * | 13,106 | 881,510 |
| Hill-Rom Holdings, Inc. | 28,068 | 3,093,655 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| ICU Medical, Inc. * | 5,496 | 1,144,652 |
| IDEXX Laboratories, Inc. * | 4,681 | 2,569,822 |
| Integer Holdings Corp. * | 15,163 | 1,423,502 |
| Integra LifeSciences Holdings Corp. * | 17,321 | 1,283,140 |
| LHC Group, Inc. * | 6,547 | 1,363,544 |
| LivaNova plc * | 15,648 | 1,328,046 |
| Masimo Corp. * | 6,998 | 1,628,225 |
| MEDNAX, Inc. * | 263,612 | 6,938,268 |
| Merit Medical Systems, Inc. * | 16,018 | 1,018,745 |
| ModivCare, Inc. * | 10,761 | 1,507,401 |
| National HealthCare Corp. | 16,447 | 1,156,389 |
| Natus Medical, Inc. * | 5,088 | 129,998 |
| Neogen Corp. * | 9,435 | 905,854 |
| NextGen Healthcare, Inc. * | 46,617 | 853,557 |
| NuVasive, Inc. * | 23,897 | 1,707,441 |
| Omnicell, Inc. * | 9,016 | 1,307,500 |
| Orthofix Medical, Inc. * | 12,465 | 552,823 |
| Owens & Minor, Inc. | 238,724 | 8,615,549 |
| Premier, Inc., Class A | 46,278 | 1,635,927 |
| Select Medical Holdings Corp. * | 104,162 | 3,928,991 |
| Teleflex, Inc. | 8,517 | 3,598,262 |
| The Ensign Group, Inc. | 21,779 | 1,869,727 |
| Triple-S Management Corp., Class B * | 69,345 | 1,644,170 |
| U.S. Physical Therapy, Inc. | 933 | 104,916 |
| Varex Imaging Corp. * | 48,208 | 1,144,458 |
| Veeva Systems, Inc., Class A * | 3,924 | 1,108,334 |
| West Pharmaceutical Services, Inc. | 10,692 | 3,512,536 |
| | | 90,318,094 |
| |
| Household & Personal Products 1.0% |
| Central Garden & Pet Co. * | 7,000 | 378,980 |
| Central Garden & Pet Co., Class A * | 28,789 | 1,418,434 |
| Coty, Inc., Class A * | 583,208 | 5,837,912 |
| Edgewell Personal Care Co. | 93,104 | 3,556,573 |
| Energizer Holdings, Inc. | 30,026 | 1,480,282 |
| Herbalife Nutrition Ltd. * | 59,932 | 2,743,088 |
| Inter Parfums, Inc. | 1,763 | 129,757 |
| Medifast, Inc. | 3,918 | 889,738 |
| Spectrum Brands Holdings, Inc. | 34,734 | 3,061,455 |
| USANA Health Sciences, Inc. * | 14,004 | 1,260,220 |
| WD-40 Co. | 3,676 | 914,368 |
| | | 21,670,807 |
| |
| Insurance 2.2% |
| Ambac Financial Group, Inc. * | 67,878 | 1,164,108 |
| American Equity Investment Life Holding Co. | 127,589 | 3,952,707 |
| American National Group, Inc. | 8,674 | 983,198 |
| AMERISAFE, Inc. | 15,343 | 952,493 |
| Argo Group International Holdings Ltd. | 37,692 | 1,966,769 |
| Brighthouse Financial, Inc. * | 57,095 | 2,671,475 |
| CNA Financial Corp. | 36,722 | 1,723,363 |
| Employers Holdings, Inc. | 28,387 | 1,149,106 |
| Enstar Group Ltd. * | 4,405 | 1,106,448 |
| Horace Mann Educators Corp. | 24,774 | 993,437 |
| James River Group Holdings Ltd. | 26,555 | 1,251,006 |
| Kemper Corp. | 33,372 | 2,605,018 |
| MBIA, Inc. * | 202,367 | 2,027,717 |
| Mercury General Corp. | 30,365 | 1,890,829 |
| ProAssurance Corp. | 169,401 | 4,235,025 |
| RenaissanceRe Holdings Ltd. | 20,826 | 3,515,637 |
| RLI Corp. | 14,687 | 1,637,013 |
| Safety Insurance Group, Inc. | 12,709 | 1,042,519 |
| Selective Insurance Group, Inc. | 33,487 | 2,549,700 |
| SiriusPoint Ltd. * | 14,701 | 155,537 |
| Stewart Information Services Corp. | 41,324 | 2,423,653 |
| Security | Number
of Shares | Value ($) |
| United Fire Group, Inc. | 27,901 | 844,284 |
| Universal Insurance Holdings, Inc. | 60,026 | 837,363 |
| White Mountains Insurance Group Ltd. | 3,193 | 3,721,218 |
| | | 45,399,623 |
| |
| Materials 6.6% |
| AdvanSix, Inc. * | 77,965 | 2,267,222 |
| Allegheny Technologies, Inc. * | 203,452 | 4,732,294 |
| Avient Corp. | 90,750 | 4,607,378 |
| Balchem Corp. | 10,320 | 1,312,601 |
| Cabot Corp. | 73,966 | 4,059,254 |
| Carpenter Technology Corp. | 100,331 | 3,799,535 |
| Century Aluminum Co. * | 95,632 | 1,497,597 |
| Clearwater Paper Corp. * | 41,415 | 1,385,746 |
| Cleveland-Cliffs, Inc. * | 427,203 | 7,629,846 |
| Compass Minerals International, Inc. | 35,694 | 2,424,336 |
| Constellium SE * | 106,898 | 1,657,988 |
| Eagle Materials, Inc. * | 31,229 | 4,313,974 |
| Element Solutions, Inc. | 115,928 | 2,536,505 |
| Ferro Corp. * | 63,551 | 1,058,760 |
| GCP Applied Technologies, Inc. * | 46,281 | 1,188,959 |
| Glatfelter Corp. | 68,951 | 1,014,959 |
| Greif, Inc., Class A | 43,922 | 2,657,720 |
| H.B. Fuller Co. | 41,554 | 2,776,638 |
| Hawkins, Inc. | 4,346 | 144,939 |
| Hecla Mining Co. | 203,984 | 1,205,545 |
| Ingevity Corp. * | 19,858 | 1,550,513 |
| Innospec, Inc. | 19,159 | 1,866,278 |
| Kaiser Aluminum Corp. | 23,661 | 2,850,441 |
| Koppers Holdings, Inc. * | 26,229 | 871,852 |
| Kraton Corp. * | 66,324 | 2,371,746 |
| Livent Corp. * | 64,606 | 1,164,200 |
| Louisiana-Pacific Corp. | 105,671 | 6,961,605 |
| Materion Corp. | 23,282 | 1,648,598 |
| Minerals Technologies, Inc. | 37,578 | 2,936,345 |
| Myers Industries, Inc. | 39,154 | 883,314 |
| Neenah, Inc. | 23,971 | 1,274,538 |
| NewMarket Corp. | 5,753 | 1,993,932 |
| Orion Engineered Carbons S.A. * | 101,885 | 2,023,436 |
| Quaker Chemical Corp. | 3,578 | 867,128 |
| Royal Gold, Inc. | 11,531 | 1,289,858 |
| Schnitzer Steel Industries, Inc., Class A | 85,797 | 4,050,476 |
| Schweitzer-Mauduit International, Inc. | 40,491 | 1,849,224 |
| Sensient Technologies Corp. | 32,977 | 2,712,028 |
| Silgan Holdings, Inc. | 72,771 | 3,068,753 |
| Southern Copper Corp. | 39,447 | 2,738,016 |
| Stepan Co. | 17,542 | 2,292,038 |
| Summit Materials, Inc., Class A * | 106,572 | 3,068,208 |
| SunCoke Energy, Inc. | 248,932 | 1,680,291 |
| The Scotts Miracle-Gro Co. | 15,294 | 3,535,361 |
| Tredegar Corp. | 12,101 | 176,917 |
| Trinseo S.A. | 98,322 | 6,087,115 |
| Tronox Holdings plc, Class A | 111,556 | 2,364,987 |
| US Concrete, Inc. * | 28,246 | 1,791,079 |
| Valvoline, Inc. | 72,759 | 2,284,633 |
| Verso Corp., Class A | 158,114 | 2,441,280 |
| W.R. Grace & Co. | 45,722 | 3,142,473 |
| Warrior Met Coal, Inc. | 188,488 | 2,987,535 |
| Westlake Chemical Corp. | 41,859 | 3,930,142 |
| Worthington Industries, Inc. | 54,295 | 3,543,292 |
| | | 136,569,428 |
| |
| Media & Entertainment 3.6% |
| AMC Entertainment Holdings, Inc., Class A *(a) | 329,410 | 3,303,982 |
| AMC Networks, Inc., Class A * | 95,306 | 4,791,986 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Cable One, Inc. | 934 | 1,671,860 |
| Cars.com, Inc. * | 149,089 | 1,969,466 |
| Gannett Co., Inc. * | 711,766 | 3,231,418 |
| Gray Television, Inc. | 79,785 | 1,621,231 |
| iHeartMedia, Inc., Class A * | 175,107 | 3,351,548 |
| IMAX Corp. * | 6,925 | 142,793 |
| John Wiley & Sons, Inc., Class A | 59,503 | 3,388,101 |
| Liberty Media Corp. - Liberty Formula One, Class A * | 5,416 | 224,331 |
| Liberty Media Corp. - Liberty Formula One, Class C * | 42,334 | 1,987,158 |
| Liberty TripAdvisor Holdings, Inc., Class A * | 221,045 | 1,118,488 |
| Lions Gate Entertainment Corp., Class A * | 62,055 | 897,936 |
| Lions Gate Entertainment Corp., Class B * | 137,334 | 1,730,408 |
| Live Nation Entertainment, Inc. * | 35,586 | 2,913,782 |
| Madison Square Garden Entertainment Corp. * | 7,296 | 661,091 |
| Madison Square Garden Sports Corp. * | 5,712 | 1,055,806 |
| Meredith Corp. * | 98,788 | 3,072,307 |
| MSG Networks, Inc., Class A * | 52,291 | 829,858 |
| National CineMedia, Inc. | 246,891 | 1,054,225 |
| Nexstar Media Group, Inc., Class A | 27,981 | 4,124,679 |
| Scholastic Corp. | 66,301 | 2,010,909 |
| Sinclair Broadcast Group, Inc., Class A | 117,225 | 3,806,296 |
| Sirius XM Holdings, Inc. | 452,566 | 2,760,653 |
| Spotify Technology S.A. * | 4,887 | 1,232,110 |
| Take-Two Interactive Software, Inc. * | 16,320 | 2,862,202 |
| TEGNA, Inc. | 250,477 | 5,024,569 |
| The E.W. Scripps Co., Class A | 53,392 | 1,154,335 |
| The Marcus Corp. * | 46,645 | 931,034 |
| The New York Times Co., Class A | 40,362 | 1,832,838 |
| TripAdvisor, Inc. * | 82,751 | 3,900,055 |
| World Wrestling Entertainment, Inc., Class A | 3,203 | 176,517 |
| Yandex N.V., Class A * | 44,682 | 2,928,905 |
| Yelp, Inc. * | 46,420 | 1,824,306 |
| Zillow Group, Inc., Class A * | 310 | 41,338 |
| Zillow Group, Inc., Class C * | 737 | 95,898 |
| Zynga, Inc., Class A * | 152,538 | 1,650,461 |
| | | 75,374,880 |
| |
| Pharmaceuticals, Biotechnology & Life Sciences 1.8% |
| Alkermes plc * | 39,765 | 875,029 |
| Avantor, Inc. * | 11,519 | 369,069 |
| Bio-Rad Laboratories, Inc., Class A * | 3,737 | 2,354,796 |
| Bio-Techne Corp. | 4,798 | 2,051,097 |
| BioMarin Pharmaceutical, Inc. * | 12,343 | 961,767 |
| Bruker Corp. | 32,780 | 2,246,086 |
| Catalent, Inc. * | 21,760 | 2,447,347 |
| Charles River Laboratories International, Inc. * | 9,663 | 3,212,464 |
| Elanco Animal Health, Inc. * | 129,640 | 4,110,884 |
| Emergent BioSolutions, Inc. * | 8,773 | 534,977 |
| Exelixis, Inc. * | 13,482 | 331,927 |
| Horizon Therapeutics plc * | 10,330 | 977,425 |
| Incyte Corp. * | 14,377 | 1,227,508 |
| Ligand Pharmaceuticals, Inc. * | 909 | 132,614 |
| Medpace Holdings, Inc. * | 1,095 | 185,800 |
| Myriad Genetics, Inc. * | 102,732 | 3,104,561 |
| PDL BioPharma, Inc. *(b) | 397,542 | 981,929 |
| PerkinElmer, Inc. | 28,147 | 3,648,696 |
| PPD, Inc. * | 10,114 | 467,267 |
| PRA Health Sciences, Inc. * | 16,906 | 2,821,442 |
| Prestige Consumer Healthcare, Inc. * | 30,933 | 1,347,441 |
| Security | Number
of Shares | Value ($) |
| Royalty Pharma plc, Class A | 2,682 | 118,008 |
| Syneos Health, Inc. * | 23,290 | 1,976,156 |
| | | 36,484,290 |
| |
| Real Estate 9.1% |
| Acadia Realty Trust | 66,855 | 1,396,601 |
| Alexander & Baldwin, Inc. | 121,228 | 2,222,109 |
| American Assets Trust, Inc. | 28,740 | 1,007,337 |
| American Campus Communities, Inc. | 89,389 | 4,041,277 |
| American Finance Trust, Inc. | 104,892 | 1,049,969 |
| American Homes 4 Rent, Class A | 69,509 | 2,574,613 |
| Americold Realty Trust | 34,685 | 1,400,927 |
| Brandywine Realty Trust | 186,037 | 2,517,081 |
| Brookfield Property REIT, Inc., Class A | 92,402 | 1,661,850 |
| CareTrust REIT, Inc. | 6,100 | 147,498 |
| Centerspace | 10,120 | 712,347 |
| Chatham Lodging Trust * | 98,991 | 1,373,005 |
| Columbia Property Trust, Inc. | 145,214 | 2,615,304 |
| CoreSite Realty Corp. | 8,843 | 1,074,336 |
| Corporate Office Properties Trust | 75,361 | 2,113,122 |
| Cousins Properties, Inc. | 45,063 | 1,652,460 |
| CubeSmart | 70,881 | 3,001,102 |
| Cushman & Wakefield plc * | 61,604 | 1,047,268 |
| CyrusOne, Inc. | 28,245 | 2,057,083 |
| DiamondRock Hospitality Co. * | 328,947 | 3,427,628 |
| Douglas Emmett, Inc. | 81,219 | 2,724,085 |
| Easterly Government Properties, Inc. | 6,548 | 140,324 |
| EastGroup Properties, Inc. | 8,445 | 1,339,884 |
| Empire State Realty Trust, Inc., Class A | 186,875 | 2,128,506 |
| EPR Properties * | 62,433 | 2,978,678 |
| Equity Commonwealth | 57,944 | 1,668,787 |
| Equity LifeStyle Properties, Inc. | 42,915 | 2,978,301 |
| Federal Realty Investment Trust | 38,337 | 4,325,947 |
| First Industrial Realty Trust, Inc. | 35,483 | 1,765,989 |
| Gaming & Leisure Properties, Inc. | 82,075 | 3,815,667 |
| Global Net Lease, Inc. | 55,906 | 1,073,395 |
| Healthcare Realty Trust, Inc. | 60,913 | 1,958,962 |
| Healthcare Trust of America, Inc., Class A | 85,602 | 2,514,131 |
| Hersha Hospitality Trust * | 137,922 | 1,594,378 |
| Highwoods Properties, Inc. | 72,734 | 3,257,756 |
| HomeBanc Corp. *(b) | 6,875 | — |
| Hudson Pacific Properties, Inc. | 86,280 | 2,425,331 |
| Independence Realty Trust, Inc. | 11,147 | 187,715 |
| Industrial Logistics Properties Trust | 8,407 | 208,494 |
| iStar, Inc. | 70,507 | 1,305,085 |
| JBG SMITH Properties | 48,649 | 1,586,444 |
| Kennedy-Wilson Holdings, Inc. | 89,608 | 1,841,444 |
| Kilroy Realty Corp. | 46,728 | 3,202,737 |
| Kite Realty Group Trust | 109,450 | 2,277,655 |
| Lexington Realty Trust | 160,519 | 1,964,753 |
| Life Storage, Inc. | 28,488 | 2,736,557 |
| LTC Properties, Inc. | 17,551 | 746,444 |
| Mack-Cali Realty Corp. | 97,567 | 1,596,196 |
| Marcus & Millichap, Inc. * | 19,600 | 692,272 |
| Medical Properties Trust, Inc. | 128,929 | 2,842,884 |
| National Health Investors, Inc. | 17,117 | 1,256,559 |
| National Retail Properties, Inc. | 63,440 | 2,944,885 |
| New Senior Investment Group, Inc. | 220,656 | 1,460,743 |
| Newmark Group, Inc., Class A | 119,392 | 1,283,464 |
| Office Properties Income Trust | 53,466 | 1,483,682 |
| Outfront Media, Inc. * | 212,628 | 5,181,744 |
| Paramount Group, Inc. | 215,266 | 2,283,972 |
| Pebblebrook Hotel Trust | 120,991 | 2,889,265 |
| Physicians Realty Trust | 65,046 | 1,218,312 |
| Piedmont Office Realty Trust, Inc., Class A | 150,289 | 2,798,381 |
| PotlatchDeltic Corp. | 30,975 | 1,838,676 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Preferred Apartment Communities, Inc., Class A | 88,606 | 903,781 |
| PS Business Parks, Inc. | 7,959 | 1,292,303 |
| QTS Realty Trust, Inc., Class A | 16,123 | 1,072,018 |
| Rayonier, Inc. | 89,293 | 3,239,550 |
| Retail Opportunity Investments Corp. | 80,732 | 1,420,883 |
| Retail Properties of America, Inc., Class A | 332,452 | 3,899,662 |
| Rexford Industrial Realty, Inc. | 3,470 | 192,759 |
| RPT Realty | 134,869 | 1,714,185 |
| Ryman Hospitality Properties, Inc. * | 41,430 | 3,258,470 |
| Sabra Health Care REIT, Inc. | 100,444 | 1,825,068 |
| SBA Communications Corp. | 10,527 | 3,155,152 |
| Seritage Growth Properties, Class A * | 51,610 | 887,692 |
| SITE Centers Corp. | 275,043 | 4,056,884 |
| Spirit Realty Capital, Inc. | 62,363 | 2,964,737 |
| STAG Industrial, Inc. | 34,192 | 1,248,350 |
| STORE Capital Corp. | 59,428 | 2,126,928 |
| Summit Hotel Properties, Inc. * | 161,966 | 1,647,194 |
| Sun Communities, Inc. | 21,132 | 3,525,452 |
| Sunstone Hotel Investors, Inc. * | 336,926 | 4,433,946 |
| Tanger Factory Outlet Centers, Inc. | 219,281 | 3,826,453 |
| Terreno Realty Corp. | 2,477 | 159,816 |
| The GEO Group, Inc. (a) | 340,493 | 1,876,116 |
| The Howard Hughes Corp. * | 19,348 | 2,088,423 |
| Uniti Group, Inc. | 307,624 | 3,506,914 |
| Urban Edge Properties | 100,741 | 1,898,968 |
| VICI Properties, Inc. | 107,363 | 3,403,407 |
| Washington Prime Group, Inc. *(a) | 408,738 | 1,005,495 |
| Washington Real Estate Investment Trust | 57,908 | 1,344,624 |
| Weingarten Realty Investors | 104,250 | 3,371,445 |
| Xenia Hotels & Resorts, Inc. * | 203,692 | 3,957,736 |
| | | 188,915,812 |
| |
| Retailing 5.9% |
| Abercrombie & Fitch Co., Class A * | 259,217 | 9,718,045 |
| America's Car-Mart, Inc. * | 939 | 141,629 |
| At Home Group, Inc. * | 58,113 | 1,835,209 |
| Big 5 Sporting Goods Corp. | 274,862 | 5,035,472 |
| Boot Barn Holdings, Inc. * | 2,411 | 170,072 |
| Caleres, Inc. | 226,624 | 5,282,605 |
| Chico's FAS, Inc. * | 2,105,610 | 6,316,830 |
| Citi Trends, Inc. * | 30,178 | 3,156,619 |
| Conn's, Inc. * | 81,620 | 1,651,989 |
| Designer Brands, Inc., Class A * | 433,685 | 7,676,225 |
| Dillard’s, Inc., Class A | 85,474 | 8,454,233 |
| Etsy, Inc. * | 691 | 137,364 |
| Express, Inc. *(a) | 1,532,376 | 4,673,747 |
| Five Below, Inc. * | 11,009 | 2,215,781 |
| Floor & Decor Holdings, Inc., Class A * | 10,875 | 1,206,255 |
| Genesco, Inc. * | 110,019 | 5,500,950 |
| Groupon, Inc. * | 57,156 | 2,893,808 |
| GrubHub, Inc. * | 14,881 | 1,012,503 |
| Guess?, Inc. | 148,567 | 4,017,252 |
| Haverty Furniture Cos., Inc. | 42,531 | 1,976,416 |
| Hibbett Sports, Inc. * | 47,073 | 3,739,950 |
| MarineMax, Inc. * | 28,130 | 1,597,784 |
| MercadoLibre, Inc. * | 765 | 1,201,800 |
| Monro, Inc. | 26,703 | 1,884,965 |
| National Vision Holdings, Inc. * | 30,810 | 1,553,132 |
| Ollie's Bargain Outlet Holdings, Inc. * | 12,823 | 1,183,178 |
| Overstock.com, Inc. * | 57,666 | 4,699,779 |
| Party City Holdco, Inc. * | 687,826 | 4,814,782 |
| PetMed Express, Inc. | 3,952 | 116,288 |
| Pool Corp. | 9,268 | 3,915,915 |
| Rent-A-Center, Inc. | 27,651 | 1,591,315 |
| RH * | 2,209 | 1,519,836 |
| Sally Beauty Holdings, Inc. * | 270,653 | 5,432,006 |
| Security | Number
of Shares | Value ($) |
| Shoe Carnival, Inc. | 27,442 | 1,645,148 |
| Sleep Number Corp. * | 25,689 | 2,874,342 |
| Sonic Automotive, Inc., Class A | 64,712 | 3,192,890 |
| Stamps.com, Inc. * | 4,857 | 997,482 |
| Stitch Fix, Inc., Class A * | 1,832 | 79,362 |
| The Buckle, Inc. | 65,557 | 2,749,461 |
| The Children's Place, Inc. * | 47,850 | 3,749,048 |
| TravelCenters of America, Inc. * | 13,562 | 372,819 |
| Zumiez, Inc. * | 33,918 | 1,457,456 |
| | | 123,441,742 |
| |
| Semiconductors & Semiconductor Equipment 2.0% |
| Advanced Energy Industries, Inc. | 15,457 | 1,705,062 |
| Ambarella, Inc. * | 9,286 | 905,292 |
| Amkor Technology, Inc. | 143,815 | 2,907,939 |
| Brooks Automation, Inc. | 14,935 | 1,513,364 |
| Cirrus Logic, Inc. * | 39,536 | 2,941,874 |
| CMC Materials, Inc. | 6,852 | 1,256,862 |
| Cree, Inc. * | 39,647 | 3,941,705 |
| Diodes, Inc. * | 19,675 | 1,511,237 |
| Entegris, Inc. | 24,071 | 2,709,913 |
| First Solar, Inc. * | 49,404 | 3,780,888 |
| FormFactor, Inc. * | 3,503 | 137,142 |
| Kulicke & Soffa Industries, Inc. | 46,997 | 2,671,780 |
| MKS Instruments, Inc. | 22,133 | 3,964,242 |
| Monolithic Power Systems, Inc. | 3,547 | 1,281,815 |
| Photronics, Inc. * | 76,603 | 972,858 |
| Power Integrations, Inc. | 16,125 | 1,335,311 |
| Semtech Corp. * | 17,085 | 1,157,338 |
| Silicon Laboratories, Inc. * | 10,631 | 1,498,439 |
| SolarEdge Technologies, Inc. * | 809 | 213,204 |
| Synaptics, Inc. * | 24,751 | 3,461,922 |
| Ultra Clean Holdings, Inc. * | 22,908 | 1,169,912 |
| Universal Display Corp. | 761 | 170,228 |
| | | 41,208,327 |
| |
| Software & Services 4.5% |
| ACI Worldwide, Inc. * | 49,129 | 1,856,094 |
| Aspen Technology, Inc. * | 14,257 | 1,865,386 |
| Avaya Holdings Corp. * | 50,435 | 1,451,015 |
| Black Knight, Inc. * | 31,829 | 2,305,056 |
| Blackbaud, Inc. * | 12,623 | 897,748 |
| Cardtronics plc, Class A * | 35,096 | 1,363,129 |
| Cerence, Inc. * | 16,989 | 1,637,910 |
| Cognyte Software Ltd. * | 23,668 | 618,445 |
| CommVault Systems, Inc. * | 22,920 | 1,593,169 |
| Concentrix Corp. * | 45,680 | 7,097,758 |
| Conduent, Inc. * | 1,058,367 | 7,196,896 |
| CSG Systems International, Inc. | 26,671 | 1,226,599 |
| Dolby Laboratories, Inc., Class A | 23,521 | 2,386,676 |
| Dropbox, Inc., Class A * | 9,801 | 251,886 |
| Ebix, Inc. | 27,847 | 838,473 |
| Envestnet, Inc. * | 2,067 | 152,607 |
| EPAM Systems, Inc. * | 6,243 | 2,857,733 |
| Euronet Worldwide, Inc. * | 20,880 | 2,994,818 |
| EVERTEC, Inc. | 25,616 | 1,022,078 |
| ExlService Holdings, Inc. * | 14,686 | 1,356,693 |
| Fair Isaac Corp. * | 4,796 | 2,500,682 |
| Fortinet, Inc. * | 10,836 | 2,213,036 |
| Gartner, Inc. * | 22,531 | 4,413,372 |
| Globant S.A. * | 770 | 176,469 |
| GoDaddy, Inc., Class A * | 14,146 | 1,228,156 |
| Guidewire Software, Inc. * | 1,234 | 130,199 |
| InterDigital, Inc. | 30,867 | 2,142,787 |
| j2 Global, Inc. * | 25,884 | 3,131,964 |
| LiveRamp Holdings, Inc. * | 37,932 | 1,857,909 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Manhattan Associates, Inc. * | 18,637 | 2,557,742 |
| MicroStrategy, Inc., Class A * | 3,573 | 2,348,033 |
| Nuance Communications, Inc. * | 44,627 | 2,372,818 |
| Pagseguro Digital Ltd., Class A * | 3,249 | 148,609 |
| Palo Alto Networks, Inc. * | 3,273 | 1,156,645 |
| Paycom Software, Inc. * | 2,069 | 795,344 |
| Pegasystems, Inc. | 5,181 | 657,676 |
| Perficient, Inc. * | 16,792 | 1,101,723 |
| Perspecta, Inc. | 146,808 | 4,297,070 |
| Progress Software Corp. | 26,788 | 1,169,564 |
| PTC, Inc. * | 15,621 | 2,045,414 |
| ServiceNow, Inc. * | 427 | 216,220 |
| Splunk, Inc. * | 1,781 | 225,154 |
| Square, Inc., Class A * | 5,110 | 1,251,030 |
| StoneCo Ltd., Class A * | 1,402 | 90,625 |
| Sykes Enterprises, Inc. * | 48,943 | 2,145,172 |
| Tyler Technologies, Inc. * | 3,410 | 1,448,773 |
| Unisys Corp. * | 53,953 | 1,294,872 |
| Verint Systems, Inc. * | 23,430 | 1,137,995 |
| VMware, Inc., Class A *(a) | 21,636 | 3,479,718 |
| WEX, Inc. * | 10,878 | 2,232,274 |
| Workday, Inc., Class A * | 723 | 178,581 |
| Xperi Holding Corp. | 121,238 | 2,491,441 |
| | | 93,607,236 |
| |
| Technology Hardware & Equipment 3.8% |
| 3D Systems Corp. * | 70,452 | 1,517,536 |
| ADTRAN, Inc. | 84,553 | 1,445,011 |
| Arista Networks, Inc. * | 7,208 | 2,271,745 |
| Badger Meter, Inc. | 9,650 | 901,214 |
| Belden, Inc. | 59,005 | 2,553,736 |
| Benchmark Electronics, Inc. | 128,637 | 3,861,683 |
| Ciena Corp. * | 56,916 | 2,872,551 |
| Cognex Corp. | 27,335 | 2,354,090 |
| Coherent, Inc. * | 14,286 | 3,714,217 |
| CommScope Holding Co., Inc. * | 365,091 | 6,005,747 |
| Comtech Telecommunications Corp. | 35,861 | 859,947 |
| CTS Corp. | 26,252 | 853,715 |
| EchoStar Corp., Class A * | 62,336 | 1,524,115 |
| ePlus, Inc. * | 16,994 | 1,705,518 |
| Fabrinet * | 18,791 | 1,608,885 |
| II-VI, Inc. * | 23,538 | 1,580,341 |
| IPG Photonics Corp. * | 11,618 | 2,522,384 |
| Itron, Inc. * | 17,184 | 1,545,529 |
| Knowles Corp. * | 72,094 | 1,506,765 |
| Littelfuse, Inc. | 9,247 | 2,452,674 |
| Lumentum Holdings, Inc. * | 13,025 | 1,107,776 |
| Methode Electronics, Inc. | 39,170 | 1,759,908 |
| National Instruments Corp. | 69,705 | 2,886,484 |
| NETGEAR, Inc. * | 32,011 | 1,191,129 |
| NetScout Systems, Inc. * | 96,043 | 2,515,846 |
| Novanta, Inc. * | 1,130 | 148,832 |
| OSI Systems, Inc. * | 13,951 | 1,347,248 |
| PC Connection, Inc. | 25,334 | 1,148,897 |
| Plantronics, Inc. * | 72,719 | 2,908,033 |
| Plexus Corp. * | 33,940 | 3,137,414 |
| Rogers Corp. * | 8,648 | 1,693,624 |
| ScanSource, Inc. * | 103,442 | 3,127,052 |
| Stratasys Ltd. * | 40,078 | 898,148 |
| Super Micro Computer, Inc. * | 55,003 | 2,036,211 |
| TTM Technologies, Inc. * | 164,510 | 2,467,650 |
| ViaSat, Inc. * | 43,164 | 2,235,464 |
| Viavi Solutions, Inc. * | 60,193 | 984,758 |
| Vishay Intertechnology, Inc. | 165,347 | 4,062,576 |
| | | 79,314,453 |
| |
| Security | Number
of Shares | Value ($) |
| Telecommunication Services 0.6% |
| ATN International, Inc. | 12,587 | 573,715 |
| Cincinnati Bell, Inc. * | 71,242 | 1,099,264 |
| Cogent Communications Holdings, Inc. | 15,845 | 1,196,456 |
| Consolidated Communications Holdings, Inc. * | 297,098 | 2,139,106 |
| Iridium Communications, Inc. * | 25,387 | 964,452 |
| Liberty Latin America Ltd., Class A * | 72,705 | 1,009,509 |
| Liberty Latin America Ltd., Class C * | 202,364 | 2,822,978 |
| Shenandoah Telecommunications Co. | 19,228 | 908,715 |
| United States Cellular Corp. * | 28,312 | 966,289 |
| Vonage Holdings Corp. * | 87,457 | 1,185,042 |
| | | 12,865,526 |
| |
| Transportation 2.4% |
| Air Transport Services Group, Inc. * | 43,196 | 1,136,919 |
| Alaska Air Group, Inc. * | 57,290 | 3,961,031 |
| Allegiant Travel Co. * | 4,979 | 1,173,700 |
| AMERCO | 6,997 | 4,174,620 |
| ArcBest Corp. | 73,186 | 5,325,013 |
| Atlas Air Worldwide Holdings, Inc. * | 17,362 | 1,179,053 |
| Atlas Corp. | 128,448 | 1,770,013 |
| Copa Holdings S.A., Class A * | 13,113 | 1,134,275 |
| Costamare, Inc. | 100,700 | 1,059,364 |
| Echo Global Logistics, Inc. * | 48,481 | 1,585,329 |
| Forward Air Corp. | 28,836 | 2,545,930 |
| Hawaiian Holdings, Inc. * | 46,791 | 1,174,922 |
| Heartland Express, Inc. | 45,478 | 845,436 |
| Hub Group, Inc., Class A * | 54,081 | 3,554,203 |
| JetBlue Airways Corp. * | 196,816 | 4,007,174 |
| Marten Transport Ltd. | 53,432 | 893,383 |
| Mesa Air Group, Inc. * | 11,715 | 131,911 |
| Saia, Inc. * | 12,085 | 2,833,933 |
| Schneider National, Inc., Class B | 73,742 | 1,786,769 |
| SkyWest, Inc. * | 22,342 | 1,109,504 |
| Spirit Airlines, Inc. * | 46,142 | 1,652,806 |
| Uber Technologies, Inc. * | 33,694 | 1,845,420 |
| Werner Enterprises, Inc. | 55,992 | 2,588,510 |
| Yellow Corp. * | 253,307 | 2,322,825 |
| | | 49,792,043 |
| |
| Utilities 2.7% |
| ALLETE, Inc. | 48,791 | 3,432,935 |
| American States Water Co. | 14,129 | 1,118,875 |
| Atlantica Sustainable Infrastructure plc | 45,670 | 1,760,578 |
| Avangrid, Inc. | 44,353 | 2,257,568 |
| Avista Corp. | 70,798 | 3,258,124 |
| Black Hills Corp. | 47,362 | 3,267,031 |
| California Water Service Group | 22,125 | 1,299,844 |
| Chesapeake Utilities Corp. | 8,207 | 972,694 |
| Clearway Energy, Inc., Class A | 12,763 | 339,240 |
| Clearway Energy, Inc., Class C | 26,891 | 771,503 |
| Essential Utilities, Inc. | 61,468 | 2,896,987 |
| Hawaiian Electric Industries, Inc. | 93,686 | 4,034,119 |
| IDACORP, Inc. | 32,369 | 3,317,175 |
| MGE Energy, Inc. | 17,799 | 1,331,543 |
| National Fuel Gas Co. | 65,009 | 3,228,347 |
| New Jersey Resources Corp. | 71,948 | 3,018,218 |
| Northwest Natural Holding Co. | 22,730 | 1,225,602 |
| NorthWestern Corp. | 45,366 | 3,086,249 |
| ONE Gas, Inc. | 35,977 | 2,895,069 |
| Ormat Technologies, Inc. | 16,010 | 1,159,124 |
| Otter Tail Corp. | 32,796 | 1,548,955 |
| PNM Resources, Inc. | 56,365 | 2,782,176 |
| SJW Group | 11,312 | 741,502 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| South Jersey Industries, Inc. | 69,700 | 1,725,075 |
| Spire, Inc. | 41,746 | 3,145,144 |
| Unitil Corp. | 15,960 | 919,775 |
| | | 55,533,452 |
| Total Common Stock |
| (Cost $1,241,059,242) | | 2,065,274,928 |
|
| Investment Companies 1.2% of net assets |
| |
| Money Market Fund 0.6% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (c) | 12,853,735 | 12,853,735 |
| |
| Securities Lending Collateral 0.6% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 12,246,131 | 12,246,131 |
| Total Investment Companies |
| (Cost $25,099,866) | | 25,099,866 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
($) |
| Futures Contracts | |
| Long | |
| Russell 2000 Index, e-mini, expires 06/18/21 | 161 | 18,205,075 | 203,251 |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $11,712,679. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (c) | The rate shown is the 7-day yield. |
| | |
| REIT — | Real Estate Investment Trust |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $1,839,874,826 | $— | $— | $1,839,874,826 | |
| Pharmaceuticals, Biotechnology & Life Sciences | 35,502,361 | — | 981,929 | 36,484,290 | |
| Real Estate | 188,915,812 | — | — * | 188,915,812 | |
| Investment Companies1 | 25,099,866 | — | — | 25,099,866 | |
| Futures Contracts2 | 203,251 | — | — | 203,251 | |
| Total | $2,089,596,116 | $— | $981,929 | $2,090,578,045 | |
| * | Level 3 amount shown includes securities determined to have no value at April 30, 2021. |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $1,253,912,977) including securities on loan of $11,712,679 | | $2,078,128,663 |
| Collateral invested for securities on loan, at value (cost $12,246,131) | | 12,246,131 |
| Deposit with broker for futures contracts | | 1,046,500 |
| Receivables: | | |
| Fund shares sold | | 2,930,693 |
| Dividends | | 432,813 |
| Income from securities on loan | + | 20,363 |
| Total assets | | 2,094,805,163 |
| Liabilities |
| Collateral held for securities on loan | | 12,246,131 |
| Payables: | | |
| Investment adviser fees | | 451,850 |
| Fund shares redeemed | | 3,097,283 |
| Variation margin on futures contracts | + | 204,799 |
| Total liabilities | | 16,000,063 |
| Net Assets |
| Total assets | | 2,094,805,163 |
| Total liabilities | – | 16,000,063 |
| Net assets | | $2,078,805,100 |
| Net Assets by Source | | |
| Capital received from investors | | 1,210,440,180 |
| Total distributable earnings | | 868,364,920 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $2,078,805,100 | | 113,880,837 | | $18.25 |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $10,555) | | $17,218,276 |
| Securities on loan, net | + | 663,308 |
| Total investment income | | 17,881,584 |
| Expenses |
| Investment adviser fees | | 2,343,048 |
| Total expenses | – | 2,343,048 |
| Net investment income | | 15,538,536 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 160,872,519 |
| Net realized gains on futures contracts | + | 2,550,991 |
| Net realized gains | | 163,423,510 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 579,645,919 |
| Net change in unrealized appreciation (depreciation) on futures contracts | + | 532,307 |
| Net change in unrealized appreciation (depreciation) | + | 580,178,226 |
| Net realized and unrealized gains | | 743,601,736 |
| Increase in net assets resulting from operations | | $759,140,272 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $15,538,536 | $22,776,781 |
| Net realized gains (losses) | | 163,423,510 | (97,028,386) |
| Net change in unrealized appreciation (depreciation) | + | 580,178,226 | (123,034,280) |
| Increase (decrease) in net assets from operations | | 759,140,272 | (197,285,885) |
| Distributions to Shareholders | |
| Total distributions | | ($24,462,415) | ($70,795,483) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 18,627,355 | $297,945,564 | 37,437,204 | $412,136,335 |
| Shares reinvested | | 1,157,935 | 17,218,481 | 3,614,741 | 50,967,840 |
| Shares redeemed | + | (22,409,173) | (365,036,181) | (62,280,936) | (708,695,318) |
| Net transactions in fund shares | | (2,623,883) | ($49,872,136) | (21,228,991) | ($245,591,143) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 116,504,720 | $1,393,999,379 | 137,733,711 | $1,907,671,890 |
| Total increase (decrease) | + | (2,623,883) | 684,805,721 | (21,228,991) | (513,672,511) |
| End of period | | 113,880,837 | $2,078,805,100 | 116,504,720 | $1,393,999,379 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $7.51 | $8.98 | $8.69 | $9.55 | $7.96 | $8.19 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.14 | 0.21 | 0.30 | 0.29 | 0.25 | 0.24 |
| Net realized and unrealized gains (losses) | 2.79 | (1.35) | 0.27 | (0.89) | 1.59 | (0.25) |
| Total from investment operations | 2.93 | (1.14) | 0.57 | (0.60) | 1.84 | (0.01) |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.22) | (0.33) | (0.28) | (0.26) | (0.25) | (0.22) |
| Net asset value at end of period | $10.22 | $7.51 | $8.98 | $8.69 | $9.55 | $7.96 |
| Total return | 39.39% 2 | (13.29%) | 7.04% | (6.53%) | 23.83% | 0.07% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.25% 3 | 0.25% | 0.25% | 0.25% | 0.34% 4 | 0.46% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.29% 4 | 0.35% |
| Net investment income (loss) | 2.98% 3 | 2.60% | 3.51% | 3.10% | 2.92% | 3.20% |
| Portfolio turnover rate | 12% 2 | 14% | 28% | 13% | 11% | 18% |
| Net assets, end of period (x 1,000,000) | $1,288 | $966 | $1,327 | $1,349 | $1,372 | $971 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective May 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective May 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 97.8% of net assets |
| |
| Australia 5.5% |
| AGL Energy Ltd. | 87,958 | 606,058 |
| Amcor plc | 53,528 | 624,849 |
| AMP Ltd. | 660,267 | 567,003 |
| Ampol Ltd. | 47,744 | 941,123 |
| APA Group | 47,044 | 363,478 |
| Aristocrat Leisure Ltd. | 11,588 | 330,516 |
| Aurizon Holdings Ltd. | 160,025 | 460,387 |
| Australia & New Zealand Banking Group Ltd. | 272,181 | 6,005,477 |
| Bendigo & Adelaide Bank Ltd. | 49,722 | 394,516 |
| BGP Holdings plc *(a) | 453,854 | 699 |
| BHP Group Ltd. | 193,117 | 7,028,664 |
| BlueScope Steel Ltd. | 64,249 | 1,062,142 |
| Boral Ltd. * | 127,090 | 605,330 |
| Brambles Ltd. | 82,299 | 659,291 |
| Coles Group Ltd. | 80,387 | 1,009,473 |
| Commonwealth Bank of Australia | 103,041 | 7,053,834 |
| Computershare Ltd. | 23,888 | 259,726 |
| Crown Resorts Ltd. * | 41,351 | 388,314 |
| CSL Ltd. | 5,599 | 1,169,600 |
| Downer EDI Ltd. | 106,136 | 458,500 |
| Fortescue Metals Group Ltd. | 60,099 | 1,039,792 |
| Goodman Group | 22,446 | 327,320 |
| Incitec Pivot Ltd. * | 211,979 | 430,298 |
| Insurance Australia Group Ltd. | 185,415 | 698,607 |
| James Hardie Industries plc | 9,790 | 322,623 |
| JB Hi-Fi Ltd. | 7,490 | 266,457 |
| Lendlease Corp. Ltd. | 76,571 | 748,230 |
| Macquarie Group Ltd. | 13,440 | 1,656,648 |
| Medibank Pvt Ltd. | 206,043 | 488,873 |
| Metcash Ltd. | 175,431 | 480,628 |
| Mirvac Group | 204,346 | 423,408 |
| National Australia Bank Ltd. | 261,682 | 5,355,106 |
| Newcrest Mining Ltd. | 20,353 | 415,975 |
| Oil Search Ltd. | 102,093 | 294,885 |
| Orica Ltd. | 25,848 | 269,108 |
| Origin Energy Ltd. | 177,990 | 569,137 |
| Qantas Airways Ltd. * | 74,115 | 281,124 |
| QBE Insurance Group Ltd. | 108,604 | 821,543 |
| Ramsay Health Care Ltd. | 6,848 | 354,995 |
| Rio Tinto Ltd. | 27,772 | 2,581,266 |
| Santos Ltd. | 51,476 | 273,256 |
| Scentre Group | 327,481 | 685,413 |
| Sims Ltd. | 45,020 | 545,800 |
| Sonic Healthcare Ltd. | 18,150 | 501,665 |
| South32 Ltd. | 377,423 | 830,914 |
| Stockland | 153,055 | 551,560 |
| Suncorp Group Ltd. | 162,373 | 1,313,201 |
| Tabcorp Holdings Ltd. | 95,610 | 364,547 |
| Telstra Corp. Ltd. | 583,919 | 1,525,415 |
| Transurban Group | 47,426 | 517,146 |
| Treasury Wine Estates Ltd. | 28,813 | 222,668 |
| Viva Energy Group Ltd. | 259,505 | 389,681 |
| Wesfarmers Ltd. | 83,361 | 3,474,985 |
| Security | Number
of Shares | Value ($) |
| Westpac Banking Corp. | 350,585 | 6,756,008 |
| Woodside Petroleum Ltd. | 84,223 | 1,468,906 |
| Woolworths Group Ltd. | 105,570 | 3,201,837 |
| | | 70,438,005 |
| |
| Austria 0.3% |
| Erste Group Bank AG * | 27,182 | 966,109 |
| OMV AG | 21,710 | 1,067,230 |
| Raiffeisen Bank International AG | 19,376 | 423,320 |
| Voestalpine AG | 23,425 | 1,016,277 |
| Wienerberger AG | 9,178 | 359,816 |
| | | 3,832,752 |
| |
| Belgium 0.8% |
| Ageas S.A./N.V. | 16,724 | 1,011,465 |
| Anheuser-Busch InBev S.A./N.V. | 56,441 | 3,997,855 |
| Etablissements Franz Colruyt N.V. | 4,852 | 287,758 |
| Groupe Bruxelles Lambert S.A. | 8,560 | 936,064 |
| KBC Group N.V. * | 19,083 | 1,480,622 |
| Proximus SADP | 18,813 | 400,810 |
| Solvay S.A. | 8,013 | 1,018,953 |
| UCB S.A. | 4,024 | 372,614 |
| Umicore S.A. | 11,641 | 707,337 |
| | | 10,213,478 |
| |
| Canada 7.4% |
| Agnico-Eagle Mines Ltd. | 4,618 | 288,618 |
| Air Canada * | 21,800 | 439,317 |
| Alimentation Couche-Tard, Inc., Class B | 50,780 | 1,720,691 |
| AltaGas Ltd. | 16,700 | 312,085 |
| ARC Resources Ltd. | 110,872 | 697,263 |
| Atco Ltd., Class I | 9,789 | 336,003 |
| Bank of Montreal | 39,702 | 3,747,166 |
| Barrick Gold Corp. | 39,870 | 849,526 |
| Bausch Health Cos., Inc. * | 32,809 | 1,056,219 |
| BCE, Inc. | 23,122 | 1,092,941 |
| Brookfield Asset Management, Inc., Class A | 54,098 | 2,466,022 |
| Canadian Imperial Bank of Commerce | 26,038 | 2,706,859 |
| Canadian National Railway Co. | 25,217 | 2,714,856 |
| Canadian Natural Resources Ltd. | 101,745 | 3,088,399 |
| Canadian Pacific Railway Ltd. | 4,350 | 1,623,389 |
| Canadian Tire Corp., Ltd., Class A (b) | 6,576 | 1,048,180 |
| CCL Industries, Inc., Class B | 5,300 | 300,843 |
| Cenovus Energy, Inc. | 239,335 | 1,863,431 |
| CGI, Inc. * | 11,992 | 1,061,001 |
| CI Financial Corp. | 29,215 | 469,665 |
| Crescent Point Energy Corp. | 275,971 | 1,088,931 |
| Dollarama, Inc. | 9,100 | 424,072 |
| Emera, Inc. | 11,800 | 536,359 |
| Empire Co., Ltd., Class A | 18,800 | 591,309 |
| Enbridge, Inc. | 87,586 | 3,378,312 |
| Fairfax Financial Holdings Ltd. | 1,950 | 890,925 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Finning International, Inc. | 19,117 | 497,541 |
| First Quantum Minerals Ltd. | 36,170 | 833,662 |
| Fortis, Inc. | 20,395 | 909,781 |
| George Weston Ltd. | 9,594 | 847,119 |
| Gildan Activewear, Inc. * | 19,400 | 673,314 |
| Great-West Lifeco, Inc. | 17,654 | 511,889 |
| H&R Real Estate Investment Trust | 29,600 | 366,764 |
| Hydro One Ltd. | 17,700 | 424,374 |
| iA Financial Corp., Inc. | 6,100 | 343,524 |
| Imperial Oil Ltd. | 37,141 | 1,072,697 |
| Intact Financial Corp. | 4,400 | 584,853 |
| Inter Pipeline Ltd. | 38,174 | 556,546 |
| Keyera Corp. | 17,899 | 409,340 |
| Kinross Gold Corp. | 42,700 | 300,496 |
| Linamar Corp. | 7,400 | 433,651 |
| Loblaw Cos., Ltd. | 17,743 | 985,201 |
| Magna International, Inc. | 49,227 | 4,648,961 |
| Manulife Financial Corp. | 108,600 | 2,371,414 |
| Methanex Corp. | 13,400 | 489,275 |
| Metro, Inc. | 14,494 | 664,119 |
| National Bank of Canada | 15,233 | 1,107,449 |
| Nutrien Ltd. | 44,800 | 2,472,994 |
| Onex Corp. | 8,465 | 566,721 |
| Open Text Corp. | 6,300 | 296,664 |
| Parkland Corp. | 9,900 | 317,986 |
| Pembina Pipeline Corp. | 25,478 | 786,426 |
| Power Corp. of Canada | 64,903 | 1,890,353 |
| Quebecor, Inc., Class B | 7,000 | 188,219 |
| Restaurant Brands International, Inc. | 5,300 | 363,969 |
| RioCan Real Estate Investment Trust (b) | 21,900 | 374,517 |
| Rogers Communications, Inc., Class B | 25,241 | 1,243,209 |
| Royal Bank of Canada | 64,544 | 6,160,075 |
| Saputo, Inc. | 16,275 | 517,188 |
| Shaw Communications, Inc., Class B | 33,934 | 982,834 |
| SNC-Lavalin Group, Inc. | 21,440 | 479,507 |
| Sun Life Financial, Inc. | 27,904 | 1,505,361 |
| Suncor Energy, Inc. | 211,837 | 4,530,932 |
| TC Energy Corp. | 39,094 | 1,934,106 |
| Teck Resources Ltd., Class B | 71,468 | 1,512,332 |
| TELUS Corp. | 27,686 | 574,375 |
| TFI International, Inc. | 5,400 | 473,156 |
| The Bank of Nova Scotia | 81,574 | 5,194,482 |
| The Toronto-Dominion Bank | 83,752 | 5,757,673 |
| Thomson Reuters Corp. | 9,617 | 891,870 |
| Vermilion Energy, Inc. * | 45,700 | 339,083 |
| Waste Connections, Inc. | 4,400 | 524,141 |
| West Fraser Timber Co., Ltd. | 10,800 | 833,845 |
| WSP Global, Inc. | 4,200 | 436,111 |
| | | 94,972,481 |
| |
| Denmark 0.9% |
| AP Moller - Maersk A/S, Series A | 422 | 991,562 |
| AP Moller - Maersk A/S, Series B | 617 | 1,534,866 |
| Carlsberg A/S, Class B | 3,959 | 694,567 |
| Coloplast A/S, Class B | 1,854 | 307,096 |
| Danske Bank A/S | 71,103 | 1,351,506 |
| DSV PANALPINA A/S | 3,187 | 710,032 |
| ISS A/S * | 30,637 | 580,937 |
| Novo Nordisk A/S, Class B | 36,469 | 2,690,225 |
| Novozymes A/S, Class B | 5,968 | 423,266 |
| Orsted A/S | 3,648 | 530,291 |
| Pandora A/S * | 6,376 | 722,075 |
| Vestas Wind Systems A/S | 28,255 | 1,179,461 |
| | | 11,715,884 |
| |
| Security | Number
of Shares | Value ($) |
| Finland 1.0% |
| Elisa Oyj | 5,275 | 299,026 |
| Fortum Oyj | 24,773 | 651,004 |
| Kesko Oyj, B Shares | 19,937 | 607,069 |
| Kone Oyj, Class B | 10,320 | 810,559 |
| Neste Oyj | 13,060 | 789,748 |
| Nokia Oyj * | 377,037 | 1,786,007 |
| Nokian Renkaat Oyj | 11,416 | 425,035 |
| Nordea Bank Abp | 273,531 | 2,829,679 |
| Outokumpu Oyj * | 104,283 | 677,715 |
| Sampo Oyj, A Shares | 25,898 | 1,228,462 |
| Stora Enso Oyj, R Shares | 50,608 | 968,255 |
| UPM-Kymmene Oyj | 46,116 | 1,803,464 |
| Wartsila Oyj Abp | 44,482 | 574,037 |
| | | 13,450,060 |
| |
| France 8.7% |
| Accor S.A. * | 9,312 | 374,959 |
| Air France-KLM *(b) | 93,315 | 520,495 |
| Air Liquide S.A. | 16,029 | 2,699,320 |
| Airbus SE * | 19,835 | 2,385,350 |
| Alstom S.A. * | 12,831 | 700,721 |
| Arkema S.A. | 6,385 | 798,233 |
| Atos SE * | 4,757 | 323,950 |
| AXA S.A. (b) | 163,744 | 4,624,953 |
| BNP Paribas S.A. * | 123,118 | 7,894,042 |
| Bollore S.A. | 69,634 | 351,570 |
| Bouygues S.A. | 29,658 | 1,271,006 |
| Bureau Veritas S.A. * | 11,374 | 340,164 |
| Capgemini SE | 7,445 | 1,364,273 |
| Carrefour S.A. | 119,817 | 2,320,495 |
| Casino Guichard Perrachon S.A. *(b) | 19,179 | 669,663 |
| Cie de Saint-Gobain * | 65,825 | 4,153,237 |
| CNP Assurances | 18,921 | 330,942 |
| Compagnie Generale des Etablissements Michelin S.C.A. | 18,907 | 2,735,854 |
| Credit Agricole S.A. * | 104,035 | 1,609,235 |
| Danone S.A. | 31,632 | 2,232,886 |
| Dassault Systemes SE | 1,436 | 333,112 |
| Eiffage S.A. * | 7,302 | 799,843 |
| Electricite de France S.A. * | 98,399 | 1,435,755 |
| Elis S.A. * | 17,420 | 311,749 |
| Engie S.A. * | 224,599 | 3,345,502 |
| EssilorLuxottica S.A. | 6,430 | 1,070,208 |
| Eurazeo SE | 4,054 | 337,777 |
| Eutelsat Communications S.A. | 28,087 | 355,406 |
| Faurecia SE * | 4,565 | 246,970 |
| Faurecia SE * | 14,926 | 806,408 |
| Hermes International | 381 | 478,197 |
| Kering S.A. | 1,590 | 1,274,085 |
| Klepierre S.A. | 14,417 | 382,643 |
| L'Oreal S.A. | 5,356 | 2,193,121 |
| Lagardere S.C.A. * | 18,682 | 502,857 |
| Legrand S.A. | 9,262 | 901,562 |
| LVMH Moet Hennessy Louis Vuitton SE | 5,265 | 3,966,388 |
| Natixis S.A. * | 137,576 | 671,784 |
| Orange S.A. | 299,229 | 3,726,363 |
| Pernod-Ricard S.A. | 5,924 | 1,216,592 |
| Publicis Groupe S.A. | 20,792 | 1,345,656 |
| Renault S.A. * | 74,761 | 3,013,487 |
| Rexel S.A. * | 60,800 | 1,195,161 |
| Rubis S.C.A. | 6,165 | 289,402 |
| Safran S.A. * | 11,240 | 1,678,229 |
| Sanofi | 54,888 | 5,754,582 |
| Schneider Electric SE | 22,446 | 3,581,388 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| SCOR SE * | 15,913 | 514,172 |
| SES S.A. | 54,931 | 416,408 |
| Societe Generale S.A. * | 224,462 | 6,385,310 |
| Sodexo S.A. * | 7,674 | 767,770 |
| STMicroelectronics N.V. | 17,954 | 670,604 |
| Suez S.A. | 39,055 | 933,457 |
| Technip Energies NV * | 15,087 | 214,849 |
| TechnipFMC plc * | 74,859 | 557,563 |
| Teleperformance | 1,101 | 425,145 |
| Thales S.A. | 5,042 | 514,013 |
| TOTAL SE | 316,178 | 13,974,358 |
| Valeo S.A. | 37,482 | 1,214,640 |
| Veolia Environnement S.A. | 53,321 | 1,700,674 |
| Vinci S.A. | 27,277 | 2,993,097 |
| Vivendi SE * | 38,644 | 1,347,149 |
| Wendel SE | 2,825 | 376,039 |
| | | 111,920,823 |
| |
| Germany 7.8% |
| adidas AG * | 5,762 | 1,779,656 |
| Allianz SE | 27,226 | 7,068,328 |
| Aurubis AG | 8,206 | 705,417 |
| BASF SE | 107,301 | 8,647,523 |
| Bayer AG | 76,710 | 4,963,775 |
| Bayerische Motoren Werke AG | 57,468 | 5,758,878 |
| Beiersdorf AG | 3,031 | 342,110 |
| Brenntag SE | 12,167 | 1,092,288 |
| Commerzbank AG * | 171,619 | 1,131,683 |
| Continental AG | 17,725 | 2,395,344 |
| Covestro AG | 25,849 | 1,690,509 |
| Daimler AG | 140,139 | 12,472,192 |
| Deutsche Bank AG * | 160,612 | 2,237,526 |
| Deutsche Boerse AG | 3,171 | 546,443 |
| Deutsche Lufthansa AG *(b) | 91,263 | 1,178,970 |
| Deutsche Post AG | 71,429 | 4,206,965 |
| Deutsche Telekom AG | 340,565 | 6,554,185 |
| Deutsche Wohnen SE | 6,019 | 325,620 |
| E.ON SE | 166,343 | 2,005,735 |
| Evonik Industries AG | 18,659 | 653,234 |
| Freenet AG | 15,507 | 377,077 |
| Fresenius Medical Care AG & Co. KGaA | 13,589 | 1,082,041 |
| Fresenius SE & Co. KGaA | 39,119 | 1,922,671 |
| GEA Group AG | 12,695 | 557,493 |
| Hannover Rueck SE | 2,834 | 523,329 |
| HeidelbergCement AG | 18,338 | 1,680,371 |
| Henkel AG & Co. KGaA | 6,031 | 599,195 |
| Hugo Boss AG | 11,312 | 521,766 |
| Infineon Technologies AG | 32,686 | 1,310,726 |
| K&S AG | 55,326 | 613,872 |
| KION Group AG | 4,375 | 435,957 |
| Knorr-Bremse AG | 1,949 | 238,901 |
| LANXESS AG | 7,275 | 535,385 |
| Merck KGaA | 3,888 | 683,061 |
| METRO AG | 43,344 | 473,818 |
| MTU Aero Engines AG | 1,856 | 468,375 |
| Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 8,217 | 2,374,170 |
| ProSiebenSat.1 Media SE * | 26,567 | 576,998 |
| Rheinmetall AG | 3,752 | 391,480 |
| RWE AG | 39,065 | 1,483,370 |
| Salzgitter AG * | 16,826 | 535,172 |
| SAP SE | 23,765 | 3,327,591 |
| Siemens AG | 43,088 | 7,188,581 |
| Siemens Energy AG * | 21,010 | 702,720 |
| Siemens Healthineers AG | 4,414 | 252,244 |
| Security | Number
of Shares | Value ($) |
| Symrise AG | 2,594 | 334,976 |
| Telefonica Deutschland Holding AG | 94,756 | 275,377 |
| ThyssenKrupp AG * | 90,953 | 1,215,941 |
| Uniper SE | 31,983 | 1,167,002 |
| United Internet AG | 7,699 | 323,804 |
| Volkswagen AG | 4,853 | 1,540,693 |
| Vonovia SE | 10,767 | 707,443 |
| | | 100,177,981 |
| |
| Hong Kong 1.7% |
| AAC Technologies Holdings, Inc. | 41,000 | 227,598 |
| AIA Group Ltd. | 229,400 | 2,911,676 |
| BOC Hong Kong (Holdings) Ltd. | 225,000 | 791,156 |
| CK Asset Holdings Ltd. | 183,000 | 1,145,693 |
| CK Hutchison Holdings Ltd. | 307,500 | 2,513,229 |
| CLP Holdings Ltd. | 105,500 | 1,041,360 |
| Galaxy Entertainment Group Ltd. * | 63,000 | 553,022 |
| Hang Seng Bank Ltd. | 33,700 | 659,747 |
| Henderson Land Development Co., Ltd. | 58,300 | 259,127 |
| Hong Kong & China Gas Co., Ltd. | 290,168 | 465,443 |
| Hong Kong Exchanges & Clearing Ltd. | 8,421 | 507,879 |
| Hongkong Land Holdings Ltd. | 72,733 | 359,680 |
| Jardine Matheson Holdings Ltd. | 17,244 | 1,157,920 |
| Lenovo Group Ltd. | 858,000 | 1,172,332 |
| Link REIT | 43,500 | 410,338 |
| MTR Corp., Ltd. | 71,864 | 400,242 |
| New World Development Co., Ltd. | 137,422 | 727,192 |
| Noble Group Ltd. *(a) | 18,617,693 | 209,856 |
| PCCW Ltd. | 494,000 | 285,804 |
| Samsonite International S.A. * | 189,900 | 351,453 |
| Sands China Ltd. * | 115,600 | 547,026 |
| Sino Land Co., Ltd. | 215,350 | 319,826 |
| Sun Hung Kai Properties Ltd. | 91,500 | 1,376,375 |
| Swire Pacific Ltd., A Shares | 97,800 | 787,899 |
| Techtronic Industries Co., Ltd. | 25,000 | 453,619 |
| The Wharf Holdings Ltd. | 236,000 | 715,831 |
| WH Group Ltd. | 1,039,000 | 905,282 |
| Wharf Real Estate Investment Co., Ltd. | 111,000 | 637,920 |
| Yue Yuen Industrial Holdings Ltd. | 176,000 | 440,485 |
| | | 22,335,010 |
| |
| Ireland 0.1% |
| Bank of Ireland Group plc * | 132,904 | 778,795 |
| Kerry Group plc, Class A | 3,787 | 490,877 |
| Kingspan Group plc | 3,103 | 275,996 |
| | | 1,545,668 |
| |
| Israel 0.2% |
| Bank Hapoalim B.M. * | 56,139 | 446,171 |
| Bank Leumi Le-Israel B.M. * | 77,294 | 542,583 |
| ICL Group Ltd. | 70,859 | 453,400 |
| Teva Pharmaceutical Industries Ltd. * | 74,721 | 794,628 |
| | | 2,236,782 |
| |
| Italy 3.2% |
| A2A S.p.A. | 154,334 | 301,873 |
| Assicurazioni Generali S.p.A. | 111,436 | 2,230,551 |
| Atlantia S.p.A. * | 44,359 | 864,788 |
| Banco BPM S.p.A. | 205,924 | 585,688 |
| CNH Industrial N.V. | 104,262 | 1,547,724 |
| Enel S.p.A. | 574,037 | 5,699,801 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Eni S.p.A. | 564,323 | 6,721,590 |
| EXOR N.V. | 32,460 | 2,664,078 |
| Ferrari N.V. | 1,299 | 278,268 |
| Intesa Sanpaolo S.p.A. * | 1,702,977 | 4,747,751 |
| Leonardo S.p.A. | 57,989 | 473,228 |
| Mediobanca Banca di Credito Finanziario S.p.A. * | 48,172 | 544,078 |
| Pirelli & C S.p.A. * | 55,667 | 312,774 |
| Poste Italiane S.p.A | 26,867 | 351,719 |
| Prysmian S.p.A. | 12,799 | 400,437 |
| Saras S.p.A. * | 357,384 | 246,486 |
| Snam S.p.A. | 101,985 | 573,875 |
| Stellantis N.V. | 419,960 | 6,958,530 |
| Telecom Italia S.p.A. | 3,228,668 | 1,770,183 |
| Tenaris S.A. | 55,248 | 592,423 |
| Terna - Rete Elettrica Nationale S.p.A. | 52,924 | 390,127 |
| UniCredit S.p.A. | 278,243 | 2,858,107 |
| Unipol Gruppo S.p.A. * | 74,339 | 406,271 |
| | | 41,520,350 |
| |
| Japan 22.7% |
| Advantest Corp. | 3,100 | 293,059 |
| Aeon Co., Ltd. | 51,000 | 1,391,734 |
| AGC, Inc. | 29,300 | 1,336,059 |
| Air Water, Inc. | 17,500 | 289,463 |
| Aisin Corp. | 37,000 | 1,424,125 |
| Ajinomoto Co., Inc. | 30,700 | 613,953 |
| Alfresa Holdings Corp. | 31,700 | 568,244 |
| Alps Alpine Co., Ltd. | 36,000 | 436,202 |
| Amada Co., Ltd. | 30,300 | 328,646 |
| ANA Holdings, Inc. * | 17,300 | 397,179 |
| Asahi Group Holdings Ltd. | 25,200 | 1,053,689 |
| Asahi Kasei Corp. | 158,000 | 1,664,448 |
| Astellas Pharma, Inc. | 100,700 | 1,515,642 |
| Bandai Namco Holdings, Inc. | 7,700 | 565,033 |
| Bic Camera, Inc. | 23,100 | 238,440 |
| Bridgestone Corp. | 83,400 | 3,342,516 |
| Brother Industries Ltd. | 27,700 | 587,326 |
| Canon, Inc. | 139,200 | 3,310,195 |
| Casio Computer Co., Ltd. | 12,400 | 219,557 |
| Central Japan Railway Co. | 13,700 | 2,007,211 |
| Chubu Electric Power Co., Inc. | 118,300 | 1,433,606 |
| Chugai Pharmaceutical Co., Ltd. | 5,700 | 213,949 |
| Coca-Cola Bottlers Japan Holdings, Inc. | 19,700 | 315,209 |
| COMSYS Holdings Corp. | 7,600 | 235,950 |
| Concordia Financial Group Ltd. | 85,300 | 320,684 |
| Cosmo Energy Holdings Co., Ltd. | 23,200 | 496,964 |
| Dai Nippon Printing Co., Ltd. | 42,300 | 838,182 |
| Dai-ichi Life Holdings, Inc. | 95,400 | 1,722,644 |
| Daicel Corp. | 52,300 | 404,123 |
| Daido Steel Co., Ltd. | 6,300 | 298,913 |
| Daiichi Sankyo Co., Ltd. | 30,300 | 773,874 |
| Daikin Industries Ltd. | 8,500 | 1,714,575 |
| Daito Trust Construction Co., Ltd. | 7,500 | 797,497 |
| Daiwa House Industry Co., Ltd. | 69,200 | 2,051,935 |
| Daiwa Securities Group, Inc. | 113,400 | 605,116 |
| Denka Co., Ltd. | 9,600 | 375,960 |
| Denso Corp. | 50,400 | 3,258,511 |
| Dentsu Group, Inc. | 18,401 | 567,922 |
| DIC Corp. | 15,700 | 401,277 |
| East Japan Railway Co. | 37,918 | 2,596,914 |
| Ebara Corp. | 10,100 | 431,559 |
| EDION Corp. | 24,700 | 262,709 |
| Eisai Co., Ltd. | 8,100 | 528,297 |
| Electric Power Development Co., Ltd. | 32,900 | 527,453 |
| Security | Number
of Shares | Value ($) |
| ENEOS Holdings, Inc. | 761,950 | 3,277,082 |
| FANUC Corp. | 6,300 | 1,450,781 |
| Fast Retailing Co., Ltd. | 900 | 738,388 |
| Fuji Electric Co., Ltd. | 11,700 | 532,675 |
| FUJIFILM Holdings Corp. | 28,700 | 1,859,048 |
| Fujikura Ltd. * | 83,300 | 429,394 |
| Fujitsu Ltd. | 14,800 | 2,351,099 |
| Furukawa Electric Co., Ltd. | 13,100 | 347,475 |
| H2O Retailing Corp. | 36,700 | 287,564 |
| Hakuhodo DY Holdings, Inc. | 25,900 | 438,340 |
| Hankyu Hanshin Holdings, Inc. | 15,000 | 473,086 |
| Hanwa Co., Ltd. | 14,900 | 442,753 |
| Haseko Corp. | 38,600 | 517,790 |
| Hino Motors Ltd. | 54,000 | 453,227 |
| Hitachi Construction Machinery Co., Ltd. | 9,000 | 276,666 |
| Hitachi Ltd. | 122,800 | 6,078,320 |
| Hitachi Metals Ltd. * | 22,800 | 442,047 |
| Hokkaido Electric Power Co., Inc. | 62,300 | 296,840 |
| Honda Motor Co., Ltd. | 309,700 | 9,235,194 |
| Hoya Corp. | 7,050 | 801,340 |
| Idemitsu Kosan Co., Ltd. | 44,569 | 1,065,911 |
| IHI Corp. * | 29,500 | 595,744 |
| Iida Group Holdings Co., Ltd. | 22,000 | 535,796 |
| Inpex Corp. | 156,200 | 1,062,941 |
| Isetan Mitsukoshi Holdings Ltd. | 85,900 | 601,866 |
| Isuzu Motors Ltd. | 88,800 | 901,688 |
| ITOCHU Corp. | 91,900 | 2,869,002 |
| J. Front Retailing Co., Ltd. | 43,000 | 410,578 |
| Japan Airlines Co., Ltd. * | 21,900 | 469,142 |
| Japan Exchange Group, Inc. | 9,700 | 227,498 |
| Japan Post Holdings Co., Ltd. * | 156,000 | 1,310,938 |
| Japan Post Insurance Co., Ltd. | 17,300 | 333,560 |
| Japan Tobacco, Inc. | 100,000 | 1,875,866 |
| JFE Holdings, Inc. | 195,200 | 2,566,825 |
| JGC Holdings Corp. | 32,500 | 371,527 |
| JSR Corp. | 11,500 | 354,476 |
| JTEKT Corp. | 61,300 | 552,907 |
| K's Holdings Corp. | 23,300 | 317,865 |
| Kajima Corp. | 63,000 | 871,477 |
| Kaneka Corp. | 11,200 | 436,215 |
| Kao Corp. | 17,500 | 1,125,137 |
| Kawasaki Heavy Industries Ltd. * | 32,600 | 782,458 |
| KDDI Corp. | 142,900 | 4,319,786 |
| Keio Corp. | 4,100 | 266,901 |
| Kewpie Corp. | 12,700 | 300,632 |
| Keyence Corp. | 1,392 | 668,233 |
| Kikkoman Corp. | 5,900 | 362,579 |
| Kinden Corp. | 13,300 | 226,438 |
| Kintetsu Group Holdings Co., Ltd. * | 9,400 | 337,221 |
| Kirin Holdings Co., Ltd. | 60,400 | 1,134,266 |
| Kobe Steel Ltd. | 154,400 | 1,111,643 |
| Koito Manufacturing Co., Ltd. | 9,500 | 592,616 |
| Komatsu Ltd. | 78,200 | 2,299,441 |
| Konica Minolta, Inc. | 160,500 | 910,291 |
| Kubota Corp. | 64,800 | 1,524,470 |
| Kuraray Co., Ltd. | 53,200 | 578,295 |
| Kyocera Corp. | 21,100 | 1,281,048 |
| Kyushu Electric Power Co., Inc. | 89,400 | 819,417 |
| Kyushu Railway Co. | 14,100 | 316,536 |
| Lixil Corp. | 28,700 | 777,394 |
| Makita Corp. | 10,700 | 481,877 |
| Marubeni Corp. | 304,600 | 2,537,084 |
| Matsumotokiyoshi Holdings Co., Ltd. | 6,500 | 261,407 |
| Mazda Motor Corp. * | 233,500 | 1,813,175 |
| Medipal Holdings Corp. | 26,200 | 482,093 |
| MEIJI Holdings Co., Ltd. | 10,500 | 651,562 |
| Minebea Mitsumi, Inc. | 26,500 | 664,597 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| MISUMI Group, Inc. | 8,900 | 251,369 |
| Mitsubishi Chemical Holdings Corp. | 252,500 | 1,879,732 |
| Mitsubishi Corp. | 135,700 | 3,752,200 |
| Mitsubishi Electric Corp. | 204,500 | 3,151,007 |
| Mitsubishi Estate Co., Ltd. | 50,900 | 837,757 |
| Mitsubishi Gas Chemical Co., Inc. | 20,800 | 480,578 |
| Mitsubishi Heavy Industries Ltd. | 58,800 | 1,750,379 |
| Mitsubishi Materials Corp. | 29,300 | 658,266 |
| Mitsubishi Motors Corp. * | 200,200 | 542,415 |
| Mitsubishi UFJ Financial Group, Inc. | 1,085,834 | 5,776,741 |
| Mitsui & Co., Ltd. | 152,300 | 3,214,084 |
| Mitsui Chemicals, Inc. | 26,500 | 834,219 |
| Mitsui Fudosan Co., Ltd. | 59,000 | 1,282,618 |
| Mitsui Mining & Smelting Co., Ltd. | 9,000 | 306,378 |
| Mitsui O.S.K. Lines Ltd. | 22,800 | 916,654 |
| Mizuho Financial Group, Inc. | 203,421 | 2,863,034 |
| MS&AD Insurance Group Holdings, Inc. | 43,490 | 1,233,838 |
| Murata Manufacturing Co., Ltd. | 20,500 | 1,629,901 |
| Nagase & Co., Ltd. | 24,700 | 372,238 |
| Nagoya Railroad Co., Ltd. * | 12,100 | 277,923 |
| NEC Corp. | 19,700 | 1,145,273 |
| NGK Insulators Ltd. | 25,500 | 466,049 |
| NGK Spark Plug Co., Ltd. | 23,300 | 389,105 |
| NH Foods Ltd. | 15,800 | 705,701 |
| NHK Spring Co., Ltd. | 39,500 | 291,722 |
| Nichirei Corp. | 9,400 | 237,729 |
| Nidec Corp. | 9,200 | 1,062,313 |
| Nikon Corp. | 56,000 | 527,298 |
| Nintendo Co., Ltd. | 1,480 | 849,006 |
| Nippon Electric Glass Co., Ltd. | 13,200 | 334,005 |
| Nippon Express Co., Ltd. | 10,800 | 826,565 |
| Nippon Light Metal Holdings Co., Ltd. | 12,920 | 251,635 |
| Nippon Paper Industries Co., Ltd. | 26,000 | 319,856 |
| Nippon Shokubai Co., Ltd. | 4,400 | 231,260 |
| Nippon Steel Corp. | 242,900 | 4,244,670 |
| Nippon Steel Trading Corp. | 7,000 | 247,330 |
| Nippon Telegraph & Telephone Corp. | 141,616 | 3,570,547 |
| Nippon Yusen K.K. | 36,200 | 1,422,782 |
| Nissan Motor Co., Ltd. * | 656,400 | 3,295,093 |
| Nisshin Seifun Group, Inc. | 21,930 | 354,220 |
| Nissin Foods Holdings Co., Ltd. | 2,700 | 191,325 |
| Nitori Holdings Co., Ltd. | 1,900 | 340,300 |
| Nitto Denko Corp. | 12,900 | 1,067,529 |
| NOK Corp. | 27,400 | 353,129 |
| Nomura Holdings, Inc. | 172,700 | 928,289 |
| Nomura Real Estate Holdings, Inc. | 11,900 | 293,365 |
| NSK Ltd. | 70,200 | 647,360 |
| NTN Corp. * | 132,600 | 376,727 |
| NTT Data Corp. | 41,700 | 649,309 |
| Obayashi Corp. | 89,400 | 817,962 |
| Odakyu Electric Railway Co., Ltd. | 11,000 | 297,924 |
| Oji Holdings Corp. | 133,200 | 840,198 |
| Olympus Corp. | 23,400 | 481,608 |
| Omron Corp. | 8,900 | 673,961 |
| Ono Pharmaceutical Co., Ltd. | 9,100 | 229,219 |
| Oriental Land Co., Ltd. | 2,300 | 326,050 |
| ORIX Corp. | 95,200 | 1,536,896 |
| Osaka Gas Co., Ltd. | 48,200 | 932,958 |
| Otsuka Corp. | 4,800 | 241,457 |
| Otsuka Holdings Co., Ltd. | 23,700 | 908,292 |
| PALTAC Corp. | 3,800 | 197,987 |
| Pan Pacific International Holdings Corp. | 12,700 | 273,753 |
| Panasonic Corp. | 288,050 | 3,382,283 |
| Persol Holdings Co., Ltd. | 13,500 | 248,619 |
| Rakuten Group, Inc. | 24,900 | 316,533 |
| Security | Number
of Shares | Value ($) |
| Recruit Holdings Co., Ltd. | 28,900 | 1,303,028 |
| Renesas Electronics Corp. * | 36,400 | 423,992 |
| Resona Holdings, Inc. | 180,258 | 742,057 |
| Ricoh Co., Ltd. | 121,000 | 1,293,020 |
| Rohm Co., Ltd. | 5,000 | 493,563 |
| Ryohin Keikaku Co., Ltd. | 15,100 | 318,023 |
| Sankyu, Inc. | 5,600 | 239,065 |
| Santen Pharmaceutical Co., Ltd. | 14,900 | 190,834 |
| SBI Holdings, Inc. | 10,100 | 285,475 |
| Secom Co., Ltd. | 8,200 | 683,342 |
| Seibu Holdings, Inc. * | 18,900 | 203,248 |
| Seiko Epson Corp. | 41,800 | 713,175 |
| Seino Holdings Co., Ltd. | 20,400 | 280,509 |
| Sekisui Chemical Co., Ltd. | 37,700 | 657,314 |
| Sekisui House Ltd. | 61,600 | 1,247,562 |
| Seven & i Holdings Co., Ltd. | 83,400 | 3,600,888 |
| SG Holdings Co., Ltd. | 17,000 | 386,055 |
| Shikoku Electric Power Co., Inc. | 35,100 | 257,762 |
| Shimadzu Corp. | 9,300 | 325,899 |
| Shimamura Co., Ltd. | 3,600 | 356,147 |
| Shimano, Inc. | 1,800 | 411,579 |
| Shimizu Corp. | 77,200 | 632,583 |
| Shin-Etsu Chemical Co., Ltd. | 13,600 | 2,295,708 |
| Shionogi & Co., Ltd. | 9,000 | 474,473 |
| Shiseido Co., Ltd. | 9,100 | 662,218 |
| Showa Denko K.K. | 24,900 | 753,962 |
| SMC Corp. | 1,200 | 697,292 |
| Softbank Corp. | 126,100 | 1,625,475 |
| SoftBank Group Corp. | 90,800 | 8,182,043 |
| Sojitz Corp. | 238,000 | 710,940 |
| Sompo Holdings, Inc. | 27,400 | 1,018,325 |
| Sony Group Corp. | 35,300 | 3,529,255 |
| Stanley Electric Co., Ltd. | 12,200 | 349,242 |
| Subaru Corp. | 107,400 | 1,996,936 |
| Sumco Corp. | 12,000 | 310,346 |
| Sumitomo Chemical Co., Ltd. | 291,600 | 1,488,384 |
| Sumitomo Corp. | 140,400 | 1,907,893 |
| Sumitomo Electric Industries Ltd. | 152,200 | 2,264,721 |
| Sumitomo Forestry Co., Ltd. | 20,800 | 480,273 |
| Sumitomo Heavy Industries Ltd. | 19,300 | 561,757 |
| Sumitomo Metal Mining Co., Ltd. | 17,200 | 728,219 |
| Sumitomo Mitsui Financial Group, Inc. | 118,110 | 4,149,053 |
| Sumitomo Mitsui Trust Holdings, Inc. | 28,200 | 961,130 |
| Sumitomo Realty & Development Co., Ltd. | 19,300 | 644,252 |
| Sumitomo Rubber Industries Ltd. | 41,200 | 510,379 |
| Suntory Beverage & Food Ltd. | 9,600 | 324,051 |
| Suzuken Co., Ltd. | 13,430 | 483,984 |
| Suzuki Motor Corp. | 44,700 | 1,696,209 |
| Sysmex Corp. | 3,400 | 339,604 |
| T&D Holdings, Inc. | 46,550 | 571,273 |
| Taiheiyo Cement Corp. | 20,100 | 504,645 |
| Taisei Corp. | 22,900 | 846,115 |
| Taiyo Yuden Co., Ltd. | 6,200 | 284,570 |
| Takashimaya Co., Ltd. | 37,000 | 409,027 |
| Takeda Pharmaceutical Co., Ltd. | 54,621 | 1,824,368 |
| TDK Corp. | 7,600 | 1,030,658 |
| Teijin Ltd. | 28,800 | 474,177 |
| Terumo Corp. | 13,100 | 495,340 |
| The Chugoku Electric Power Co., Inc. | 33,200 | 371,566 |
| The Kansai Electric Power Co., Inc. | 134,200 | 1,332,973 |
| The Yokohama Rubber Co., Ltd. | 16,700 | 310,558 |
| TIS, Inc. | 13,800 | 342,382 |
| Tobu Railway Co., Ltd. | 11,700 | 301,275 |
| Toho Gas Co., Ltd. | 5,600 | 312,102 |
| Toho Holdings Co., Ltd. | 14,300 | 241,931 |
| Tohoku Electric Power Co., Inc. | 109,700 | 969,087 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Tokio Marine Holdings, Inc. | 41,200 | 1,975,824 |
| Tokyo Electric Power Co. Holdings, Inc. * | 782,500 | 2,320,254 |
| Tokyo Electron Ltd. | 3,800 | 1,725,913 |
| Tokyo Gas Co., Ltd. | 57,700 | 1,170,958 |
| Tokyu Corp. | 37,300 | 479,707 |
| Tokyu Fudosan Holdings Corp. | 63,900 | 355,663 |
| Toppan Printing Co., Ltd. | 48,000 | 819,726 |
| Toray Industries, Inc. | 234,900 | 1,460,658 |
| Toshiba Corp. | 40,800 | 1,686,314 |
| Tosoh Corp. | 40,100 | 710,769 |
| TOTO Ltd. | 7,600 | 395,125 |
| Toyo Seikan Group Holdings Ltd. | 36,200 | 424,276 |
| Toyo Suisan Kaisha Ltd. | 5,400 | 220,185 |
| Toyoda Gosei Co., Ltd. | 11,000 | 269,613 |
| Toyota Industries Corp. | 11,900 | 955,438 |
| Toyota Motor Corp. | 223,718 | 16,739,514 |
| Toyota Tsusho Corp. | 42,600 | 1,805,153 |
| TS Tech Co., Ltd. | 17,400 | 242,603 |
| Tsuruha Holdings, Inc. | 2,000 | 231,197 |
| Ube Industries Ltd. | 21,200 | 428,675 |
| Unicharm Corp. | 8,300 | 322,624 |
| West Japan Railway Co. | 20,663 | 1,142,370 |
| Yakult Honsha Co., Ltd. | 4,600 | 223,912 |
| Yamada Holdings Co., Ltd. | 124,300 | 618,795 |
| Yamaha Corp. | 6,900 | 376,571 |
| Yamaha Motor Co., Ltd. | 47,100 | 1,176,821 |
| Yamato Holdings Co., Ltd. | 31,400 | 885,600 |
| Yamazaki Baking Co., Ltd. | 16,100 | 255,201 |
| Yaskawa Electric Corp. | 7,400 | 341,102 |
| Yokogawa Electric Corp. | 17,400 | 315,864 |
| Z Holdings Corp. | 83,900 | 386,969 |
| | | 292,457,280 |
| |
| Netherlands 2.6% |
| Aalberts N.V. | 6,898 | 372,671 |
| ABN AMRO Bank N.V. CVA * | 74,852 | 966,498 |
| Aegon N.V. | 293,095 | 1,358,297 |
| Akzo Nobel N.V. | 13,157 | 1,579,747 |
| APERAM S.A. | 7,605 | 393,615 |
| ArcelorMittal S.A. * | 183,923 | 5,346,755 |
| ASML Holding N.V. | 3,599 | 2,336,260 |
| ASR Nederland N.V. | 13,388 | 584,727 |
| Heineken Holding N.V. | 8,072 | 801,794 |
| Heineken N.V. | 10,378 | 1,203,842 |
| ING Groep N.V. | 415,291 | 5,305,334 |
| Koninklijke Ahold Delhaize N.V. | 130,609 | 3,514,938 |
| Koninklijke DSM N.V. | 6,367 | 1,141,603 |
| Koninklijke KPN N.V. | 282,851 | 975,726 |
| Koninklijke Philips N.V. * | 36,281 | 2,051,441 |
| NN Group N.V. | 27,262 | 1,359,787 |
| Randstad N.V. | 14,927 | 1,077,015 |
| Signify N.V. * | 19,618 | 1,114,088 |
| SNS Reaal N.V. *(a) | 124,822 | — |
| Unibail-Rodamco-Westfield * | 15,897 | 1,309,144 |
| Wolters Kluwer N.V. | 7,251 | 655,860 |
| | | 33,449,142 |
| |
| New Zealand 0.1% |
| Contact Energy Ltd. | 54,830 | 295,940 |
| Fletcher Building Ltd. | 155,587 | 808,884 |
| Spark New Zealand Ltd. | 125,632 | 395,467 |
| | | 1,500,291 |
| |
| Security | Number
of Shares | Value ($) |
| Norway 0.7% |
| DNB A.S.A. | 62,683 | 1,344,314 |
| Equinor A.S.A. | 147,034 | 2,969,022 |
| Mowi A.S.A. | 25,357 | 625,560 |
| Norsk Hydro A.S.A. | 216,979 | 1,381,675 |
| Orkla A.S.A. | 43,359 | 441,963 |
| Subsea 7 S.A. | 52,346 | 529,270 |
| Telenor A.S.A. | 62,925 | 1,121,007 |
| Yara International A.S.A. | 22,284 | 1,162,381 |
| | | 9,575,192 |
| |
| Poland 0.4% |
| Bank Polska Kasa Opieki S.A. * | 20,028 | 422,512 |
| Grupa Lotos S.A. | 22,061 | 277,487 |
| KGHM Polska Miedz S.A. * | 10,530 | 538,916 |
| PGE Polska Grupa Energetyczna S.A. * | 198,526 | 528,238 |
| Polski Koncern Naftowy ORLEN S.A. | 89,283 | 1,568,557 |
| Polskie Gornictwo Naftowe i Gazownictwo S.A. | 260,651 | 451,821 |
| Powszechna Kasa Oszczednosci Bank Polski S.A. * | 51,586 | 479,611 |
| Powszechny Zaklad Ubezpieczen S.A. * | 54,470 | 468,746 |
| | | 4,735,888 |
| |
| Portugal 0.2% |
| EDP - Energias de Portugal S.A. | 219,598 | 1,220,262 |
| Galp Energia, SGPS, S.A. | 67,543 | 777,744 |
| Jeronimo Martins, SGPS, S.A. | 17,601 | 321,432 |
| | | 2,319,438 |
| |
| Republic of Korea 6.7% |
| Amorepacific Corp. | 1,630 | 395,120 |
| BNK Financial Group, Inc. | 55,062 | 379,344 |
| CJ CheilJedang Corp. | 927 | 329,036 |
| CJ Corp. | 4,603 | 394,045 |
| Coway Co., Ltd. | 3,931 | 235,559 |
| DB Insurance Co., Ltd. | 8,984 | 394,740 |
| E-MART, Inc. | 5,065 | 761,261 |
| GS Engineering & Construction Corp. | 9,508 | 376,048 |
| GS Holdings Corp. | 14,643 | 564,604 |
| Hana Financial Group, Inc. | 33,891 | 1,389,171 |
| Hankook Tire & Technology Co., Ltd. | 14,481 | 624,843 |
| Hanwha Corp. | 17,447 | 480,615 |
| Hanwha Solutions Corp. * | 10,529 | 432,157 |
| Hyundai Engineering & Construction Co., Ltd. | 15,928 | 719,599 |
| Hyundai Glovis Co., Ltd. | 3,162 | 543,831 |
| Hyundai Heavy Industries Holdings Co. Ltd | 16,485 | 1,040,233 |
| Hyundai Marine & Fire Insurance Co., Ltd. | 15,521 | 338,853 |
| Hyundai Mobis Co., Ltd. | 9,541 | 2,309,188 |
| Hyundai Motor Co. | 21,674 | 4,121,350 |
| Hyundai Steel Co. | 30,836 | 1,532,807 |
| Industrial Bank of Korea | 50,964 | 443,572 |
| KB Financial Group, Inc. | 35,940 | 1,769,275 |
| Kia Motors Corp. | 48,291 | 3,349,578 |
| Korea Electric Power Corp. | 111,925 | 2,375,325 |
| Korea Gas Corp. * | 12,564 | 393,639 |
| Korea Shipbuilding & Offshore Engineering Co., Ltd. * | 5,748 | 789,175 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Korea Zinc Co., Ltd. | 998 | 399,216 |
| Korean Air Lines Co., Ltd. * | 21,359 | 514,143 |
| KT&G Corp. | 8,841 | 654,233 |
| LG Chem Ltd. | 2,232 | 1,863,246 |
| LG Corp. (a) | 6,013 | 680,126 |
| LG Display Co., Ltd. * | 94,276 | 2,047,354 |
| LG Electronics, Inc. | 20,411 | 2,867,584 |
| LG Household & Health Care Ltd. | 256 | 353,569 |
| LG Uplus Corp. | 40,188 | 476,116 |
| Lotte Chemical Corp. | 2,806 | 761,759 |
| Lotte Shopping Co., Ltd. | 5,065 | 562,984 |
| NAVER Corp. | 1,445 | 465,322 |
| POSCO | 18,312 | 5,984,630 |
| Posco International Corp. | 17,435 | 327,720 |
| S-Oil Corp. * | 6,496 | 504,521 |
| Samsung C&T Corp. | 4,929 | 599,832 |
| Samsung Electro-Mechanics Co., Ltd. | 3,168 | 506,279 |
| Samsung Electronics Co., Ltd. | 352,694 | 25,706,271 |
| Samsung Fire & Marine Insurance Co., Ltd. | 4,122 | 732,302 |
| Samsung Life Insurance Co., Ltd. | 7,666 | 561,401 |
| Samsung SDI Co., Ltd. | 943 | 550,410 |
| Samsung SDS Co., Ltd. | 2,006 | 328,973 |
| Shinhan Financial Group Co., Ltd. | 50,937 | 1,830,446 |
| SK Holdings Co., Ltd. | 5,390 | 1,332,082 |
| SK Hynix, Inc. | 39,172 | 4,468,792 |
| SK Innovation Co., Ltd. * | 13,570 | 3,282,230 |
| SK Telecom Co., Ltd. | 2,918 | 794,788 |
| Woori Financial Group, Inc. | 73,433 | 705,826 |
| | | 86,345,123 |
| |
| Singapore 0.7% |
| CapitaLand Ltd. | 137,286 | 382,707 |
| ComfortDelGro Corp., Ltd. | 280,400 | 361,796 |
| DBS Group Holdings Ltd. | 84,689 | 1,897,969 |
| Jardine Cycle & Carriage Ltd. | 16,400 | 285,482 |
| Keppel Corp., Ltd. | 132,000 | 536,278 |
| Oversea-Chinese Banking Corp., Ltd. | 173,038 | 1,581,831 |
| Singapore Airlines Ltd. * | 149,170 | 565,341 |
| Singapore Telecommunications Ltd. | 621,786 | 1,166,561 |
| United Overseas Bank Ltd. | 66,752 | 1,330,551 |
| Venture Corp., Ltd. | 17,100 | 258,015 |
| Wilmar International Ltd. | 195,966 | 766,937 |
| | | 9,133,468 |
| |
| Spain 3.4% |
| Acciona S.A. | 1,903 | 330,821 |
| ACS Actividades de Construccion y Servicios S.A. | 30,766 | 1,002,379 |
| Aena SME S.A. * | 3,060 | 531,814 |
| Amadeus IT Group S.A. * | 12,547 | 854,426 |
| Banco Bilbao Vizcaya Argentaria S.A. * | 1,021,045 | 5,717,424 |
| Banco De Sabadell S.A. * | 2,156,799 | 1,365,518 |
| Banco Santander S.A. * | 3,485,531 | 13,445,615 |
| Bankinter S.A. | 52,055 | 284,665 |
| CaixaBank S.A. * | 310,429 | 993,051 |
| Enagas S.A. | 14,361 | 312,646 |
| Endesa S.A. | 31,201 | 820,639 |
| Ferrovial S.A. | 16,848 | 478,332 |
| Grifols S.A. | 10,170 | 275,466 |
| Iberdrola S.A. | 321,437 | 4,343,883 |
| Industria de Diseno Textil S.A. | 45,189 | 1,607,856 |
| Security | Number
of Shares | Value ($) |
| Linea Directa Aseguradora SA Cia de Seguros y Reaseguros * | 52,055 | 102,011 |
| Mapfre S.A. | 161,249 | 346,430 |
| Naturgy Energy Group S.A. | 35,340 | 907,870 |
| Red Electrica Corp. S.A. | 22,867 | 419,794 |
| Repsol S.A. | 364,703 | 4,353,198 |
| Telefonica S.A. | 1,229,412 | 5,697,487 |
| | | 44,191,325 |
| |
| Sweden 2.0% |
| Alfa Laval AB | 12,715 | 429,419 |
| Assa Abloy AB, B Shares | 31,113 | 887,018 |
| Atlas Copco AB, A Shares | 16,134 | 978,367 |
| Atlas Copco AB, B Shares | 11,249 | 583,699 |
| Boliden AB | 22,824 | 887,797 |
| Electrolux AB, B Shares | 19,156 | 537,646 |
| Epiroc AB, A Shares | 13,966 | 302,189 |
| Epiroc AB, B Shares | 9,545 | 186,886 |
| Essity AB, B Shares | 25,452 | 830,702 |
| H & M Hennes & Mauritz AB, B Shares * | 81,619 | 2,008,429 |
| Hexagon AB, B Shares | 5,079 | 485,140 |
| Husqvarna AB, B Shares | 24,728 | 344,351 |
| ICA Gruppen AB | 5,876 | 270,843 |
| Industrivarden AB, A Shares | 5,216 | 200,027 |
| Industrivarden AB, C Shares | 3,606 | 130,069 |
| Investor AB, A Shares | 5,395 | 458,227 |
| Investor AB, B Shares | 16,708 | 1,418,284 |
| Lundin Energy AB | 5,410 | 172,568 |
| Sandvik AB | 49,131 | 1,214,982 |
| Securitas AB, B Shares | 30,294 | 515,677 |
| Skandinaviska Enskilda Banken AB, A Shares | 88,041 | 1,128,082 |
| Skanska AB, B Shares | 29,002 | 785,465 |
| SKF AB, B Shares | 28,870 | 745,878 |
| SSAB AB, A Shares * | 40,020 | 216,622 |
| SSAB AB, B Shares * | 118,427 | 590,736 |
| Svenska Cellulosa AB, S.C.A., B Shares | 16,666 | 291,844 |
| Svenska Handelsbanken AB, A Shares | 93,321 | 1,080,682 |
| Swedbank AB, A Shares | 81,124 | 1,424,141 |
| Swedish Match AB | 4,523 | 370,273 |
| Tele2 AB, B Shares | 26,445 | 341,571 |
| Telefonaktiebolaget LM Ericsson, B Shares | 120,918 | 1,660,703 |
| Telia Co. AB | 273,584 | 1,133,686 |
| Trelleborg AB, B Shares | 17,634 | 458,763 |
| Volvo AB, A Shares | 15,266 | 384,139 |
| Volvo AB, B Shares | 92,631 | 2,262,102 |
| | | 25,717,007 |
| |
| Switzerland 4.3% |
| ABB Ltd. | 86,469 | 2,808,699 |
| Adecco Group AG | 21,704 | 1,471,087 |
| Alcon, Inc. * | 12,123 | 910,567 |
| Baloise Holding AG * | 2,226 | 376,402 |
| Barry Callebaut AG | 108 | 238,454 |
| Chocoladefabriken Lindt & Spruengli AG * | 2 | 197,736 |
| Chocoladefabriken Lindt & Spruengli AG - Participation Certificates * | 27 | 250,413 |
| Cie Financiere Richemont S.A. | 22,431 | 2,302,021 |
| Clariant AG | 14,412 | 301,879 |
| Credit Suisse Group AG (b) | 93,514 | 980,024 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| DKSH Holding AG | 3,782 | 304,354 |
| Dufry AG * | 5,901 | 388,337 |
| Geberit AG | 873 | 574,441 |
| Georg Fischer AG | 273 | 382,793 |
| Givaudan S.A. | 170 | 712,330 |
| Julius Baer Group Ltd. | 7,016 | 441,569 |
| Kuehne & Nagel International AG | 2,285 | 683,203 |
| LafargeHolcim Ltd. * | 42,081 | 2,596,722 |
| Lonza Group AG * | 848 | 539,086 |
| Nestle S.A. | 95,785 | 11,430,090 |
| Novartis AG | 64,635 | 5,515,715 |
| Partners Group Holding AG | 229 | 326,203 |
| Roche Holding AG | 21,574 | 7,036,481 |
| Roche Holding AG - Bearer Shares | 825 | 286,858 |
| Schindler Holding AG | 558 | 155,262 |
| Schindler Holding AG - Participation Certificates | 1,216 | 346,030 |
| SGS S.A. | 190 | 562,191 |
| Sika AG | 2,271 | 678,263 |
| Sonova Holding AG * | 1,215 | 359,762 |
| Swiss Life Holding AG | 1,817 | 885,299 |
| Swiss Prime Site AG | 2,874 | 279,696 |
| Swiss Re AG | 22,883 | 2,124,483 |
| Swisscom AG | 1,723 | 935,500 |
| The Swatch Group AG | 4,209 | 252,479 |
| The Swatch Group AG - Bearer Shares | 2,971 | 910,631 |
| UBS Group AG | 193,006 | 2,947,317 |
| Zurich Insurance Group AG | 8,136 | 3,337,863 |
| | | 54,830,240 |
| |
| United Kingdom 16.4% |
| 3i Group plc | 38,068 | 674,252 |
| Admiral Group plc | 6,640 | 286,906 |
| Aggreko plc | 40,094 | 477,716 |
| Anglo American plc | 77,570 | 3,289,001 |
| Antofagasta plc | 16,494 | 424,888 |
| Ashtead Group plc | 19,384 | 1,245,440 |
| Associated British Foods plc * | 32,224 | 1,028,173 |
| AstraZeneca plc | 32,643 | 3,474,647 |
| Aviva plc | 379,144 | 2,096,115 |
| BAE Systems plc | 223,568 | 1,561,674 |
| Balfour Beatty plc * | 71,786 | 309,458 |
| Barclays plc | 1,719,021 | 4,161,696 |
| Barratt Developments plc | 100,610 | 1,072,727 |
| Bellway plc | 12,917 | 644,365 |
| BHP Group plc | 127,798 | 3,848,609 |
| BP plc | 4,088,578 | 17,116,198 |
| British American Tobacco plc | 144,354 | 5,356,016 |
| BT Group plc * | 1,977,013 | 4,509,453 |
| Bunzl plc | 18,120 | 582,609 |
| Burberry Group plc * | 26,810 | 763,100 |
| Carnival plc * | 31,264 | 730,846 |
| Centrica plc * | 2,686,209 | 2,102,596 |
| Coca-Cola HBC AG * | 11,638 | 402,232 |
| Compass Group plc * | 99,769 | 2,170,402 |
| CRH plc | 54,715 | 2,589,380 |
| Croda International plc | 3,286 | 306,978 |
| DCC plc | 8,038 | 697,449 |
| Diageo plc | 67,749 | 3,041,345 |
| Direct Line Insurance Group plc | 163,194 | 642,121 |
| Dixons Carphone plc * | 493,549 | 949,871 |
| Drax Group plc | 73,167 | 412,879 |
| DS Smith plc | 108,081 | 628,231 |
| easyJet plc * | 38,953 | 556,905 |
| Evraz plc | 65,518 | 581,035 |
| Experian plc | 19,462 | 750,290 |
| Security | Number
of Shares | Value ($) |
| Ferguson plc | 14,340 | 1,808,647 |
| FirstGroup plc * | 486,714 | 499,427 |
| GlaxoSmithKline plc | 262,054 | 4,842,691 |
| Glencore plc * | 2,951,544 | 12,022,881 |
| Hays plc * | 208,517 | 470,547 |
| HSBC Holdings plc | 1,813,478 | 11,322,833 |
| Imperial Brands plc | 130,092 | 2,711,574 |
| Inchcape plc * | 68,235 | 736,510 |
| Informa plc * | 54,789 | 425,881 |
| InterContinental Hotels Group plc * | 6,979 | 495,949 |
| International Consolidated Airlines Group S.A. * | 251,293 | 704,702 |
| Intertek Group plc | 3,830 | 324,666 |
| ITV plc * | 522,294 | 872,943 |
| J. Sainsbury plc | 404,949 | 1,330,052 |
| John Wood Group plc * | 107,799 | 419,097 |
| Johnson Matthey plc | 29,404 | 1,319,486 |
| Kingfisher plc * | 409,850 | 2,023,290 |
| Land Securities Group plc | 41,332 | 411,876 |
| Legal & General Group plc | 388,825 | 1,459,877 |
| Lloyds Banking Group plc | 8,257,728 | 5,178,251 |
| London Stock Exchange Group plc | 2,425 | 247,758 |
| M&G plc | 345,975 | 1,038,484 |
| Marks & Spencer Group plc * | 643,515 | 1,403,859 |
| Meggitt plc * | 86,351 | 555,479 |
| Melrose Industries plc | 155,299 | 349,608 |
| Micro Focus International plc | 55,986 | 399,339 |
| Mondi plc | 44,457 | 1,206,729 |
| National Grid plc | 302,853 | 3,817,626 |
| Natwest Group plc | 153,861 | 417,550 |
| Next plc * | 7,400 | 797,470 |
| Pearson plc | 74,186 | 851,066 |
| Pennon Group plc | 19,242 | 274,851 |
| Persimmon plc | 24,045 | 1,040,199 |
| Polymetal International plc | 9,957 | 205,599 |
| Prudential plc | 101,456 | 2,148,257 |
| Reckitt Benckiser Group plc | 21,102 | 1,878,871 |
| RELX plc | 51,266 | 1,330,120 |
| Rentokil Initial plc | 41,724 | 288,366 |
| Rio Tinto plc | 80,121 | 6,710,708 |
| Rolls-Royce Holdings plc * | 441,377 | 638,763 |
| Royal Dutch Shell plc, A Shares | 875,996 | 16,482,971 |
| Royal Dutch Shell plc, B Shares | 812,807 | 14,544,088 |
| Royal Mail plc * | 299,336 | 2,050,804 |
| RSA Insurance Group plc | 57,194 | 538,647 |
| Severn Trent plc | 14,005 | 479,395 |
| Signature Aviation plc * | 60,921 | 340,157 |
| Smith & Nephew plc | 32,437 | 702,058 |
| Smiths Group plc | 23,148 | 519,865 |
| Smurfit Kappa Group plc | 17,330 | 889,062 |
| SSE plc | 104,975 | 2,128,213 |
| Standard Chartered plc | 231,086 | 1,657,797 |
| Standard Life Aberdeen plc | 172,007 | 659,172 |
| Tate & Lyle plc | 40,164 | 444,317 |
| Taylor Wimpey plc | 370,181 | 918,306 |
| Tesco plc | 717,795 | 2,191,115 |
| The Berkeley Group Holdings plc | 8,711 | 556,707 |
| The Sage Group plc | 36,736 | 323,667 |
| Travis Perkins PLC * | 30,277 | 642,946 |
| TUI AG *(b) | 205,547 | 1,228,065 |
| Unilever plc | 107,288 | 6,284,618 |
| United Utilities Group plc | 40,965 | 547,939 |
| Vodafone Group plc | 4,503,674 | 8,499,327 |
| Whitbread plc * | 14,960 | 670,705 |
| Wickes Group PLC * | 44,470 | 153,507 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| WM Morrison Supermarkets plc | 485,312 | 1,165,565 |
| WPP plc | 176,560 | 2,380,402 |
| | | 211,466,900 |
| Total Common Stock |
| (Cost $962,350,578) | | 1,260,080,568 |
|
| Preferred Stock 1.3% of net assets |
| |
| Germany 0.8% |
| Bayerische Motoren Werke AG | 10,402 | 851,947 |
| Fuchs Petrolub SE | 6,035 | 321,361 |
| Henkel AG & Co. KGaA | 10,001 | 1,148,811 |
| Volkswagen AG | 28,716 | 7,476,482 |
| | | 9,798,601 |
| |
| Italy 0.1% |
| Telecom Italia S.p.A. - RSP | 1,682,270 | 986,756 |
| |
| Republic of Korea 0.4% |
| Amorepacific Corp. | 434 | 34,607 |
| Hyundai Motor Co., Ltd. | 4,423 | 422,907 |
| Hyundai Motor Co., Ltd. 2nd | 6,532 | 621,356 |
| LG Chem Ltd. | 529 | 211,004 |
| LG Electronics, Inc. | 3,026 | 200,003 |
| LG Household & Health Care Ltd | 40 | 25,729 |
| Samsung Electronics Co., Ltd. | 59,762 | 3,923,635 |
| Samsung SDI Co. Ltd | 7 | 2,817 |
| | | 5,442,058 |
| Total Preferred Stock |
| (Cost $9,874,227) | | 16,227,415 |
|
| Rights 0.0% of net assets |
| |
| Switzerland 0.0% |
Credit Suisse Group AG
expires 05/06/21 *(a) | 93,514 | 3,914 |
| Total Rights |
| (Cost $—) | | 3,914 |
|
| Investment Company 0.8% of net assets |
| |
| United States 0.8% |
| Securities Lending Collateral 0.8% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 10,224,444 | 10,224,444 |
| Total Investment Company |
| (Cost $10,224,444) | | 10,224,444 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Short-Term Investments 0.3% of net assets |
| |
| Time Deposits 0.3% |
| Barclays Bank PLC |
| U.S. Dollar | | |
| 0.01%, 05/03/21 (d) | 3,345,641 | 3,345,641 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| BNP Paribas S.A. |
| Euro | | |
| (0.78%), 05/03/21 (d)(e) | 395,270 | 475,213 |
| Swiss Franc | | |
| (1.38%), 05/03/21 (d)(e) | 31,289 | 34,261 |
| Brown Brothers Harriman & Co. |
| Australian Dollar | | |
| (0.14%), 05/03/21 (d)(e) | 61,253 | 47,186 |
| Canadian Dollar | | |
| 0.01%, 05/03/21 (d) | 217,464 | 176,922 |
| Hong Kong Dollar | | |
| (0.15%), 05/03/21 (d)(e) | 57,574 | 7,412 |
| New Zealand Dollar | | |
| 0.10%, 05/03/21 (d) | 12,832 | 9,183 |
| Norwegian Krone | | |
| (0.25%), 05/03/21 (d)(e) | 87,545 | 10,517 |
| Pound Sterling | | |
| 0.01%, 05/04/21 (d) | 1,910 | 2,638 |
| Singapor Dollar | | |
| 0.00, 05/03/21 (d) | 1,770 | 1,330 |
| Skandinaviska Enskilda Banken AB |
| Swedish Krona | | |
| (0.30%), 05/03/21 (d)(e) | 210,259 | 24,837 |
| Sumitomo Mitsui Banking Corp. |
| Japanese Yen | | |
| (0.31%), 05/06/21 (d)(e) | 4,877,066 | 44,625 |
| Total Short-Term Investments |
| (Cost $4,179,765) | | 4,179,765 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Depreciation
($) |
| Futures Contracts | |
| Long | |
| MSCI EAFE Index, expires 06/18/21 | 89 | 10,044,985 | (115,561) |
| * | Non-income producing security. |
| (a) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (b) | All or a portion of this security is on loan. Securities on loan were valued at $9,710,131. |
| (c) | The rate shown is the 7-day yield. |
| (d) | The rate shown is the current daily overnight rate. |
| (e) | Rate is negative due to the current daily overnight rate at the central bank of the denominated currency and therefore is non-income producing. |
| | |
| CVA — | Dutch Certificate |
| REIT — | Real Estate Investment Trust |
| RSP — | Risparmio (Convertible Savings Shares) |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $— | $480,165,712 | $— | $480,165,712 | |
| Australia | — | 70,437,306 | 699 | 70,438,005 | |
| Belgium | 287,758 | 9,925,720 | — | 10,213,478 | |
| Canada | 94,972,481 | — | — | 94,972,481 | |
| Denmark | 1,179,461 | 10,536,423 | — | 11,715,884 | |
| France | 214,849 | 111,705,974 | — | 111,920,823 | |
| Hong Kong | — | 22,125,154 | 209,856 | 22,335,010 | |
| Netherlands | — | 33,449,142 | — * | 33,449,142 | |
| Portugal | 1,541,694 | 777,744 | — | 2,319,438 | |
| Republic of Korea | — | 85,664,997 | 680,126 | 86,345,123 | |
| Spain | 102,011 | 44,089,314 | — | 44,191,325 | |
| Sweden | 537,646 | 25,179,361 | — | 25,717,007 | |
| Switzerland | 250,413 | 54,579,827 | — | 54,830,240 | |
| United Kingdom | 1,876,517 | 209,590,383 | — | 211,466,900 | |
| Preferred Stock1 | — | 16,227,415 | — | 16,227,415 | |
| Rights 1 | | | | | |
| Switzerland | — | — | 3,914 | 3,914 | |
| Investment Company1 | 10,224,444 | — | — | 10,224,444 | |
| Short-Term Investments1 | — | 4,179,765 | — | 4,179,765 | |
| Liabilities | | | | | |
| Futures Contracts2 | (115,561) | — | — | (115,561) | |
| Total | $111,071,713 | $1,178,634,237 | $894,595 | $1,290,600,545 | |
| * | Level 3 amount shown includes securities determined to have no value at April 30, 2021. |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $976,404,570) including securities on loan of $9,710,131 | | $1,280,491,662 |
| Collateral invested for securities on loan, at value (cost $10,224,444) | | 10,224,444 |
| Foreign currency, at value (cost $155,228) | | 156,203 |
| Deposit with broker for futures contracts | | 1,247,400 |
| Receivables: | | |
| Investments sold | | 2,441,505 |
| Dividends | | 4,828,681 |
| Foreign tax reclaims | | 2,188,487 |
| Fund shares sold | | 1,378,782 |
| Income from securities on loan | + | 17,091 |
| Total assets | | 1,302,974,255 |
| Liabilities |
| Collateral held for securities on loan | | 10,224,444 |
| Payables: | | |
| Investments bought | | 3,720,446 |
| Investment adviser fees | | 280,786 |
| Fund shares redeemed | | 648,914 |
| Variation margin on futures contracts | + | 158,418 |
| Total liabilities | | 15,033,008 |
| Net Assets |
| Total assets | | 1,302,974,255 |
| Total liabilities | – | 15,033,008 |
| Net assets | | $1,287,941,247 |
| Net Assets by Source | | |
| Capital received from investors | | 1,114,842,435 |
| Total distributable earnings | | 173,098,812 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,287,941,247 | | 126,044,957 | | $10.22 |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $2,210,181) | | $19,182,337 |
| Securities on loan, net | + | 96,994 |
| Total investment income | | 19,279,331 |
| Expenses |
| Investment adviser fees | | 1,489,398 |
| Professional fees | + | 12,311* |
| Total expenses | | 1,501,709 |
| Expense reduction by CSIM | – | 12,311* |
| Net expenses | – | 1,489,398 |
| Net investment income | | 17,789,933 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 11,090,993 |
| Net realized gains on futures contracts | | 1,678,302 |
| Net realized losses on foreign currency transactions | + | (11,899) |
| Net realized gains | | 12,757,396 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 342,769,311 |
| Net change in unrealized appreciation (depreciation) on futures contracts | | (27,810) |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 14,218 |
| Net change in unrealized appreciation (depreciation) | + | 342,755,719 |
| Net realized and unrealized gains | | 355,513,115 |
| Increase in net assets resulting from operations | | $373,303,048 |
| * | Professional fees associated with the filing of tax claims in the European Union deemed to be non-routine expenses of the fund. See financial notes 2(d) and 4 for additional information. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $17,789,933 | $29,339,381 |
| Net realized gains (losses) | | 12,757,396 | (57,340,321) |
| Net change in unrealized appreciation (depreciation) | + | 342,755,719 | (138,729,812) |
| Increase (decrease) in net assets from operations | | 373,303,048 | (166,730,752) |
| Distributions to Shareholders | |
| Total distributions | | ($28,299,152) | ($48,541,581) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 20,174,846 | $195,016,061 | 46,294,520 | $338,877,413 |
| Shares reinvested | | 1,660,561 | 15,210,744 | 2,997,596 | 27,038,314 |
| Shares redeemed | + | (24,501,135) | (233,320,115) | (68,317,340) | (511,865,550) |
| Net transactions in fund shares | | (2,665,728) | ($23,093,310) | (19,025,224) | ($145,949,823) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 128,710,685 | $966,030,661 | 147,735,909 | $1,327,252,817 |
| Total increase (decrease) | + | (2,665,728) | 321,910,586 | (19,025,224) | (361,222,156) |
| End of period | | 126,044,957 | $1,287,941,247 | 128,710,685 | $966,030,661 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $11.46 | $12.57 | $12.67 | $14.58 | $11.93 | $11.25 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.12 | 0.22 | 0.29 | 0.33 | 0.27 | 0.25 |
| Net realized and unrealized gains (losses) | 3.81 | (0.97) | 0.25 | (1.70) | 2.67 | 0.66 |
| Total from investment operations | 3.93 | (0.75) | 0.54 | (1.37) | 2.94 | 0.91 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.27) | (0.36) | (0.30) | (0.34) | (0.29) | (0.23) |
| Distributions from net realized gains | — | — | (0.34) | (0.20) | — | — |
| Total distributions | (0.27) | (0.36) | (0.64) | (0.54) | (0.29) | (0.23) |
| Net asset value at end of period | $15.12 | $11.46 | $12.57 | $12.67 | $14.58 | $11.93 |
| Total return | 34.58% 2 | (6.28%) | 5.13% | (9.79%) | 25.23% | 8.29% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.39% 3 | 0.39% | 0.39% | 0.39% | 0.48% 4 | 0.68% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.43% 4 | 0.49% |
| Net investment income (loss) | 1.76% 3 | 1.89% | 2.44% | 2.30% | 2.04% | 2.24% |
| Portfolio turnover rate | 21% 2 | 25% | 38% | 26% | 21% | 40% |
| Net assets, end of period (x 1,000,000) | $785 | $577 | $775 | $763 | $749 | $476 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective May 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective May 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 99.0% of net assets |
| |
| Australia 4.9% |
| Adbri Ltd. | 243,500 | 601,712 |
| ALS Ltd. | 62,833 | 508,805 |
| Ansell Ltd. | 23,077 | 750,701 |
| ARB Corp Ltd. | 1,241 | 37,233 |
| ASX Ltd. | 10,959 | 615,773 |
| AusNet Services | 453,678 | 664,061 |
| Austal Ltd. | 97,156 | 180,292 |
| Bank of Queensland Ltd. | 176,138 | 1,220,751 |
| Bapcor Ltd. | 41,263 | 245,262 |
| Beach Energy Ltd. | 209,836 | 203,387 |
| Bega Cheese Ltd. | 73,123 | 359,715 |
| Blackmores Ltd. | 2,891 | 159,240 |
| Breville Group Ltd. | 11,608 | 232,468 |
| carsales.com Ltd. | 17,184 | 262,514 |
| Challenger Ltd. | 166,171 | 652,269 |
| Charter Hall Group | 20,593 | 222,451 |
| Charter Hall Retail REIT | 64,886 | 186,031 |
| CIMIC Group Ltd. *(a) | 47,438 | 706,240 |
| Cleanaway Waste Management Ltd. | 201,358 | 441,441 |
| Cochlear Ltd. | 3,625 | 620,527 |
| Collins Foods Ltd. | 22,598 | 197,795 |
| Coronado Global Resources, Inc. *(b) | 60,753 | 27,643 |
| Costa Group Holdings Ltd. | 76,362 | 273,920 |
| Cromwell Property Group | 350,102 | 235,904 |
| CSR Ltd. | 245,993 | 1,129,744 |
| Dexus | 126,203 | 990,666 |
| Domino's Pizza Enterprises Ltd. | 3,638 | 298,760 |
| Eagers Automotive Ltd | 62,696 | 754,445 |
| Eclipx Group Ltd. * | 229,083 | 335,165 |
| Elders Ltd. | 24,907 | 233,396 |
| Event Hospitality & Entertainment Ltd. * | 28,064 | 275,566 |
| Evolution Mining Ltd. | 125,331 | 443,772 |
| Flight Centre Travel Group Ltd. * | 47,990 | 615,235 |
| G.U.D. Holdings Ltd. | 19,966 | 205,283 |
| G8 Education Ltd. * | 451,704 | 346,944 |
| Genworth Mortgage Insurance Australia Ltd. * | 140,158 | 294,395 |
| GrainCorp Ltd., Class A | 136,430 | 536,773 |
| GWA Group Ltd. | 94,205 | 216,894 |
| Harvey Norman Holdings Ltd. | 177,458 | 719,890 |
| Healius Ltd. | 194,849 | 619,668 |
| Humm Group Ltd. * | 158,830 | 108,874 |
| IGO Ltd. | 60,744 | 347,093 |
| Iluka Resources Ltd. | 51,911 | 307,687 |
| Inghams Group Ltd. | 83,619 | 210,552 |
| InvoCare Ltd. | 19,843 | 172,830 |
| IOOF Holdings Ltd. | 183,491 | 515,393 |
| IRESS Ltd. | 29,633 | 230,031 |
| Link Administration Holdings Ltd. | 99,030 | 379,444 |
| Magellan Financial Group Ltd. | 6,152 | 229,192 |
| McMillan Shakespeare Ltd. | 26,615 | 227,296 |
| Mineral Resources Ltd. | 23,590 | 861,517 |
| Monadelphous Group Ltd. | 54,108 | 529,029 |
| Security | Number
of Shares | Value ($) |
| Myer Holdings Ltd. * | 1,848,586 | 447,391 |
| nib Holdings Ltd. | 117,900 | 561,086 |
| Nine Entertainment Co. Holdings Ltd. | 239,845 | 527,679 |
| Northern Star Resources Ltd. | 46,432 | 373,055 |
| NRW Holdings Ltd. | 226,584 | 337,693 |
| Nufarm Ltd. * | 136,379 | 547,405 |
| Orora Ltd. | 417,715 | 1,022,068 |
| OZ Minerals Ltd. | 62,730 | 1,144,454 |
| Pendal Group Ltd. | 85,001 | 482,145 |
| Perenti Global Ltd. | 221,424 | 185,361 |
| Perpetual Ltd. | 15,604 | 415,882 |
| Platinum Asset Management Ltd. | 64,321 | 233,530 |
| Premier Investments Ltd. | 15,196 | 307,725 |
| Qube Holdings Ltd. | 205,459 | 475,745 |
| REA Group Ltd. | 1,898 | 230,920 |
| Reece Ltd. | 6,347 | 99,301 |
| Regis Resources Ltd. | 96,190 | 191,761 |
| Reliance Worldwide Corp. Ltd. | 89,217 | 338,165 |
| Sandfire Resources Ltd. | 87,768 | 449,173 |
| SEEK Ltd. * | 37,064 | 883,315 |
| Seven Group Holdings Ltd. | 17,771 | 293,724 |
| Shopping Centres Australasia Property Group | 106,530 | 204,748 |
| Southern Cross Media Group Ltd. * | 130,666 | 187,370 |
| St. Barbara Ltd. | 147,199 | 208,052 |
| Steadfast Group Ltd. | 65,638 | 210,582 |
| Super Retail Group Ltd. | 62,049 | 569,913 |
| Sydney Airport * | 120,599 | 573,522 |
| Tassal Group Ltd. | 64,080 | 182,213 |
| The GPT Group | 222,599 | 792,291 |
| The Star Entertainment Grp Ltd. * | 344,215 | 1,052,796 |
| TPG Telecom Ltd. | 50,842 | 215,852 |
| Vicinity Centres | 809,385 | 989,115 |
| Virgin Australia International Holdings *(b) | 176,214 | — |
| Vocus Group Ltd. * | 73,489 | 309,777 |
| Washington H Soul Pattinson & Co., Ltd. | 10,989 | 255,958 |
| Whitehaven Coal Ltd. * | 576,591 | 564,513 |
| Worley Ltd. | 108,307 | 898,718 |
| | | 38,504,667 |
| |
| Austria 0.8% |
| ANDRITZ AG | 23,816 | 1,294,189 |
| Austria Technologie & Systemtechnik AG | 10,189 | 392,424 |
| BAWAG Group AG * | 17,884 | 964,710 |
| CA Immobilien Anlagen AG | 7,167 | 314,077 |
| EVN AG | 10,125 | 231,049 |
| IMMOFINANZ AG * | 12,464 | 259,343 |
| Lenzing AG * | 7,879 | 1,040,095 |
| Mayr-Melnhof Karton AG | 493 | 102,302 |
| Oesterreichische Post AG (a) | 13,103 | 580,877 |
| S IMMO AG | 7,119 | 184,870 |
| UNIQA Insurance Group AG | 46,128 | 370,251 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Verbund AG | 5,999 | 492,656 |
| Vienna Insurance Group AG Wiener Versicherung Gruppe | 13,131 | 352,044 |
| | | 6,578,887 |
| |
| Belgium 1.1% |
| Ackermans & van Haaren N.V. | 5,635 | 901,005 |
| AGFA-Gevaert N.V. * | 71,960 | 354,276 |
| Barco N.V. | 13,858 | 352,595 |
| Befimmo S.A. | 4,167 | 177,168 |
| Bekaert S.A. | 25,347 | 1,112,871 |
| bpost S.A. * | 73,420 | 780,287 |
| Cie d'Entreprises CFE * | 3,689 | 373,435 |
| Cofinimmo S.A. | 2,423 | 371,478 |
| D'ieteren S.A./N.V. | 9,597 | 1,042,067 |
| Elia Group S.A./N.V. | 3,436 | 371,943 |
| Euronav N.V. | 46,382 | 399,781 |
| KBC Ancora * | 4,435 | 193,602 |
| Melexis N.V. | 2,412 | 262,571 |
| Ontex Group N.V. * | 46,978 | 612,311 |
| Orange Belgium S.A. | 7,253 | 191,680 |
| Sofina S.A. | 942 | 357,922 |
| Telenet Group Holding N.V. | 16,166 | 691,283 |
| Tessenderlo Group S.A. * | 8,290 | 353,800 |
| Warehouses De Pauw CVA | 1,210 | 42,674 |
| | | 8,942,749 |
| |
| Canada 8.1% |
| Aecon Group, Inc. | 32,672 | 496,001 |
| Ag Growth International, Inc. (a) | 6,100 | 213,896 |
| Alamos Gold, Inc., Class A | 20,524 | 164,472 |
| Algonquin Power & Utilities Corp. | 52,742 | 850,892 |
| Allied Properties Real Estate Investment Trust | 11,800 | 409,446 |
| Altus Group Ltd. | 4,200 | 212,230 |
| Artis Real Estate Investment Trust (a) | 58,073 | 513,569 |
| ATS Automation Tooling Systems, Inc. * | 10,700 | 258,109 |
| AutoCanada, Inc. *(a) | 21,900 | 843,822 |
| B2Gold Corp. | 55,700 | 268,270 |
| Badger Daylighting Ltd. | 7,271 | 245,965 |
| Baytex Energy Corp. * | 814,626 | 967,623 |
| Birchcliff Energy Ltd. (a) | 174,600 | 443,194 |
| BlackBerry Ltd. * | 72,000 | 636,733 |
| Boardwalk Real Estate Investment Trust | 10,777 | 321,429 |
| Boralex, Inc., Class A | 1,500 | 48,082 |
| Boyd Group Services, Inc. | 1,700 | 315,741 |
| Brookfield Infrastructure Corp., Class A | 800 | 57,379 |
| BRP, Inc. | 5,300 | 486,902 |
| CAE, Inc. * | 46,219 | 1,447,693 |
| Cameco Corp. | 74,700 | 1,255,585 |
| Canadian Apartment Properties REIT | 14,099 | 626,750 |
| Canadian Utilities Ltd., Class A | 35,954 | 1,027,591 |
| Canadian Western Bank | 20,639 | 567,545 |
| Canfor Corp. * | 47,095 | 1,176,273 |
| Capital Power Corp. | 27,899 | 889,527 |
| Cascades, Inc. | 45,119 | 529,322 |
| Celestica Inc. * | 115,600 | 963,059 |
| Centerra Gold, Inc. | 39,777 | 366,978 |
| Chartwell Retirement Residences | 45,500 | 463,088 |
| Chemtrade Logistics Income Fund (a) | 88,481 | 543,491 |
| Choice Properties Real Estate Investment Trust | 25,500 | 289,200 |
| Chorus Aviation, Inc. * | 129,600 | 457,604 |
| Security | Number
of Shares | Value ($) |
| Cineplex, Inc. *(a) | 55,760 | 576,131 |
| Cogeco Communications, Inc. | 2,831 | 268,901 |
| Cogeco, Inc. | 6,300 | 495,020 |
| Colliers International Group, Inc. | 4,134 | 447,453 |
| Cominar Real Estate Investment Trust | 111,013 | 881,493 |
| Constellation Software, Inc. | 687 | 1,008,258 |
| Corus Entertainment, Inc., B Shares | 220,543 | 1,055,032 |
| Crombie Real Estate Investment Trust (a) | 17,800 | 237,063 |
| Dorel Industries, Inc., Class B * | 28,500 | 286,125 |
| Dream Office Real Estate Investment Trust | 26,617 | 457,566 |
| ECN Capital Corp. | 5,500 | 36,871 |
| Element Fleet Management Corp. | 38,200 | 467,730 |
| Endeavour Mining Corp. | 2,500 | 52,048 |
| Enerflex Ltd. | 84,723 | 565,211 |
| Enerplus Corp. | 205,100 | 1,102,966 |
| Exchange Income Corp. (a) | 11,130 | 348,891 |
| Extendicare, Inc. (a) | 32,900 | 209,046 |
| First Capital Real Estate Investment Trust | 37,578 | 541,436 |
| FirstService Corp. | 1,700 | 276,144 |
| Franco-Nevada Corp. | 5,293 | 737,355 |
| Gibson Energy, Inc. | 54,602 | 997,287 |
| Granite Real Estate Investment Trust | 3,704 | 237,129 |
| Great Canadian Gaming Corp. * | 13,927 | 502,512 |
| Home Capital Group, Inc. * | 21,070 | 556,941 |
| Hudbay Minerals, Inc. | 103,756 | 774,910 |
| IAMGOLD Corp. * | 120,268 | 375,730 |
| IGM Financial, Inc. | 25,700 | 917,476 |
| Innergex Renewable Energy, Inc. | 12,200 | 208,437 |
| Interfor Corp. * | 36,395 | 967,355 |
| Intertape Polymer Group, Inc. | 18,885 | 464,769 |
| Just Energy Group, Inc. *(a)(b) | 16,771 | 15,295 |
| Killam Apartment Real Estate Investment Trust | 3,800 | 58,554 |
| Kirkland Lake Gold Ltd. | 10,848 | 403,066 |
| Laurentian Bank of Canada | 15,311 | 529,903 |
| Lundin Mining Corp. | 117,625 | 1,421,089 |
| Maple Leaf Foods, Inc. | 27,463 | 633,873 |
| Martinrea International, Inc. | 78,871 | 856,631 |
| MEG Energy Corp. * | 189,562 | 1,047,168 |
| Morneau Shepell, Inc. | 7,412 | 186,333 |
| Mullen Group Ltd. | 65,392 | 716,617 |
| NFI Group, Inc. | 35,092 | 787,118 |
| Northland Power, Inc. | 15,446 | 532,062 |
| NorthWest Healthcare Properties Real Estate Investment Trust | 4,600 | 48,876 |
| NuVista Energy Ltd. * | 74,400 | 140,429 |
| OceanaGold Corp. * | 265,772 | 443,260 |
| Pan American Silver Corp. | 11,005 | 349,897 |
| Parex Resources, Inc. * | 29,200 | 549,957 |
| Pason Systems, Inc. | 35,296 | 269,928 |
| Peyto Exploration & Development Corp. | 230,902 | 1,006,903 |
| PrairieSky Royalty Ltd. | 32,800 | 351,710 |
| Precision Drilling Corp. * | 28,810 | 739,734 |
| Premium Brands Holdings Corp. | 4,200 | 408,570 |
| Primo Water Corp. | 34,900 | 583,205 |
| Richelieu Hardware Ltd. | 11,014 | 384,771 |
| Ritchie Bros. Auctioneers, Inc. | 7,755 | 493,319 |
| Russel Metals, Inc. | 48,471 | 1,111,266 |
| Secure Energy Services, Inc. | 327,131 | 1,107,159 |
| ShawCor Ltd. * | 192,496 | 913,031 |
| Shopify, Inc., Class A * | 45 | 53,118 |
| Sienna Senior Living, Inc. (a) | 18,200 | 216,774 |
| Sleep Country Canada Holdings, Inc. | 10,300 | 291,197 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| SmartCentres Real Estate Investment Trust | 28,825 | 671,172 |
| SSR Mining, Inc. | 10,900 | 173,013 |
| Stantec, Inc. | 20,848 | 976,124 |
| Stelco Holdings, Inc. | 1,800 | 45,412 |
| Stella-Jones, Inc. | 13,800 | 577,082 |
| Superior Plus Corp. | 54,643 | 667,728 |
| The Descartes Systems Group, Inc. * | 600 | 38,383 |
| The North West Co., Inc. | 15,385 | 443,094 |
| TMX Group Ltd. | 4,300 | 473,852 |
| Torex Gold Resources, Inc. * | 4,000 | 48,424 |
| Toromont Industries Ltd. | 9,652 | 769,553 |
| Tourmaline Oil Corp. | 58,977 | 1,272,481 |
| TransAlta Corp. | 141,400 | 1,389,669 |
| Transat AT, Inc. *(a) | 83,383 | 331,049 |
| Transcontinental, Inc., Class A | 47,020 | 890,555 |
| Tricon Residential, Inc. | 3,500 | 37,131 |
| Turquoise Hill Resources Ltd. * | 34,220 | 601,909 |
| Westshore Terminals Investment Corp. | 16,756 | 273,462 |
| Wheaton Precious Metals Corp. | 17,901 | 742,604 |
| Whitecap Resources, Inc. | 269,800 | 1,180,917 |
| Winpak Ltd. | 7,300 | 253,479 |
| Yamana Gold, Inc. | 79,700 | 365,058 |
| | | 63,283,711 |
| |
| Denmark 1.4% |
| Chr. Hansen Holding A/S * | 6,021 | 552,772 |
| D/S Norden A/S | 15,943 | 411,107 |
| Demant A/S * | 12,104 | 605,948 |
| Dfds A/S * | 10,765 | 634,713 |
| Drilling Co. of 1972 A/S * | 9,312 | 389,690 |
| FLSmidth & Co. A/S | 23,254 | 916,611 |
| Genmab A/S * | 633 | 232,287 |
| GN Store Nord A/S | 7,712 | 695,524 |
| H. Lundbeck A/S | 9,465 | 291,455 |
| Jyske Bank A/S * | 22,221 | 1,082,238 |
| Matas A/S * | 25,127 | 371,738 |
| NKT A/S * | 9,504 | 393,196 |
| Per Aarsleff Holding A/S | 7,585 | 371,543 |
| Ringkjoebing Landbobank A/S | 2,024 | 205,754 |
| Rockwool International A/S, B Shares | 1,111 | 496,948 |
| Royal Unibrew A/S | 5,340 | 652,286 |
| Scandinavian Tobacco Group A/S | 21,759 | 396,305 |
| Schouw & Co. A/S | 3,913 | 417,848 |
| SimCorp A/S | 1,994 | 263,645 |
| Sydbank A/S | 30,027 | 895,106 |
| Topdanmark A/S | 5,372 | 261,212 |
| Tryg A/S | 22,223 | 508,171 |
| | | 11,046,097 |
| |
| Finland 1.2% |
| Aktia Bank Oyj | 16,087 | 206,171 |
| Cargotec Oyj, B Shares | 21,665 | 1,254,608 |
| Finnair Oyj * | 454,123 | 393,713 |
| Huhtamaki Oyj | 19,041 | 903,324 |
| Kemira Oyj | 35,766 | 584,233 |
| Kojamo Oyj | 10,660 | 230,854 |
| Konecranes Oyj | 23,419 | 1,077,907 |
| Metsa Board Oyj | 45,201 | 575,491 |
| Neles Oyj | 22,108 | 321,668 |
| Orion Oyj, Class B | 16,078 | 711,915 |
| Sanoma Oyj | 23,901 | 414,933 |
| TietoEVRY Oyj | 17,693 | 612,746 |
| Tokmanni Group Corp. | 10,110 | 259,992 |
| Uponor Oyj | 16,141 | 469,991 |
| Security | Number
of Shares | Value ($) |
| Valmet Oyj | 24,630 | 1,028,729 |
| Yit Oyj | 57,549 | 356,524 |
| | | 9,402,799 |
| |
| France 4.3% |
| Aeroports de Paris * | 6,376 | 817,293 |
| Albioma S.A. | 4,085 | 184,891 |
| Alten S.A. * | 6,262 | 783,994 |
| Amundi S.A. * | 8,244 | 734,693 |
| Beneteau S.A. * | 19,436 | 257,262 |
| BioMerieux | 2,455 | 292,026 |
| CGG S.A. * | 358,776 | 416,212 |
| Cie Plastic Omnium S.A. | 25,461 | 855,513 |
| Coface S.A. * | 34,066 | 415,017 |
| Covivio | 9,084 | 810,393 |
| Dassault Aviation S.A. * | 363 | 395,463 |
| Derichebourg S.A. * | 85,442 | 718,436 |
| Edenred | 17,381 | 985,354 |
| Elior Group S.A. * | 117,203 | 970,841 |
| Eramet S.A. * | 5,761 | 414,892 |
| Eurofins Scientific SE * | 6,025 | 596,725 |
| Euronext N.V. | 4,837 | 486,520 |
| Fnac Darty S.A. * | 11,805 | 832,492 |
| Gaztransport Et Technigaz S.A. | 2,114 | 180,444 |
| Gecina S.A. | 4,751 | 695,440 |
| Getlink SE * | 54,570 | 868,066 |
| ICADE | 8,314 | 646,979 |
| Iliad S.A. | 4,245 | 770,839 |
| Imerys S.A. | 18,101 | 940,900 |
| Ipsen S.A. | 4,425 | 427,787 |
| IPSOS | 19,030 | 791,952 |
| JCDecaux S.A. * | 21,400 | 544,811 |
| Kaufman & Broad S.A. | 6,788 | 308,604 |
| Korian S.A. * | 16,095 | 644,454 |
| La Francaise des Jeux SAEM | 1,681 | 86,146 |
| Maisons du Monde S.A. * | 22,198 | 539,623 |
| Mercialys S.A. (a) | 37,157 | 475,454 |
| Mersen S.A. * | 6,822 | 236,640 |
| Metropole Television S.A. * | 32,187 | 715,117 |
| Nexans S.A. * | 12,584 | 1,033,491 |
| Nexity S.A. | 19,762 | 1,070,975 |
| Orpea S.A. * | 6,000 | 772,211 |
| Quadient S.A. | 36,768 | 1,004,940 |
| Remy Cointreau S.A. | 2,036 | 406,797 |
| Sartorius Stedim Biotech | 449 | 206,219 |
| SEB S.A. | 5,548 | 1,010,374 |
| Societe BIC S.A. | 14,329 | 1,012,604 |
| Sopra Steria Group SACA * | 4,083 | 759,890 |
| SPIE S.A. * | 41,467 | 1,048,174 |
| Tarkett S.A. * | 26,718 | 644,102 |
| Technicolor S.A. * | 146,002 | 505,002 |
| Television Francaise * | 77,808 | 767,688 |
| Trigano S.A. | 1,730 | 309,105 |
| UbiSoft Entertainment S.A. * | 9,760 | 732,431 |
| Vallourec S.A. *(a) | 13,037 | 424,093 |
| Verallia S.A. | 1,669 | 67,569 |
| Vicat S.A. | 10,361 | 520,763 |
| Virbac S.A. * | 126 | 40,901 |
| Worldline S.A. * | 12,343 | 1,211,814 |
| | | 33,390,416 |
| |
| Germany 4.4% |
| 1&1 Drillisch AG | 14,275 | 429,136 |
| Aareal Bank AG * | 33,569 | 943,507 |
| ADVA Optical Networking SE * | 3,065 | 38,466 |
| Alstria Office REIT AG | 13,526 | 242,180 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Aroundtown S.A. | 69,006 | 531,354 |
| Bechtle AG | 3,051 | 621,267 |
| Befesa S.A. | 5,495 | 384,416 |
| Bilfinger SE | 22,870 | 854,693 |
| Borussia Dortmund GmbH & Co. KGaA * | 5,321 | 37,298 |
| CANCOM SE | 5,107 | 315,267 |
| Carl Zeiss Meditec AG | 2,075 | 365,556 |
| CECONOMY AG * | 122,935 | 720,206 |
| Cewe Stiftung & Co. KGaA | 1,539 | 249,415 |
| CTS Eventim AG & Co. KGaA * | 5,102 | 352,141 |
| Deutsche Euroshop AG * | 13,860 | 319,934 |
| Deutsche Pfandbriefbank AG * | 110,598 | 1,273,039 |
| Deutz AG * | 87,566 | 710,744 |
| Dialog Semiconductor plc * | 14,467 | 1,133,349 |
| Duerr AG | 19,658 | 823,768 |
| DWS Group GmbH & Co. KGaA | 8,189 | 358,319 |
| ElringKlinger AG * | 28,340 | 491,508 |
| Fielmann AG * | 3,856 | 293,590 |
| Fraport AG Frankfurt Airport Services Worldwide * | 13,328 | 883,995 |
| Gerresheimer AG | 5,198 | 559,081 |
| Grand City Properties S.A. | 12,000 | 322,646 |
| GRENKE AG (a) | 3,279 | 133,057 |
| Hamburger Hafen und Logistik AG | 9,468 | 233,179 |
| Hella GmbH & Co. KGaA * | 19,321 | 1,159,171 |
| HelloFresh SE * | 493 | 40,897 |
| HOCHTIEF AG * | 7,614 | 713,973 |
| Hornbach Holding AG & Co. KGaA | 6,132 | 572,933 |
| Hornback Baumarkt Aktiengesellschaft | 1,179 | 47,130 |
| Jenoptik AG | 9,591 | 293,418 |
| JOST Werke AG * | 4,871 | 320,501 |
| Kloeckner & Co. SE * | 140,129 | 1,899,472 |
| Krones AG | 6,609 | 575,518 |
| KWS Saat SE & Co. KGaA | 382 | 33,947 |
| LEG Immobilien SE | 4,816 | 670,075 |
| Leoni AG *(a) | 108,641 | 1,521,280 |
| Nordex SE * | 20,514 | 592,269 |
| Norma Group SE | 11,474 | 640,070 |
| OSRAM Licht AG * | 19,971 | 1,249,161 |
| Pfeiffer Vacuum Technology AG | 945 | 183,556 |
| Puma SE * | 7,950 | 838,107 |
| QIAGEN N.V. * | 11,471 | 559,251 |
| Rational AG | 252 | 209,628 |
| RTL Group S.A. * | 21,061 | 1,238,242 |
| S&T AG * | 1,380 | 37,462 |
| SAF-Holland SE * | 31,913 | 523,663 |
| Scout24 AG | 4,770 | 396,581 |
| Siltronic AG | 4,261 | 723,061 |
| Sixt SE * | 3,862 | 535,789 |
| Software AG | 8,907 | 385,807 |
| Stabilus S.A. | 4,528 | 353,551 |
| Stroeer SE & Co. KGaA | 2,850 | 242,886 |
| Suedzucker AG | 38,628 | 632,520 |
| TAG Immobilien AG | 14,967 | 462,870 |
| Takkt AG * | 21,970 | 371,720 |
| Talanx AG * | 15,634 | 658,703 |
| Wacker Chemie AG | 6,729 | 1,014,865 |
| Wacker Neuson SE * | 14,423 | 387,792 |
| Zalando SE * | 6,934 | 721,126 |
| zooplus AG * | 126 | 39,840 |
| | | 34,467,946 |
| |
| Greece 0.0% |
| TT Hellenic Postbank S.A. *(b) | 24,275 | — |
| |
| Security | Number
of Shares | Value ($) |
| Hong Kong 3.7% |
| Asia Cement China Holdings Corp. (b) | 173,500 | 178,017 |
| ASM Pacific Technology Ltd. | 64,300 | 971,150 |
| BOC Aviation Ltd. | 36,000 | 324,051 |
| Budweiser Brewing Co. APAC Ltd. | 93,300 | 293,998 |
| Cafe De Coral Holdings Ltd. | 126,000 | 273,506 |
| Cathay Pacific Airways Ltd. * | 563,363 | 495,393 |
| Champion REIT | 112,000 | 65,054 |
| Chow Sang Sang Holdings International Ltd. | 253,000 | 430,083 |
| Chow Tai Fook Jewellery Group Ltd. | 382,800 | 616,591 |
| CITIC Telecom International Holdings Ltd. | 615,000 | 222,282 |
| CK Infrastructure Holdings Ltd. | 39,500 | 241,522 |
| Cowell e Holdings, Inc. | 340,000 | 201,694 |
| Dairy Farm International Holdings Ltd. | 107,308 | 467,545 |
| FIH Mobile Ltd. *(a) | 3,676,000 | 518,945 |
| FIT Hon Teng Ltd. *(a) | 85,000 | 26,028 |
| Fortune REIT | 225,000 | 226,753 |
| Haitong International Securities Group Ltd. | 863,904 | 271,495 |
| Hang Lung Group Ltd. | 325,000 | 852,572 |
| Hang Lung Properties Ltd. | 317,000 | 864,845 |
| HKBN Ltd. | 167,500 | 244,875 |
| Huabao International Holdings Ltd. (a) | 339,000 | 358,969 |
| Hysan Development Co., Ltd. | 102,000 | 383,986 |
| IGG, Inc. | 255,000 | 429,830 |
| Johnson Electric Holdings Ltd. | 187,500 | 498,277 |
| JS Global Lifestyle Co., Ltd. * | 12,000 | 36,229 |
| K Wah International Holdings Ltd. | 639,000 | 317,984 |
| Kerry Logistics Network Ltd. | 193,000 | 579,320 |
| Kerry Properties Ltd. | 297,000 | 1,000,684 |
| Lee & Man Paper Manufacturing Ltd. | 669,000 | 581,689 |
| Luk Fook Holdings International Ltd. | 223,000 | 557,304 |
| Man Wah Holdings Ltd. | 193,200 | 404,471 |
| Melco International Development Ltd. | 275,000 | 545,440 |
| MGM China Holdings Ltd. | 143,600 | 236,209 |
| Minth Group Ltd. | 139,500 | 565,007 |
| MMG Ltd. * | 1,196,000 | 772,628 |
| NagaCorp Ltd. | 218,000 | 233,019 |
| Nexteer Automotive Group Ltd. | 474,000 | 531,425 |
| NWS Holdings Ltd. | 797,000 | 879,594 |
| Pacific Basin Shipping Ltd. * | 2,085,000 | 730,604 |
| Pacific Textile Holdings Ltd. | 319,000 | 203,720 |
| Power Assets Holdings Ltd. | 27,643 | 169,889 |
| Prada S.p.A. * | 102,800 | 638,006 |
| Shangri-La Asia Ltd. * | 306,000 | 291,304 |
| Shui On Land Ltd. | 2,909,000 | 478,645 |
| Shun Tak Holdings Ltd. | 790,000 | 252,597 |
| SITC International Holdings Co., Ltd. | 198,000 | 754,463 |
| SJM Holdings Ltd. | 536,000 | 692,167 |
| Stella International Holdings Ltd. | 367,000 | 452,189 |
| Sun Art Retail Group Ltd. | 468,500 | 431,276 |
| Swire Properties Ltd. | 168,800 | 503,725 |
| The Bank of East Asia Ltd. | 342,467 | 718,058 |
| Tingyi (Cayman Islands) Holding Corp. | 456,000 | 819,337 |
| Towngas China Co., Ltd. * | 275,000 | 135,319 |
| Truly International Holdings Ltd. * | 2,144,000 | 352,405 |
| Uni-President China Holdings Ltd. | 303,000 | 368,074 |
| Untrade.Brightoil *(b) | 1,150,000 | — |
| Value Partners Group Ltd. * | 310,000 | 219,369 |
| Vitasoy International Holdings Ltd. | 60,000 | 231,684 |
| VSTECS Holdings Ltd. | 470,000 | 464,441 |
| VTech Holdings Ltd. | 86,100 | 787,958 |
| Want Want China Holdings Ltd. | 1,250,000 | 903,400 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Wynn Macau Ltd. * | 303,200 | 581,480 |
| Xinyi Glass Holdings Ltd. | 328,000 | 1,162,105 |
| | | 29,040,679 |
| |
| Ireland 0.4% |
| AIB Group plc * | 421,220 | 1,230,578 |
| Dalata Hotel Group plc * | 8,964 | 48,604 |
| Glanbia plc | 57,891 | 851,642 |
| Irish Continental Group plc * | 40,606 | 222,124 |
| Total Produce plc | 291,958 | 741,136 |
| | | 3,094,084 |
| |
| Israel 1.4% |
| Arad Investment & Industrial Development Ltd. | 391 | 41,353 |
| Azrieli Group Ltd. | 3,855 | 270,508 |
| Bezeq The Israeli Telecommunication Corp., Ltd. * | 1,156,391 | 1,254,734 |
| Cellcom Israel Ltd. * | 56,273 | 217,564 |
| Clal Insurance Enterprise Holdings Ltd. * | 11,716 | 210,660 |
| Delek Group Ltd. * | 13,586 | 593,203 |
| El Al Israel Airlines * | 1,619,871 | 282,401 |
| Elbit Systems Ltd. | 3,588 | 492,061 |
| Equital Ltd. * | 1,787 | 46,582 |
| First International Bank of Israel Ltd. * | 9,877 | 301,148 |
| Gazit-Globe Ltd. | 51,043 | 332,529 |
| Harel Insurance Investments & Finances Service Ltd. | 28,991 | 303,634 |
| Isracard Ltd. * | 13,136 | 49,072 |
| Israel Discount Bank Ltd., Class A * | 233,772 | 1,052,348 |
| Mizrahi Tefahot Bank Ltd. * | 19,328 | 543,249 |
| Nice Ltd. * | 2,585 | 623,410 |
| Norstar Holdings, Inc. | 5,078 | 35,435 |
| Oil Refineries Ltd. * | 2,514,039 | 691,789 |
| Partner Communications Co., Ltd. * | 33,673 | 146,601 |
| Paz Oil Co., Ltd. | 8,443 | 930,126 |
| Shikun & Binui Ltd. * | 36,667 | 246,082 |
| Shufersal Ltd. | 29,769 | 240,918 |
| Strauss Group Ltd. | 1,805 | 52,731 |
| The Israel Corp., Ltd. * | 4,350 | 1,144,280 |
| The Phoenix Holdings Ltd. | 29,834 | 264,900 |
| Tower Semiconductor Ltd. * | 24,440 | 705,587 |
| | | 11,072,905 |
| |
| Italy 2.8% |
| ACEA S.p.A. | 12,362 | 280,667 |
| Alitalia - Linee Aeree Italiane S.p.A. *(b) | 14,782 | — |
| Amplifon S.p.A. * | 5,902 | 249,095 |
| Anima Holding S.p.A. | 83,093 | 429,258 |
| ASTM S.p.A. * | 19,355 | 599,699 |
| Autogrill S.p.A. *(a) | 86,446 | 715,548 |
| Azimut Holding S.p.A. | 25,206 | 603,065 |
| Banca Carige S.p.A. *(b) | 14,056 | 2,535 |
| Banca Generali S.p.A. * | 8,485 | 324,426 |
| Banca IFIS S.p.A. * | 20,886 | 285,447 |
| Banca Mediolanum S.p.A. * | 52,835 | 492,975 |
| Banca Monte dei Paschi di Siena S.p.A. * | 223,170 | 304,818 |
| Banca Popolare Di Sondrio Scarl * | 306,893 | 1,290,316 |
| BFF Bank S.p.A. | 31,275 | 280,025 |
| BPER Banca * | 476,848 | 1,086,504 |
| Buzzi Unicem S.p.A. | 24,509 | 653,946 |
| Security | Number
of Shares | Value ($) |
| Cerved Group S.p.A. * | 42,960 | 503,956 |
| Davide Campari-Milano N.V. | 40,334 | 475,957 |
| De'Longhi S.p.A. | 12,807 | 559,794 |
| DiaSorin S.p.A. | 976 | 165,761 |
| Enav S.p.A. | 71,963 | 334,001 |
| ERG S.p.A. | 12,069 | 360,778 |
| Esprinet S.p.A. * | 26,606 | 430,950 |
| Fincantieri S.p.A. *(a) | 219,043 | 168,964 |
| FinecoBank Banca Fineco S.p.A. * | 43,242 | 743,753 |
| Freni Brembo S.p.A. * | 41,771 | 519,854 |
| Hera S.p.A. | 253,756 | 1,021,127 |
| Infrastrutture Wireless Italiane S.p.A. | 17,684 | 206,327 |
| Interpump Group S.p.A. | 10,104 | 537,835 |
| Iren S.p.A. | 254,908 | 760,846 |
| Italgas S.p.A. | 114,297 | 745,426 |
| Maire Tecnimont S.p.A. (a) | 79,210 | 253,405 |
| MARR S.p.A. * | 11,307 | 252,802 |
| Mediaset S.p.A. * | 247,856 | 791,429 |
| Moncler S.p.A. * | 13,632 | 835,511 |
| Nexi S.p.A. * | 2,454 | 47,007 |
| OVS S.p.A. * | 306,645 | 618,697 |
| Piaggio & C. S.p.A. | 57,233 | 221,646 |
| Recordati Industria Chimica e Farmaceutica S.p.A. | 8,815 | 485,694 |
| Reply S.p.A. | 1,639 | 222,824 |
| Saipem S.p.A. | 405,209 | 934,295 |
| Salvatore Ferragamo S.p.A. * | 20,908 | 447,645 |
| Societa Cattolica Di Assicurazione S.p.A. * | 77,988 | 462,280 |
| Technogym S.p.A. * | 2,931 | 39,265 |
| Tod's S.p.A. * | 7,143 | 336,048 |
| UnipolSai Assicurazioni S.p.A. | 182,811 | 567,738 |
| Webuild S.p.A. (a) | 117,495 | 253,055 |
| | | 21,902,994 |
| |
| Japan 28.7% |
| ABC-Mart, Inc. | 6,900 | 369,705 |
| Achilles Corp. | 2,900 | 37,041 |
| Acom Co., Ltd. | 52,600 | 226,096 |
| Adastria Co., Ltd. | 20,380 | 346,065 |
| ADEKA Corp. | 45,000 | 875,768 |
| Advance Residence Investment Corp. | 103 | 328,038 |
| Aeon Delight Co., Ltd. | 8,200 | 250,194 |
| AEON Financial Service Co., Ltd. | 50,500 | 574,860 |
| Aeon Mall Co., Ltd. | 37,330 | 592,598 |
| Aica Kogyo Co., Ltd. | 13,600 | 482,698 |
| Aichi Steel Corp. | 11,900 | 364,181 |
| Aida Engineering Ltd. | 27,300 | 229,503 |
| Aiful Corp. | 13,400 | 38,552 |
| Ain Holdings, Inc. | 7,400 | 410,729 |
| Alpen Co., Ltd. | 10,000 | 213,260 |
| Amano Corp. | 20,800 | 565,133 |
| Anritsu Corp. | 15,000 | 291,444 |
| AOKI Holdings, Inc. | 49,600 | 275,606 |
| Aoyama Trading Co., Ltd. * | 110,700 | 837,134 |
| Aozora Bank Ltd. | 43,400 | 934,442 |
| Arata Corp. | 13,200 | 536,847 |
| Arcland Sakamoto Co., Ltd. | 17,500 | 238,825 |
| Arcs Co., Ltd. | 33,400 | 718,760 |
| Ariake Japan Co., Ltd. | 600 | 34,736 |
| As One Corp. | 240 | 29,966 |
| Asahi Holdings, Inc. | 17,700 | 357,548 |
| Asahi Intecc Co., Ltd. | 5,300 | 142,659 |
| Asanuma Corp. | 4,100 | 166,695 |
| Asics Corp. | 64,600 | 1,026,478 |
| ASKUL Corp. | 5,300 | 193,879 |
| Autobacs Seven Co., Ltd. | 35,200 | 471,548 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Avex, Inc. | 22,300 | 305,098 |
| Axial Retailing, Inc. | 8,200 | 327,945 |
| Azbil Corp. | 22,800 | 920,602 |
| Belc Co., Ltd. | 3,800 | 201,671 |
| Belluna Co., Ltd. | 22,800 | 241,289 |
| Benesse Holdings, Inc. | 25,300 | 558,670 |
| BML, Inc. | 6,200 | 214,493 |
| Bunka Shutter Co., Ltd. | 31,300 | 274,005 |
| Calbee, Inc. | 18,400 | 440,933 |
| Canon Electronics, Inc. | 10,800 | 172,699 |
| Canon Marketing Japan, Inc. | 25,500 | 615,625 |
| Capcom Co., Ltd. | 11,700 | 379,583 |
| Cawachi Ltd. | 8,200 | 176,387 |
| Central Glass Co., Ltd. | 27,600 | 569,043 |
| Chudenko Corp. | 11,300 | 240,081 |
| Chugoku Marine Paints Ltd. | 21,700 | 195,630 |
| Citizen Watch Co., Ltd. | 280,000 | 942,142 |
| CKD Corp. | 14,200 | 299,173 |
| Cocokara fine, Inc. | 9,800 | 664,498 |
| Colowide Co., Ltd. | 10,400 | 175,004 |
| Cosmos Pharmaceutical Corp. | 2,870 | 411,922 |
| Create SD Holdings Co., Ltd. | 6,000 | 181,932 |
| Credit Saison Co., Ltd. | 73,400 | 846,192 |
| CyberAgent, Inc. | 40,500 | 831,159 |
| Daifuku Co., Ltd. | 8,200 | 810,507 |
| Daihen Corp. | 6,500 | 284,106 |
| Daiho Corp. | 9,400 | 340,288 |
| Daiichikosho Co., Ltd. | 14,800 | 552,016 |
| Daikyonishikawa Corp. | 64,200 | 443,451 |
| Daio Paper Corp. | 26,600 | 436,240 |
| Daiseki Co., Ltd. | 7,600 | 286,414 |
| Daishi Hokuetsu Financial Group, Inc. | 11,500 | 247,355 |
| Daiwa House REIT Investment Corp. | 82 | 219,613 |
| Daiwabo Holdings Co., Ltd. | 53,500 | 836,750 |
| DCM Holdings Co., Ltd. | 52,300 | 521,561 |
| Dena Co., Ltd. | 27,786 | 568,483 |
| Descente Ltd. * | 12,700 | 220,490 |
| Dexerials Corp. | 18,200 | 335,413 |
| Disco Corp. | 2,575 | 831,521 |
| DMG Mori Co., Ltd. | 30,400 | 491,535 |
| Doshisha Co., Ltd. | 12,100 | 203,636 |
| Doutor Nichires Holdings Co., Ltd. | 16,000 | 238,880 |
| Dowa Holdings Co., Ltd. | 26,900 | 1,124,256 |
| DTS Corp. | 10,800 | 253,899 |
| Duskin Co., Ltd. | 16,600 | 394,297 |
| DyDo Group Holdings, Inc. | 4,700 | 217,934 |
| Eagle Industry Co., Ltd. | 28,400 | 301,539 |
| Earth Corp. | 3,100 | 171,039 |
| Eizo Corp. | 6,850 | 254,521 |
| Elecom Co., Ltd. | 1,600 | 33,607 |
| EPS Holdings, Inc. | 3,000 | 32,136 |
| Exedy Corp. | 39,500 | 567,126 |
| Ezaki Glico Co., Ltd. | 16,200 | 606,270 |
| F.C.C. Co., Ltd. | 23,200 | 373,374 |
| Fancl Corp. | 6,500 | 212,329 |
| Food & Life Cos., Ltd. | 10,900 | 486,153 |
| Foster Electric Co., Ltd. | 31,500 | 336,827 |
| FP Corp. | 6,560 | 254,801 |
| Fuji Co., Ltd. | 16,900 | 319,434 |
| Fuji Corp. | 20,638 | 549,357 |
| Fuji Media Holdings, Inc. | 32,900 | 400,339 |
| Fuji Oil Holdings, Inc. | 13,500 | 347,888 |
| Fuji Seal International, Inc. | 17,100 | 379,678 |
| Fuji Soft, Inc. | 5,800 | 290,536 |
| Fujibo Holdings, Inc. | 800 | 32,440 |
| Fujimori Kogyo Co., Ltd. | 7,000 | 263,815 |
| Fujitec Co., Ltd. | 21,700 | 490,673 |
| Fujitsu General Ltd. | 14,200 | 376,562 |
| Security | Number
of Shares | Value ($) |
| Fukuoka Financial Group, Inc. | 42,600 | 726,577 |
| Fukuyama Transporting Co., Ltd. | 10,500 | 402,945 |
| Furukawa Co., Ltd. | 23,100 | 261,634 |
| Furuno Electric Co., Ltd. | 3,200 | 31,208 |
| Futaba Industrial Co., Ltd. | 81,400 | 386,151 |
| Fuyo General Lease Co., Ltd. | 3,300 | 219,867 |
| Geo Holdings Corp. | 34,500 | 358,130 |
| Glory Ltd. | 31,800 | 682,732 |
| GLP J-REIT | 215 | 360,399 |
| GMO Internet, Inc. | 1,100 | 32,676 |
| Godo Steel Ltd. | 8,500 | 136,470 |
| Goldwin, Inc. | 700 | 41,814 |
| Gree, Inc. | 33,600 | 175,780 |
| GS Yuasa Corp. | 43,600 | 1,180,191 |
| GungHo Online Entertainment, Inc. | 19,150 | 364,280 |
| Gunze Ltd. | 9,300 | 329,575 |
| H.I.S. Co., Ltd. *(a) | 16,800 | 345,604 |
| H.U. Group Holdings, Inc. | 26,400 | 863,618 |
| Hamakyorex Co., Ltd. | 7,200 | 202,616 |
| Hamamatsu Photonics K.K. | 10,600 | 614,400 |
| Hazama Ando Corp. | 110,200 | 841,008 |
| Heiwa Corp. | 24,500 | 415,346 |
| Heiwa Real Estate Co., Ltd. | 5,500 | 187,294 |
| Heiwado Co., Ltd. | 24,400 | 496,110 |
| Hikari Tsushin, Inc. | 2,350 | 472,726 |
| Hirata Corp. | 600 | 39,491 |
| Hirose Electric Co., Ltd. | 5,439 | 867,013 |
| Hisamitsu Pharmaceutical Co., Inc. | 12,600 | 735,023 |
| Hitachi Transport System Ltd. | 14,300 | 444,271 |
| Hitachi Zosen Corp. | 125,000 | 945,333 |
| Hogy Medical Co., Ltd. | 4,900 | 148,064 |
| Hokuetsu Corp. | 123,700 | 641,729 |
| Hokuhoku Financial Group, Inc. | 53,900 | 454,154 |
| Hokuriku Electric Power Co. | 139,800 | 849,128 |
| Horiba Ltd. | 10,400 | 677,416 |
| Hoshizaki Corp. | 8,100 | 719,589 |
| Hosiden Corp. | 47,100 | 446,893 |
| House Foods Group, Inc. | 17,400 | 541,054 |
| Hulic Co., Ltd. | 50,900 | 580,695 |
| Ibiden Co., Ltd. | 22,800 | 1,076,240 |
| Ichikoh Industries Ltd. | 4,800 | 30,774 |
| IDOM, Inc. | 42,000 | 243,113 |
| Iino Kaiun Kaisha Ltd. | 58,300 | 291,480 |
| Inaba Denki Sangyo Co., Ltd. | 26,400 | 617,390 |
| Inabata & Co., Ltd. | 51,500 | 776,008 |
| Inageya Co., Ltd. | 3,300 | 48,139 |
| Internet Initiative Japan, Inc. | 12,200 | 271,814 |
| Iriso Electronics Co., Ltd. | 4,400 | 208,782 |
| Ishihara Sangyo Kaisha Ltd. | 32,900 | 273,916 |
| Ito En Ltd. | 9,600 | 531,570 |
| Itochu Enex Co., Ltd. | 50,100 | 477,926 |
| Itochu Techno-Solutions Corp. | 14,800 | 512,108 |
| Itoham Yonekyu Holdings, Inc. | 127,300 | 818,963 |
| Iwatani Corp. | 20,700 | 1,297,341 |
| Izumi Co., Ltd. | 20,500 | 816,140 |
| J-Oil Mills, Inc. | 14,000 | 236,571 |
| Jaccs Co., Ltd. | 14,000 | 273,806 |
| JAFCO Group Co., Ltd. | 5,700 | 410,331 |
| Japan Airport Terminal Co., Ltd. * | 6,600 | 296,337 |
| Japan Aviation Electronics Industry Ltd. | 28,700 | 512,321 |
| Japan Display, Inc. * | 1,008,800 | 423,188 |
| Japan Lifeline Co., Ltd. | 2,900 | 40,871 |
| Japan Metropolitan Fund Invest | 837 | 824,832 |
| Japan Petroleum Exploration Co., Ltd. | 22,100 | 409,708 |
| Japan Post Bank Co., Ltd. | 105,500 | 964,739 |
| Japan Prime Realty Investment Corp. | 72 | 292,278 |
| Japan Real Estate Investment Corp. | 106 | 657,008 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| JEOL Ltd. | 900 | 50,610 |
| Joshin Denki Co., Ltd. | 19,200 | 485,128 |
| Joyful Honda Co., Ltd. | 29,000 | 357,197 |
| Juki Corp. | 36,600 | 289,306 |
| JVCKenwood Corp. | 242,400 | 526,860 |
| Kadokawa Corp. | 9,700 | 386,710 |
| Kaga Electronics Co., Ltd. | 13,300 | 293,230 |
| Kagome Co., Ltd. | 15,200 | 436,210 |
| Kakaku.com, Inc. | 8,800 | 238,923 |
| Kaken Pharmaceutical Co., Ltd. | 9,900 | 408,184 |
| Kameda Seika Co., Ltd. | 3,600 | 151,307 |
| Kamigumi Co., Ltd. | 42,000 | 818,328 |
| Kanamoto Co., Ltd. | 18,400 | 451,399 |
| Kandenko Co., Ltd. | 67,500 | 577,014 |
| Kanematsu Corp. | 60,900 | 802,756 |
| Kansai Paint Co., Ltd. | 31,200 | 785,585 |
| Kanto Denka Kogyo Co., Ltd. | 6,000 | 47,287 |
| Kato Sangyo Co., Ltd. | 18,000 | 528,074 |
| Kawasaki Kisen Kaisha Ltd. * | 63,000 | 1,756,597 |
| Keihan Holdings Co., Ltd. | 16,000 | 584,240 |
| Keikyu Corp. | 47,000 | 602,593 |
| Keisei Electric Railway Co., Ltd. | 21,000 | 655,814 |
| Keiyo Co., Ltd. | 31,400 | 205,241 |
| KH Neochem Co., Ltd. | 10,100 | 240,285 |
| Kintetsu World Express, Inc. | 17,200 | 414,993 |
| Kissei Pharmaceutical Co., Ltd. | 8,400 | 170,693 |
| Kitz Corp. | 52,500 | 328,988 |
| Kobayashi Pharmaceutical Co., Ltd. | 5,000 | 446,561 |
| Koei Tecmo Holdings Co., Ltd. | 780 | 34,776 |
| Kohnan Shoji Co., Ltd. | 13,300 | 359,747 |
| Kokuyo Co., Ltd. | 44,400 | 687,226 |
| Komeri Co., Ltd. | 14,700 | 377,369 |
| Konami Holdings Corp. | 16,800 | 1,002,058 |
| Kose Corp. | 3,800 | 572,035 |
| Kumagai Gumi Co., Ltd. | 21,100 | 587,634 |
| Kumiai Chemical Industry Co., Ltd. | 16,700 | 135,920 |
| Kura Sushi, Inc. (a) | 6,000 | 210,234 |
| Kurabo Industries Ltd. | 16,500 | 274,177 |
| Kureha Corp. | 8,900 | 601,969 |
| Kurita Water Industries Ltd. | 27,100 | 1,251,596 |
| Kusuri no Aoki Holdings Co., Ltd. | 2,100 | 147,268 |
| KYB Corp. * | 21,100 | 564,157 |
| Kyoei Steel Ltd. | 18,000 | 251,856 |
| KYORIN Holdings, Inc. | 15,400 | 269,787 |
| Kyoritsu Maintenance Co., Ltd. | 5,700 | 181,217 |
| Kyowa Exeo Corp. | 33,400 | 888,472 |
| Kyowa Kirin Co., Ltd. | 31,700 | 964,888 |
| Kyudenko Corp. | 17,800 | 620,656 |
| Kyushu Financial Group, Inc. | 81,000 | 315,490 |
| Lawson, Inc. | 15,200 | 683,104 |
| Leopalace21 Corp. * | 417,100 | 576,076 |
| Life Corp. | 8,500 | 277,345 |
| Lintec Corp. | 21,900 | 476,545 |
| Lion Corp. | 37,200 | 697,989 |
| M3, Inc. | 4,700 | 324,675 |
| Mabuchi Motor Co., Ltd. | 15,300 | 612,805 |
| Macnica Fuji Electronics Holdings, Inc. | 30,300 | 610,503 |
| Maeda Corp. | 68,500 | 585,311 |
| Maeda Road Construction Co., Ltd. | 27,000 | 519,158 |
| Makino Milling Machine Co., Ltd. | 12,250 | 461,424 |
| Mandom Corp. | 12,700 | 238,031 |
| Maruha Nichiro Corp. | 30,300 | 693,752 |
| Marui Group Co., Ltd. | 38,400 | 721,697 |
| Maruichi Steel Tube Ltd. | 19,700 | 493,109 |
| Max Co., Ltd. | 13,700 | 209,793 |
| Maxell Holdings Ltd. * | 30,200 | 355,950 |
| MCJ Co., Ltd. | 21,700 | 197,167 |
| Mebuki Financial Group, Inc. | 250,300 | 546,134 |
| Security | Number
of Shares | Value ($) |
| Megmilk Snow Brand Co., Ltd. | 30,100 | 603,880 |
| Meidensha Corp. | 21,300 | 451,791 |
| Meitec Corp. | 5,400 | 300,739 |
| Menicon Co., Ltd. | 600 | 36,496 |
| Ministop Co., Ltd. | 11,000 | 143,420 |
| Mirait Holdings Corp. | 34,500 | 557,855 |
| Mitsubishi HC Capital, Inc. | 147,500 | 847,700 |
| Mitsubishi Logisnext Co., Ltd. | 27,300 | 325,051 |
| Mitsubishi Logistics Corp. | 18,700 | 556,058 |
| Mitsui E&S Holdings Co., Ltd. * | 114,800 | 560,448 |
| Mitsui-Soko Holdings Co., Ltd. | 14,300 | 288,881 |
| Miura Co., Ltd. | 7,000 | 367,217 |
| Mixi, Inc. | 19,000 | 486,625 |
| Mizuho Leasing Co., Ltd. | 7,300 | 218,428 |
| Mizuno Corp. | 16,700 | 329,483 |
| Modec, Inc. | 10,900 | 207,692 |
| MonotaRO Co., Ltd. | 1,200 | 30,471 |
| Morinaga & Co., Ltd. | 10,700 | 356,525 |
| Morinaga Milk Industry Co., Ltd. | 18,200 | 995,156 |
| MOS Food Services, Inc. | 5,900 | 161,604 |
| Musashi Seimitsu Industry Co., Ltd. | 29,100 | 508,961 |
| Nabtesco Corp. | 22,300 | 1,003,489 |
| Nachi-Fujikoshi Corp. | 11,800 | 450,462 |
| Nankai Electric Railway Co., Ltd. | 27,800 | 614,045 |
| NEC Networks & System Integration Corp. | 14,200 | 244,278 |
| NET One Systems Co., Ltd. | 11,400 | 373,158 |
| Nexon Co., Ltd. | 24,622 | 814,428 |
| Nichi-iko Pharmaceutical Co., Ltd. | 22,100 | 185,168 |
| Nichias Corp. | 21,500 | 561,628 |
| Nichicon Corp. | 27,200 | 267,019 |
| Nichiha Corp. | 11,600 | 337,243 |
| Nichireki Co., Ltd. | 2,300 | 30,176 |
| Nifco, Inc. | 26,800 | 915,584 |
| Nihon Kohden Corp. | 16,100 | 486,840 |
| Nihon M&A Center, Inc. | 1,400 | 36,575 |
| Nihon Parkerizing Co., Ltd. | 32,100 | 310,683 |
| Nihon Unisys Ltd. | 14,300 | 452,971 |
| Nikkiso Co., Ltd. | 24,500 | 251,929 |
| Nikkon Holdings Co., Ltd. | 25,700 | 539,052 |
| Nippn Corp. | 30,800 | 439,817 |
| Nippo Corp. | 20,600 | 539,499 |
| Nippon Building Fund, Inc. | 127 | 833,500 |
| Nippon Chemi-Con Corp. * | 15,800 | 248,417 |
| Nippon Denko Co., Ltd. | 88,200 | 297,755 |
| Nippon Densetsu Kogyo Co., Ltd. | 14,100 | 228,777 |
| Nippon Gas Co., Ltd. | 23,500 | 413,469 |
| Nippon Kayaku Co., Ltd. | 74,400 | 688,133 |
| Nippon Koei Co., Ltd. | 6,600 | 178,316 |
| Nippon Paint Holdings Co., Ltd. | 40,500 | 578,495 |
| Nippon Prologis REIT, Inc. | 118 | 378,128 |
| Nippon Sanso Holdings Corp. | 28,400 | 534,273 |
| Nippon Sheet Glass Co., Ltd. * | 164,200 | 1,083,239 |
| Nippon Shinyaku Co., Ltd. | 4,200 | 283,305 |
| Nippon Signal Co., Ltd. | 23,200 | 197,002 |
| Nippon Soda Co., Ltd. | 13,800 | 400,639 |
| Nippon Suisan Kaisha Ltd. | 179,500 | 841,155 |
| Nippon Television Holdings, Inc. | 12,700 | 167,202 |
| Nippon Thompson Co., Ltd. | 6,300 | 37,350 |
| Nippon Yakin Kogyo Co., Ltd. | 11,010 | 189,558 |
| Nipro Corp. | 45,800 | 551,221 |
| Nishi-Nippon Financial Holdings, Inc. | 58,300 | 374,616 |
| Nishi-Nippon Railroad Co., Ltd. | 24,200 | 625,169 |
| Nishimatsu Construction Co., Ltd. | 32,300 | 859,740 |
| Nishimatsuya Chain Co., Ltd. | 17,800 | 279,273 |
| Nishio Rent All Co., Ltd. | 11,600 | 320,419 |
| Nissan Chemical Corp. | 16,100 | 827,746 |
| Nissha Co., Ltd. | 23,800 | 279,075 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Nisshinbo Holdings, Inc. | 117,400 | 897,011 |
| Nissin Electric Co., Ltd. | 17,000 | 187,455 |
| Nitta Corp. | 7,600 | 182,958 |
| Nittetsu Mining Co., Ltd. | 6,300 | 401,468 |
| Nitto Boseki Co., Ltd. | 4,800 | 169,188 |
| Nitto Kogyo Corp. | 12,100 | 212,851 |
| Noevir Holdings Co., Ltd | 700 | 30,870 |
| NOF Corp. | 13,200 | 697,577 |
| Nojima Corp. | 15,000 | 374,214 |
| Nomura Co., Ltd. | 23,300 | 169,491 |
| Nomura Real Estate Master Fund, Inc. | 328 | 518,259 |
| Nomura Research Institute Ltd. | 26,880 | 824,922 |
| North Pacific Bank Ltd. | 88,000 | 227,506 |
| NS Solutions Corp. | 9,000 | 272,198 |
| NSD Co., Ltd. | 10,700 | 174,221 |
| Obic Co., Ltd. | 2,100 | 404,724 |
| Ohsho Food Service Corp. | 2,900 | 148,662 |
| Okamoto Industries, Inc. | 5,900 | 218,956 |
| Okamura Corp. | 52,100 | 647,205 |
| Okasan Securities Group, Inc. | 72,400 | 301,125 |
| Oki Electric Industry Co., Ltd. | 70,100 | 740,897 |
| OKUMA Corp. | 11,700 | 631,710 |
| Okumura Corp. | 19,000 | 475,834 |
| Okuwa Co., Ltd. | 6,900 | 73,997 |
| Onward Holdings Co., Ltd. | 161,000 | 442,900 |
| Open House Co., Ltd. | 9,400 | 390,348 |
| Oracle Corp., Japan | 2,500 | 234,387 |
| Orient Corp. | 191,300 | 261,298 |
| Orix JREIT, Inc. | 206 | 363,379 |
| Osaka Soda Co., Ltd. | 8,700 | 196,427 |
| OSG Corp. | 27,100 | 451,962 |
| Outsourcing, Inc. | 22,500 | 345,753 |
| Pacific Industrial Co., Ltd. | 27,300 | 293,620 |
| Paramount Bed Holdings Co., Ltd. | 11,400 | 226,206 |
| Park24 Co., Ltd. * | 29,300 | 566,043 |
| Pasona Group, Inc. | 1,900 | 33,922 |
| Penta-Ocean Construction Co., Ltd. | 119,500 | 931,664 |
| Pigeon Corp. | 10,600 | 359,748 |
| Pilot Corp. | 12,300 | 392,974 |
| Piolax, Inc. | 12,003 | 163,598 |
| Plenus Co., Ltd. | 13,600 | 251,902 |
| Pola Orbis Holdings, Inc. | 17,900 | 463,559 |
| Press Kogyo Co., Ltd. | 141,500 | 412,999 |
| Prima Meat Packers Ltd. | 14,500 | 458,093 |
| Qol Holdings Co., Ltd. | 13,800 | 173,337 |
| Raito Kogyo Co., Ltd. | 15,500 | 249,256 |
| Raiznext Corp. | 18,900 | 199,423 |
| Relia, Inc. | 15,000 | 178,521 |
| Relo Group, Inc. | 12,000 | 246,607 |
| Rengo Co., Ltd. | 105,700 | 877,285 |
| Resorttrust, Inc. | 18,000 | 286,718 |
| Restar Holdings Corp. | 14,300 | 252,670 |
| Retail Partners Co., Ltd. | 5,600 | 61,764 |
| Rinnai Corp. | 8,200 | 823,398 |
| Rohto Pharmaceutical Co., Ltd. | 15,700 | 402,724 |
| Round One Corp. | 27,400 | 303,319 |
| Royal Holdings Co., Ltd. * | 11,300 | 196,722 |
| Ryobi Ltd. * | 38,900 | 563,238 |
| Ryosan Co., Ltd. | 26,300 | 517,655 |
| Ryoyo Electro Corp. | 7,000 | 172,850 |
| S Foods, Inc. | 11,500 | 342,275 |
| Saibu Gas Co., Ltd. | 2,100 | 49,025 |
| Saizeriya Co., Ltd. | 11,900 | 261,194 |
| Sakata INX Corp. | 25,100 | 233,445 |
| Sakata Seed Corp. | 4,900 | 172,788 |
| SAMTY Co., Ltd. | 2,800 | 51,284 |
| San-A Co., Ltd. | 7,900 | 303,385 |
| Sanden Holdings Corp. * | 61,300 | 203,971 |
| Security | Number
of Shares | Value ($) |
| Sangetsu Corp. | 25,100 | 354,003 |
| Sanken Electric Co., Ltd. * | 9,200 | 429,813 |
| Sanki Engineering Co., Ltd. | 22,900 | 291,812 |
| Sankyo Co., Ltd. | 15,500 | 400,780 |
| Sanoh Industrial Co., Ltd. | 21,700 | 228,615 |
| Sanrio Co., Ltd. * | 12,200 | 197,536 |
| Sanwa Holdings Corp. | 77,900 | 1,006,399 |
| Sanyo Chemical Industries Ltd. | 5,050 | 239,899 |
| Sanyo Denki Co., Ltd. | 3,600 | 259,309 |
| Sanyo Special Steel Co., Ltd. * | 18,500 | 280,159 |
| Sapporo Holdings Ltd. | 34,200 | 682,191 |
| Sato Holdings Corp. | 9,400 | 230,892 |
| Sawai Group Holdings Co., Ltd. | 10,840 | 521,717 |
| SCREEN Holdings Co., Ltd. | 10,700 | 1,019,031 |
| SCSK Corp. | 8,376 | 486,075 |
| Sega Sammy Holdings, Inc. | 64,600 | 927,183 |
| Seiko Holdings Corp. | 22,800 | 402,663 |
| Seiren Co., Ltd. | 17,700 | 306,464 |
| Sekisui Jushi Corp. | 8,000 | 155,278 |
| Senko Group Holdings Co., Ltd. | 61,300 | 564,422 |
| Senshu Ikeda Holdings, Inc. | 130,600 | 201,903 |
| Seven Bank Ltd. | 156,300 | 336,579 |
| Sharp Corp. | 37,200 | 627,764 |
| Shibaura Machine Co., Ltd. | 10,400 | 248,032 |
| Shibuya Corp. | 5,400 | 163,988 |
| Shima Seiki Manufacturing Ltd. | 13,200 | 265,666 |
| Shindengen Electric Manufacturing Co., Ltd. * | 7,500 | 233,960 |
| Shinko Electric Industries Co., Ltd. | 16,000 | 516,023 |
| Shinmaywa Industries Ltd. | 51,900 | 464,924 |
| Shinsei Bank Ltd. * | 40,000 | 583,454 |
| Ship Healthcare Holdings, Inc. | 20,600 | 539,882 |
| SHO-BOND Holdings Co., Ltd. | 4,500 | 187,854 |
| Shochiku Co., Ltd. * | 1,250 | 140,319 |
| Shoei Foods Corp. (a) | 4,600 | 168,990 |
| Showa Sangyo Co., Ltd. | 12,000 | 324,452 |
| Siix Corp. | 25,000 | 333,527 |
| SKY Perfect JSAT Holdings, Inc. | 70,600 | 297,015 |
| Skylark Holdings Co., Ltd. * | 53,700 | 797,605 |
| Sodick Co., Ltd. | 3,900 | 35,345 |
| Sohgo Security Services Co., Ltd. | 16,100 | 705,869 |
| Sotetsu Holdings, Inc. | 19,600 | 398,739 |
| Square Enix Holdings Co., Ltd. | 10,900 | 604,408 |
| St. Marc Holdings Co., Ltd. | 10,500 | 162,681 |
| Star Micronics Co., Ltd. | 10,800 | 162,780 |
| Starts Corp., Inc. | 10,600 | 259,626 |
| Sugi Holdings Co., Ltd. | 9,900 | 760,362 |
| Sumitomo Bakelite Co., Ltd. | 13,800 | 558,811 |
| Sumitomo Dainippon Pharma Co., Ltd. | 43,600 | 756,952 |
| Sumitomo Densetsu Co., Ltd. | 1,500 | 31,844 |
| Sumitomo Mitsui Construction Co., Ltd. | 133,980 | 571,647 |
| Sumitomo Osaka Cement Co., Ltd. | 22,500 | 714,565 |
| Sundrug Co., Ltd. | 22,900 | 780,392 |
| Suruga Bank Ltd. | 138,100 | 494,913 |
| Swcc Showa Holdings Co., Ltd. | 13,100 | 189,717 |
| T-Gaia Corp. | 12,500 | 214,426 |
| Tadano Ltd. | 65,100 | 661,852 |
| Taikisha Ltd. | 13,600 | 366,690 |
| Taisho Pharmaceutical Holdings Co., Ltd. | 10,000 | 589,559 |
| Taiyo Holdings Co., Ltd. | 2,900 | 140,409 |
| Takara Holdings, Inc. | 52,100 | 672,699 |
| Takara Leben Co., Ltd. | 11,300 | 36,223 |
| Takara Standard Co., Ltd. | 26,000 | 366,413 |
| Takasago Thermal Engineering Co., Ltd. | 30,600 | 461,174 |
| Takeuchi Manufacturing Co., Ltd. | 11,900 | 320,775 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Takuma Co., Ltd. | 17,100 | 351,148 |
| Tamura Corp. | 40,100 | 185,554 |
| Tanseisha Co., Ltd. | 4,300 | 32,643 |
| TBS Holdings, Inc. | 13,200 | 257,728 |
| TechnoPro Holdings, Inc. | 3,900 | 286,810 |
| The 77 Bank Ltd. | 18,000 | 226,069 |
| The Awa Bank Ltd. | 8,200 | 165,478 |
| The Bank of Kyoto Ltd. | 8,500 | 456,637 |
| The Chiba Bank Ltd. | 136,200 | 851,687 |
| The Chugoku Bank Ltd. | 39,500 | 312,702 |
| The Gunma Bank Ltd. | 142,100 | 464,860 |
| The Hachijuni Bank Ltd. | 122,600 | 419,149 |
| The Hokkoku Bank Ltd. | 6,900 | 153,658 |
| The Hyakugo Bank Ltd. | 49,600 | 143,929 |
| The Iyo Bank Ltd. | 58,100 | 320,461 |
| The Japan Steel Works Ltd. | 24,100 | 585,443 |
| The Japan Wool Textile Co., Ltd. | 24,900 | 222,508 |
| The Juroku Bank Ltd. | 11,200 | 206,761 |
| The Kiyo Bank Ltd. | 13,700 | 180,192 |
| The Musashino Bank Ltd. | 13,300 | 197,977 |
| The Nanto Bank Ltd. | 9,400 | 157,189 |
| The Nisshin Oillio Group Ltd. | 15,900 | 447,194 |
| The Ogaki Kyoritsu Bank Ltd. | 9,100 | 163,583 |
| The Okinawa Electric Power Co., Inc. | 27,982 | 371,875 |
| The San-in Godo Bank Ltd. | 47,800 | 219,433 |
| The Shiga Bank Ltd. | 10,400 | 205,544 |
| The Shizuoka Bank Ltd. | 103,700 | 795,740 |
| The Sumitomo Warehouse Co., Ltd. | 24,300 | 314,679 |
| THK Co., Ltd. | 30,000 | 1,023,439 |
| TKC Corp. | 10,500 | 330,088 |
| Toa Corp. (a) | 12,000 | 269,431 |
| Toagosei Co., Ltd. | 53,700 | 601,361 |
| Tocalo Co., Ltd. | 2,500 | 33,939 |
| Toda Corp. | 102,000 | 728,209 |
| Toei Co., Ltd. | 1,200 | 267,882 |
| Toho Co., Ltd. | 18,800 | 749,235 |
| Toho Zinc Co., Ltd. | 16,400 | 341,554 |
| Tokai Carbon Co., Ltd. | 45,300 | 737,172 |
| TOKAI Holdings Corp. | 42,800 | 350,206 |
| Tokai Rika Co., Ltd. | 49,500 | 801,338 |
| Tokai Tokyo Financial Holdings, Inc. | 91,100 | 342,231 |
| Token Corp. | 4,650 | 415,282 |
| Tokuyama Corp. | 33,100 | 747,981 |
| Tokyo Century Corp. | 7,800 | 482,208 |
| Tokyo Ohka Kogyo Co., Ltd. | 6,500 | 430,750 |
| Tokyo Seimitsu Co., Ltd. | 9,400 | 444,326 |
| Tokyo Steel Manufacturing Co., Ltd. | 46,600 | 452,479 |
| Tokyo Tatemono Co., Ltd. | 54,400 | 805,408 |
| Tokyu Construction Co., Ltd. | 64,900 | 335,905 |
| Tomy Co., Ltd. | 43,900 | 376,959 |
| Topcon Corp. | 38,200 | 521,180 |
| Toppan Forms Co., Ltd. | 28,200 | 297,723 |
| Topre Corp. | 41,100 | 550,081 |
| Toshiba TEC Corp. | 9,000 | 359,631 |
| Totetsu Kogyo Co., Ltd. | 11,900 | 275,808 |
| Towa Pharmaceutical Co., Ltd. | 8,300 | 171,853 |
| Toyo Construction Co., Ltd. | 48,200 | 258,464 |
| Toyo Ink SC Holdings Co., Ltd. | 28,900 | 533,537 |
| Toyo Tire Corp. | 45,600 | 834,307 |
| Toyobo Co., Ltd. | 56,100 | 678,703 |
| Toyota Boshoku Corp. | 57,400 | 1,070,885 |
| TPR Co., Ltd. | 31,100 | 446,319 |
| Trancom Co., Ltd. | 2,800 | 217,342 |
| Transcosmos, Inc. | 10,700 | 305,611 |
| Trend Micro, Inc. | 13,600 | 647,345 |
| Trusco Nakayama Corp. | 13,900 | 359,389 |
| TSI Holdings Co., Ltd. * | 111,300 | 330,475 |
| Tsubaki Nakashima Co., Ltd. | 20,000 | 298,299 |
| Security | Number
of Shares | Value ($) |
| Tsubakimoto Chain Co. | 24,900 | 667,642 |
| Tsumura & Co. | 14,900 | 496,225 |
| TV Asahi Holdings Corp. | 11,700 | 214,431 |
| UACJ Corp. * | 27,430 | 636,406 |
| Uchida Yoko Co., Ltd. | 3,400 | 145,469 |
| Ulvac, Inc. | 15,100 | 690,094 |
| Unipres Corp. | 81,200 | 779,438 |
| United Arrows Ltd. * | 22,300 | 391,989 |
| United Super Markets Holdings, Inc. | 54,500 | 551,421 |
| United Urban Investment Corp. | 266 | 397,102 |
| Unitika Ltd. * | 7,800 | 27,196 |
| Ushio, Inc. | 39,700 | 525,792 |
| USS Co., Ltd. | 23,600 | 428,241 |
| V Technology Co., Ltd. | 600 | 30,280 |
| Valor Holdings Co., Ltd. | 28,700 | 613,110 |
| Valqua Ltd. | 2,400 | 45,565 |
| VT Holdings Co., Ltd. | 58,200 | 224,446 |
| Wacoal Holdings Corp. | 29,700 | 670,469 |
| Wacom Co., Ltd. | 25,900 | 166,022 |
| Wakita & Co., Ltd. | 21,900 | 210,781 |
| Warabeya Nichiyo Holdings Co., Ltd. | 20,800 | 370,211 |
| Welcia Holdings Co., Ltd. | 14,700 | 458,660 |
| World Co., Ltd. * | 16,000 | 204,960 |
| Xebio Holdings Co., Ltd. | 32,000 | 253,604 |
| Yamabiko Corp. | 20,400 | 220,209 |
| Yamaguchi Financial Group, Inc. | 71,800 | 424,684 |
| Yamato Kogyo Co., Ltd. | 13,500 | 406,219 |
| Yamazen Corp. | 54,700 | 488,885 |
| Yaoko Co., Ltd. | 5,500 | 350,828 |
| Yellow Hat Ltd. | 15,200 | 255,598 |
| Yokogawa Bridge Holdings Corp. | 11,400 | 214,881 |
| Yokohama Reito Co., Ltd. | 24,000 | 192,397 |
| Yondoshi Holdings, Inc. | 11,300 | 191,828 |
| Yoshinoya Holdings Co., Ltd. * | 17,700 | 327,833 |
| Yuasa Trading Co., Ltd. | 15,100 | 410,805 |
| Zenkoku Hosho Co., Ltd. | 4,600 | 206,465 |
| Zenrin Co., Ltd. | 12,500 | 131,882 |
| Zensho Holdings Co., Ltd. | 18,900 | 474,016 |
| Zeon Corp. | 58,300 | 929,579 |
| ZERIA Pharmaceutical Co., Ltd. | 8,500 | 152,019 |
| Zojirushi Corp. | 10,800 | 172,285 |
| ZOZO, Inc. | 6,400 | 215,258 |
| | | 225,310,436 |
| |
| Luxembourg 0.0% |
| Espirito Santo Financial Group S.A. *(b) | 69,773 | — |
| |
| Netherlands 1.9% |
| Accell Group N.V. * | 7,179 | 370,275 |
| Adyen N.V. * | 108 | 265,798 |
| AMG Advanced Metallurgical Group N.V. | 8,909 | 341,248 |
| Arcadis N.V. * | 26,106 | 1,098,079 |
| ASM International N.V. | 3,841 | 1,165,271 |
| BE Semiconductor Industries N.V. | 8,088 | 653,229 |
| Corbion N.V. | 10,606 | 621,109 |
| Eurocommercial Properties N.V. CVA * | 19,645 | 508,168 |
| Flow Traders | 4,158 | 171,664 |
| Fugro N.V. * | 54,074 | 562,913 |
| GrandVision N.V. * | 8,102 | 262,023 |
| Heijmans N.V. CVA | 2,099 | 33,552 |
| IMCD N.V. | 4,786 | 695,163 |
| Intertrust N.V. * | 18,994 | 351,679 |
| JDE Peet's N.V. * | 1,954 | 75,972 |
| Koninklijke BAM Groep N.V * | 271,265 | 751,182 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Koninklijke Vopak N.V. | 12,299 | 563,149 |
| OCI N.V. * | 19,117 | 445,546 |
| PostNL N.V. | 198,190 | 1,035,231 |
| Royal Boskalis Westminster N.V. * | 43,882 | 1,400,593 |
| SBM Offshore N.V. | 48,408 | 840,295 |
| Sligro Food Group N.V. * | 29,929 | 948,996 |
| TKH Group N.V. | 13,284 | 633,522 |
| TomTom N.V. * | 19,418 | 170,441 |
| Van Lanschot Kempen N.V. CVA * | 9,633 | 281,955 |
| Wereldhave N.V. | 27,396 | 473,305 |
| | | 14,720,358 |
| |
| New Zealand 0.8% |
| Air New Zealand Ltd. * | 631,437 | 784,559 |
| Auckland International Airport Ltd. * | 89,736 | 485,297 |
| Chorus Ltd. | 84,583 | 410,302 |
| EBOS Group Ltd. | 31,881 | 678,904 |
| Fisher & Paykel Healthcare Corp., Ltd. | 21,766 | 560,973 |
| Freightways Ltd. | 29,933 | 238,405 |
| Genesis Energy Ltd. | 161,565 | 397,227 |
| Infratil Ltd. | 83,648 | 425,783 |
| Mercury NZ Ltd. | 119,580 | 592,356 |
| Meridian Energy Ltd. | 183,975 | 701,322 |
| Ryman Healthcare Ltd. | 16,860 | 170,455 |
| SKYCITY Entertainment Group Ltd. * | 249,684 | 637,621 |
| The a2 Milk Co., Ltd. * | 6,858 | 37,494 |
| Z Energy Ltd. * | 289,888 | 554,641 |
| | | 6,675,339 |
| |
| Norway 1.7% |
| Aker A.S.A., A Shares | 9,765 | 726,625 |
| Aker BP A.S.A. | 22,167 | 631,300 |
| Aker Solutions A.S.A. * | 280,319 | 487,828 |
| Austevoll Seafood A.S.A. | 39,530 | 504,576 |
| Bakkafrost P/F | 4,729 | 374,659 |
| Borregaard A.S.A. | 22,111 | 486,569 |
| BW LPG Ltd. | 55,104 | 407,666 |
| BW Offshore Ltd. | 49,675 | 198,630 |
| DNO A.S.A. * | 315,946 | 368,791 |
| Elkem A.S.A. | 117,499 | 431,176 |
| Entra A.S.A. | 18,420 | 416,021 |
| Europris A.S.A. * | 39,946 | 271,900 |
| Fjordkraft Holding A.S.A. | 4,612 | 34,546 |
| Frontline Ltd/Bermuda | 22,965 | 175,823 |
| Gjensidige Forsikring A.S.A. | 27,049 | 614,259 |
| Grieg Seafood A.S.A. * | 4,009 | 39,839 |
| Kongsberg Automotive A.S.A. * | 699,207 | 231,031 |
| Kongsberg Gruppen A.S.A. | 14,503 | 366,038 |
| Leroy Seafood Group A.S.A. | 64,576 | 591,998 |
| Norwegian Finans Holding A.S.A. | 25,207 | 278,058 |
| PGS A.S.A. * | 1,001,741 | 690,278 |
| Salmar A.S.A. | 8,061 | 557,848 |
| Schibsted A.S.A., A Shares * | 5,261 | 264,385 |
| Schibsted A.S.A., B Shares * | 7,838 | 343,689 |
| SpareBank 1 Nord Norge | 37,386 | 373,675 |
| SpareBank 1 SMN | 36,808 | 496,124 |
| SpareBank 1 SR Bank A.S.A. | 39,389 | 508,804 |
| Storebrand A.S.A. | 89,007 | 849,582 |
| TGS NOPEC Geophysical Co., A.S.A. | 41,370 | 625,008 |
| Tomra Systems A.S.A. | 6,818 | 340,610 |
| Veidekke A.S.A. | 39,593 | 608,019 |
| XXL A.S.A. * | 90,490 | 234,229 |
| | | 13,529,584 |
| |
| Security | Number
of Shares | Value ($) |
| Poland 0.9% |
| Alior Bank S.A. * | 79,465 | 588,629 |
| Asseco Poland S.A. | 33,488 | 621,334 |
| Bank Millennium S.A. * | 220,145 | 240,335 |
| Cyfrowy Polsat S.A. | 80,707 | 628,256 |
| Enea S.A. * | 318,419 | 706,681 |
| Eurocash S.A. * | 61,947 | 239,253 |
| Jastrzebska Spolka Weglowa S.A. * | 66,271 | 528,078 |
| LPP S.A. * | 138 | 356,657 |
| mBank S.A. * | 3,697 | 228,680 |
| Orange Polska S.A. * | 383,832 | 689,345 |
| Santander Bank Polska S.A. * | 8,278 | 489,695 |
| Tauron Polska Energia S.A. * | 1,617,813 | 1,441,013 |
| | | 6,757,956 |
| |
| Portugal 0.4% |
| Banco Espirito Santo S.A. *(b) | 320,558 | — |
| CTT-Correios de Portugal S.A. * | 96,642 | 440,451 |
| EDP Renovaveis S.A. * | 18,835 | 448,811 |
| Mota-Engil SGPS, S.A. * | 117,944 | 197,863 |
| NOS SGPS, S.A. | 120,176 | 455,695 |
| Redes Energeticas Nacionais SGPS, S.A. | 118,618 | 347,372 |
| Sonae SGPS, S.A. | 691,544 | 647,413 |
| The Navigator Co., S.A. * | 156,663 | 527,907 |
| | | 3,065,512 |
| |
| Republic of Korea 8.8% |
| AJ Networks Co., Ltd. | 9,561 | 47,761 |
| AK Holdings, Inc. | 10,014 | 278,468 |
| AMOREPACIFIC Group | 11,558 | 762,579 |
| Asiana Airlines, Inc. * | 27,258 | 364,918 |
| BGF retail Co., Ltd. | 2,774 | 380,778 |
| Binggrae Co., Ltd. | 2,575 | 143,294 |
| Celltrion, Inc. * | 1,603 | 381,582 |
| Cheil Worldwide, Inc. | 23,503 | 462,856 |
| Chong Kun Dang Pharmaceutical Corp. | 230 | 28,619 |
| CJ CGV Co., Ltd. * | 1,609 | 37,660 |
| CJ ENM Co., Ltd. | 3,529 | 455,316 |
| CJ Logistics Corp. * | 2,419 | 372,013 |
| Com2uS Corp. | 2,003 | 264,553 |
| Daehan Flour Mill Co., Ltd. | 285 | 40,965 |
| Daesang Corp. | 12,491 | 289,778 |
| Daewoo Engineering & Construction Co., Ltd. * | 153,612 | 1,015,992 |
| Daewoo Shipbuilding & Marine Engineering Co., Ltd. * | 28,244 | 928,631 |
| Daou Technology Inc. | 8,898 | 212,040 |
| DB HiTek Co., Ltd. | 6,875 | 339,516 |
| DGB Financial Group, Inc. | 110,249 | 877,066 |
| DL Holdings Co., Ltd. | 7,783 | 659,481 |
| Dongkuk Steel Mill Co., Ltd. | 110,155 | 2,359,409 |
| Dongwon Industries Co., Ltd. | 705 | 170,923 |
| Doosan Bobcat, Inc. * | 11,077 | 452,962 |
| Doosan Co., Ltd. | 11,011 | 624,502 |
| Doosan Heavy Industries & Construction Co., Ltd. * | 156,374 | 1,948,360 |
| Doosan Infracore Co., Ltd. * | 98,669 | 955,747 |
| Easy Holdings Co., Ltd. | 7,726 | 34,276 |
| Fila Holdings Corp. | 8,499 | 347,308 |
| Global & Yuasa Battery Co., Ltd. | 573 | 44,337 |
| Green Cross Corp. | 726 | 220,370 |
| Green Cross Holdings Corp. | 5,757 | 188,619 |
| GS Global Corp. * | 17,144 | 43,585 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| GS Home Shopping, Inc. | 1,853 | 247,089 |
| GS Retail Co., Ltd. | 14,755 | 473,542 |
| Halla Holdings Corp. | 4,674 | 170,796 |
| Handsome Co., Ltd. | 6,089 | 237,003 |
| Hanjin Transportation Co., Ltd. | 6,312 | 223,323 |
| Hanmi Pharm Co., Ltd. | 125 | 37,892 |
| Hanon Systems | 39,645 | 577,515 |
| Hansol Chemical Co., Ltd. | 142 | 31,429 |
| Hansol Paper Co., Ltd. | 18,004 | 251,832 |
| Hanssem Co., Ltd. | 2,498 | 250,545 |
| Hanwha Aerospace Co., Ltd. | 15,004 | 518,246 |
| Hanwha General Insurance Co., Ltd. * | 133,412 | 571,886 |
| Hanwha Life Insurance Co., Ltd. | 478,367 | 1,504,123 |
| Harim Holdings Co., Ltd. | 40,231 | 340,130 |
| HDC Holdings Co., Ltd. | 23,404 | 254,743 |
| HDC Hyundai Development Co-Engineering & Construction, Class E | 16,994 | 425,909 |
| Hite Jinro Co., Ltd. | 6,760 | 211,265 |
| HMM Co., Ltd. * | 58,167 | 2,041,411 |
| Hotel Shilla Co., Ltd. | 6,819 | 528,183 |
| HS Industries Co., Ltd. | 5,266 | 38,264 |
| Huchems Fine Chemical Corp. | 9,964 | 193,878 |
| Hyosung Advanced Materials Corp. * | 1,935 | 665,173 |
| Hyosung Chemical Corp. * | 1,431 | 518,589 |
| Hyosung Corp. | 4,115 | 366,834 |
| Hyosung Heavy Industries Corp. * | 4,612 | 288,668 |
| Hyosung TNC Co., Ltd. | 1,706 | 1,104,506 |
| Hyundai Construction Equipment Co., Ltd. * | 21,181 | 1,058,256 |
| Hyundai Corp. | 20,786 | 400,263 |
| Hyundai Department Store Co., Ltd. | 8,882 | 738,617 |
| Hyundai Elevator Co., Ltd. | 5,484 | 223,030 |
| Hyundai Greenfood Co., Ltd. | 43,063 | 375,852 |
| Hyundai Home Shopping Network Corp. | 3,310 | 234,070 |
| Hyundai Mipo Dockyard Co., Ltd. * | 7,739 | 594,116 |
| Hyundai Wia Corp. | 21,815 | 1,361,211 |
| Innocean Worldwide, Inc. | 641 | 34,514 |
| Interpark Holdings Corp. | 118,476 | 487,698 |
| INTOPS Co., Ltd. | 1,042 | 28,294 |
| IS Dongseo Co., Ltd. | 6,375 | 381,929 |
| JB Financial Group Co., Ltd. | 84,837 | 556,600 |
| Kakao Corp. | 5,022 | 511,374 |
| Kangwon Land, Inc. * | 29,569 | 669,605 |
| KCC Corp. | 3,361 | 942,926 |
| KEPCO Plant Service & Engineering Co., Ltd. | 10,173 | 309,897 |
| KIWOOM Securities Co., Ltd. | 281 | 33,272 |
| Kolon Corp. | 10,398 | 295,951 |
| Kolon Industries, Inc. | 18,729 | 1,013,419 |
| Korea Aerospace Industries Ltd. | 15,086 | 441,117 |
| Korea Electric Terminal Co., Ltd. | 4,467 | 297,447 |
| Korea Investment Holdings Co., Ltd. | 7,247 | 727,512 |
| Korea Petrochemical Ind Co., Ltd. | 2,423 | 681,457 |
| Korean Reinsurance Co. | 61,013 | 502,571 |
| Kumho Petrochemical Co., Ltd. | 6,441 | 1,497,104 |
| Kumho Tire Co., Inc. * | 77,336 | 279,105 |
| KUMHOE&C Co., Ltd. | 4,137 | 37,298 |
| Kwang Dong Pharmaceutical Co., Ltd. | 4,056 | 32,517 |
| LF Corp. | 24,109 | 392,323 |
| LG Hausys Ltd. | 6,858 | 559,032 |
| LG HelloVision Co., Ltd. | 47,937 | 229,252 |
| LG Innotek Co., Ltd. | 5,639 | 1,011,900 |
| LG International Corp. | 44,706 | 1,234,491 |
| Lotte Chilsung Beverage Co., Ltd. | 1,909 | 239,916 |
| Lotte Corp. | 5,527 | 181,388 |
| Security | Number
of Shares | Value ($) |
| LOTTE Fine Chemical Co., Ltd. | 7,801 | 474,351 |
| Lotte Food Co., Ltd. | 89 | 31,299 |
| LOTTE Himart Co., Ltd. | 18,985 | 660,886 |
| LS Corp. | 18,744 | 1,227,147 |
| LS Electric Co., Ltd. | 7,415 | 378,051 |
| Mando Corp. * | 21,673 | 1,131,587 |
| Meritz Financial Group, Inc. | 23,447 | 376,669 |
| Meritz Fire & Marine Insurance Co., Ltd. | 47,725 | 855,485 |
| Meritz Securities Co., Ltd. | 86,629 | 375,594 |
| Mirae Asset Daewoo Co., Ltd. | 45,420 | 406,905 |
| NCSoft Corp. | 863 | 641,966 |
| Netmarble Corp. | 303 | 35,112 |
| Nexen Tire Corp. | 37,999 | 298,540 |
| NH Investment & Securities Co., Ltd. | 28,921 | 333,025 |
| NHN Corp. * | 492 | 32,195 |
| NICE Holdings Co., Ltd. | 2,406 | 41,701 |
| NongShim Co., Ltd. | 1,298 | 332,150 |
| OCI Co., Ltd. * | 12,168 | 1,355,649 |
| Orion Corp/Republic of Korea | 3,516 | 369,328 |
| Ottogi Corp. | 399 | 198,908 |
| Pan Ocean Co., Ltd. | 72,186 | 473,766 |
| Partron Co., Ltd. | 20,347 | 193,861 |
| Poongsan Corp. | 20,661 | 694,422 |
| S&T Motiv Co., Ltd. | 3,520 | 193,152 |
| S-1 Corp. | 5,349 | 391,912 |
| Samsung Card Co., Ltd. | 14,564 | 461,966 |
| Samsung Engineering Co., Ltd. * | 35,107 | 544,540 |
| Samsung Heavy Industries Co., Ltd. * | 191,673 | 1,286,332 |
| Samsung Securities Co., Ltd. | 11,619 | 443,984 |
| SAMT Co., Ltd. | 14,358 | 37,675 |
| Samyang Corp. | 673 | 35,415 |
| Samyang Holding Corp. | 5,235 | 657,146 |
| Seah Besteel Corp. | 16,091 | 376,586 |
| Seohan Co., Ltd. | 26,614 | 41,319 |
| Seoul Semiconductor Co., Ltd. | 14,461 | 243,386 |
| Seoyon Co., Ltd. | 5,059 | 87,009 |
| Seoyon E-Hwa Co., Ltd. | 44,341 | 351,732 |
| SFA Engineering Corp. | 5,665 | 212,530 |
| Shinsegae, Inc. | 2,893 | 788,902 |
| SK Chemicals Co., Ltd. | 1,161 | 276,561 |
| SK Dicovery Co., Ltd. | 3,811 | 197,347 |
| SK Gas Ltd. | 3,472 | 313,286 |
| SK Materials Co., Ltd. | 124 | 37,362 |
| SK Networks Co., Ltd. | 254,565 | 1,209,036 |
| SKC Co., Ltd. | 4,538 | 549,557 |
| SL Corp. | 8,275 | 168,376 |
| SSANGYONG C&E Co., Ltd. | 56,914 | 396,405 |
| Sungwoo Hitech Co., Ltd. | 104,243 | 528,690 |
| Taekwang Industrial Co., Ltd. | 694 | 649,511 |
| Tongyang, Inc. | 114,059 | 142,089 |
| Unid Co., Ltd. | 543 | 41,781 |
| WONIK IPS Co., Ltd. | 5,667 | 257,012 |
| Young Poong Corp. | 413 | 251,736 |
| Youngone Corp. | 13,363 | 525,651 |
| Yuhan Corp. | 5,775 | 332,962 |
| | | 69,351,907 |
| |
| Singapore 1.5% |
| Ascendas Real Estate Investment Trust | 257,821 | 600,805 |
| Ascott Residence Trust | 209,400 | 166,358 |
| CapitaLand Integrated Commercial Trust | 362,301 | 584,523 |
| City Developments Ltd. | 129,900 | 768,419 |
| First Resources Ltd. | 123,600 | 142,047 |
| Genting Singapore Ltd. | 1,362,100 | 883,389 |
| Golden Agri-Resources Ltd. | 7,793,800 | 1,461,849 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Keppel Infrastructure Trust | 668,000 | 276,085 |
| Mapletree Commercial Trust | 145,992 | 239,489 |
| Mapletree Industrial Trust | 100,444 | 213,091 |
| Mapletree Logistics Trust | 153,830 | 229,612 |
| Mapletree North Asia Commercial Trust | 301,562 | 247,053 |
| NetLink NBN Trust | 65,000 | 47,358 |
| SATS Ltd. * | 168,149 | 511,566 |
| Sembcorp Industries Ltd. | 616,300 | 979,661 |
| Sembcorp Marine Ltd. * | 3,588,960 | 564,665 |
| Singapore Exchange Ltd. | 74,600 | 584,394 |
| Singapore Press Holdings Ltd. | 816,300 | 1,127,080 |
| Singapore Technologies Engineering Ltd. | 292,700 | 846,768 |
| StarHub Ltd. | 319,700 | 323,948 |
| Suntec Real Estate Investment Trust | 199,000 | 228,052 |
| UOL Group Ltd. | 81,101 | 467,967 |
| | | 11,494,179 |
| |
| Spain 1.5% |
| Abengoa S.A., B Shares *(b) | 66,135,341 | 123,242 |
| Acerinox S.A. | 98,978 | 1,372,468 |
| Almirall S.A. | 13,235 | 207,761 |
| Applus Services S.A. * | 55,092 | 582,875 |
| Atresmedia Corp de Medios de Comunicaion S.A. * | 9,110 | 43,844 |
| Caja de Ahorros del Mediterraneo *(b) | 5,382 | — |
| Cellnex Telecom S.A. | 5,802 | 328,185 |
| Cia de Distribucion Integral Logista Holdings S.A. | 17,393 | 361,591 |
| Cie Automotive S.A. | 13,338 | 371,012 |
| Construcciones y Auxiliar de Ferrocarriles S.A. | 5,014 | 241,404 |
| Ebro Foods S.A. | 24,337 | 497,991 |
| Ence Energia y Celulosa S.A. * | 52,243 | 229,317 |
| Euskaltel S.A. | 22,980 | 305,711 |
| FAES FARMA S.A. | 44,141 | 183,935 |
| Gestamp Automocion S.A. * | 125,974 | 650,486 |
| Grupo Catalana Occidente S.A. | 9,341 | 390,811 |
| Indra Sistemas S.A. * | 22,773 | 236,949 |
| Inmobiliaria Colonial Socimi S.A. | 21,049 | 213,531 |
| Mediaset Espana Comunicacion S.A. * | 129,885 | 826,746 |
| Melia Hotels International S.A. * | 54,986 | 449,138 |
| Merlin Properties Socimi S.A. | 37,646 | 416,077 |
| Obrascon Huarte Lain S.A. *(a) | 314,176 | 247,059 |
| Prosegur Cash S.A. | 174,739 | 157,388 |
| Prosegur Cia de Seguridad S.A. | 176,812 | 549,712 |
| Sacyr S.A. | 145,895 | 404,169 |
| Siemens Gamesa Renewable Energy S.A. * | 23,105 | 834,549 |
| Tecnicas Reunidas S.A. * | 17,111 | 255,133 |
| Unicaja Banco S.A. | 762,186 | 751,142 |
| Viscofan S.A. | 6,959 | 475,572 |
| Zardoya Otis S.A. | 34,439 | 218,144 |
| | | 11,925,942 |
| |
| Sweden 3.5% |
| AAK AB | 26,390 | 604,353 |
| AddTech AB, B Shares | 14,825 | 258,447 |
| AF POYRY AB * | 14,782 | 483,678 |
| Arjo AB, B Shares | 38,223 | 376,882 |
| Attendo AB * | 37,429 | 218,063 |
| Axfood AB | 26,554 | 664,506 |
| Beijer Ref AB | 13,659 | 211,818 |
| Betsson AB * | 37,967 | 344,969 |
| Security | Number
of Shares | Value ($) |
| Bilia AB, A Shares | 34,283 | 597,598 |
| BillerudKorsnas AB | 52,473 | 1,071,645 |
| Bonava AB, B Shares | 47,725 | 565,422 |
| Bravida Holding AB | 35,890 | 534,181 |
| Castellum AB | 26,315 | 640,825 |
| Clas Ohlson AB, B Shares * | 18,896 | 201,682 |
| Cloetta AB, B Shares | 69,799 | 218,487 |
| Concentric AB | 8,811 | 198,018 |
| Coor Service Management Holding AB | 31,182 | 264,131 |
| Dometic Group AB | 52,752 | 830,167 |
| Dustin Group AB | 3,497 | 43,641 |
| Electrolux Professional AB, B Shares * | 76,324 | 483,500 |
| Elekta AB, B Shares | 35,707 | 477,503 |
| Evolution Gaming Group AB | 272 | 53,695 |
| Fabege AB | 17,955 | 267,695 |
| Fastighets AB Balder, B Shares * | 3,927 | 226,266 |
| Fingerprint Cards AB, B Shares * | 11,618 | 47,536 |
| Getinge AB, B Shares | 33,718 | 1,140,377 |
| Granges AB * | 33,957 | 455,135 |
| Hexpol AB | 61,095 | 749,049 |
| Holmen AB, B Shares | 15,300 | 721,886 |
| Indutrade AB | 23,618 | 616,800 |
| International Petroleum Corp. * | 19,344 | 68,140 |
| Intrum AB | 16,620 | 571,582 |
| Inwido AB * | 19,495 | 341,068 |
| JM AB | 23,663 | 876,616 |
| Kinnevik AB, B Shares * | 19,009 | 1,049,137 |
| Klovern AB, B Shares | 28,444 | 55,055 |
| Kungsleden AB | 24,892 | 289,411 |
| LE Lundbergfortagen AB, B Shares | 10,162 | 580,206 |
| Lifco AB, B Shares | 2,707 | 289,900 |
| Lindab International AB | 17,184 | 349,743 |
| Loomis AB | 29,354 | 961,268 |
| Mekonomen AB * | 18,810 | 322,627 |
| Modern Times Group MTG AB, B Shares * | 13,186 | 201,163 |
| Mycronic AB | 1,381 | 40,774 |
| NCC AB, B Shares | 33,050 | 623,177 |
| Nibe Industrier AB, B Shares | 15,522 | 566,879 |
| Nobia AB | 68,008 | 591,114 |
| Nolato AB, B Shares * | 2,006 | 198,073 |
| Nordic Entertainment Group AB, B Shares * | 5,978 | 277,304 |
| Pandox AB * | 16,672 | 291,099 |
| Peab AB * | 76,208 | 1,099,345 |
| Ratos AB, B Shares | 136,804 | 805,088 |
| Resurs Holding AB | 36,517 | 188,743 |
| Saab AB, B Shares | 22,654 | 670,546 |
| SAS AB * | 1,521,609 | 351,394 |
| Scandic Hotels Group AB *(a) | 87,247 | 393,366 |
| Sweco AB, B Shares | 18,595 | 330,638 |
| Swedish Orphan Biovitrum AB * | 9,684 | 164,783 |
| Tethys Oil AB | 6,376 | 46,153 |
| Thule Group AB | 11,111 | 503,970 |
| Wallenstam AB, B Shares | 13,299 | 205,530 |
| Wihlborgs Fastigheter AB | 11,771 | 240,624 |
| | | 27,112,471 |
| |
| Switzerland 2.9% |
| Allreal Holding AG | 2,134 | 431,824 |
| ALSO Holding AG * | 940 | 284,294 |
| ams AG * | 19,221 | 333,258 |
| Arbonia AG | 16,732 | 289,705 |
| Aryzta AG * | 962,882 | 1,085,393 |
| Autoneum Holding AG * | 2,455 | 474,481 |
| Banque Cantonale Vaudoise | 3,000 | 305,839 |
| Belimo Holding AG | 680 | 271,372 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| BKW AG | 3,575 | 400,377 |
| Bobst Group S.A. * | 2,641 | 175,600 |
| Bucher Industries AG | 1,529 | 802,445 |
| Burckhardt Compression Holding AG | 643 | 230,906 |
| Bystronic AG | 280 | 342,238 |
| Cembra Money Bank AG | 3,935 | 427,882 |
| Daetwyler Holding AG | 1,083 | 351,460 |
| dormakaba Holding AG | 569 | 373,909 |
| Emmi AG | 407 | 422,487 |
| EMS-Chemie Holding AG | 629 | 587,305 |
| Flughafen Zuerich AG * | 3,614 | 650,089 |
| Forbo Holding AG | 180 | 344,743 |
| Galenica AG | 11,771 | 796,620 |
| GAM Holding AG * | 212,260 | 550,006 |
| Helvetia Holding AG * | 8,574 | 1,030,807 |
| Huber & Suhner AG | 4,185 | 335,870 |
| Implenia AG * | 9,762 | 284,538 |
| Inficon Holding AG | 201 | 215,023 |
| Interroll Holding AG | 10 | 34,178 |
| Komax Holding AG * | 893 | 214,255 |
| Landis+Gyr Group AG * | 7,371 | 510,949 |
| Logitech International S.A. | 10,087 | 1,122,727 |
| Mobimo Holding AG * | 848 | 269,470 |
| OC Oerlikon Corp. AG | 58,801 | 687,671 |
| PSP Swiss Property AG | 2,793 | 344,646 |
| Rieter Holding AG * | 2,059 | 317,016 |
| Schweiter Technologies AG | 218 | 353,765 |
| SFS Group AG | 3,505 | 451,793 |
| Siegfried Holding AG * | 414 | 380,741 |
| SIG Combibloc Group AG * | 29,938 | 733,813 |
| Softwareone Holding AG * | 2,162 | 56,030 |
| St. Galler Kantonalbank AG | 335 | 156,850 |
| Stadler Rail AG (a) | 5,127 | 256,673 |
| Straumann Holding AG | 389 | 555,948 |
| Sulzer AG | 5,998 | 683,326 |
| Tecan Group AG | 567 | 276,291 |
| Temenos AG | 2,524 | 371,078 |
| u-blox Holding AG * | 2,437 | 167,082 |
| Valiant Holding AG | 2,598 | 288,044 |
| Valora Holding AG * | 2,295 | 481,578 |
| VAT Group AG | 1,601 | 457,188 |
| Vetropack Holding AG | 2,663 | 161,141 |
| Vifor Pharma AG | 5,957 | 858,542 |
| Vontobel Holding AG | 3,807 | 286,523 |
| Zehnder Group AG | 4,733 | 381,754 |
| Zur Rose Group AG * | 536 | 178,388 |
| | | 22,835,931 |
| |
| United Kingdom 11.9% |
| 4imprint Group plc * | 1,164 | 37,777 |
| 888 Holdings plc | 63,391 | 373,472 |
| AG Barr plc * | 23,421 | 164,315 |
| Airtel Africa plc | 370,384 | 390,617 |
| Ascential plc * | 43,470 | 208,936 |
| Ashmore Group plc | 48,428 | 267,678 |
| Auto Trader Group plc * | 41,128 | 323,784 |
| Avast plc | 25,244 | 166,543 |
| AVEVA Group plc | 14,993 | 720,584 |
| B&M European Value Retail S.A. | 131,053 | 1,024,434 |
| Babcock International Group plc * | 236,388 | 940,859 |
| Bank of Georgia Group plc * | 14,673 | 207,100 |
| Beazley plc * | 119,652 | 559,343 |
| Biffa plc * | 77,034 | 294,162 |
| Big Yellow Group plc | 12,395 | 205,097 |
| Bodycote plc | 68,844 | 719,077 |
| Brewin Dolphin Holdings plc | 64,945 | 305,138 |
| Britvic plc | 56,134 | 684,148 |
| Security | Number
of Shares | Value ($) |
| C&C Group plc * | 109,728 | 449,079 |
| Capita plc * | 1,350,805 | 815,320 |
| Card Factory plc * | 703,780 | 840,695 |
| Centamin plc | 306,892 | 455,074 |
| Chemring Group plc | 87,682 | 318,475 |
| Cineworld Group plc *(a) | 705,204 | 942,671 |
| Clarkson plc | 5,178 | 217,035 |
| Close Brothers Group plc | 42,196 | 925,564 |
| Coats Group plc | 386,835 | 312,022 |
| Computacenter plc | 17,183 | 635,559 |
| ConvaTec Group plc | 209,107 | 630,133 |
| Costain Group plc * | 338,557 | 275,863 |
| Countryside Properties plc * | 88,823 | 636,585 |
| Cranswick plc | 13,489 | 695,798 |
| Crest Nicholson Holdings plc * | 185,636 | 1,048,048 |
| De La Rue plc * | 124,973 | 306,385 |
| Dechra Pharmaceuticals plc | 3,965 | 220,896 |
| Derwent London plc | 7,840 | 360,620 |
| Diploma plc | 10,675 | 422,614 |
| Domino's Pizza Group plc | 45,942 | 242,392 |
| Dunelm Group plc | 16,026 | 326,374 |
| Electrocomponents plc | 66,448 | 977,997 |
| Elementis plc * | 326,546 | 674,660 |
| Entain plc * | 42,799 | 1,000,496 |
| Equiniti Group plc * | 125,304 | 302,799 |
| Essentra plc | 124,364 | 546,292 |
| Euromoney Institutional Investor plc | 22,422 | 307,783 |
| Ferrexpo plc | 126,278 | 764,883 |
| Flutter Entertainment plc * | 8,226 | 1,685,683 |
| Forterra plc * | 70,211 | 283,137 |
| Frasers Group plc * | 82,103 | 584,103 |
| Fresnillo plc | 27,413 | 311,716 |
| Games Workshop Group plc | 1,817 | 272,256 |
| Genuit Group plc | 35,714 | 278,670 |
| Genus plc | 4,289 | 301,224 |
| Grafton Group plc | 89,755 | 1,478,648 |
| Grainger plc | 63,414 | 250,340 |
| Great Portland Estates plc | 33,495 | 320,610 |
| Greencore Group plc * | 269,765 | 591,959 |
| Greggs plc * | 23,820 | 777,226 |
| Halfords Group plc * | 189,029 | 984,190 |
| Halma plc | 23,117 | 826,030 |
| Hammerson plc | 1,276,550 | 703,083 |
| Harbour Energy plc * | 1,980,318 | 557,081 |
| Hargreaves Lansdown plc | 19,014 | 451,423 |
| Hikma Pharmaceuticals plc | 16,778 | 565,404 |
| Hill & Smith Holdings plc | 15,856 | 322,435 |
| Hilton Food Group plc | 15,980 | 271,927 |
| Hiscox Ltd. * | 69,157 | 774,098 |
| Hochschild Mining plc | 82,288 | 211,076 |
| HomeServe plc | 28,721 | 434,049 |
| Howden Joinery Group plc * | 108,658 | 1,213,872 |
| Hunting plc | 109,430 | 371,775 |
| Ibstock plc | 136,582 | 416,435 |
| IG Group Holdings plc | 76,500 | 967,797 |
| IMI plc | 67,854 | 1,491,064 |
| Indivior plc * | 289,503 | 610,122 |
| Intermediate Capital Group plc | 35,095 | 1,059,512 |
| Intu Properties plc *(a)(b) | 4,024,942 | 24,680 |
| Investec plc | 242,465 | 975,655 |
| IWG plc * | 168,767 | 854,493 |
| J.D. Wetherspoon plc * | 25,145 | 463,946 |
| JD Sports Fashion plc * | 43,522 | 552,055 |
| John Laing Group plc | 82,411 | 349,669 |
| John Menzies plc * | 34,064 | 155,627 |
| Jupiter Fund Management plc | 189,451 | 676,081 |
| Just Group plc * | 607,477 | 913,303 |
| Kier Group plc * | 600,093 | 729,307 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Lancashire Holdings Ltd. | 52,390 | 513,624 |
| Man Group plc | 494,040 | 1,148,399 |
| Mapeley Ltd. *(b) | 2,199 | — |
| Marshalls plc * | 26,255 | 263,617 |
| Marston's plc * | 527,628 | 705,422 |
| Mediclinic International plc * | 137,069 | 580,777 |
| Mitchells & Butlers plc * | 187,797 | 817,442 |
| Moneysupermarket.com Group plc | 95,642 | 360,681 |
| Morgan Advanced Materials plc | 111,415 | 455,502 |
| Morgan Sindall Group plc | 21,605 | 686,962 |
| National Express Group plc * | 289,904 | 1,197,757 |
| NewRiver REIT plc * | 29,789 | 41,798 |
| Ocado Group plc * | 7,027 | 203,424 |
| OSB Group plc | 56,154 | 371,807 |
| Oxford Instruments plc | 1,407 | 42,280 |
| Pagegroup plc * | 117,590 | 909,821 |
| Paragon Banking Group plc | 63,203 | 410,596 |
| PayPoint plc | 21,323 | 176,689 |
| Petrofac Ltd. * | 306,309 | 556,436 |
| Petropavlovsk plc * | 574,503 | 203,669 |
| Pets at Home Group plc | 121,936 | 748,270 |
| Phoenix Group Holdings plc | 82,312 | 807,463 |
| Playtech plc * | 154,886 | 995,087 |
| Plus500 Ltd. | 26,337 | 516,328 |
| Premier Foods plc * | 457,528 | 616,072 |
| Provident Financial plc * | 252,296 | 853,196 |
| PZ Cussons plc | 59,704 | 217,644 |
| QinetiQ Group plc | 145,055 | 664,888 |
| Quilter plc | 179,714 | 405,876 |
| Rathbone Brothers plc | 8,791 | 205,530 |
| Reach plc * | 201,631 | 612,617 |
| Redde Northgate plc | 190,026 | 955,791 |
| Redrow plc | 88,598 | 845,698 |
| Renishaw plc | 3,399 | 293,480 |
| Rhi Magnesita N.V. | 6,430 | 403,134 |
| Rightmove plc | 34,676 | 293,956 |
| Rotork plc | 128,586 | 611,169 |
| Sabre Insurance Group plc | 12,362 | 44,424 |
| Safestore Holdings plc | 16,556 | 194,693 |
| Saga plc * | 198,922 | 1,047,328 |
| Savills plc | 37,555 | 618,825 |
| Schroders plc | 17,830 | 888,352 |
| Segro plc | 44,752 | 621,721 |
| Senior plc * | 580,218 | 867,017 |
| Serco Group plc * | 221,191 | 428,213 |
| SIG plc * | 1,391,692 | 950,873 |
| Softcat plc | 9,314 | 246,586 |
| Spectris plc | 25,292 | 1,136,114 |
| Spirax-Sarco Engineering plc | 4,845 | 790,820 |
| Spirent Communications plc | 60,575 | 214,437 |
| SSP Group plc * | 209,275 | 925,974 |
| St. James's Place plc | 61,030 | 1,147,873 |
| St. Modwen Properties plc | 46,824 | 280,652 |
| Stagecoach Group plc * | 566,818 | 703,712 |
| Sthree plc * | 68,857 | 381,607 |
| Superdry plc * | 135,332 | 525,190 |
| Synthomer plc | 80,567 | 565,779 |
| TBC Bank Group plc * | 2,571 | 34,572 |
| Ted Baker plc * | 113,778 | 258,170 |
| Telecom Plus plc | 14,107 | 253,422 |
| The British Land Co., plc | 200,403 | 1,436,122 |
| The Go-Ahead Group plc * | 52,160 | 880,274 |
| The Restaurant Group plc * | 377,066 | 624,896 |
| The Unite Group plc | 15,548 | 250,155 |
| The Weir Group plc * | 53,114 | 1,405,738 |
| TP ICAP Group plc | 122,246 | 401,388 |
| Tritax Big Box REIT plc | 15,507 | 40,750 |
| Tullow Oil plc *(a) | 568,993 | 424,599 |
| Security | Number
of Shares | Value ($) |
| Tyman plc | 80,628 | 470,459 |
| UDG Healthcare plc | 42,975 | 508,635 |
| Ultra Electronics Holdings plc | 14,034 | 392,083 |
| Vesuvius plc | 101,481 | 753,559 |
| Victrex plc | 16,909 | 548,328 |
| Virgin Money UK plc * | 585,500 | 1,617,053 |
| Vistry Group plc | 69,481 | 1,187,694 |
| WH Smith plc * | 38,747 | 968,140 |
| Wizz Air Holdings plc * | 4,055 | 274,446 |
| Workspace Group plc | 17,608 | 199,404 |
| | | 93,509,916 |
| Total Common Stock |
| (Cost $563,241,123) | | 777,017,465 |
|
| Preferred Stock 0.4% of net assets |
| |
| Germany 0.4% |
| Draegerwerk AG & Co. KGaA | 5,497 | 513,171 |
| Jungheinrich AG | 15,292 | 800,007 |
| Sartorius AG | 596 | 336,275 |
| Schaeffler AG | 65,265 | 588,261 |
| Sixt SE | 4,995 | 412,083 |
| | | 2,649,797 |
| |
| Italy 0.0% |
| Danieli & C Officine Meccaniche S.p.A. | 17,781 | 284,744 |
| |
| Republic of Korea 0.0% |
| Mirae Asset Securities Co., Ltd. | 8,719 | 38,278 |
| Total Preferred Stock |
| (Cost $1,874,001) | | 2,972,819 |
|
| Rights 0.0% of net assets |
| |
| France 0.0% |
Euronext N.V.
expires 05/07/21 * | 4,837 | 56,699 |
| Total Rights |
| (Cost $—) | | 56,699 |
|
| Investment Company 1.4% of net assets |
| |
| United States 1.4% |
| Securities Lending Collateral 1.4% |
| Wells Fargo Government Money Market Fund, Select Class 0.03% (c) | 10,583,154 | 10,583,154 |
| Total Investment Company |
| (Cost $10,583,154) | | 10,583,154 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Short-Term Investments 0.4% of net assets |
| |
| Time Deposits 0.4% |
| Barclays Bank PLC |
| U.S. Dollar | | |
| 0.01%, 05/03/21 (d) | 2,984,750 | 2,984,750 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| BNP Paribas S.A. |
| Euro | | |
| (0.78%), 05/03/21 (d)(e) | 105,059 | 126,307 |
| Swiss Franc | | |
| (1.38%), 05/03/21 (d)(e) | 31,817 | 34,840 |
| Brown Brothers Harriman & Co. |
| Australian Dollar | | |
| (0.14%), 05/03/21 (d)(e) | 54,530 | 42,007 |
| Canadian Dollar | | |
| 0.01%, 05/03/21 (d) | 38,128 | 31,020 |
| Hong Kong Dollar | | |
| (0.15%), 05/03/21 (d)(e) | 63,332 | 8,153 |
| Japanese Yen | | |
| (0.31%), 05/06/21 (d)(e) | 2,105,992 | 19,270 |
| New Zealand Dollar | | |
| 0.10%, 05/03/21 (d) | 20,403 | 14,600 |
| Norwegian Krone | | |
| (0.25%), 05/03/21 (d)(e) | 72,023 | 8,652 |
| Pound Sterling | | |
| 0.01%, 05/04/21 (d) | 9,116 | 12,590 |
| Singapore Dollar | | |
| 0.00, 05/03/21 (d) | 10,429 | 7,837 |
| Skandinaviska Enskilda Banken AB |
| Swedish Krona | | |
| (0.30%), 05/03/21 (d)(e) | 404,640 | 47,798 |
| Total Short-Term Investments |
| (Cost $3,337,824) | | 3,337,824 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Depreciation
($) |
| Futures Contracts | |
| Long | |
| MSCI EAFE Index, expires 06/18/21 | 32 | 3,611,680 | (41,305) |
| * | Non-income producing security. |
| (a) | All or a portion of this security is on loan. Securities on loan were valued at $9,512,314. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (c) | The rate shown is the 7-day yield. |
| (d) | The rate shown is the current daily overnight rate. |
| (e) | Rate is negative due to the current daily overnight rate at the central bank of the denominated currency and therefore is non-income producing. |
| | |
| CVA — | Dutch Certificate |
| REIT — | Real Estate Investment Trust |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $— | $22,119,002 | $— | $22,119,002 | |
| Australia | — | 38,477,024 | 27,643 * | 38,504,667 | |
| Austria | 639,216 | 5,939,671 | — | 6,578,887 | |
| Belgium | 373,435 | 8,569,314 | — | 8,942,749 | |
| Canada | 63,268,416 | — | 15,295 | 63,283,711 | |
| Finland | 1,908,510 | 7,494,289 | — | 9,402,799 | |
| France | 756,018 | 32,634,398 | — | 33,390,416 | |
| Germany | 1,798,201 | 32,669,745 | — | 34,467,946 | |
| Greece | — | — | — * | — | |
| Hong Kong | — | 28,862,662 | 178,017 * | 29,040,679 | |
| Ireland | 270,728 | 2,823,356 | — | 3,094,084 | |
| Italy | — | 21,900,459 | 2,535 * | 21,902,994 | |
| Japan | 2,036,510 | 223,273,926 | — | 225,310,436 | |
| Luxembourg | — | — | — * | — | |
| Netherlands | 433,687 | 14,286,671 | — | 14,720,358 | |
| New Zealand | 238,405 | 6,436,934 | — | 6,675,339 | |
| Norway | 794,256 | 12,735,328 | — | 13,529,584 | |
| Poland | 868,591 | 5,889,365 | — | 6,757,956 | |
| Portugal | 904,506 | 2,161,006 | — * | 3,065,512 | |
| Republic of Korea | 391,912 | 68,959,995 | — | 69,351,907 | |
| Singapore | 276,085 | 11,218,094 | — | 11,494,179 | |
| Spain | 1,622,449 | 10,180,251 | 123,242 * | 11,925,942 | |
| Sweden | 1,372,985 | 25,739,486 | — | 27,112,471 | |
| Switzerland | 1,208,076 | 21,627,855 | — | 22,835,931 | |
| United Kingdom | 15,781,885 | 77,703,351 | 24,680 * | 93,509,916 | |
| Preferred Stock1 | — | 38,278 | — | 38,278 | |
| Germany | 513,171 | 2,136,626 | — | 2,649,797 | |
| Italy | 284,744 | — | — | 284,744 | |
| Rights 1 | 56,699 | — | — | 56,699 | |
| Investment Company1 | 10,583,154 | — | — | 10,583,154 | |
| Short-Term Investments1 | — | 3,337,824 | — | 3,337,824 | |
| Liabilities | | | | | |
| Futures Contracts2 | (41,305) | — | — | (41,305) | |
| Total | $106,340,334 | $687,214,910 | $371,412 | $793,926,656 | |
| * | Level 3 amount shown includes securities determined to have no value at April 30, 2021. |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $568,452,948) including securities on loan of $9,512,314 | | $783,384,807 |
| Collateral invested for securities on loan, at value (cost $10,583,154) | | 10,583,154 |
| Foreign currency, at value (cost $115,273) | | 115,183 |
| Deposit with broker for futures contracts | | 627,272 |
| Receivables: | | |
| Investments sold | | 171,276 |
| Dividends | | 2,940,093 |
| Fund shares sold | | 1,105,485 |
| Foreign tax reclaims | | 783,933 |
| Income from securities on loan | + | 48,584 |
| Total assets | | 799,759,787 |
| Liabilities |
| Collateral held for securities on loan | | 10,583,154 |
| Payables: | | |
| Investments bought | | 1,879,286 |
| Investment adviser fees | | 265,877 |
| Fund shares redeemed | | 2,269,624 |
| Variation margin on futures contracts | | 87,189 |
| Interest payable | + | 82 |
| Total liabilities | | 15,085,212 |
| Net Assets |
| Total assets | | 799,759,787 |
| Total liabilities | – | 15,085,212 |
| Net assets | | $784,674,575 |
| Net Assets by Source | | |
| Capital received from investors | | 614,217,181 |
| Total distributable earnings | | 170,457,394 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $784,674,575 | | 51,889,256 | | $15.12 |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $1,150,699) | | $7,272,380 |
| Securities on loan, net | + | 393,961 |
| Total investment income | | 7,666,341 |
| Expenses |
| Investment adviser fees | | 1,387,054 |
| Professional fees | + | 3,769* |
| Total expenses | | 1,390,823 |
| Expense reduction by CSIM | – | 3,769* |
| Net expenses | – | 1,387,054 |
| Net investment income | | 6,279,287 |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated | | 28,877,761 |
| Net realized gains on futures contracts | | 884,750 |
| Net realized gains on foreign currency transactions | + | 15,265 |
| Net realized gains | | 29,777,776 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 162,442,208 |
| Net change in unrealized appreciation (depreciation) on futures contracts | | 97,182 |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 9,572 |
| Net change in unrealized appreciation (depreciation) | + | 162,548,962 |
| Net realized and unrealized gains | | 192,326,738 |
| Increase in net assets resulting from operations | | $198,606,025 |
| * | Professional fees associated with the filing of tax claims in the European Union deemed to be non-routine expenses of the fund. See financial notes 2(d) and 4 for additional information. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $6,279,287 | $12,343,035 |
| Net realized gains (losses) | | 29,777,776 | (48,515,613) |
| Net change in unrealized appreciation (depreciation) | + | 162,548,962 | (13,051,655) |
| Increase (decrease) in net assets from operations | | 198,606,025 | (49,224,233) |
| Distributions to Shareholders | |
| Total distributions | | ($13,332,524) | ($21,815,081) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 7,714,617 | $108,703,481 | 18,584,362 | $193,918,636 |
| Shares reinvested | | 772,628 | 10,453,657 | 1,327,830 | 17,115,730 |
| Shares redeemed | + | (6,931,464) | (96,704,486) | (31,234,955) | (338,304,616) |
| Net transactions in fund shares | | 1,555,781 | $22,452,652 | (11,322,763) | ($127,270,250) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 50,333,475 | $576,948,422 | 61,656,238 | $775,257,986 |
| Total increase (decrease) | + | 1,555,781 | 207,726,153 | (11,322,763) | (198,309,564) |
| End of period | | 51,889,256 | $784,674,575 | 50,333,475 | $576,948,422 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $7.51 | $9.25 | $8.60 | $9.38 | $7.86 | $6.67 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.06 | 0.27 | 0.35 | 0.27 | 0.22 | 0.16 |
| Net realized and unrealized gains (losses) | 2.56 | (1.65) | 0.54 | (0.83) | 1.47 | 1.22 |
| Total from investment operations | 2.62 | (1.38) | 0.89 | (0.56) | 1.69 | 1.38 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.26) | (0.36) | (0.24) | (0.22) | (0.17) | (0.19) |
| Net asset value at end of period | $9.87 | $7.51 | $9.25 | $8.60 | $9.38 | $7.86 |
| Total return | 35.32% 2 | (15.68%) | 10.73% | (6.09%) | 21.96% | 21.64% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Total expenses | 0.39% 3 | 0.39% | 0.39% | 0.39% | 0.57% 4 | 0.88% |
| Net operating expenses | N/A | N/A | N/A | N/A 5 | 0.43% 4 | 0.49% |
| Net investment income (loss) | 1.32% 3 | 3.32% | 3.93% | 2.92% | 2.62% | 2.41% |
| Portfolio turnover rate | 17% 2 | 32% | 38% | 19% | 18% | 20% |
| Net assets, end of period (x 1,000,000) | $758 | $550 | $671 | $548 | $554 | $336 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Annualized.
4
Effective May 1, 2017, the annual operating expense ratio was reduced. The ratio presented for period ended 10/31/17 is a blended ratio.
5
Effective May 1, 2017, the fund instituted a new fee structure and the contractual expense limitation was terminated.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 94.5% of net assets |
| |
| Brazil 6.1% |
| Ambev S.A. | 997,750 | 2,744,155 |
| B3 S.A. - Brasil Bolsa Balcao | 83,133 | 788,165 |
| Banco Bradesco S.A. | 428,151 | 1,629,197 |
| Banco do Brasil S.A. | 541,415 | 2,954,233 |
| BRF S.A. * | 254,818 | 975,261 |
| CCR S.A. | 339,300 | 752,050 |
| Centrais Eletricas Brasileiras S.A. | 104,916 | 710,571 |
| Cia Brasileira de Distribuicao | 63,099 | 473,122 |
| Cia Energetica de Minas Gerais | 48,276 | 150,106 |
| Cielo S.A. | 1,043,434 | 662,705 |
| Cogna Educacao * | 867,900 | 618,325 |
| Companhia de Saneamento Basico do Estado de Sao Paulo | 99,110 | 780,539 |
| Embraer S.A. * | 593,951 | 1,683,866 |
| IRB Brasil Resseguros S.A. | 614,811 | 689,279 |
| Itau Unibanco Holding S.A. | 185,700 | 836,189 |
| JBS S.A. | 480,500 | 2,664,309 |
| Petrobras Distribuidora S.A. | 461,700 | 1,913,250 |
| Petroleo Brasileiro S.A. | 1,235,958 | 5,255,959 |
| Sendas Distribuidora S.A. | 62,799 | 935,155 |
| Suzano S.A. * | 75,300 | 951,915 |
| Telefonica Brasil S.A. | 176,672 | 1,405,037 |
| TIM S.A. | 291,847 | 654,930 |
| Ultrapar Participacoes S.A. | 637,828 | 2,478,723 |
| Vale S.A. | 685,097 | 13,749,740 |
| | | 46,456,781 |
| |
| Chile 0.9% |
| Banco de Chile | 8,156,087 | 873,297 |
| Cencosud S.A. | 747,773 | 1,552,402 |
| Empresas CMPC S.A. | 272,691 | 757,763 |
| Empresas Copec S.A. | 179,489 | 1,932,955 |
| Enel Americas S.A. | 5,686,712 | 809,484 |
| Falabella S.A. | 202,501 | 914,592 |
| | | 6,840,493 |
| |
| China 24.5% |
| Agile Group Holdings Ltd. | 602,000 | 940,429 |
| Agricultural Bank of China Ltd., A Shares | 2,730,400 | 1,348,749 |
| Agricultural Bank of China Ltd., H Shares | 8,895,600 | 3,446,326 |
| Alibaba Group Holding Ltd. * | 231,292 | 6,686,119 |
| Anhui Conch Cement Co., Ltd., A Shares | 36,500 | 275,636 |
| Anhui Conch Cement Co., Ltd., H Shares | 165,500 | 987,812 |
| BAIC Motor Corp., Ltd., H Shares | 2,156,000 | 779,488 |
| Baidu, Inc. ADR * | 20,735 | 4,361,193 |
| Bank of China Ltd., A Shares | 1,717,900 | 861,918 |
| Bank of China Ltd., H Shares | 26,135,234 | 10,369,101 |
| Security | Number
of Shares | Value ($) |
| Bank of Communications Co., Ltd., A Shares | 995,700 | 739,400 |
| Bank of Communications Co., Ltd., H Shares | 2,696,000 | 1,721,375 |
| Beijing Enterprises Holdings Ltd. | 189,500 | 618,148 |
| BYD Co., Ltd., A Shares | 8,600 | 210,976 |
| BYD Co., Ltd., H Shares | 40,000 | 831,781 |
| China Cinda Asset Management Co., Ltd., H Shares | 4,145,000 | 814,763 |
| China CITIC Bank Corp., Ltd., A Shares | 274,900 | 219,811 |
| China CITIC Bank Corp., Ltd., H Shares | 3,839,000 | 2,004,101 |
| China Communications Services Corp., Ltd., H Shares | 1,140,000 | 492,954 |
| China Construction Bank Corp., A Shares | 222,800 | 231,419 |
| China Construction Bank Corp., H Shares | 28,674,960 | 22,634,338 |
| China Everbright Bank Co., Ltd., A Shares | 833,900 | 486,319 |
| China Everbright Bank Co., Ltd., H Shares | 943,000 | 393,776 |
| China Evergrande Group | 816,000 | 1,376,985 |
| China Gas Holdings Ltd. | 178,200 | 642,314 |
| China Hongqiao Group Ltd. | 1,194,000 | 1,884,596 |
| China Huarong Asset Management Co., Ltd., H Shares (a) | 11,177,000 | 1,467,676 |
| China Jinmao Holdings Group Ltd. | 1,314,000 | 497,797 |
| China Life Insurance Co., Ltd., A Shares | 21,700 | 110,459 |
| China Life Insurance Co., Ltd., H Shares | 525,000 | 1,064,253 |
| China Longyuan Power Group Corp., Ltd., H Shares | 873,000 | 1,283,773 |
| China Mengniu Dairy Co., Ltd. * | 196,000 | 1,049,011 |
| China Merchants Bank Co., Ltd., A Shares | 183,700 | 1,492,011 |
| China Merchants Bank Co., Ltd., H Shares | 479,150 | 3,848,730 |
| China Minsheng Banking Corp., Ltd., A Shares | 896,600 | 650,565 |
| China Minsheng Banking Corp., Ltd., H Shares | 2,501,300 | 1,281,705 |
| China National Building Material Co., Ltd., H Shares | 1,358,000 | 1,961,077 |
| China Oriental Group Co., Ltd. | 2,706,000 | 914,218 |
| China Overseas Land & Investment Ltd. | 1,088,000 | 2,753,571 |
| China Pacific Insurance Group Co., Ltd., A Shares | 54,500 | 276,038 |
| China Pacific Insurance Group Co., Ltd., H Shares | 298,600 | 1,074,741 |
| China Petroleum & Chemical Corp., A Shares | 2,199,800 | 1,449,974 |
| China Petroleum & Chemical Corp., H Shares | 22,976,400 | 11,332,090 |
| China Railway Group Ltd., A Shares | 149,800 | 124,551 |
| China Railway Group Ltd., H Shares | 1,625,000 | 838,960 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| China Resources Land Ltd. | 493,000 | 2,308,261 |
| China Resources Power Holdings Co., Ltd. | 1,240,000 | 1,628,946 |
| China Shenhua Energy Co., Ltd., A Shares | 183,200 | 542,392 |
| China Shenhua Energy Co., Ltd., H Shares | 1,235,500 | 2,573,414 |
| China State Construction Engineering Corp., Ltd., A Shares | 1,195,500 | 911,293 |
| China Taiping Insurance Holdings Co., Ltd. | 374,000 | 692,306 |
| China Tower Corp., Ltd., H Shares | 5,520,000 | 794,044 |
| China Vanke Co., Ltd., A Shares | 125,900 | 547,194 |
| China Vanke Co., Ltd., H Shares | 300,300 | 1,050,121 |
| CITIC Ltd. | 2,890,000 | 3,035,283 |
| Country Garden Holdings Co., Ltd. | 1,507,114 | 1,791,639 |
| Dongfeng Motor Group Co., Ltd., H Shares | 1,183,000 | 1,028,141 |
| ENN Energy Holdings Ltd. | 65,900 | 1,124,555 |
| Fosun International Ltd. | 641,500 | 921,278 |
| GCL-Poly Energy Holdings Ltd. *(a) | 13,164,000 | 3,355,504 |
| Geely Automobile Holdings Ltd. | 537,000 | 1,398,719 |
| Guangzhou R&F Properties Co., Ltd., H Shares | 785,600 | 1,002,684 |
| Hengan International Group Co., Ltd. | 104,500 | 675,319 |
| Huaneng Power International, Inc., A Shares | 308,100 | 200,622 |
| Huaneng Power International, Inc., H Shares | 2,468,000 | 888,401 |
| Industrial & Commercial Bank of China Ltd., A Shares | 1,418,600 | 1,123,351 |
| Industrial & Commercial Bank of China Ltd., H Shares | 20,914,172 | 13,571,029 |
| Industrial Bank Co., Ltd., A Shares | 351,100 | 1,176,893 |
| JD.com, Inc. ADR * | 24,823 | 1,920,307 |
| Jiangxi Copper Co., Ltd., A Shares | 86,000 | 350,393 |
| Jiangxi Copper Co., Ltd., H Shares | 731,000 | 1,774,393 |
| Kingboard Holdings Ltd. | 319,500 | 1,886,794 |
| Kunlun Energy Co., Ltd. | 1,142,000 | 1,221,063 |
| Legend Holdings Corp., H Shares | 517,300 | 845,816 |
| Longfor Group Holdings Ltd. | 181,000 | 1,124,276 |
| Meituan, B Shares * | 7,200 | 275,575 |
| NetEase, Inc. ADR | 16,187 | 1,813,915 |
| PetroChina Co., Ltd., H Shares | 13,806,000 | 4,994,570 |
| PICC Property & Casualty Co., Ltd., H Shares | 2,444,000 | 2,392,650 |
| Ping An Insurance Group Co. of China Ltd., A Shares | 71,400 | 797,624 |
| Ping An Insurance Group Co. of China Ltd., H Shares | 530,000 | 5,778,200 |
| Postal Savings Bank of China Co., Ltd., H Shares | 1,449,000 | 939,773 |
| SAIC Motor Corp., Ltd., A Shares | 276,000 | 854,879 |
| Shanghai Pudong Development Bank Co., Ltd., A Shares | 640,300 | 992,941 |
| Shenzhou International Group Holdings Ltd. | 39,000 | 857,961 |
| Shimao Group Holdings Ltd. | 299,500 | 865,119 |
| Sinopec Shanghai Petrochemical Co., Ltd., A Shares | 298,800 | 169,131 |
| Sinopec Shanghai Petrochemical Co., Ltd., H Shares | 2,442,000 | 603,700 |
| Sinopharm Group Co., Ltd., H Shares | 562,800 | 1,735,870 |
| Sunac China Holdings Ltd. | 223,000 | 864,964 |
| Tencent Holdings Ltd. | 107,200 | 8,551,557 |
| Vipshop Holdings Ltd. ADR * | 36,036 | 1,108,828 |
| Weichai Power Co., Ltd., A Shares | 60,500 | 168,418 |
| Security | Number
of Shares | Value ($) |
| Weichai Power Co., Ltd., H Shares | 260,000 | 601,818 |
| Yanzhou Coal Mining Co., Ltd., A Shares | 35,900 | 71,873 |
| Yanzhou Coal Mining Co., Ltd., H Shares | 644,000 | 767,263 |
| | | 185,502,087 |
| |
| Colombia 0.2% |
| Bancolombia S.A. | 90,160 | 670,680 |
| Ecopetrol S.A. | 1,669,921 | 983,274 |
| | | 1,653,954 |
| |
| Czech Republic 0.2% |
| CEZ A/S | 48,149 | 1,341,022 |
| |
| Egypt 0.1% |
| Commercial International Bank Egypt S.A.E. GDR * | 175,090 | 639,954 |
| |
| Greece 0.5% |
| Alpha Services and Holdings S.A. * | 1,477,033 | 2,342,676 |
| Hellenic Telecommunications Organization S.A. | 51,974 | 881,355 |
| Motor Oil Hellas Corinth Refineries S.A. | 49,507 | 762,704 |
| | | 3,986,735 |
| |
| Hungary 0.4% |
| MOL Hungarian Oil & Gas plc * | 278,125 | 1,921,319 |
| OTP Bank Nyrt * | 30,616 | 1,376,337 |
| | | 3,297,656 |
| |
| India 8.9% |
| Axis Bank Ltd. * | 220,612 | 2,120,724 |
| Bharat Petroleum Corp., Ltd. | 408,994 | 2,321,743 |
| Bharti Airtel Ltd. | 182,486 | 1,319,784 |
| Coal India Ltd. | 646,555 | 1,158,890 |
| GAIL India Ltd. | 451,648 | 834,312 |
| Grasim Industries Ltd. | 73,546 | 1,389,153 |
| HCL Technologies Ltd. | 128,695 | 1,559,326 |
| Hero MotoCorp Ltd. | 20,904 | 794,899 |
| Hindalco Industries Ltd. | 455,752 | 2,234,233 |
| Hindustan Petroleum Corp., Ltd. | 525,090 | 1,658,808 |
| Hindustan Unilever Ltd. | 23,540 | 746,631 |
| Housing Development Finance Corp., Ltd. | 85,256 | 2,776,385 |
| ICICI Bank Ltd. * | 73,125 | 592,347 |
| Indian Oil Corp., Ltd. | 2,021,669 | 2,473,048 |
| Infosys Ltd. | 387,085 | 7,034,765 |
| ITC Ltd. | 377,712 | 1,031,401 |
| JSW Steel Ltd. | 272,493 | 2,632,719 |
| Larsen & Toubro Ltd. | 53,621 | 967,971 |
| Mahindra & Mahindra Ltd. | 105,680 | 1,070,650 |
| Maruti Suzuki India Ltd. | 14,888 | 1,295,329 |
| NTPC Ltd. | 792,291 | 1,093,806 |
| Oil & Natural Gas Corp., Ltd. | 2,548,881 | 3,703,277 |
| Power Grid Corp. of India Ltd. | 129,049 | 382,888 |
| Reliance Industries Ltd. | 239,375 | 6,431,096 |
| Reliance Industries Ltd. - Partly Paid Up | 3,200 | 46,310 |
| State Bank of India * | 474,522 | 2,257,375 |
| Sun Pharmaceutical Industries Ltd. | 109,527 | 966,702 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Tata Consultancy Services Ltd. | 78,079 | 3,195,269 |
| Tata Motors Ltd. * | 1,016,897 | 3,997,159 |
| Tata Motors Ltd., Class A * | 387,535 | 667,702 |
| Tata Steel Ltd. | 160,821 | 2,236,974 |
| Tech Mahindra Ltd. | 66,657 | 862,564 |
| Vedanta Ltd. | 1,102,735 | 3,820,547 |
| Wipro Ltd. | 202,843 | 1,341,542 |
| | | 67,016,329 |
| |
| Indonesia 1.2% |
| PT Astra International Tbk | 5,293,100 | 2,011,563 |
| PT Bank Central Asia Tbk | 433,200 | 959,001 |
| PT Bank Mandiri (Persero) Tbk | 3,010,000 | 1,281,540 |
| PT Bank Rakyat Indonesia (Persero) Tbk | 6,383,400 | 1,786,298 |
| PT Telkom Indonesia (Persero) Tbk | 10,938,300 | 2,416,759 |
| PT United Tractors Tbk | 435,900 | 637,979 |
| | | 9,093,140 |
| |
| Kuwait 0.5% |
| Kuwait Finance House KSCP | 385,499 | 923,060 |
| Mobile Telecommunications Co. KSCP | 508,494 | 1,015,622 |
| National Bank of Kuwait SAKP | 727,055 | 1,981,874 |
| | | 3,920,556 |
| |
| Malaysia 1.6% |
| Axiata Group Berhad | 1,250,013 | 1,180,296 |
| CIMB Group Holdings Berhad | 1,696,871 | 1,713,071 |
| Genting Berhad | 1,002,800 | 1,217,883 |
| Malayan Banking Berhad | 1,083,390 | 2,175,904 |
| Petronas Chemicals Group Berhad | 522,000 | 1,044,027 |
| Public Bank Berhad | 1,910,225 | 1,933,962 |
| Tenaga Nasional Berhad | 1,141,300 | 2,773,268 |
| | | 12,038,411 |
| |
| Mexico 4.1% |
| Alfa S.A.B. de C.V., Class A | 2,323,200 | 1,625,105 |
| America Movil S.A.B. de C.V., Series L | 9,377,619 | 6,550,492 |
| Cemex S.A.B. de C.V., Series CPO * | 7,839,156 | 6,226,589 |
| Coca-Cola Femsa S.A.B. de C.V. | 152,700 | 714,841 |
| Fomento Economico Mexicano S.A.B. de C.V. | 455,415 | 3,527,179 |
| Grupo Bimbo S.A.B. de C.V., Series A | 562,700 | 1,126,122 |
| Grupo Financiero Banorte S.A.B. de C.V., Class O | 606,600 | 3,451,185 |
| Grupo Mexico S.A.B. de C.V., Series B | 661,036 | 2,988,155 |
| Grupo Televisa S.A.B., Series CPO * | 701,417 | 1,740,298 |
| Wal-Mart de Mexico S.A.B. de C.V. | 922,737 | 3,020,521 |
| | | 30,970,487 |
| |
| Philippines 0.1% |
| SM Investments Corp. (a) | 38,350 | 765,291 |
| |
| Qatar 0.4% |
| Ooredoo QPSC | 428,818 | 834,212 |
| Qatar National Bank QPSC | 436,605 | 2,146,451 |
| | | 2,980,663 |
| |
| Russia 9.8% |
| Alrosa PJSC | 949,300 | 1,371,328 |
| Gazprom PJSC | 7,223,990 | 22,025,004 |
| Security | Number
of Shares | Value ($) |
| Inter RAO UES PJSC | 17,413,001 | 1,134,883 |
| LUKOIL PJSC | 238,264 | 18,373,612 |
| Magnit PJSC | 36,855 | 2,504,760 |
| MMC Norilsk Nickel PJSC | 7,416 | 2,530,048 |
| Mobile TeleSystems PJSC | 355,192 | 1,512,744 |
| Novatek PJSC | 116,200 | 2,095,762 |
| Novolipetsk Steel PJSC | 348,580 | 1,230,255 |
| Rosneft Oil Co. PJSC | 601,670 | 4,197,797 |
| ROSSETI PJSC | 30,881,000 | 584,870 |
| Sberbank of Russia PJSC | 1,940,420 | 7,666,084 |
| Severstal PAO | 70,448 | 1,660,978 |
| Sistema PJSFC | 2,451,800 | 1,103,387 |
| Surgutneftegas PJSC | 2,922,505 | 1,321,789 |
| Tatneft PJSC | 505,334 | 3,401,011 |
| VTB Bank PJSC | 2,006,880,000 | 1,371,080 |
| | | 74,085,392 |
| |
| Saudi Arabia 2.6% |
| Al Rajhi Bank | 84,576 | 2,226,821 |
| Banque Saudi Fransi | 20,484 | 212,841 |
| Riyad Bank | 170,273 | 1,210,009 |
| Saudi Arabian Oil Co. | 104,760 | 988,882 |
| Saudi Basic Industries Corp. | 220,658 | 7,272,236 |
| Saudi Electricity Co. | 196,046 | 1,359,180 |
| Saudi National Bank * | 218,656 | 3,311,733 |
| Saudi Telecom Co. | 86,269 | 2,916,956 |
| The Saudi British Bank * | 26,443 | 216,821 |
| | | 19,715,479 |
| |
| South Africa 6.8% |
| Absa Group Ltd. * | 379,294 | 3,198,056 |
| AngloGold Ashanti Ltd. | 50,961 | 1,051,185 |
| Aspen Pharmacare Holdings Ltd. * | 86,081 | 957,952 |
| Barloworld Ltd. * | 222,380 | 1,466,688 |
| Bid Corp., Ltd. * | 88,084 | 1,736,596 |
| FirstRand Ltd. | 846,204 | 2,976,603 |
| Gold Fields Ltd. | 124,685 | 1,170,031 |
| MTN Group * | 1,297,762 | 8,210,565 |
| MultiChoice Group | 90,459 | 778,490 |
| Naspers Ltd., N Shares | 6,049 | 1,376,631 |
| Nedbank Group Ltd. * | 211,110 | 2,150,942 |
| Old Mutual Ltd. | 1,498,673 | 1,304,513 |
| Sanlam Ltd. | 298,855 | 1,153,803 |
| Sappi Ltd. * | 615,263 | 2,071,468 |
| Sasol Ltd. * | 663,956 | 11,169,723 |
| Shoprite Holdings Ltd. | 205,576 | 2,049,594 |
| Sibanye Stillwater Ltd. | 209,179 | 973,184 |
| Standard Bank Group Ltd. | 439,416 | 3,573,643 |
| The Bidvest Group Ltd. | 93,743 | 1,082,500 |
| The SPAR Group Ltd. | 56,223 | 709,712 |
| Vodacom Group Ltd. | 145,281 | 1,259,508 |
| Woolworths Holdings Ltd. * | 424,975 | 1,441,737 |
| | | 51,863,124 |
| |
| Taiwan 20.5% |
| Acer, Inc. | 1,158,496 | 1,415,907 |
| ASE Technology Holding Co., Ltd. | 916,000 | 3,827,723 |
| Asustek Computer, Inc. | 308,041 | 4,125,790 |
| AU Optronics Corp. * | 7,270,800 | 8,511,577 |
| Catcher Technology Co., Ltd. | 208,000 | 1,467,801 |
| Cathay Financial Holding Co., Ltd. | 1,194,599 | 2,230,119 |
| Cheng Shin Rubber Industry Co., Ltd. | 542,000 | 1,045,356 |
| China Steel Corp. | 3,196,198 | 4,473,109 |
| Chunghwa Telecom Co., Ltd. | 596,906 | 2,433,183 |
| Compal Electronics, Inc. | 3,415,305 | 3,044,033 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| CTBC Financial Holding Co., Ltd. | 2,522,201 | 2,052,672 |
| Delta Electronics, Inc. | 248,590 | 2,663,124 |
| E.Sun Financial Holding Co., Ltd. | 733,000 | 706,376 |
| Far Eastern New Century Corp. | 1,271,817 | 1,508,399 |
| Far EasTone Telecommunications Co., Ltd. | 324,622 | 755,899 |
| First Financial Holding Co., Ltd. | 1,075,606 | 879,710 |
| Formosa Chemicals & Fibre Corp. | 874,442 | 2,834,946 |
| Formosa Petrochemical Corp. | 380,330 | 1,405,722 |
| Formosa Plastics Corp. | 732,732 | 2,769,985 |
| Foxconn Technology Co., Ltd. | 431,317 | 1,059,358 |
| Fubon Financial Holding Co., Ltd. | 1,558,674 | 3,571,595 |
| Hon Hai Precision Industry Co., Ltd. | 5,826,572 | 23,953,306 |
| Innolux Corp. * | 9,152,357 | 9,770,978 |
| Inventec Corp. | 1,521,639 | 1,476,399 |
| Largan Precision Co., Ltd. | 7,050 | 779,929 |
| Lite-On Technology Corp. | 613,167 | 1,389,568 |
| MediaTek, Inc. | 112,338 | 4,709,497 |
| Mega Financial Holding Co., Ltd. | 1,238,340 | 1,445,334 |
| Nan Ya Plastics Corp. | 1,161,622 | 3,650,368 |
| Pegatron Corp. | 1,319,264 | 3,454,685 |
| Pou Chen Corp. | 1,168,267 | 1,483,463 |
| President Chain Store Corp. | 76,000 | 734,549 |
| Quanta Computer, Inc. | 702,500 | 2,458,750 |
| Synnex Technology International Corp. | 595,850 | 1,183,374 |
| Taiwan Cement Corp. | 780,452 | 1,455,681 |
| Taiwan Mobile Co., Ltd. | 222,334 | 795,955 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 1,416,803 | 29,837,314 |
| Uni-President Enterprises Corp. | 852,678 | 2,283,861 |
| United Microelectronics Corp. | 2,306,965 | 4,601,263 |
| Walsin Lihwa Corp. | 1,655,000 | 1,800,408 |
| Wistron Corp. | 1,541,682 | 1,795,169 |
| WPG Holdings Ltd. | 870,880 | 1,601,673 |
| Yageo Corp. | 56,000 | 1,078,548 |
| Yuanta Financial Holding Co., Ltd. | 1,217,840 | 1,129,582 |
| | | 155,652,038 |
| |
| Thailand 3.1% |
| Advanced Info Service PCL NVDR | 170,575 | 936,009 |
| Bangkok Bank PCL NVDR | 168,900 | 657,937 |
| Charoen Pokphand Foods PCL NVDR | 871,300 | 810,853 |
| CP ALL PCL NVDR * | 513,000 | 1,029,193 |
| IRPC Public Company Limited | 5,211,400 | 689,995 |
| Kasikornbank PCL NVDR | 269,200 | 1,139,445 |
| Krung Thai Bank PCL NVDR | 2,455,200 | 889,401 |
| PTT Exploration & Production PCL NVDR | 351,100 | 1,334,998 |
| PTT Global Chemical PCL NVDR | 971,100 | 2,105,474 |
| PTT PCL NVDR | 5,365,770 | 6,868,089 |
| Thai Oil PCL NVDR | 622,700 | 1,178,633 |
| The Siam Cement PCL NVDR | 225,500 | 3,341,685 |
| The Siam Commercial Bank PCL NVDR | 699,000 | 2,354,639 |
| | | 23,336,351 |
| |
| Turkey 1.2% |
| Akbank T.A.S. | 1,493,720 | 882,346 |
| BIM Birlesik Magazalar A/S | 79,857 | 626,991 |
| Eregli Demir ve Celik Fabrikalari TAS | 643,949 | 1,480,995 |
| Haci Omer Sabanci Holding A/S | 617,074 | 604,467 |
| KOC Holding A/S | 489,410 | 1,085,268 |
| Turk Hava Yollari AO * | 485,764 | 717,143 |
| Turkcell Iletisim Hizmetleri A/S | 545,337 | 977,539 |
| Turkiye Garanti Bankasi A/S | 1,152,127 | 1,004,257 |
| Security | Number
of Shares | Value ($) |
| Turkiye Is Bankasi A/S, Class C | 1,016,719 | 600,427 |
| Turkiye Petrol Rafinerileri A/S * | 100,914 | 1,069,631 |
| | | 9,049,064 |
| |
| United Arab Emirates 0.8% |
| Abu Dhabi Commercial Bank PJSC | 476,417 | 811,447 |
| Emaar Properties PJSC | 1,354,051 | 1,367,031 |
| Emirates NBD Bank PJSC | 97,970 | 331,927 |
| Emirates Telecommunications Group Co. PJSC | 297,721 | 1,716,709 |
| First Abu Dhabi Bank PJSC | 397,980 | 1,540,253 |
| | | 5,767,367 |
| Total Common Stock |
| (Cost $531,890,922) | | 715,972,374 |
|
| Preferred Stock 4.9% of net assets |
| |
| Brazil 3.7% |
| Banco Bradesco S.A. | 1,583,016 | 6,950,403 |
| Centrais Eletricas Brasileiras S.A., Class B | 59,720 | 406,559 |
| Cia Energetica de Minas Gerais | 475,828 | 1,212,334 |
| Gerdau S.A. | 439,106 | 2,685,377 |
| Itau Unibanco Holding S.A. | 1,828,879 | 9,268,884 |
| Petroleo Brasileiro S.A. | 1,764,754 | 7,673,620 |
| | | 28,197,177 |
| |
| Colombia 0.2% |
| Bancolombia S.A. | 150,853 | 1,125,377 |
| |
| Russia 1.0% |
| Surgutneftegas PJSC | 2,708,400 | 1,542,832 |
| Tatneft PJSC | 49,080 | 304,431 |
| Transneft PJSC | 2,982 | 5,617,690 |
| | | 7,464,953 |
| Total Preferred Stock |
| (Cost $33,888,872) | | 36,787,507 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Short-Term Investments 1.0% of net assets |
| |
| Time Deposits 1.0% |
| Barclays Capital, Inc. |
| U.S. Dollar | | |
| 0.01%, 05/03/21 (b) | 7,610,236 | 7,610,236 |
| Brown Brothers Harriman & Co. |
| Euro | | |
| (0.78%), 05/03/21 (b)(c) | 6,968 | 8,377 |
| Hong Kong Dollar | | |
| (0.15%), 05/03/21 (b)(c) | 98,110 | 12,630 |
| South African Rand | | |
| 5.26%, 05/03/21 (b) | 302,888 | 20,885 |
| Total Short-Term Investments |
| (Cost $7,652,128) | | 7,652,128 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Depreciation
($) |
| Futures Contracts | |
| Long | |
| MSCI Emerging Markets Index, expires 06/18/21 | 62 | 4,143,460 | (72,352) |
| * | Non-income producing security. |
| (a) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (b) | The rate shown is the current daily overnight rate. |
| (c) | Rate is negative due to the current daily overnight rate at the central bank of the denominated currency and therefore is non-income producing. |
| | |
| ADR — | American Depositary Receipt |
| GDR — | Global Depositary Receipt |
| NVDR — | Non-Voting Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $— | $198,115,592 | $— | $198,115,592 | |
| Brazil | 46,456,781 | — | — | 46,456,781 | |
| Chile | 6,840,493 | — | — | 6,840,493 | |
| China | 9,204,243 | 171,474,664 | 4,823,180 | 185,502,087 | |
| Colombia | 1,653,954 | — | — | 1,653,954 | |
| Egypt | 639,954 | — | — | 639,954 | |
| Mexico | 30,970,487 | — | — | 30,970,487 | |
| Philippines | — | — | 765,291 | 765,291 | |
| Qatar | 2,146,451 | 834,212 | — | 2,980,663 | |
| Saudi Arabia | 7,086,625 | 12,628,854 | — | 19,715,479 | |
| South Africa | 5,252,878 | 46,610,246 | — | 51,863,124 | |
| Taiwan | 2,251,636 | 153,400,402 | — | 155,652,038 | |
| Turkey | 4,155,156 | 4,893,908 | — | 9,049,064 | |
| United Arab Emirates | 1,716,709 | 4,050,658 | — | 5,767,367 | |
| Preferred Stock1 | — | 7,464,953 | — | 7,464,953 | |
| Brazil | 28,197,177 | — | — | 28,197,177 | |
| Colombia | 1,125,377 | — | — | 1,125,377 | |
| Short-Term Investments1 | — | 7,652,128 | — | 7,652,128 | |
| Liabilities | | | | | |
| Futures Contracts2 | (72,352) | — | — | (72,352) | |
| Total | $147,625,569 | $607,125,617 | $5,588,471 | $760,339,657 | |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $573,431,922) | | $760,412,009 |
| Foreign currency, at value (cost $1,001,881) | | 993,963 |
| Deposit with broker for futures contracts | | 455,058 |
| Receivables: | | |
| Investments sold | | 1,113 |
| Dividends | | 1,258,966 |
| Fund shares sold | | 886,037 |
| Foreign tax reclaims | + | 1,789 |
| Total assets | | 764,008,935 |
| Liabilities |
| Payables: | | |
| Investments bought | | 3,257,175 |
| Investment adviser fees | | 254,906 |
| Foreign capital gains tax | | 2,379,583 |
| Fund shares redeemed | | 357,095 |
| Variation margin on futures contracts | + | 115,983 |
| Total liabilities | | 6,364,742 |
| Net Assets |
| Total assets | | 764,008,935 |
| Total liabilities | – | 6,364,742 |
| Net assets | | $757,644,193 |
| Net Assets by Source | | |
| Capital received from investors | | 694,407,914 |
| Total distributable earnings | | 63,236,279 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $757,644,193 | | 76,738,833 | | $9.87 |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $668,750) | | $5,910,231 |
| Interest received from securities - unaffiliated | | 965 |
| Securities on loan, net | + | 23,041 |
| Total investment income | | 5,934,237 |
| Expenses |
| Investment adviser fees | | 1,349,131 |
| Total expenses | – | 1,349,131 |
| Net investment income | | 4,585,106 |
| Realized and Unrealized Gains (Losses) |
| Net realized losses on sales of securities - unaffiliated (net of foreign capital gains tax paid of $9,984) | | (3,363,832) |
| Net realized gains on futures contracts | | 134,988 |
| Net realized losses on foreign currency transactions | + | (28,768) |
| Net realized losses | | (3,257,612) |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated (net of change in foreign capital gains tax of ($2,068,499)) | | 193,579,627 |
| Net change in unrealized appreciation (depreciation) on futures contracts | | (39,371) |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 20,707 |
| Net change in unrealized appreciation (depreciation) | + | 193,560,963 |
| Net realized and unrealized gains | | 190,303,351 |
| Increase in net assets resulting from operations | | $194,888,457 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $4,585,106 | $19,610,903 |
| Net realized losses | | (3,257,612) | (42,020,057) |
| Net change in unrealized appreciation (depreciation) | + | 193,560,963 | (86,035,304) |
| Increase (decrease) in net assets from operations | | 194,888,457 | (108,444,458) |
| Distributions to Shareholders | |
| Total distributions | | ($18,875,238) | ($26,542,518) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 13,483,763 | $124,073,854 | 36,046,335 | $278,152,407 |
| Shares reinvested | | 1,622,720 | 14,425,984 | 2,049,543 | 19,245,216 |
| Shares redeemed | + | (11,668,671) | (107,003,044) | (37,357,533) | (283,186,415) |
| Net transactions in fund shares | | 3,437,812 | $31,496,794 | 738,345 | $14,211,208 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 73,301,021 | $550,134,180 | 72,562,676 | $670,909,948 |
| Total increase (decrease) | + | 3,437,812 | 207,510,013 | 738,345 | (120,775,768) |
| End of period | | 76,738,833 | $757,644,193 | 73,301,021 | $550,134,180 |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
| SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
| Schwab Fundamental US Large Company Index Fund | Schwab Target 2015 Fund |
| Schwab Fundamental US Small Company Index Fund | Schwab Target 2020 Fund |
| Schwab Fundamental International Large Company Index Fund | Schwab Target 2025 Fund |
| Schwab Fundamental International Small Company Index Fund | Schwab Target 2030 Fund |
| Schwab Fundamental Emerging Markets Large Company Index Fund | Schwab Target 2035 Fund |
| Schwab Fundamental Global Real Estate Index Fund | Schwab Target 2040 Fund |
| Schwab S&P 500 Index Fund | Schwab Target 2045 Fund |
| Schwab Small-Cap 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 Target 2065 Fund |
| Schwab Total Stock Market Index Fund® | Schwab Target 2010 Index Fund |
| Schwab International Index Fund® | Schwab Target 2015 Index Fund |
| Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2020 Index Fund |
| Schwab MarketTrack Growth Portfolio™ | Schwab Target 2025 Index Fund |
| Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2030 Index Fund |
| Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2035 Index Fund |
| Laudus International MarketMasters Fund™ | Schwab Target 2040 Index Fund |
| Schwab Balanced Fund | Schwab Target 2045 Index Fund |
| Schwab Core Equity Fund | Schwab Target 2050 Index Fund |
| Schwab Dividend Equity Fund | Schwab Target 2055 Index Fund |
| Schwab Large-Cap Growth Fund | Schwab Target 2060 Index Fund |
| Schwab Small-Cap Equity Fund | Schwab Target 2065 Index Fund |
| Schwab Hedged Equity Fund | Schwab Monthly Income Fund - Moderate Payout |
| Schwab Health Care Fund | Schwab Monthly Income Fund - Enhanced Payout |
| Schwab International Core Equity Fund | Schwab Monthly Income Fund - Maximum Payout |
| Schwab Target 2010 Fund | |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in certain mutual funds and exchange-traded funds (ETFs) referred to as “underlying funds”. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
(a) Security Valuation:
Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at 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.
• 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.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Cash management sweep time deposits: Balances held in cash management sweep time deposits are accounted for on a cost basis, which approximates fair value.
• 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.
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, mutual funds, ETFs and futures contracts. Investments in mutual funds are valued daily at their NAVs, and 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 underlying securities held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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, 2021 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked to-market gains (as well as any gains realized on sale).
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 10% of gross lending revenue, with subsequent breakpoints to a low of 7.5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by Charles Schwab Investment Management, Inc. (CSIM or the investment adviser) or any affiliate of CSIM.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
As of April 30, 2021, Schwab Fundamental US Small Company Index Fund, Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund, had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2021, are disclosed in each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Cash Management Transactions: The funds 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 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, however, interest rates may be negative due to overnight rates at the central bank of the denominated currency. 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.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange 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 date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company 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.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(e) Expenses:
Pursuant to an Amended and Restated Investment Advisory and Administration Agreement (Advisory Agreement) between CSIM and the 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.
(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 accrued as of April 30, 2021, 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.
3. Risk Factors:
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
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 its index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.
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Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
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, the fund’s performance may be below that of its respective index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in the index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for the fund.
Sampling Index Tracking Risk. To the extent a fund uses a sampling method, the fund may not fully replicate its respective index and may hold securities not included in the index. As a result, the fund is subject to the risk that the investment adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. 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 its respective 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.
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.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities may also include American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), which may be less liquid than the underlying shares in their primary trading market and GDRs, many of which are issued by companies in emerging markets, may be more volatile. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
ETF Risk. Certain funds may purchase shares of ETFs to gain exposure to a particular portion of the market while awaiting an opportunity to purchase securities directly. When a fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a proportionate share of the ETF’s expenses. Therefore, it may be more costly to own an ETF than to own the underlying securities directly. In addition, while the risks of owning shares of an ETF generally reflect the risks of owning the underlying securities the ETF holds, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio securities.
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Derivatives Risk. Each fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right 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. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A fund’s use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere. 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 the 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 the fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase the fund’s volatility, and could cause the fund to lose more than the initial amount invested.
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’ prospectus 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 the trust.
For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
Schwab
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 |
| 0.25% | 0.25% | 0.25% | 0.39% | 0.39% |
CSIM has a licensing agreement with the Frank Russell Company to use certain Russell indices and trademarks in connection with the offering and operation of certain registered investment companies. The funds have entered into a sub-license agreement with CSIM pursuant to which CSIM has agreed to sub-license certain Russell indices and trademarks to the funds. CSIM pays all applicable licensing fees.
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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, 2021, as applicable:
| | Underlying Funds |
| | Schwab
Fundamental
US Large
Company
Index Fund | Schwab
Fundamental
US Small
Company
Index Fund | Schwab
Fundamental
International Large
Company
Index Fund | Schwab
Fundamental
International Small
Company
Index Fund | Schwab
Fundamental
Emerging Markets
Large
Company
Index Fund |
| Schwab MarketTrack All Equity Portfolio | 1.7% | 1.8% | 3.8% | 5.1% | 5.3% |
| Schwab MarketTrack Balanced Portfolio | 0.9% | 0.8% | 1.4% | 2.0% | 2.0% |
| Schwab MarketTrack Conservative Portfolio | 0.3% | 0.3% | 0.5% | 0.6% | 0.7% |
| Schwab MarketTrack Growth Portfolio | 1.8% | 1.7% | 2.9% | 4.0% | 4.2% |
| Schwab Target 2010 Fund | 0.0%* | —% | —% | —% | —% |
| Schwab Target 2015 Fund | 0.0%* | —% | —% | —% | —% |
| Schwab Target 2020 Fund | 0.0%* | —% | —% | —% | —% |
| Schwab Target 2025 Fund | 0.0%* | —% | —% | —% | —% |
| Schwab Target 2030 Fund | 0.1% | —% | —% | —% | —% |
| Schwab Target 2035 Fund | 0.1% | —% | —% | —% | —% |
| Schwab Target 2040 Fund | 0.3% | —% | —% | —% | —% |
| Schwab Target 2045 Fund | 0.1% | —% | —% | —% | —% |
| Schwab Target 2050 Fund | 0.1% | —% | —% | —% | —% |
| Schwab Target 2055 Fund | 0.1% | —% | —% | —% | —% |
| Schwab Target 2060 Fund | 0.0%* | —% | —% | —% | —% |
| Schwab Target 2065 Fund | 0.0%* | —% | —% | —% | —% |
* Less than 0.05%
Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2 were non-routine expenses. The investment adviser agreed to pay these professional fees on behalf of the funds, subject to reimbursement to the extent the funds are able to successfully recover taxes withheld in the future.
The professional fees incurred by the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Compay Index Fund were $12,311 and $3,769, respectively. There were no reimbursements made by the funds to the investment adviser during the period ended April 30, 2021.
As of April 30, 2021, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the fund to the investment adviser was $82,851 for the Fundamental International Large Company Index Fund and $3,769 for Schwab Fundamental International Smal Company 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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Schwab Fundamental Index Funds
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 in accordance with procedures adopted by the Board under Rule 17a-7 of the 1940 Act. 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, 2021, 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 Fundamental US Large Company Index Fund | $312,682,088 | $40,676,203 |
| Schwab Fundamental US Small Company Index Fund | 294,254,296 | 67,178,417 |
| Schwab Fundamental International Large Company Index Fund | 42,264,750 | 2,092,659 |
| Schwab Fundamental International Small Company Index Fund | 85,089,372 | 15,294,949 |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 19,719,724 | 1,202,293 |
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 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 funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to CSIM paying the interest charged on any borrowings by a fund, CSIM paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, CSIM pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.
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:
Certain funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2021 are presented in the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized gains (losses) and net change in unrealized appreciation (depreciation) on futures contracts are presented in the Statement of Operations, if any. Refer to financial note 2(b) for
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
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, 2021, 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 Fundamental US Large Company Index Fund | $29,783,338 | 156 |
| Schwab Fundamental US Small Company Index Fund | 10,165,284 | 100 |
| Schwab Fundamental International Large Company Index Fund | 8,042,011 | 77 |
| Schwab Fundamental International Small Company Index Fund | 4,005,072 | 38 |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 1,941,303 | 30 |
8. Purchases and Sales of Investment Securities:
For the period ended April 30, 2021, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:
| | Purchases
of Securities | Sales
of Securities |
| Schwab Fundamental US Large Company Index Fund | $586,249,700 | $531,090,148 |
| Schwab Fundamental US Small Company Index Fund | 413,244,172 | 454,220,632 |
| Schwab Fundamental International Large Company Index Fund | 141,221,173 | 178,905,546 |
| Schwab Fundamental International Small Company Index Fund | 162,648,305 | 146,231,135 |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 128,674,913 | 116,812,109 |
During the period ended April 30, 2021, the Schwab Fundamental US Large Company Index Fund sold securities in connection with in-kind redemptions in the amount of $2,972,092, resulting in realized gains of $2,833,740.
9. Federal Income Taxes:
As of April 30, 2021, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | 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 |
| Tax cost | $3,516,756,666 | | $1,357,452,144 | | $1,097,638,125 | | $620,675,093 | | $619,491,346 |
| Gross unrealized appreciation | $2,982,384,946 | | $757,985,237 | | $237,666,538 | | $196,399,513 | | $166,523,820 |
| Gross unrealized depreciation | (66,276,465) | | (24,859,336) | | (44,704,118) | | (23,147,950) | | (25,675,509) |
| Net unrealized appreciation (depreciation) | $2,916,108,481 | | $733,125,901 | | $192,962,420 | | $173,251,563 | | $140,848,311 |
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2020, the funds had capital loss carryforwards available to offset future net capital gains as follows:
| Expiration Date | 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 |
| No expiration | $— | | $30,790,317 | | $55,799,573 | | $29,274,468 | | $71,835,458 |
| Total | $— | | $30,790,317 | | $55,799,573 | | $29,274,468 | | $71,835,458 |
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Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
The tax-basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2021. The tax-basis components of distributions paid during the fiscal year ended October 31, 2020, were as follows:
| | 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 |
| Ordinary income | $135,286,528 | $27,292,972 | $48,541,581 | $21,815,081 | $26,542,518 |
| Long-term capital gains | 145,433,758 | 43,502,511 | — | — | — |
As of October 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended October 31, 2020, 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.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
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 103 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. | 103 | 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. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
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Schwab Fundamental Index Funds
| 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 |
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). | 103 | 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). | 103 | None |
J. Derek Penn
1957
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
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Schwab Fundamental Index Funds
| Interested 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 |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer, Chief Financial Officer and Chief Operating 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) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (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
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr.
1972
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
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Schwab Fundamental Index Funds
| 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 |
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 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. 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. |
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
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 $300 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.
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.
Fundamental Developed ex-U.S. Large Company Spliced Index An internally calculated index comprised of the FTSE RAFI Developed ex-US 1000 Index from inception of the Schwab Fundamental International Large Company Index Fund until the close of business on October 18, 2012 and the Russell RAFI Developed ex US Large Company Index (Net) from October 19, 2012 forward, when the Fund began tracking the index. The FTSE RAFI Developed ex-US 1000 Index
is composed of the largest 1,000 listed companies incorporated outside the United States, ranked by four fundamental financial measures of size, sales, cash flows, book value and dividends. The index is rebalanced and reconstituted annually.
Fundamental Developed ex-U.S. Small Company Spliced Index An internally calculated index comprised of the FTSE RAFI Developed ex US Mid Small 1500 Index from inception of the Schwab Fundamental International Small Company Index Fund until the close of business on October 18, 2012 and the Russell RAFI Developed ex US Small Company Index (Net) from October 19, 2012 forward, when the Fund began tracking the index. The FTSE RAFI Developed ex US Mid Small 1500 Index is designed to track the performance of small- and mid-capitalization equities of companies domiciled in developed international markets (excluding the U.S.), selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The equities with the highest fundamental strength are weighted according to their fundamental scores. The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Fundamental Emerging Markets Large Company Spliced Index An internally calculated index comprised of the FTSE RAFI Emerging Index from inception of the Schwab Fundamental Emerging Markets Large Company Index Fund until the close of business on October 18, 2012 and the Russell RAFI Emerging Markets Large Company Index (Net) from October 19, 2012 forward, when the Fund began tracking the index. The FTSE RAFI Emerging Index is designed to track the performance of the largest emerging market equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The equities with the highest fundamental strength are weighted according to their fundamental scores. The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Fundamental U.S. Large Company Spliced Index An internally calculated index comprised of the FTSE RAFI US 1000 Index from inception of the Schwab Fundamental US Large Company Index Fund until the close of business on October 18, 2012 and the Russell RAFI US Large Company Index from October 19, 2012 forward, when the Fund began tracking the index. The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size, book value, income, sales and dividends. The 1,000 equities with the highest fundamental strength are weighted by their fundamental scale. The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Fundamental U.S. Small Company Spliced Index An internally calculated index comprised of the FTSE RAFI US Mid Small 1500 Index from inception of the Schwab Fundamental US Small Company Index Fund until the close of business on October 18, 2012 and the Russell RAFI US Small Company Index from October 19, 2012 forward, when the Fund began tracking the index. The FTSE RAFI US Mid Small 1500 Index is composed of approximately 1,500 listed small and medium sized companies incorporated in the United States, ranked by fundamental value. The fundamentally weighted portfolio is rebalanced and reconstituted annually.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
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.
MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The 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 Index 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.
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 RAFI Developed ex US Large Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Developed ex US Small Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores rank below the 87.5% threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the smallest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Emerging Markets Large Company Index (Net) An index that ranks emerging market companies in the FTSE Global Total Cap Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the emerging companies in the FTSE Global Total Cap Index measures the performance of the investable securities in emerging countries globally.
Russell RAFI US Large Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Large Company Index includes only those securities that are members of the U.S. portion whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
Russell RAFI US Small Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Small Company Index includes only those securities that are members of the U.S. portion and rank below the 87.5% fundamental score threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
S&P Developed ex-U.S. Small Cap Index (Net) An index composed of the stocks representing the lowest 15% of float-adjusted market cap in each developed market country, excluding the U.S. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
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.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
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.
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental 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 at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Hedged Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Asset Allocation Funds
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Investment Adviser
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Semiannual Report | April 30, 2021
Laudus International MarketMasters Fund™
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Laudus International MarketMasters Fund
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.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/laudusfunds_prospectus.
| Total Return for the 6 Months Ended April 30, 2021 |
| Laudus International MarketMasters Fund1 (Ticker Symbol: SWMIX) | 28.92% |
| MSCI EAFE® Index (Net)2 | 28.84% |
| Fund Category: Morningstar Foreign Large Growth3 | 22.15% |
| Performance Details | pages 6-7 |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the 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.
Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets.
| 1 | The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information. |
| 2 | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
| 3 | 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. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
The Investment Environment
For the six-month reporting period ended April 30, 2021, U.S. and international equity markets generated solid returns, with major market indices ending the reporting period just shy of record highs. Despite persisting COVID-19 pandemic-driven stresses on the global economy—including widespread business disruptions, high unemployment, and prolonged stay-at-home orders—and a resurgence of COVID-19 cases in the fall and winter, equity markets continued to be buoyed by the extensive emergency rescue and fiscal stimulus measures passed by governments and central banks around the world beginning in March 2020, as well as the initial distribution of COVID-19 vaccines in December 2020 and the expanded rollout in 2021. The COVID-19 vaccine rollout helped fuel the early stages of a shift in the market towards cyclical sectors, beginning in November and December 2020 and continuing through the remainder of the reporting period. The U.S. dollar ended the reporting period weaker against a basket of foreign currencies, generally enhancing the returns of overseas investments in U.S. dollar terms. The S&P 500® Index, a bellwether for the overall U.S. stock market, returned 28.85% for the reporting period. U.S. small-cap stocks significantly outperformed U.S. large-cap stocks, with the Russell 2000® Index and the Russell 1000® Index returning 48.06% and 30.03%, respectively, for the reporting period. Outside the U.S., the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 28.84% for the reporting period, while the MSCI Emerging Markets Index (Net)* returned 22.95%.
Bolstered by the extensive emergency rescue and fiscal stimulus measures passed by the U.S. Federal Reserve (Fed) and U.S. Congress, the U.S. economy has held up relatively well given the intensity of the COVID-19 pandemic’s economic impact. Outside the U.S., global economies wrestled with the fallout of the COVID-19 pandemic against the anticipation of its eventual end. In the eurozone, GDP growth jumped in the third quarter of 2020, regaining much of its losses from the second quarter, but turned slightly negative for both the fourth quarter of 2020 and the first quarter of 2021. The United Kingdom, which was particularly hard-hit by the COVID-19 pandemic, suffered its biggest slump in more than three centuries over the course of 2020, effectively wiping out its growth over the past seven years, but posted a small positive gain in GDP for the first quarter of 2021. Japan’s economy, after rebounding sharply in the third quarter of 2020, posted a positive, albeit smaller, gain in the fourth quarter of 2020 on strong exports and consumer
Asset Class Performance Comparison % returns during the 6 months ended April 30, 2021
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. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
The Investment Environment (continued)
spending. China, the only major economy to avoid contraction in the face of COVID-19 pandemic-related shocks, maintained positive GDP growth in the fourth quarter of 2020. China’s growth accelerated sharply for the first quarter of 2021 on rising domestic and global demand, strict COVID-19 containment measures, and continued fiscal and monetary support. India, after plunging into one of the worst recessions of any major economy, saw its first positive gain in GDP in the fourth quarter of 2020, but a huge spike in COVID-19 cases in April 2021 dampened its growth prospects.
Central banks around the world, including the Fed, maintained the low—and for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. In the U.S., the federal funds rate remained in a range of 0.00% to 0.25% throughout the reporting period. Outside the U.S., the European Central Bank held its policy rate at 0.00%, unchanged since March 2016, and maintained its asset purchase program to help counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.01%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program. Central banks in key emerging market economies—including China, India, Russia, and Thailand—also maintained low rates to help counter the effects of the COVID-19 pandemic. Mexico reduced its benchmark interest rate by 0.25% in February 2021.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
 | Omar Aguilar, Ph.D., Senior Vice President and Chief Investment Officer of Passive Equity and Multi-Asset Strategies, is responsible for the day-to-day co-management of the fund. Mr. Aguilar has more than 20 years of broad investment management experience in the equity markets, including managing index, quantitative equity, asset allocation, and multi-manager strategies. Prior to joining CSIM in 2011, Mr. Aguilar was with Financial Engines, where he was responsible for managing more than $40 billion in assets from leading retirement plan sponsors in the defined contribution market. Prior to that, he served as head of quantitative equity for ING Investment Management (now known as Voya Investment Management), building and developing the group and managing more than $20 billion in assets with 15 global active, index, and enhanced index strategies for pension funds, variable annuities, and mutual funds. Mr. Aguilar also served as head of quantitative research for Lehman Brothers’ alternative investment management business and as a director of quantitative research and a portfolio manager with both Merrill Lynch Investment Management and Bankers Trust. |
 | Jane Shi, CFA, Portfolio Manager, is responsible for the day-to-day co-management of the fund. This includes performance attribution and portfolio reporting, as well as making recommendations for tactical portfolio allocations using quantitative models. Ms. Shi also collaborates with the CSIM Investment Manager Research Team to evaluate and monitor current and new subadvisers. Ms. Shi joined CSIM in 2011 as a research analyst. Prior to that, Ms. Shi was a vice president and investment analyst at Bailard, Inc., where she developed quantitative models for domestic equity and tactical asset allocation strategies and was also responsible for performance measurement and attribution. Prior to that, she was a treasury analyst at Sun Microsystems, Inc. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/laudusfunds_prospectus.
Average Annual Total Returns1,2
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Laudus International MarketMasters Fund (4/2/04)3 | 28.92% | 58.99% | 12.59% | 7.52% |
| MSCI EAFE® Index (Net)4 | 28.84% | 39.88% | 8.87% | 5.22% |
| Fund Category: Morningstar Foreign Large Growth5 | 22.15% | 47.43% | 13.00% | 7.48% |
| Fund Expense Ratios6: Net 1.25%; Gross 1.51% |
Investment Managers and Allocations7
| Investment Managers | Investment Style | % of
Net Assets |
| American Century Investment Management, Inc. | International Small-Cap Growth | 28.0% |
| William Blair Investment Management, LLC | International Multi-Cap Growth | 24.4% |
| Mondrian Investment Partners Limited | International Small-Cap Value | 18.4% |
| Harris Associates L.P. | International Large-Cap Value | 18.4% |
| Baillie Gifford Overseas Limited | International Growth | 8.3% |
| Mellon Investments Corporation | International Blend | 0.0% 8 |
| Cash and other assets | | 2.4% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see 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 | The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information. |
| 3 | The fund commenced operations on October 16, 1996 which became the Laudus International MarketMasters Fund Investor Shares. The Investor Shares were consolidated into Select Shares on February 26, 2019. The performance presented is that of the former Select Shares which commenced operations on April 2, 2004. |
| 4 | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
| 5 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 6 | As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as CSIM serves as 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. |
| 7 | For more information about each of the investment manager’s investment styles, refer to the fund’s prospectus. |
| 8 | Less than 0.05%. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 472 |
| Weighted Average Market Cap (millions) | $53,167 |
| Price/Earnings Ratio (P/E) | 28.1 |
| Price/Book Ratio (P/B) | 2.7 |
| Portfolio Turnover Rate | 32% 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. Investing in emerging markets may accentuate these risks.
| 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. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the 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, 2020 and held through April 30, 2021.
Actual Return line in the table below provides 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 line in the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs. 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 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/21 | Expenses Paid
During Period
11/1/20-4/30/212 |
| Laudus International MarketMasters Fund | | | | |
| Actual Return | 1.25% | $1,000.00 | $1,289.20 | $7.10 |
| Hypothetical 5% Return | 1.25% | $1,000.00 | $1,018.60 | $6.26 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by 365 days of the fiscal year. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/191 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $24.37 | $22.89 | $22.89 | $26.96 | $21.16 | $22.71 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | (0.04) | 0.00 3 | 0.31 | 0.24 | 0.22 | 0.19 |
| Net realized and unrealized gains (losses) | 6.94 | 1.95 | 1.74 | (3.09) | 5.76 | (0.23) |
| Total from investment operations | 6.90 | 1.95 | 2.05 | (2.85) | 5.98 | (0.04) |
| Less distributions: | | | | | | |
| Distributions from net investment income | — | (0.43) | (0.29) | (0.36) | (0.18) | (0.31) |
| Distributions from net realized gains | (1.72) | (0.04) | (1.76) | (0.86) | — | (1.20) |
| Total distributions | (1.72) | (0.47) | (2.05) | (1.22) | (0.18) | (1.51) |
| Net asset value at end of period | $29.55 | $24.37 | $22.89 | $22.89 | $26.96 | $21.16 |
| Total return | 28.92% 4 | 8.56% | 10.50% | (11.09%) | 28.52% | 0.00% 5 |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses | 1.25% 6 | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
| Gross operating expenses | 1.48% 6 | 1.51% | 1.50% | 1.51% | 1.53% | 1.54% |
| Net investment income (loss) | (0.25%) 6 | 0.00% 5 | 1.43% | 0.92% | 0.92% | 0.93% |
| Portfolio turnover rate | 32% 4 | 65% | 54% | 69% | 71% | 69% |
| Net assets, end of period (x 1,000,000) | $1,455 | $1,243 | $1,413 | $1,127 | $1,229 | $1,063 |
| |
1
Effective February 26, 2019, the Investor Share class, and the Select Share class were consolidated into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Select Shares.
2
Calculated based on the average shares outstanding during the period.
3
Per-share amount was less than $0.005.
4
Not annualized.
5
Less than 0.005%.
6
Annualized.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/laudusfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Common Stock 96.0% of net assets |
| |
| Argentina 1.0% |
| Globant S.A. * | 4,358 | 998,766 |
| MercadoLibre, Inc. * | 8,372 | 13,152,245 |
| | | 14,151,011 |
| |
| Australia 3.9% |
| Altium Ltd. | 79,580 | 1,814,876 |
| AMP Ltd. | 1,916,775 | 1,646,026 |
| Aristocrat Leisure Ltd. | 63,376 | 1,807,629 |
| Atlassian Corp. plc, Class A * | 9,017 | 2,142,079 |
| Brambles Ltd. | 243,700 | 1,952,261 |
| carsales.com Ltd. | 150,694 | 2,302,102 |
| Centuria Office REIT | 1,475,014 | 2,500,956 |
| Charter Hall Retail REIT | 1,648,460 | 4,726,197 |
| Corporate Travel Management Ltd. * | 139,844 | 1,981,851 |
| Costa Group Holdings Ltd. | 467,150 | 1,675,725 |
| IDP Education Ltd. | 71,611 | 1,250,823 |
| Inghams Group Ltd. | 1,315,298 | 3,311,916 |
| InvoCare Ltd. | 117,550 | 1,023,847 |
| Kogan.com Ltd. | 100,379 | 853,597 |
| Mineral Resources Ltd. | 83,937 | 3,065,416 |
| National Storage REIT | 1,927,625 | 2,989,973 |
| Netwealth Group Ltd. | 45,326 | 518,820 |
| Nickel Mines Ltd. | 3,215,044 | 2,802,830 |
| Orica Ltd. | 303,288 | 3,157,581 |
| Pro Medicus Ltd. | 15,472 | 562,033 |
| Seven Group Holdings Ltd. | 303,379 | 5,014,338 |
| Shopping Centres Australasia Property Group | 2,273,869 | 4,370,311 |
| Technology One Ltd. | 437,095 | 3,188,823 |
| Temple & Webster Group Ltd. * | 169,488 | 1,387,480 |
| | | 56,047,490 |
| |
| Austria 0.3% |
| ANDRITZ AG | 74,492 | 4,047,980 |
| |
| Belgium 0.5% |
| Anheuser-Busch InBev S.A./N.V. | 48,100 | 3,407,041 |
| Melexis N.V. | 22,511 | 2,450,555 |
| Warehouses De Pauw CVA | 25,662 | 905,053 |
| | | 6,762,649 |
| |
| Brazil 0.6% |
| B3 S.A. - Brasil Bolsa Balcao | 121,100 | 1,148,121 |
| Locaweb Servicos de Internet S.A. | 666,257 | 3,528,725 |
| Magazine Luiza S.A. | 269,600 | 994,116 |
| Security | Number
of Shares | Value ($) |
| Notre Dame Intermedica Participacoes S.A. * | 51,500 | 770,502 |
| Pet Center Comercio e Participacoes S.A. | 527,419 | 2,346,760 |
| | | 8,788,224 |
| |
| Canada 6.2% |
| Alamos Gold, Inc., Class A | 264,715 | 2,117,720 |
| Boralex, Inc., Class A | 199,931 | 6,408,723 |
| BRP, Inc. | 53,922 | 4,953,726 |
| CAE, Inc. * | 260,138 | 8,148,162 |
| Canada Goose Holdings, Inc. * | 22,760 | 962,065 |
| Canadian National Railway Co. | 51,145 | 5,506,259 |
| Cenovus Energy, Inc. | 531,325 | 4,136,826 |
| Element Fleet Management Corp. | 309,380 | 3,788,121 |
| Enghouse Systems Ltd. | 9,298 | 440,410 |
| Finning International, Inc. | 152,133 | 3,959,431 |
| FirstService Corp. | 16,749 | 2,720,665 |
| Innergex Renewable Energy, Inc. | 273,304 | 4,669,393 |
| Kinaxis, Inc. * | 4,839 | 624,151 |
| Lululemon Athletica, Inc. * | 7,796 | 2,613,765 |
| Nuvei Corp. * | 65,053 | 4,539,398 |
| Open Text Corp. | 73,400 | 3,456,366 |
| Parex Resources, Inc. * | 238,568 | 4,493,226 |
| Restaurant Brands International, Inc. | 27,112 | 1,860,154 |
| Ritchie Bros. Auctioneers, Inc. | 65,251 | 4,150,816 |
| Shopify, Inc., Class A * | 2,107 | 2,491,548 |
| Spin Master Corp. * | 107,507 | 3,642,022 |
| Stantec, Inc. | 52,866 | 2,475,238 |
| TFI International, Inc. | 80,020 | 7,011,475 |
| The Descartes Systems Group, Inc. * | 34,355 | 2,197,725 |
| Toromont Industries Ltd. | 7,040 | 561,298 |
| Whitecap Resources, Inc. | 464,536 | 2,033,278 |
| | | 89,961,961 |
| |
| China 7.1% |
| 21Vianet Group, Inc. ADR * | 154,188 | 4,303,387 |
| A-Living Smart City Services Co., Ltd., H Shares | 100,250 | 460,791 |
| Aier Eye Hospital Group Co., Ltd., A Shares | 113,180 | 1,296,901 |
| Airtac International Group | 157,000 | 6,552,579 |
| AK Medical Holdings Ltd. | 116,000 | 180,197 |
| Alibaba Group Holding Ltd. * | 226,932 | 6,560,081 |
| Alibaba Group Holding Ltd. ADR * | 35,575 | 8,216,046 |
| Centre Testing International Group Co., Ltd., A Shares | 179,900 | 907,141 |
| Chacha Food Co. Ltd, A Shares | 64,951 | 540,212 |
| China Lesso Group Holdings Ltd. | 1,695,000 | 4,263,616 |
| China Yongda Automobiles Services Holdings Ltd. | 3,886,000 | 7,026,263 |
| Country Garden Services Holdings Co., Ltd. | 126,000 | 1,319,957 |
| Daqo New Energy Corp. * | 34,969 | 2,814,655 |
| Foshan Haitian Flavouring & Food Co., Ltd., A Shares | 45,960 | 1,199,418 |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Hangzhou Tigermed Consulting Co., Ltd., A Shares | 52,200 | 1,256,308 |
| JD.com, Inc. * | 46,200 | 1,784,176 |
| Kingsoft Cloud Holdings Ltd. ADR * | 92,860 | 4,078,411 |
| Kweichow Moutai Co., Ltd., A Shares | 4,200 | 1,297,133 |
| Li Ning Co., Ltd. | 302,500 | 2,454,994 |
| Meituan, B Shares * | 287,400 | 11,000,029 |
| NAURA Technology Group Co., Ltd., A Shares | 24,800 | 630,389 |
| NetEase, Inc. | 103,325 | 2,309,269 |
| NIO, Inc. ADR * | 58,430 | 2,327,851 |
| Offcn Education Technology Co., Ltd., A Shares | 132,000 | 518,070 |
| Ping An Insurance Group Co. of China Ltd., H Shares | 483,500 | 5,271,245 |
| Proya Cosmetics Co. Ltd, A Shares | 24,700 | 695,222 |
| Shenzhen Mindray Bio-Medical Electronics Co., Ltd., A Shares | 13,900 | 997,467 |
| Silergy Corp. | 12,000 | 1,233,365 |
| TAL Education Group ADR * | 26,636 | 1,516,920 |
| Tencent Holdings Ltd. | 158,300 | 12,627,906 |
| Tencent Music Entertainment Group ADR * | 34,575 | 602,297 |
| Topchoice Medical Corp., A Shares * | 24,900 | 1,199,696 |
| Venus MedTech Hangzhou, Inc., H Shares * | 61,500 | 544,261 |
| Weimob, Inc. * | 210,000 | 463,549 |
| Will Semiconductor Co., Ltd., A Shares | 11,500 | 533,875 |
| WuXi AppTec Co. Ltd., A Shares | 40,500 | 988,863 |
| Wuxi Biologics Cayman, Inc. * | 232,000 | 3,256,768 |
| | | 103,229,308 |
| |
| Denmark 1.8% |
| Alk-Abello A/S * | 10,759 | 4,659,252 |
| Chr. Hansen Holding A/S * | 10,490 | 963,059 |
| Coloplast A/S, Class B | 9,138 | 1,513,615 |
| DSV PANALPINA A/S | 31,808 | 7,086,508 |
| Genmab A/S * | 11,374 | 4,173,826 |
| Netcompany Group A/S | 8,009 | 835,287 |
| Orsted A/S | 13,194 | 1,917,944 |
| Royal Unibrew A/S | 35,572 | 4,345,150 |
| | | 25,494,641 |
| |
| Finland 0.9% |
| Metso Outotec Oyj | 524,444 | 5,891,621 |
| Neste Oyj | 55,106 | 3,332,301 |
| QT Group Oyj * | 18,671 | 2,208,949 |
| UPM-Kymmene Oyj | 54,700 | 2,139,160 |
| | | 13,572,031 |
| |
| France 7.7% |
| Accor S.A. * | 144,063 | 5,800,866 |
| Airbus SE * | 48,205 | 5,797,116 |
| Alten S.A. * | 23,705 | 2,967,833 |
| APERAM S.A. | 90,133 | 4,665,053 |
| BNP Paribas S.A. * | 157,803 | 10,117,964 |
| Bureau Veritas S.A. * | 14,100 | 421,691 |
| Capgemini SE | 16,200 | 2,968,599 |
| Coface S.A. * | 299,285 | 3,646,106 |
| Danone S.A. (a) | 18,200 | 1,284,728 |
| Danone SA (a) | 5,600 | 394,817 |
| Dassault Systemes SE | 12,066 | 2,798,980 |
| Elis S.A. * | 181,110 | 3,241,155 |
| Security | Number
of Shares | Value ($) |
| EssilorLuxottica S.A. | 8,400 | 1,398,094 |
| Gaztransport Et Technigaz S.A. | 41,699 | 3,559,293 |
| Hermes International | 3,076 | 3,860,718 |
| Kering S.A. | 13,412 | 10,747,189 |
| Korian S.A. * | 128,838 | 5,158,752 |
| L'Oreal S.A. | 11,383 | 4,660,996 |
| LISI * | 53,827 | 1,738,918 |
| LVMH Moet Hennessy Louis Vuitton SE | 7,767 | 5,851,270 |
| Publicis Groupe S.A. | 62,610 | 4,052,112 |
| Rubis S.C.A. | 98,917 | 4,643,439 |
| Safran S.A. * | 29,568 | 4,414,758 |
| Sartorius Stedim Biotech | 3,535 | 1,623,576 |
| SOITEC * | 21,353 | 4,311,924 |
| Teleperformance | 11,281 | 4,356,094 |
| Valeo S.A. | 95,313 | 3,088,710 |
| Verallia S.A. | 88,890 | 3,598,676 |
| Worldline S.A. * | 15,567 | 1,528,340 |
| | | 112,697,767 |
| |
| Germany 9.3% |
| Allianz SE | 36,570 | 9,494,187 |
| Bayer AG (a) | 160,481 | 10,384,455 |
| Bayer AG (a) | 542 | 35,205 |
| Bayerische Motoren Werke AG | 98,600 | 9,880,722 |
| Carl Zeiss Meditec AG | 8,640 | 1,522,121 |
| CompuGroup Medical SE & Co. KgaA | 9,103 | 833,111 |
| Continental AG | 56,635 | 7,653,615 |
| CTS Eventim AG & Co. KGaA * | 14,895 | 1,028,054 |
| Daimler AG | 114,494 | 10,189,820 |
| Delivery Hero SE * | 48,616 | 7,712,476 |
| Dermapharm Holding SE | 63,235 | 5,526,820 |
| Duerr AG | 69,024 | 2,892,449 |
| Eckert & Ziegler Strahlen- und Medizintechnik AG | 4,458 | 437,732 |
| Fielmann AG * | 70,683 | 5,381,701 |
| flatexDEGIRO AG * | 32,692 | 4,186,803 |
| Fresenius Medical Care AG & Co. KGaA | 74,200 | 5,908,269 |
| Fresenius SE & Co. KGaA | 1,300 | 63,894 |
| Friedrich Vorwerk Group SE * | 44,706 | 2,751,886 |
| Gerresheimer AG | 18,824 | 2,024,654 |
| HelloFresh SE * | 21,721 | 1,801,870 |
| Henkel AG & Co. KGaA | 16,000 | 1,589,640 |
| Hypoport SE * | 1,010 | 608,673 |
| Infineon Technologies AG | 91,221 | 3,658,011 |
| JOST Werke AG * | 35,209 | 2,316,671 |
| KION Group AG | 13,291 | 1,324,412 |
| LPKF Laser & Electronics AG | 12,300 | 326,357 |
| MTU Aero Engines AG | 19,376 | 4,889,674 |
| Nemetschek SE | 7,731 | 576,298 |
| Norma Group SE | 36,086 | 2,013,035 |
| ProSiebenSat.1 Media SE * | 158,093 | 3,433,560 |
| Puma SE * | 23,158 | 2,441,368 |
| SAP SE | 31,000 | 4,340,640 |
| SMA Solar Technology AG * | 36,569 | 2,090,788 |
| Stabilus S.A. | 31,980 | 2,497,035 |
| Teamviewer AG * | 15,742 | 748,257 |
| ThyssenKrupp AG *(a) | 403,900 | 5,399,697 |
| ThyssenKrupp AG *(a) | 600 | 8,052 |
| Vonovia SE | 29,079 | 1,910,627 |
| Zalando SE * | 56,544 | 5,880,495 |
| | | 135,763,134 |
| |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Hong Kong 2.0% |
| AIA Group Ltd. | 513,800 | 6,521,443 |
| ASM Pacific Technology Ltd. | 203,000 | 3,065,995 |
| Cafe De Coral Holdings Ltd. | 1,272,000 | 2,761,107 |
| HKBN Ltd. | 2,457,983 | 3,593,428 |
| Man Wah Holdings Ltd. | 1,478,400 | 3,095,085 |
| Minth Group Ltd. | 548,000 | 2,219,525 |
| SUNeVision Holdings Ltd. | 3,994,000 | 4,121,216 |
| Yue Yuen Industrial Holdings Ltd. | 1,385,000 | 3,466,320 |
| | | 28,844,119 |
| |
| India 1.6% |
| Ashok Leyland Ltd. * | 1,721,121 | 2,609,974 |
| Axis Bank Ltd. * | 381,524 | 3,667,557 |
| Crompton Greaves Consumer Electricals Ltd. | 119,770 | 620,977 |
| Dr Lal PathLabs Ltd. | 22,234 | 878,893 |
| Havells India Ltd. | 45,937 | 612,912 |
| HDFC Bank Ltd. * | 177,542 | 3,373,293 |
| Indraprastha Gas Ltd. | 497,209 | 3,409,155 |
| Info Edge India Ltd. * | 9,848 | 652,005 |
| InterGlobe Aviation Ltd. * | 44,076 | 975,924 |
| Ipca Laboratories Ltd. | 16,682 | 473,395 |
| Pidilite Industries Ltd. * | 22,282 | 545,559 |
| Reliance Industries Ltd. | 179,735 | 4,828,796 |
| Reliance Industries Ltd. - Partly Paid Up | 6,876 | 99,509 |
| | | 22,747,949 |
| |
| Indonesia 0.5% |
| PT Bank Central Asia Tbk | 1,804,400 | 3,994,508 |
| PT Bank Mandiri (Persero) Tbk | 2,027,200 | 863,102 |
| PT Bank Tabungan Negara (Persero) Tbk * | 19,636,300 | 2,155,304 |
| | | 7,012,914 |
| |
| Ireland 1.0% |
| Glanbia plc | 232,246 | 3,416,599 |
| ICON plc * | 10,185 | 2,209,636 |
| Kingspan Group plc | 27,690 | 2,462,888 |
| Ryanair Holdings plc * | 10,000 | 202,998 |
| Ryanair Holdings plc ADR * | 53,127 | 6,207,890 |
| | | 14,500,011 |
| |
| Israel 1.1% |
| CyberArk Software Ltd. * | 5,415 | 760,808 |
| Inmode Ltd * | 55,259 | 4,770,509 |
| Kornit Digital Ltd. * | 37,803 | 3,695,621 |
| Nova Measuring Instruments Ltd * | 49,489 | 4,670,277 |
| Wix.com Ltd. * | 7,342 | 2,333,875 |
| | | 16,231,090 |
| |
| Italy 1.9% |
| Amplifon S.p.A. * | 19,656 | 829,586 |
| Autogrill S.p.A. * | 353,421 | 2,925,405 |
| BFF Bank S.p.A. | 311,156 | 2,785,980 |
| BPER Banca * | 1,389,478 | 3,165,944 |
| Brunello Cucinelli S.p.A. * | 11,556 | 588,238 |
| Ferrari N.V. | 15,220 | 3,260,379 |
| Interpump Group S.p.A. | 44,505 | 2,368,998 |
| Security | Number
of Shares | Value ($) |
| Intesa Sanpaolo S.p.A. * | 3,955,200 | 11,026,751 |
| Moncler S.p.A. * | 14,111 | 864,869 |
| | | 27,816,150 |
| |
| Japan 11.4% |
| Anritsu Corp. | 122,400 | 2,378,181 |
| Ariake Japan Co., Ltd. | 18,300 | 1,059,438 |
| Asahi Intecc Co., Ltd. | 39,700 | 1,068,599 |
| Asics Corp. | 111,900 | 1,778,063 |
| ASKUL Corp. | 89,500 | 3,273,998 |
| BASE, Inc. * | 37,000 | 611,769 |
| BayCurrent Consulting, Inc. | 23,700 | 6,462,794 |
| Benefit One, Inc. | 26,900 | 674,927 |
| Bengo4.com, Inc. * | 4,700 | 399,575 |
| CKD Corp. | 175,100 | 3,689,094 |
| Comture Corp. | 134,900 | 3,263,211 |
| Daikin Industries Ltd. | 17,300 | 3,489,664 |
| Digital Arts, Inc. | 35,100 | 2,845,875 |
| Disco Corp. | 2,800 | 904,179 |
| en-Japan, Inc. | 243,800 | 7,395,302 |
| Food & Life Cos., Ltd. | 93,400 | 4,165,750 |
| GMO Payment Gateway, Inc. | 6,900 | 877,290 |
| Harmonic Drive Systems, Inc. | 11,400 | 766,652 |
| Hennge KK * | 27,000 | 1,914,876 |
| Hoya Corp. | 19,000 | 2,159,640 |
| IHI Corp. * | 178,500 | 3,604,754 |
| Infomart Corp. | 200,100 | 1,886,559 |
| Invincible Investment Corp. | 10,120 | 3,636,821 |
| IR Japan Holdings Ltd. | 32,200 | 4,217,611 |
| Isetan Mitsukoshi Holdings Ltd. | 483,300 | 3,386,286 |
| JMDC, Inc. * | 59,100 | 2,635,116 |
| Kakaku.com, Inc. | 79,600 | 2,161,163 |
| Keyence Corp. | 7,500 | 3,600,395 |
| Komatsu Ltd. | 64,500 | 1,896,598 |
| Kuraray Co., Ltd. | 196,000 | 2,130,561 |
| Kyudenko Corp. | 136,300 | 4,752,551 |
| M3, Inc. | 105,800 | 7,308,649 |
| Mabuchi Motor Co., Ltd. | 48,000 | 1,922,527 |
| Matsumotokiyoshi Holdings Co., Ltd. | 161,600 | 6,498,979 |
| Menicon Co., Ltd. | 16,000 | 973,222 |
| MISUMI Group, Inc. | 29,300 | 827,540 |
| MonotaRO Co., Ltd. | 52,400 | 1,330,562 |
| Musashi Seimitsu Industry Co., Ltd. | 80,900 | 1,414,948 |
| Nextage Co., Ltd. | 210,200 | 3,327,747 |
| Nifco, Inc. | 153,800 | 5,254,358 |
| Nihon M&A Center, Inc. | 59,600 | 1,557,035 |
| Nippon Gas Co., Ltd. | 241,500 | 4,249,056 |
| Nomura Research Institute Ltd. | 35,000 | 1,074,117 |
| Olympus Corp. | 132,200 | 2,720,877 |
| Omron Corp. | 32,100 | 2,430,803 |
| Open House Co., Ltd. | 104,400 | 4,335,355 |
| Optorun Co., Ltd. | 70,800 | 1,894,566 |
| PALTAC Corp. | 39,400 | 2,052,817 |
| Premier Anti-Aging Co., Ltd. * | 20,300 | 2,218,798 |
| Rakus Co., Ltd. | 30,500 | 621,128 |
| Resorttrust, Inc. | 158,000 | 2,516,746 |
| Ryohin Keikaku Co., Ltd. | 161,300 | 3,397,164 |
| SHIFT, Inc. * | 4,600 | 669,596 |
| SHO-BOND Holdings Co., Ltd. | 8,200 | 342,312 |
| SMC Corp. | 7,100 | 4,125,646 |
| Systena Corp. | 242,900 | 4,987,967 |
| TechnoPro Holdings, Inc. | 11,900 | 875,139 |
| The Japan Steel Works Ltd. | 126,900 | 3,082,685 |
| TIS, Inc. | 48,800 | 1,210,741 |
| Toyo Tire Corp. | 118,900 | 2,175,420 |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Toyota Motor Corp. | 45,800 | 3,426,947 |
| Zeon Corp. | 287,400 | 4,582,524 |
| | | 166,493,263 |
| |
| Luxembourg 0.1% |
| Eurofins Scientific SE * | 21,721 | 2,151,280 |
| |
| Mexico 0.4% |
| Grupo Aeroportuario del Centro Norte S.A.B. de C.V. * | 349,514 | 2,173,312 |
| Grupo Aeroportuario del Sureste S.A.B. de C.V. ADR * | 3,611 | 614,231 |
| Grupo Televisa S.A.B. ADR * | 253,900 | 3,143,282 |
| | | 5,930,825 |
| |
| Netherlands 4.3% |
| Adyen N.V. * | 4,082 | 10,046,182 |
| Alfen Beheer BV * | 23,602 | 1,875,199 |
| ASM International N.V. | 11,542 | 3,501,577 |
| ASML Holding N.V. | 32,182 | 20,890,671 |
| B&S Group Sarl * | 290,287 | 3,121,266 |
| Basic-Fit N.V. * | 61,350 | 2,761,725 |
| BE Semiconductor Industries N.V. | 58,925 | 4,759,092 |
| Euronext N.V. | 6,144 | 617,981 |
| EXOR N.V. | 56,200 | 4,612,482 |
| IMCD N.V. | 6,154 | 893,864 |
| Marel Hf | 601,195 | 4,307,807 |
| OCI N.V. * | 92,198 | 2,148,791 |
| Royal Boskalis Westminster N.V. * | 103,082 | 3,290,094 |
| | | 62,826,731 |
| |
| Norway 0.8% |
| Bakkafrost P/F | 49,176 | 3,896,012 |
| Elkem A.S.A. | 462,267 | 1,696,343 |
| Fjordkraft Holding A.S.A. | 496,167 | 3,716,484 |
| Pexip Holding A.S.A. * | 41,335 | 432,363 |
| Scatec A.S.A. | 21,924 | 589,833 |
| Tomra Systems A.S.A. | 27,775 | 1,387,567 |
| | | 11,718,602 |
| |
| Panama 0.1% |
| Copa Holdings S.A., Class A * | 22,702 | 1,963,723 |
| |
| Poland 0.1% |
| Allegro.eu S.A. * | 63,798 | 978,117 |
| InPost S.A. * | 38,737 | 738,159 |
| | | 1,716,276 |
| |
| Portugal 0.0% |
| Banco Espirito Santo S.A. *(b) | 42,176 | — |
| |
| Republic of Korea 1.0% |
| Hugel, Inc. * | 12,717 | 2,106,150 |
| Kakao Corp. | 19,320 | 1,967,293 |
| NAVER Corp. | 7,815 | 2,516,602 |
| Samsung Electronics Co., Ltd. | 1,300 | 94,751 |
| Samsung SDI Co., Ltd. | 3,061 | 1,786,645 |
| SK Materials Co., Ltd. | 15,933 | 4,800,771 |
| Soulbrain Co., Ltd. | 4,725 | 1,502,192 |
| | | 14,774,404 |
| |
| Security | Number
of Shares | Value ($) |
| Russia 0.1% |
| Yandex N.V., Class A * | 25,622 | 1,679,522 |
| |
| Singapore 1.0% |
| ESR-REIT | 9,273,390 | 2,889,639 |
| NetLink NBN Trust | 3,292,600 | 2,398,935 |
| SATS Ltd. * | 985,900 | 2,999,441 |
| Sheng Siong Group Ltd. | 3,333,400 | 3,877,132 |
| SPH REIT | 4,379,800 | 2,913,499 |
| | | 15,078,646 |
| |
| South Africa 0.4% |
| Naspers Ltd., N Shares | 26,720 | 6,080,937 |
| |
| Spain 0.7% |
| Amadeus IT Group S.A. * | 112,575 | 7,666,135 |
| EDP Renovaveis S.A. * | 55,742 | 1,328,253 |
| Solaria Energia y Medio Ambiente S.A. * | 21,813 | 447,181 |
| | | 9,441,569 |
| |
| Sweden 5.1% |
| AAK AB | 133,122 | 3,048,606 |
| AddTech AB, B Shares | 156,399 | 2,726,535 |
| AF POYRY AB * | 72,601 | 2,375,559 |
| Atlas Copco AB, A Shares | 100,648 | 6,103,300 |
| Atlas Copco AB, B Shares | 19,995 | 1,037,519 |
| Beijer Ref AB | 51,075 | 792,051 |
| BHG Group AB * | 179,373 | 3,446,355 |
| Bravida Holding AB | 281,327 | 4,187,230 |
| CELLINK AB, B Shares * | 45,724 | 2,621,915 |
| Desenio Group AB * | 194,711 | 2,240,239 |
| Evolution Gaming Group AB | 19,019 | 3,754,514 |
| H & M Hennes & Mauritz AB, B Shares * | 170,700 | 4,200,479 |
| Hexagon AB, B Shares | 39,792 | 3,800,888 |
| Indutrade AB | 55,387 | 1,446,468 |
| Investment AB Latour, B Shares | 34,005 | 1,038,794 |
| Kinnevik AB, B Shares * | 36,182 | 1,996,943 |
| Lifco AB, B Shares | 44,424 | 4,757,483 |
| Nibe Industrier AB, B Shares | 34,066 | 1,244,125 |
| Nolato AB, B Shares * | 7,636 | 753,982 |
| Nordic Entertainment Group AB, B Shares * | 81,852 | 3,796,907 |
| Sinch AB * | 6,331 | 988,692 |
| SKF AB, B Shares | 103,200 | 2,666,250 |
| Spotify Technology S.A. * | 14,801 | 3,731,628 |
| Stillfront Group AB * | 258,908 | 2,639,903 |
| Sweco AB, B Shares | 34,473 | 612,964 |
| Thule Group AB | 15,371 | 697,194 |
| Trelleborg AB, B Shares | 170,168 | 4,427,060 |
| Vitrolife AB | 14,152 | 530,279 |
| Volvo AB, B Shares | 122,100 | 2,981,751 |
| | | 74,645,613 |
| |
| Switzerland 4.9% |
| Belimo Holding AG | 1,460 | 582,651 |
| Burckhardt Compression Holding AG | 9,838 | 3,532,898 |
| Cembra Money Bank AG | 15,120 | 1,644,110 |
| Cie Financiere Richemont S.A. | 22,500 | 2,309,102 |
| Comet Holding AG | 11,318 | 2,902,074 |
| Credit Suisse Group AG | 826,153 | 8,658,063 |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Glencore plc * | 2,415,700 | 9,840,162 |
| LafargeHolcim Ltd. * | 57,964 | 3,576,825 |
| Logitech International S.A. | 11,709 | 1,303,263 |
| Lonza Group AG * | 6,375 | 4,052,678 |
| Novartis AG | 47,700 | 4,070,544 |
| Partners Group Holding AG | 2,880 | 4,102,465 |
| Roche Holding AG | 9,790 | 3,193,063 |
| Siegfried Holding AG * | 924 | 849,771 |
| SIG Combibloc Group AG * | 134,454 | 3,295,614 |
| Sika AG | 18,459 | 5,513,012 |
| Softwareone Holding AG * | 21,395 | 554,466 |
| Straumann Holding AG | 1,983 | 2,834,048 |
| Tecan Group AG | 1,988 | 968,724 |
| Temenos AG | 7,023 | 1,032,520 |
| The Swatch Group AG - Bearer Shares | 7,340 | 2,249,758 |
| u-blox Holding AG * | 9,750 | 668,464 |
| VAT Group AG | 3,664 | 1,046,307 |
| Zur Rose Group AG * | 7,460 | 2,482,784 |
| | | 71,263,366 |
| |
| Taiwan 2.6% |
| Accton Technology Corp. | 352,000 | 3,985,724 |
| Advanced Wireless Semiconductor Co. | 526,000 | 2,908,912 |
| Advantech Co., Ltd. | 56,000 | 708,560 |
| Alchip Technologies Ltd. | 64,000 | 1,129,563 |
| ASMedia Technology, Inc. | 9,000 | 374,146 |
| ASPEED Technology, Inc. | 28,000 | 2,090,061 |
| Chailease Holding Co., Ltd. | 551,714 | 3,975,685 |
| Globalwafers Co., Ltd. | 36,000 | 1,103,364 |
| Gourmet Master Co., Ltd. | 616,000 | 4,098,706 |
| MediaTek, Inc. | 115,000 | 4,821,095 |
| Merida Industry Co., Ltd. | 278,000 | 3,307,069 |
| Nien Made Enterprise Co., Ltd. | 261,000 | 4,210,037 |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 48,515 | 5,663,641 |
| | | 38,376,563 |
| |
| Thailand 0.3% |
| Airports of Thailand plc | 197,300 | 392,858 |
| Carabao Group plc | 111,200 | 401,766 |
| Sea Ltd. ADR * | 11,544 | 2,915,322 |
| | | 3,709,946 |
| |
| United Kingdom 14.1% |
| 3i Group plc | 74,350 | 1,316,871 |
| Abcam plc * | 18,935 | 399,575 |
| Ashtead Group plc | 104,564 | 6,718,333 |
| ASOS plc * | 55,372 | 3,991,815 |
| Assura plc | 766,466 | 789,043 |
| Avast plc | 185,730 | 1,225,319 |
| AVEVA Group plc | 21,418 | 1,029,379 |
| Big Yellow Group plc | 39,952 | 661,076 |
| Bodycote plc | 268,904 | 2,808,706 |
| boohoo Group plc * | 134,903 | 633,135 |
| Bunzl plc | 28,400 | 913,140 |
| Ceres Power Holdings plc * | 27,792 | 513,603 |
| Cineworld Group plc * | 790,819 | 1,057,116 |
| Clipper Logistics plc | 62,465 | 593,519 |
| CNH Industrial N.V. | 528,792 | 7,849,688 |
| Coats Group plc | 4,483,743 | 3,616,596 |
| Compass Group plc * | 306,627 | 6,670,447 |
| ContourGlobal plc | 1,163,686 | 3,218,530 |
| Croda International plc | 28,002 | 2,615,944 |
| Security | Number
of Shares | Value ($) |
| Diploma plc | 120,316 | 4,763,211 |
| Dr. Martens plc * | 499,379 | 3,335,230 |
| Electrocomponents plc | 353,574 | 5,203,984 |
| Endava plc * | 41,839 | 3,788,103 |
| Equiniti Group plc * | 1,458,433 | 3,524,331 |
| Experian plc | 74,723 | 2,880,687 |
| Fevertree Drinks plc | 65,721 | 2,276,360 |
| Forterra plc * | 834,596 | 3,365,646 |
| Future plc | 148,382 | 4,834,850 |
| Greggs plc * | 77,213 | 2,519,394 |
| Halma plc | 72,170 | 2,578,821 |
| Hill & Smith Holdings plc | 172,060 | 3,498,879 |
| HomeServe plc | 230,579 | 3,484,647 |
| Howden Joinery Group plc * | 457,592 | 5,111,985 |
| IMI plc | 72,167 | 1,585,840 |
| Inchcape plc * | 242,839 | 2,621,136 |
| Intermediate Capital Group plc | 297,617 | 8,985,007 |
| Intertek Group plc | 17,306 | 1,467,017 |
| IWG plc * | 766,926 | 3,883,063 |
| Liberty Global plc, Class A * | 179,700 | 4,833,930 |
| Liberty Global plc, Class C * | 26,239 | 710,027 |
| Lloyds Banking Group plc | 19,653,100 | 12,324,053 |
| London Stock Exchange Group plc | 30,887 | 3,155,670 |
| Natwest Group plc | 1,658,818 | 4,501,720 |
| Ocado Group plc * | 82,118 | 2,377,229 |
| Prudential plc | 193,800 | 4,103,575 |
| Renishaw plc | 8,528 | 736,333 |
| Rentokil Initial plc | 286,783 | 1,982,034 |
| Rolls-Royce Holdings plc * | 1,046,833 | 1,514,983 |
| Rotork plc | 284,785 | 1,353,583 |
| S4 Capital plc * | 323,273 | 2,495,689 |
| Schroders plc | 68,733 | 3,424,514 |
| Segro plc | 145,658 | 2,023,565 |
| Signature Aviation plc * | 515,741 | 2,879,683 |
| Smiths Group plc | 73,100 | 1,641,703 |
| Softcat plc | 29,109 | 770,653 |
| Spectris plc | 82,763 | 3,717,705 |
| Spirax-Sarco Engineering plc | 13,038 | 2,128,113 |
| SSP Group plc * | 668,902 | 2,959,673 |
| The Weir Group plc * | 189,953 | 5,027,378 |
| Trainline plc * | 109,717 | 691,102 |
| Tritax Big Box REIT plc | 2,177,897 | 5,723,129 |
| Ultra Electronics Holdings plc | 126,407 | 3,531,566 |
| Vesuvius plc | 276,538 | 2,053,465 |
| Victrex plc | 147,564 | 4,785,231 |
| WH Smith plc * | 133,635 | 3,339,030 |
| WPP plc | 283,000 | 3,815,439 |
| | | 204,930,801 |
| |
| United States 1.2% |
| Illumina, Inc. * | 12,414 | 4,876,716 |
| Moderna, Inc. * | 19,866 | 3,552,438 |
| NVIDIA Corp. | 2,119 | 1,272,205 |
| Tesla, Inc. * | 10,487 | 7,439,898 |
| | | 17,141,257 |
| Total Common Stock |
| (Cost $966,796,755) | | 1,397,591,753 |
|
| Preferred Stock 0.2% of net assets |
| |
| Brazil 0.1% |
| Randon SA Implementos e Participacoes | 649,900 | 1,664,217 |
| |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
| Security | Number
of Shares | Value ($) |
| Germany 0.1% |
| Henkel AG & Co. KGaA | 5,100 | 585,835 |
| Total Preferred Stock |
| (Cost $1,910,031) | | 2,250,052 |
Security
Rate, Maturity Date | Face Amount
Local Currency | Value ($) |
| Corporate Bond 0.0% of net assets |
| |
| Switzerland 0.0% |
| Credit Suisse Group (Guernsey) VII Ltd., Series A Mandatory Convertible Notes (b)(c) |
| 3.00%, 11/12/21 | 400,000 | 483,366 |
| Total Corporate Bond |
| (Cost $437,996) | | 483,366 |
| Security | Number
of Shares | Value ($) |
| Rights 0.0% of net assets |
| |
| Netherlands 0.0% |
Euronext N.V.
expires 05/07/21 * | 6,144 | 72,019 |
| |
| Security | Number
of Shares | Value ($) |
| Switzerland 0.0% |
Credit Suisse Group AG
expires 05/06/21 *(b) | 826,153 | 34,577 |
| Total Rights |
| (Cost $—) | | 106,596 |
|
| Investment Company 3.4% of net assets |
| |
| Money Market Fund 3.4% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (d) | 49,285,550 | 49,285,550 |
| Total Investment Company |
| (Cost $49,285,550) | | 49,285,550 |
| | Number of
Contracts | Notional
Amount
($) | Current Value/
Unrealized
Appreciation
($) |
| Futures Contracts | |
| Long | |
| MSCI EAFE Index, expires 06/18/21 | 325 | 36,681,125 | 984,021 |
Settlement
Date | Counterparty | Currency
to be
Received | Amount of
Currency
to be
Received | Currency
to be
Delivered | Amount of
Currency
to be
Delivered | Unrealized
Appreciation
(Depreciation)
($) |
| Forward Foreign Currency Exchange Contracts | | | | | | |
| 05/12/21 | State Street Bank & Trust Co. | CHF | 400,000 | USD | 440,349 | (2,265) |
| 06/16/21 | State Street Bank & Trust Co. | USD | 3,146,279 | CHF | 2,776,000 | 103,154 |
| Net Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | 100,889 |
| * | Non-income producing security. |
| (a) | Securities are traded on separate exchanges for the same entity. |
| (b) | Fair-valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees. |
| (c) | Security or a portion of the security purchased on a delayed-delivery or when-issued basis. |
| (d) | The rate shown is the 7-day yield. |
| | |
| ADR — | American Depositary Receipt |
| CVA — | Dutch Certificate |
| REIT — | Real Estate Investment Trust |
| |
| CHF — | Swiss franc |
| USD — | U.S. dollar |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | $— | $524,838,096 | $— | $524,838,096 | |
| Argentina | 14,151,011 | — | — | 14,151,011 | |
| Australia | 2,142,079 | 53,905,411 | — | 56,047,490 | |
| Brazil | 8,788,224 | — | — | 8,788,224 | |
| Canada | 89,961,961 | — | — | 89,961,961 | |
| China | 23,859,567 | 79,369,741 | — | 103,229,308 | |
| Germany | 6,566,791 | 129,196,343 | — | 135,763,134 | |
| Ireland | 8,417,526 | 6,082,485 | — | 14,500,011 | |
| Israel | 16,231,090 | — | — | 16,231,090 | |
| Mexico | 5,930,825 | — | — | 5,930,825 | |
| Netherlands | 4,307,807 | 58,518,924 | — | 62,826,731 | |
| Norway | 3,716,484 | 8,002,118 | — | 11,718,602 | |
| Panama | 1,963,723 | — | — | 1,963,723 | |
| Poland | 1,716,276 | — | — | 1,716,276 | |
| Portugal | — | — | — * | — | |
| Russia | 1,679,522 | — | — | 1,679,522 | |
| Spain | 1,328,253 | 8,113,316 | — | 9,441,569 | |
| Sweden | 10,159,097 | 64,486,516 | — | 74,645,613 | |
| Taiwan | 5,663,641 | 32,712,922 | — | 38,376,563 | |
| Thailand | 3,709,946 | — | — | 3,709,946 | |
| United Kingdom | 25,448,415 | 179,482,386 | — | 204,930,801 | |
| United States | 17,141,257 | — | — | 17,141,257 | |
| Preferred Stock1 | — | 585,835 | — | 585,835 | |
| Brazil | 1,664,217 | — | — | 1,664,217 | |
| Corporate Bond1 | — | — | 483,366 | 483,366 | |
| Rights | | | | | |
| Netherlands | 72,019 | — | — | 72,019 | |
| Switzerland | — | — | 34,577 | 34,577 | |
| Investment Company1 | 49,285,550 | — | — | 49,285,550 | |
| Futures Contracts2 | 984,021 | — | — | 984,021 | |
| Forward Foreign Currency Exchange Contracts2 | — | 103,154 | — | 103,154 | |
| Liabilities | | | | | |
| Forward Foreign Currency Exchange Contracts2 | — | (2,265) | — | (2,265) | |
| Total | $304,889,302 | $1,145,394,982 | $517,943 | $1,450,802,227 | |
| * | Level 3 amount shown includes securities determined to have no value at April 30, 2021. |
| 1 | As categorized in the Portfolio Holdings. |
| 2 | Futures contracts and foreign currency contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - unaffiliated (cost $1,018,430,332) | | $1,449,717,317 |
| Foreign currency, at value (cost $1,914,580) | | 1,905,835 |
| Deposit with broker for futures contracts | | 4,561,920 |
| Receivables: | | |
| Investments sold | | 7,385,210 |
| Dividends | | 2,498,379 |
| Foreign tax reclaims | | 1,145,527 |
| Fund shares sold | | 310,470 |
| Unrealized appreciation on forward foreign currency exchange contracts | | 103,154 |
| Prepaid expenses | + | 16,608 |
| Total assets | | 1,467,644,420 |
| Liabilities |
| Payables: | | |
| Investments bought | | 5,769,255 |
| Investments bought - delayed-delivery | | 437,996 |
| Investment adviser and administrator fees | | 1,338,912 |
| Shareholder service fees | | 207,300 |
| Independent trustees’ fees | | 651 |
| Fund shares redeemed | | 3,360,404 |
| Variation margin on futures contracts | | 537,525 |
| Due to custodian | | 269,864 |
| Foreign capital gains tax | | 42,286 |
| Unrealized depreciation on forward foreign currency exchange contracts | | 2,265 |
| Accrued expenses | + | 556,583 |
| Total liabilities | | 12,523,041 |
| Net Assets |
| Total assets | | 1,467,644,420 |
| Total liabilities | – | 12,523,041 |
| Net assets | | $1,455,121,379 |
| Net Assets by Source | | |
| Capital received from investors | | 898,828,333 |
| Total distributable earnings | | 556,293,046 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,455,121,379 | | 49,240,681 | | $29.55 |
| | | | | |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - unaffiliated (net of foreign withholding tax of $1,415,655) | | $7,134,384 |
| Expenses |
| Investment adviser and administrator fees | | 9,055,908 |
| Shareholder service fees | | 1,124,146 |
| Custodian fees | | 140,190 |
| Portfolio accounting fees | | 75,195 |
| Professional fees | | 46,648* |
| Shareholder reports | | 33,220 |
| Registration fees | | 16,818 |
| Transfer agent fees | | 9,661 |
| Independent trustees’ fees | | 6,112 |
| Other expenses | + | 22,787 |
| Total expenses | | 10,530,685 |
| Expense reduction by CSIM and its affiliates | – | 1,636,630* |
| Net expenses | – | 8,894,055 |
| Net investment loss | | (1,759,671) |
| Realized and Unrealized Gains (Losses) |
| Net realized gains on sales of securities - unaffiliated (net of foreign capital gains tax paid of $42,286) | | 147,850,956 |
| Net realized gains on futures contracts | | 10,674,983 |
| Net realized losses on forward foreign currency exchange contracts | | (136,616) |
| Net realized losses on foreign currency transactions | + | (116,641) |
| Net realized gains | | 158,272,682 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | 192,845,786 |
| Net change in unrealized appreciation (depreciation) on futures contracts | | 1,356,754 |
| Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | | 164,672 |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (43,399) |
| Net change in unrealized appreciation (depreciation) | + | 194,323,813 |
| Net realized and unrealized gains | | 352,596,495 |
| Increase in net assets resulting from operations | | $350,836,824 |
| * | Includes professional fees of $21,690 associated with the filing of tax claims in the European Union deemed to be non-routine expenses of the fund. See financial notes 2(d) and 4 for additional information. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income (loss) | | ($1,759,671) | $55,632 |
| Net realized gains | | 158,272,682 | 89,185,162 |
| Net change in unrealized appreciation (depreciation) | + | 194,323,813 | 21,758,004 |
| Increase in net assets from operations | | 350,836,824 | 110,998,798 |
| Distributions to Shareholders | |
| Total distributions | | ($85,551,526) | ($27,899,553) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,323,565 | $37,560,900 | 4,963,270 | $95,437,857 |
| Shares reinvested | | 2,533,275 | 68,955,738 | 891,003 | 21,116,755 |
| Shares redeemed | + | (5,600,554) | (159,385,988) | (16,594,568) | (369,846,702) |
| Net transactions in fund shares | | (1,743,714) | ($52,869,350) | (10,740,295) | ($253,292,090) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 50,984,395 | $1,242,705,431 | 61,724,690 | $1,412,898,276 |
| Total increase (decrease) | + | (1,743,714) | 212,415,948 | (10,740,295) | (170,192,845) |
| End of period | | 49,240,681 | $1,455,121,379 | 50,984,395 | $1,242,705,431 |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Financial Notes, unaudited
1. Business Structure of the Fund:
Laudus International MarketMasters Fund is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:
| SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
| Laudus International MarketMasters Fund | Schwab Target 2045 Fund |
| Schwab S&P 500 Index Fund | Schwab Target 2050 Fund |
| Schwab Small-Cap Index Fund® | Schwab Target 2055 Fund |
| Schwab Total Stock Market Index Fund® | Schwab Target 2060 Fund |
| Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2065 Fund |
| Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental US Large Company Index Fund |
| Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental US Small Company Index Fund |
| Schwab International Index Fund® | Schwab Fundamental International Large Company Index Fund |
| Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Company Index Fund |
| Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Large Company Index Fund |
| Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
| Schwab MarketTrack Conservative Portfolio™ | Schwab 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 Target 2065 Index Fund |
| Schwab Target 2025 Fund | Schwab Monthly Income Fund - Moderate Payout |
| Schwab Target 2030 Fund | Schwab Monthly Income Fund - Enhanced Payout |
| Schwab Target 2035 Fund | Schwab Monthly Income Fund - Maximum Payout |
| Schwab Target 2040 Fund | |
The fund 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 the fund. Each share has a par value of 1/1,000 of a cent, and the fund’s Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The fund may invest in mutual funds and exchange-traded funds (ETFs) referred to as “underlying funds”. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
(a) Security Valuation:
Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:
• 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.
• 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 fund valuing its holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the 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 the 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 the fund and that of its comparative index or benchmark. The Board regularly reviews fair value determinations made by the fund pursuant to these procedures.
• Futures contracts and forward foreign currency exchange contracts (forwards): Futures contracts are valued at their settlement prices as of the close of their exchanges. Forwards are valued based on that day’s forward exchange rates or by using an interpolated forward exchange rate for contracts with interim settlement dates.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities, mutual funds 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 underlying securities held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
provincial obligations. In addition, international securities whose markets close hours before the fund values its 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 fund’s own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the fund’s investments as of April 30, 2021 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. The fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by the fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Passive Foreign Investment Companies: The fund may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The fund may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
Forward Foreign Currency Exchange Contracts: Forwards are contracts to buy and sell a currency at a set price on a future date. The value of the forwards is accounted for as unrealized appreciation or depreciation until the contracts settle, at which time the gains or losses are realized.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange 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 fund does 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 fund on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the fund records a liability based on unrealized appreciation to provide for potential non-U.S. taxes payable upon the sale of these securities.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
When the fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
(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 fund records certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The 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:
Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.
(f) Distributions to Shareholders:
The fund makes distributions from net investment income and net realized capital gains, if any, once a year.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.
(i) Foreign Taxes:
The fund 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 fund invests. These foreign taxes, if any, are paid by the fund and are disclosed in the Statement of Operations. Foreign taxes accrued as of April 30, 2021, if any, are reflected in the fund’s Statement of Assets and Liabilities.
(j) Indemnification:
Under the fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.
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Financial Notes, unaudited (continued)
3. Risk Factors:
Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.
Investment Style Risk. CSIM may attempt to reduce the impact of the performance of any given investment style by allocating to investment managers who invest in both value and growth style stocks. But whenever value stocks fall out of favor with investors, they may underperform growth stocks, and vice versa.
Multi-Manager Risk. Although CSIM monitors and coordinates the overall management of the fund, each investment manager makes investment decisions independently, and it is possible that the investment styles of the investment managers may not complement one another. As a result, the fund’s exposure to a given stock, industry or investment style could unintentionally be smaller or larger than if the fund had a single manager.
Management Risk. As an actively managed mutual fund, the fund is subject to the risk that its investment adviser and investment managers will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective. Poor stock selection or a focus on securities in a particular sector may cause the fund to underperform its benchmark or other funds with a similar investment objective.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, the fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Foreign Investment Risk. The 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 the 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 or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged, resulting in the dollar value of the fund’s investment being adversely affected. To the extent the fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with the 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.
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Laudus International MarketMasters Fund
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Currency Risk. As a result of the fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the fund will be subject to currency risk. This is the risk that those currencies will decline in value relative to the U.S. dollar. If such an event occurs, the dollar value of an investment in the fund would be adversely affected.
Derivatives Risk. The fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
The fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk, market risk and management risk, are discussed elsewhere in this section. The fund’s use of derivatives is also subject to credit risk, leverage risk, lack of availability risk, valuation risk, correlation risk and tax risk. 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 the fund. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause the fund to realize higher amounts of short-term capital gains. The fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and could cause the fund to lose more than the initial amount invested. 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.
Liquidity Risk. The fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.
4. Affiliates and Affiliated Transactions:
Investment Adviser
Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to an investment advisory and administration agreement between CSIM and the trust.
For its advisory and administrative services to the fund, CSIM is entitled to receive a graduated annual fee, payable monthly, based on a percentage of the fund’s average daily net assets as follows:
| First $500 million | 1.29% |
| $500 million to $1 billion | 1.275% |
| Over $1 billion | 1.25% |
For the period ended April 30, 2021, the aggregate advisory fees paid to CSIM by the fund was 1.27% 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 fund. The Plan enables the 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 account maintenance, customer liaison and shareholder services to the current shareholders of the fund.
Pursuant to the Plan, the fund’s shares are subject to an annual shareholder servicing fee up to 0.20%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the fund (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the fund), and the
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
fund will pay no more than 0.20% 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 fund, for so long as CSIM serves as the investment adviser to the fund, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses to 1.25%.
Investments from Affiliates
Certain funds in the Fund Complex (for definition refer to Trustees and Officers section) may own shares of other funds in the Fund Complex. The table below reflects the percentage of shares of the fund in this report that are owned by other funds in the Fund Complex as of April 30, 2021, as applicable:
| | Underlying Fund |
| Schwab Monthly Income Fund - Enhanced Payout | 0.5% |
| Schwab Monthly Income Fund - Maximum Payout | 0.3% |
| Schwab Monthly Income Fund - Moderate Payout | 0.4% |
| Schwab Target 2010 Fund | 0.3% |
| Schwab Target 2015 Fund | 0.4% |
| Schwab Target 2020 Fund | 2.9% |
| Schwab Target 2025 Fund | 4.3% |
| Schwab Target 2030 Fund | 8.8% |
| Schwab Target 2035 Fund | 5.2% |
| Schwab Target 2040 Fund | 11.6% |
| Schwab Target 2045 Fund | 2.4% |
| Schwab Target 2050 Fund | 2.4% |
| Schwab Target 2055 Fund | 1.6% |
| Schwab Target 2060 Fund | 0.4% |
| Schwab Target 2065 Fund | 0.0%* |
Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2 were non-routine expenses. The investment adviser agreed to pay these professional fees on behalf of the fund subject to reimbursement to the extent the fund is able to successfully recover taxes withheld in the future.
The professional fees incurred by the fund were $21,690 and the fund made no reimbursements to the investment adviser during the period ended April 30, 2021.
As of April 30, 2021, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the fund to the investment adviser was $49,372.
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.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.
5. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on the fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
6. Borrowing from Banks:
During the period, the fund was a participant with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund paid a commitment fee of 0.15% per annum on the fund’s proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the fund was a participant with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount it borrows. There were no borrowings from either line of credit during the period.
The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is 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, 2021, purchases and sales of securities (excluding short-term obligations) were as follows:
| | Purchases
of Securities | Sales
of Securities |
| | $425,312,425 | $546,538,765 |
8. Derivatives:
The fund entered into equity index futures contracts during the report period. The fund invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2021 are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. Refer to financial note 2(b) for the fund’s accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended April 30, 2021, the month-end average notional amounts of futures contracts held by the fund and the month-end average number of contracts held were $40,911,413 and 392, respectively.
The fund invested in forwards in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates and to hedge exposure to certain currencies. Refer to financial note 2(b) for the fund’s accounting policies with respect to forwards and financial note 3 for disclosures concerning the risks of investing in forwards. During the period ended April 30, 2021, the month-end average forward foreign currency notional amount and the month-end average unrealized appreciation were $3,417,526 and $32,576, respectively.
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Financial Notes, unaudited (continued)
8. Derivatives (continued):
As of April 30, 2021, the derivatives contracts held by the fund, categorized by primary risk exposure, were:
| Asset Derivatives | Fair Value |
| Equity Index Futures Contracts1 | $984,021 |
| Forward Foreign Currency Exchange Contracts2 | 103,154 |
| Liability Derivatives | Fair Value |
| Equity Index Futures Contracts3 | $— |
| Forward Foreign Currency Exchange Contracts4 | (2,265) |
| 1 | Includes cumulative unrealized appreciation of futures contracts as reported in the Portfolio Holdings. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
| 2 | Statement of Assets and Liabilities location: Unrealized appreciation on forward foreign currency exchange contracts. |
| 3 | Includes cumulative unrealized depreciation of futures contracts as reported in the Portfolio Holdings. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
| 4 | Statement of Assets and Liabilities location: Unrealized depreciation on forward foreign currency exchange contracts. |
The effects of the derivatives held by the fund in the Statement of Operations for the period ended April 30, 2021 were:
| Equity Index Futures Contracts | |
| Realized gains1 | $10,674,983 |
| Net change in unrealized appreciation (depreciation)2 | 1,356,754 |
| Forward Foreign Currency Exchange Contracts | |
| Realized losses1 | ($136,616) |
| Net change in unrealized appreciation (depreciation)2 | 164,672 |
| 1 | Statement of Operations location: Net realized gains on futures contracts and net realized losses on forward foreign currency exchange contracts. |
| 2 | Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts and net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts. |
The fund’s forwards are entered into pursuant to International Swaps and Derivatives Association, Inc. (ISDA) agreements which govern certain terms of derivative transactions. ISDA agreements typically contain, among other things, master netting provisions in the event of a default or other termination event. Master netting provisions allow the fund and the counterparty, in the event of a default or other termination event, to offset payable and receivable amounts for each party related to derivative contracts to one net amount payable by either the fund or the counterparty. The fund’s forwards, which are reported gross in the Statement of Assets and Liabilities, are presented in the table below. The following table presents the fund’s forwards, net of amounts available for offset under a master netting agreement and net of any related collateral received by the fund for assets and pledged by the fund for liabilities as of April 30, 2021.
| Counterparty | Gross Amounts of Assets
Presented in the
Statement of Assets and Liabilities | | Financial
Instruments
Available for Offset | | Cash Collateral
Received | | Net
Amounts(a) |
| State Street Bank & Trust Co. | $103,154 | | ($2,265) | | $— | | $100,889 |
| Total | $103,154 | | ($2,265) | | $— | | $100,889 |
| Counterparty | Gross Amounts of Liabilities
Presented in the
Statement of Assets and Liabilities | | Financial
Instruments
Available for Offset | | Cash Collateral
Pledged | | Net
Amounts(a) |
| State Street Bank & Trust Co. | ($2,265) | | $2,265 | | $— | | $— |
| Total | ($2,265) | | $2,265 | | $— | | $— |
| a | Represents the net amount due to the counterparty in the event of default. |
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Laudus International MarketMasters Fund
Financial Notes, unaudited (continued)
9. Federal Income Taxes:
As of April 30, 2021, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| Tax cost | $1,041,137,658 |
| Gross unrealized appreciation | $436,883,920 |
| Gross unrealized depreciation | (27,219,351) |
| Net unrealized appreciation (depreciation) | $409,664,569 |
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2020, the fund had no capital loss carryforwards available to offset future net capital gains.
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, 2021. The tax-basis components of distributions paid during the fiscal year ended October 31, 2020, were as follows:
| Ordinary income | $25,483,603 |
| Long-term capital gains | 2,415,950 |
As of October 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended October 31, 2020, the fund did not incur any interest or penalties.
10. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Laudus International MarketMasters Fund
Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the fund covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 103 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the fund’s Statement of Additional Information, which is available free by calling 1-877-824-5615.
| 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. | 103 | 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. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | 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 |
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). | 103 | 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). | 103 | None |
J. Derek Penn
1957
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
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| Interested 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 |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer, Chief Financial Officer and Chief Operating 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) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (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
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr.
1972
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
| 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 |
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 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. 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. |
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
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 $300 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.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE 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.
MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The 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 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 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.
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.
stock A share of ownership, or equity, in the issuing company.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
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.
Laudus International MarketMasters Fund | Semiannual Report
Laudus International MarketMasters Fund
Laudus Funds®
Laudus Funds offer investors access to some of the world’s leading investment managers. With a rigorous manager selection process and ongoing oversight by Charles Schwab Investment Management, Laudus Funds offer single and multi-manager strategies as a complement to other funds managed by Charles Schwab Investment Management. The list below shows all currently available Laudus Funds.
An investor should consider a fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the fund’s prospectus or, if available, the summary prospectus. Please call 1-877-824-5615 for a prospectus for any Laudus 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 Laudus Funds’ website at www.schwabassetmanagement.com/laudusfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Laudus Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/laudusfunds_prospectus or the SEC’s website at www.sec.gov.
Laudus® U.S. Large Cap Growth Fund
Laudus International MarketMasters Fund™
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
Fund
Laudus International MarketMasters Fund
1-877-824-5615
Printed on recycled paper.
This page is intentionally left blank.
Semiannual Report | April 30, 2021
Schwab Target Funds
Schwab Target 2010 Fund
Schwab Target 2015 Fund
Schwab Target 2020 Fund
Schwab Target 2025 Fund
Schwab Target 2030 Fund
Schwab Target 2035 Fund
Schwab Target 2040 Fund
Schwab Target 2045 Fund
Schwab Target 2050 Fund
Schwab Target 2055 Fund
Schwab Target 2060 Fund
Schwab Target 2065 Fund
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM)
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Total Return for the 6 Months Ended April 30, 2021 |
| Schwab Target 2010 Fund (Ticker Symbol: SWBRX) | 9.66% |
| Target 2010 Composite Index | 9.30% |
| Fund Category: Morningstar Target-Date 2000-20101 | 10.06% |
| Performance Details | pages 7-8 |
| |
| Schwab Target 2015 Fund (Ticker Symbol: SWGRX) | 10.42% |
| Target 2015 Composite Index | 10.17% |
| Fund Category: Morningstar Target-Date 20151 | 11.95% |
| Performance Details | pages 9-10 |
| |
| Schwab Target 2020 Fund (Ticker Symbol: SWCRX) | 11.06% |
| Target 2020 Composite Index | 10.76% |
| Fund Category: Morningstar Target-Date 20201 | 13.31% |
| Performance Details | pages 11-12 |
| |
| Schwab Target 2025 Fund (Ticker Symbol: SWHRX) | 15.18% |
| Target 2025 Composite Index | 14.82% |
| Fund Category: Morningstar Target-Date 20251 | 15.32% |
| Performance Details | pages 13-14 |
| |
| Schwab Target 2030 Fund (Ticker Symbol: SWDRX) | 18.59% |
| Target 2030 Composite Index | 18.22% |
| Fund Category: Morningstar Target-Date 20301 | 18.33% |
| Performance Details | pages 15-16 |
| |
| Schwab Target 2035 Fund (Ticker Symbol: SWIRX) | 21.32% |
| Target 2035 Composite Index | 20.91% |
| Fund Category: Morningstar Target-Date 20351 | 21.68% |
| Performance Details | pages 17-18 |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
| 1 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| | |
Schwab Target Funds | Semiannual Report
Performance at a Glance (continued)
| Total Return for the 6 Months Ended April 30, 2021 |
| Schwab Target 2040 Fund (Ticker Symbol: SWERX) | 23.57% |
| Target 2040 Composite Index | 23.22% |
| Fund Category: Morningstar Target-Date 20401 | 24.46% |
| Performance Details | pages 19-20 |
| |
| Schwab Target 2045 Fund (Ticker Symbol: SWMRX) | 25.65% |
| Target 2045 Composite Index | 25.42% |
| Fund Category: Morningstar Target-Date 20451 | 26.32% |
| Performance Details | pages 21-22 |
| |
| Schwab Target 2050 Fund (Ticker Symbol: SWNRX) | 27.02% |
| Target 2050 Composite Index | 26.70% |
| Fund Category: Morningstar Target-Date 20501 | 27.15% |
| Performance Details | pages 23-24 |
| |
| Schwab Target 2055 Fund (Ticker Symbol: SWORX) | 27.82% |
| Target 2055 Composite Index | 27.57% |
| Fund Category: Morningstar Target-Date 20551 | 27.55% |
| Performance Details | pages 25-26 |
| |
| Schwab Target 2060 Fund (Ticker Symbol: SWPRX) | 28.72% |
| Target 2060 Composite Index | 28.43% |
| Fund Category: Morningstar Target-Date 2060+1 | 27.85% |
| Performance Details | pages 27-28 |
| |
| Schwab Target 2065 Fund (Ticker Symbol: SWQRX) | 6.60% 2 |
| Target 2065 Composite Index | 5.70% 2 |
| Fund Category: Morningstar Target-Date 2060+1 | N/A |
| Performance Details | pages 29-30 |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
| 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 | Total returns shown are since the fund’s inception date of February 25, 2021. |
Schwab Target Funds | Semiannual Report
The Investment Environment
For the six-month reporting period ended April 30, 2021, U.S. and international equity markets generated solid returns, with major market indices ending the reporting period just shy of record highs. Despite persisting COVID-19 pandemic-driven stresses on the global economy—including widespread business disruptions, high unemployment, and prolonged stay-at-home orders—and a resurgence of COVID-19 cases in the fall and winter, equity markets continued to be buoyed by the extensive emergency rescue and fiscal stimulus measures passed by governments and central banks around the world beginning in March 2020, as well as the initial distribution of COVID-19 vaccines in December 2020 and the expanded rollout in 2021. The COVID-19 vaccine rollout helped fuel the early stages of a shift in the market towards cyclical sectors, beginning in November and December 2020 and continuing through the remainder of the reporting period. The U.S. dollar ended the reporting period weaker against a basket of foreign currencies, generally enhancing the returns of overseas investments in U.S. dollar terms. The S&P 500® Index, a bellwether for the overall U.S. stock market, returned 28.85% for the reporting period. U.S. small-cap stocks significantly outperformed U.S. large-cap stocks, with the Russell 2000® Index and the Russell 1000® Index returning 48.06% and 30.03%, respectively, for the reporting period. Outside the U.S., the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 28.84% for the reporting period, while the MSCI Emerging Markets Index (Net)* returned 22.95%. Bond markets were significantly weaker, with the Bloomberg Barclays US Aggregate Bond Index, representing the broad U.S. fixed-income market, returning -1.52% and the FTSE non-US Dollar World Government Bond Index returning -0.83% for the reporting period.
Bolstered by the extensive emergency rescue and fiscal stimulus measures passed by the U.S. Federal Reserve (Fed) and U.S. Congress, the U.S. economy has held up relatively well, especially given the intensity of the COVID-19 pandemic’s economic impact. After a steep slide in the second quarter of 2020 and subsequent recovery in the third quarter of 2020, U.S. gross domestic product (GDP) grew at an annualized rate of 4.3% for the fourth quarter of 2020 and an annualized rate of 6.4% for the first quarter of 2021. Unemployment, which skyrocketed in April 2020, fell in each subsequent month through March 2021 before experiencing a slight uptick in April 2021. Inflation remained well
Asset Class Performance Comparison % returns during the 6 months ended April 30, 2021
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. |
Schwab Target Funds | Semiannual Report
The Investment Environment (continued)
below the Fed’s traditional target of 2% until March 2021, when it jumped, largely due to supply and demand imbalances in the labor market, increased demand particularly for travel-related services, as well as increasing energy costs.
Outside the U.S., global economies wrestled with the fallout of the COVID-19 pandemic against the anticipation of its eventual end. In the eurozone, GDP growth jumped in the third quarter of 2020, regaining much of its losses from the second quarter, but turned slightly negative for both the fourth quarter of 2020 and the first quarter of 2021. The United Kingdom, which was particularly hard-hit by the COVID-19 pandemic, suffered its biggest slump in more than three centuries over the course of 2020, effectively wiping out its growth over the past seven years, but posted a small positive gain in GDP for the first quarter of 2021. Japan’s economy, after rebounding sharply in the third quarter of 2020, posted a positive, albeit smaller, gain in the fourth quarter of 2020 on strong exports and consumer spending. China, the only major economy to avoid contraction in the face of COVID-19 pandemic-related shocks, maintained positive GDP growth in the fourth quarter of 2020. China’s growth accelerated sharply for the first quarter of 2021 on rising domestic and global demand, strict COVID-19 containment measures, and continued fiscal and monetary support. India, after plunging into one of the worst recessions of any major economy, saw its first positive gain in GDP in the fourth quarter of 2020, but a huge spike in COVID-19 cases in April 2021 dampened its growth prospects.
Central banks around the world, including the Fed, maintained the low—and for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. In the U.S., the federal funds rate remained in a range of 0.00% to 0.25% throughout the reporting period. The Fed reiterated its intention to continue its support of the economy, and in April 2021 affirmed that despite showing signs of recovery, the U.S. economy still had a way to go before the Fed would consider raising interest rates or tapering its bond-buying policy. The Fed also maintained its revised approach to its interest rate policy, announced in August 2020, that would allow inflation to rise above its previous 2% target for periods of time, even in times of rising employment. Outside the U.S., the European Central Bank held its policy rate at 0.00%, unchanged since March 2016, and maintained its asset purchase program to help counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.01%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program. Central banks in key emerging market economies—including China, India, Russia, and Thailand—also maintained low rates to help counter the effects of the COVID-19 pandemic. Mexico reduced its benchmark interest rate by 0.25% in February 2021.
U.S. bond yields remained at historically low levels from the onset of the COVID-19 pandemic through the end of 2020. Beginning in 2021, U.S. bonds sold off, driving yields steadily higher as investors anticipated an accelerating economic recovery and inflation expectations for the second part of the year rose significantly. (Bond yields and bond prices typically move in opposite directions.) The yield on the 10-year U.S. Treasury, which began the reporting period at 0.88%, hit a high of 1.74% in March before dropping back slightly to end the reporting period at 1.65%. Short-term rates ended the reporting period at historic lows, as the three-month U.S. Treasury yield slid from 0.09% to 0.01% over the reporting period. Outside the U.S., bond yields remained low.
Schwab Target Funds | Semiannual Report
 | Zifan Tang, Ph.D., CFA, Senior Portfolio Manager, is responsible for the co-management of the funds. Prior to joining Schwab in January 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
 | Patrick Kwok, CFA, Portfolio Manager, is responsible for the co-management of the funds. Previously, Mr. Kwok served as an associate portfolio manager with CSIM from 2012 to 2016. Prior to that, he worked as a fund administration manager for CSIM, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration for the Charles Schwab Trust Bank Collective Investment Trusts and Schwab’s multi-asset mutual funds. Prior to joining CSIM in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Target 2010 Fund (7/1/05) | 9.66% | 16.70% | 7.40% | 6.04% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Target 2010 Composite Index | 9.30% | 14.85% | 7.26% | 6.12% |
| Fund Category: Morningstar Target-Date 2000-20102 | 10.06% | 17.74% | 7.40% | 5.80% |
| Fund Expense Ratios3: Net 0.32%; Gross 0.46% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.32% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 21 |
| Portfolio Turnover Rate | 15% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Target 2015 Fund (3/12/08) | 10.42% | 17.87% | 7.66% | 6.34% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Target 2015 Composite Index | 10.17% | 16.07% | 7.54% | 6.42% |
| Fund Category: Morningstar Target-Date 20152 | 11.95% | 20.26% | 8.15% | 6.54% |
| Fund Expense Ratios3: Net 0.33%; Gross 0.43% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.33% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 20 |
| Portfolio Turnover Rate | 11% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Target 2020 Fund (7/1/05) | 11.06% | 18.82% | 8.42% | 7.04% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Target 2020 Composite Index | 10.76% | 16.89% | 8.29% | 7.18% |
| Fund Category: Morningstar Target-Date 20202 | 13.31% | 22.28% | 8.68% | 6.96% |
| Fund Expense Ratios3: Net 0.35%; Gross 0.37% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.35% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 20 |
| Portfolio Turnover Rate | 8% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Target 2025 Fund (3/12/08) | 15.18% | 25.52% | 9.76% | 7.95% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Target 2025 Composite Index | 14.82% | 22.91% | 9.67% | 8.11% |
| Fund Category: Morningstar Target-Date 20252 | 15.32% | 25.38% | 9.56% | 7.37% |
| Fund Expense Ratios3: Net 0.46%; Gross 0.48% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.46% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 23 |
| Portfolio Turnover Rate | 13% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Target 2030 Fund (7/1/05) | 18.59% | 31.14% | 10.82% | 8.61% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Target 2030 Composite Index | 18.22% | 27.91% | 10.72% | 8.80% |
| Fund Category: Morningstar Target-Date 20302 | 18.33% | 30.11% | 10.74% | 8.04% |
| Fund Expense Ratios3: Net 0.53%; Gross 0.55% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.53% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 23 |
| Portfolio Turnover Rate | 13% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Target 2035 Fund (3/12/08) | 21.32% | 35.35% | 11.60% | 9.15% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Target 2035 Composite Index | 20.91% | 31.94% | 11.56% | 9.38% |
| Fund Category: Morningstar Target-Date 20352 | 21.68% | 35.35% | 11.82% | 8.69% |
| Fund Expense Ratios3: Net 0.59%; Gross 0.62% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.59% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 22 |
| Portfolio Turnover Rate | 12% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Target 2040 Fund (7/1/05) | 23.57% | 39.16% | 12.27% | 9.58% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 13.99% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Target 2040 Composite Index | 23.22% | 35.46% | 12.29% | 9.84% |
| Fund Category: Morningstar Target-Date 20402 | 24.46% | 39.63% | 12.52% | 9.14% |
| Fund Expense Ratios3: Net 0.64%; Gross 0.66% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.64% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 21 |
| Portfolio Turnover Rate | 13% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
| Fund: Schwab Target 2045 Fund (1/23/13) | 25.65% | 42.67% | 12.77% | 10.90% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 15.46% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 2.89% |
| Target 2045 Composite Index | 25.42% | 38.84% | 12.84% | 11.25% |
| Fund Category: Morningstar Target-Date 20452 | 26.32% | 42.57% | 13.06% | N/A |
| Fund Expense Ratios3: Net 0.68%; Gross 0.73% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.68% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 21 |
| Portfolio Turnover Rate | 11% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
| Fund: Schwab Target 2050 Fund (1/23/13) | 27.02% | 44.77% | 13.08% | 11.17% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 15.46% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 2.89% |
| Target 2050 Composite Index | 26.70% | 40.81% | 13.16% | 11.51% |
| Fund Category: Morningstar Target-Date 20502 | 27.15% | 43.77% | 13.19% | N/A |
| Fund Expense Ratios3: Net 0.70%; Gross 0.76% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.70% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 21 |
| Portfolio Turnover Rate | 16% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,5,6
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | Less than 0.05%. |
| 5 | This list is not a recommendation of any security by the investment adviser. |
| 6 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
| Fund: Schwab Target 2055 Fund (1/23/13) | 27.82% | 46.15% | 13.32% | 11.32% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 17.63% | 15.46% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 2.89% |
| Target 2055 Composite Index | 27.57% | 42.17% | 13.42% | 11.69% |
| Fund Category: Morningstar Target-Date 20552 | 27.55% | 44.45% | 13.35% | N/A |
| Fund Expense Ratios3: Net 0.72%; Gross 0.81% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.72% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 20 |
| Portfolio Turnover Rate | 10% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 3 Years | Since Inception |
| Fund: Schwab Target 2060 Fund (8/25/16) | 28.72% | 47.71% | 12.41% | 13.20% |
| Dow Jones U.S. Total Stock Market IndexSM | 31.23% | 51.01% | 18.88% | 17.40% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 5.19% | 2.91% |
| Target 2060 Composite Index | 28.43% | 43.52% | 13.16% | 13.31% |
| Fund Category: Morningstar Target-Date 2060+2 | 27.85% | 44.91% | 13.22% | N/A |
| Fund Expense Ratios3: Net 0.74%; Gross 1.15% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.74% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 20 |
| Portfolio Turnover Rate | 12% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | Since Inception |
| Fund: Schwab Target 2065 Fund (2/25/21) | 6.60% |
| Dow Jones U.S. Total Stock Market IndexSM | 8.46% |
| Bloomberg Barclays US Aggregate Bond Index | 0.36% |
| Target 2065 Composite Index | 5.70% |
| Fund Category: Morningstar Target-Date 2060+2 | N/A |
| Fund Expense Ratios3: Net 0.69%; Gross 3.18% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.69% of acquired fund fees and expenses (AFFE), which are based on estimated amounts for the current fiscal year and are indirect expenses incurred by the fund through its investments in the underlying funds. 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 and is estimated based on the expenses the fund expects to incur for its first full fiscal year. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 20 |
| Portfolio Turnover Rate | 7% 1 |
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4,5
Portfolio holdings may have changed since the report date.
| 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 | The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities, exchange-traded funds, and cash equivalents, including money market securities. |
| 4 | This list is not a recommendation of any security by the investment adviser. |
| 5 | The holdings listed exclude any temporary liquidity investments. |
Schwab Target Funds | Semiannual Report
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 transfer agent fees and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2020 and held through April 30, 2021.
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)1,2 | Effective
Expense Ratio
(Annualized)3,4 | Beginning
Account Value
at 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/212 | Expenses Paid
During Period
11/1/20-4/30/212,5 | Effective
Expenses Paid
During Period
11/1/20-4/30/214,5 |
| Schwab Target 2010 Fund | | | | | | |
| Actual Return | 0.00% | 0.31% | $1,000.00 | $1,096.60 | $0.00 | $1.61 |
| Hypothetical 5% Return | 0.00% | 0.31% | $1,000.00 | $1,024.80 | $0.00 | $1.56 |
| Schwab Target 2015 Fund | | | | | | |
| Actual Return | 0.00% | 0.33% | $1,000.00 | $1,104.20 | $0.00 | $1.72 |
| Hypothetical 5% Return | 0.00% | 0.33% | $1,000.00 | $1,024.80 | $0.00 | $1.66 |
| Schwab Target 2020 Fund | | | | | | |
| Actual Return | 0.00% | 0.35% | $1,000.00 | $1,110.60 | $0.00 | $1.83 |
| Hypothetical 5% Return | 0.00% | 0.35% | $1,000.00 | $1,024.80 | $0.00 | $1.76 |
| Schwab Target 2025 Fund | | | | | | |
| Actual Return | 0.00% | 0.44% | $1,000.00 | $1,151.80 | $0.00 | $2.35 |
| Hypothetical 5% Return | 0.00% | 0.44% | $1,000.00 | $1,024.80 | $0.00 | $2.21 |
| Schwab Target 2030 Fund | | | | | | |
| Actual Return | 0.00% | 0.52% | $1,000.00 | $1,185.90 | $0.00 | $2.82 |
| Hypothetical 5% Return | 0.00% | 0.52% | $1,000.00 | $1,024.80 | $0.00 | $2.61 |
| Schwab Target 2035 Fund | | | | | | |
| Actual Return | 0.00% | 0.57% | $1,000.00 | $1,213.20 | $0.00 | $3.13 |
| Hypothetical 5% Return | 0.00% | 0.57% | $1,000.00 | $1,024.80 | $0.00 | $2.86 |
| Schwab Target 2040 Fund | | | | | | |
| Actual Return | 0.00% | 0.62% | $1,000.00 | $1,235.70 | $0.00 | $3.44 |
| Hypothetical 5% Return | 0.00% | 0.62% | $1,000.00 | $1,024.80 | $0.00 | $3.11 |
| Schwab Target 2045 Fund | | | | | | |
| Actual Return | 0.00% | 0.66% | $1,000.00 | $1,256.50 | $0.00 | $3.69 |
| Hypothetical 5% Return | 0.00% | 0.66% | $1,000.00 | $1,024.80 | $0.00 | $3.31 |
| Schwab Target 2050 Fund | | | | | | |
| Actual Return | 0.00% | 0.68% | $1,000.00 | $1,270.20 | $0.00 | $3.83 |
| Hypothetical 5% Return | 0.00% | 0.68% | $1,000.00 | $1,024.80 | $0.00 | $3.41 |
| Schwab Target 2055 Fund | | | | | | |
| Actual Return | 0.00% | 0.70% | $1,000.00 | $1,278.20 | $0.00 | $3.95 |
| Hypothetical 5% Return | 0.00% | 0.70% | $1,000.00 | $1,024.80 | $0.00 | $3.51 |
Schwab Target Funds | Semiannual Report
Fund Expenses (Unaudited) (continued)
| | Expense Ratio
(Annualized)1,2 | Effective
Expense Ratio
(Annualized)3,4 | Beginning
Account Value
at 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/212 | Expenses Paid
During Period
11/1/20-4/30/212,5 | Effective
Expenses Paid
During Period
11/1/20-4/30/214,5 |
| Schwab Target 2060 Fund | | | | | | |
| Actual Return | 0.00% | 0.71% | $1,000.00 | $1,287.20 | $0.00 | $4.03 |
| Hypothetical 5% Return | 0.00% | 0.71% | $1,000.00 | $1,024.80 | $0.00 | $3.56 |
| Schwab Target 2065 Fund6,7 | | | | | | |
| Actual Return | 0.00% | 0.70% | $1,000.00 | $1,066.00 | $0.00 | $1.27 |
| Hypothetical 5% Return | 0.00% | 0.70% | $1,000.00 | $1,024.80 | $0.00 | $3.51 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 3 | Based on the most recent six-month acquired fund fees and expense ratio; may differ from the acquired fund fees and expenses ratios in the prospectus. |
| 4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 5 | 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. |
| 6 | The expense ratio and effective expense ratio provided for the fund is for the period from 2/26/21 (commencement of operations) through 4/30/21. See financial note 4. |
| 7 | Actual expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 64 days of the period from commencement of operations on 2/26/21 through 4/30/21, and divided by 365 days of the fiscal year. Hypothetical expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by 365 days of the fiscal year. |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $13.76 | $13.57 | $13.06 | $13.42 | $12.52 | $12.42 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.13 | 0.27 | 0.30 | 0.29 | 0.22 | 0.20 |
| Net realized and unrealized gains (losses) | 1.19 | 0.57 | 0.97 | (0.35) | 0.90 | 0.12 |
| Total from investment operations | 1.32 | 0.84 | 1.27 | (0.06) | 1.12 | 0.32 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.27) | (0.34) | (0.34) | (0.30) | (0.22) | (0.22) |
| Distributions from net realized gains | (0.11) | (0.31) | (0.42) | — | — | — |
| Total distributions | (0.38) | (0.65) | (0.76) | (0.30) | (0.22) | (0.22) |
| Net asset value at end of period | $14.70 | $13.76 | $13.57 | $13.06 | $13.42 | $12.52 |
| Total return | 9.66% 2 | 6.38% | 10.42% | (0.52%) | 9.11% | 2.68% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.00% 4 | 0.00% | 0.00% | 0.00% 5 | 0.00% | 0.00% 5 |
| Gross operating expenses3 | 0.12% 4 | 0.14% | 0.17% | 0.12% | 0.14% | 0.14% |
| Net investment income (loss) | 1.74% 4 | 2.03% | 2.33% | 2.15% | 1.75% | 1.60% |
| Portfolio turnover rate | 15% 2 | 27% | 13% | 16% | 51% 6 | 14% |
| Net assets, end of period (x 1,000,000) | $59 | $56 | $51 | $52 | $59 | $59 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
6
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 30% without including these transactions. There were no transaction costs associated with these transactions.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 74.3% of net assets |
| |
| Equity Funds 28.5% |
| Global Real Estate 1.9% |
| Schwab Global Real Estate Fund | 141,892 | 1,093,989 |
| International 9.2% |
| Laudus International MarketMasters Fund * | 129,812 | 3,835,955 |
| Schwab International Core Equity Fund | 144,258 | 1,596,936 |
| | | 5,432,891 |
| Large-Cap 15.4% |
| Schwab Core Equity Fund | 75,660 | 2,034,507 |
| Schwab Fundamental US Large Company Index Fund | 2,184 | 47,444 |
| Schwab S&P 500 Index Fund | 108,282 | 6,952,815 |
| | | 9,034,766 |
| Mid-Cap 0.7% |
| Schwab U.S. Mid-Cap Index Fund | 7,201 | 432,417 |
| Small-Cap 1.3% |
| Schwab Small-Cap Equity Fund | 32,885 | 739,252 |
| | | 16,733,315 |
| |
| Fixed-Income Funds 42.3% |
| Inflation-Protected Bond 6.5% |
| Schwab Treasury Inflation Protected Securities Index Fund | 308,614 | 3,789,780 |
| Intermediate-Term Bond 25.9% |
| Schwab U.S. Aggregate Bond Index Fund | 1,456,630 | 15,207,216 |
| Short-Term Bond 9.9% |
| Schwab Short-Term Bond Index Fund | 566,162 | 5,820,147 |
| | | 24,817,143 |
| |
| Money Market Fund 3.5% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 2,040,171 | 2,040,783 |
| Total Affiliated Underlying Funds |
| (Cost $34,847,059) | | 43,591,241 |
|
| Unaffiliated Underlying Funds 24.5% of net assets |
| |
| Equity Funds 6.8% |
| Large-Cap 6.1% |
| ClearBridge Large Cap Growth Fund, Class IS | 26,023 | 1,896,547 |
| Dodge & Cox Stock Fund | 7,160 | 1,667,033 |
| | | 3,563,580 |
| Security | Number
of Shares | Value ($) |
| Small-Cap 0.7% |
| ClearBridge Small Cap Growth Fund, Class IS * | 7,481 | 426,693 |
| | | 3,990,273 |
| |
| Fixed-Income Funds 17.7% |
| Intermediate-Term Bond 15.4% |
| Baird Aggregate Bond Fund, Institutional Class | 280,101 | 3,193,154 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 56,538 | 647,357 |
| Metropolitan West Total Return Bond Fund, Class I | 477,485 | 5,204,590 |
| | | 9,045,101 |
| International Bond 2.3% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 124,001 | 1,349,127 |
| | | 10,394,228 |
| Total Unaffiliated Underlying Funds |
| (Cost $12,924,980) | | 14,384,501 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investments 1.2% of net assets |
| |
| Time Deposits 1.2% |
| Royal Bank of Canada |
| 0.01%, 05/03/21 (b) | 103,992 | 103,992 |
| Sumitomo Mitsui Trust Bank, Limited |
| 0.01%, 05/03/21 (b) | 588,820 | 588,820 |
| Total Short-Term Investments |
| (Cost $692,812) | | 692,812 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $3,453,864 | $293,769 | ($647,000) | $72,499 | $662,823 | $3,835,955 | 129,812 | $243,769 |
| Schwab Core Equity Fund | 2,540,417 | 188,494 | (1,126,000) | 199,731 | 231,865 | 2,034,507 | 75,660 | 108,495 |
| Schwab Dividend Equity Fund | 76,027 | — | (90,894) | (9,881) | 24,748 | — | — | 557 |
| Schwab Fundamental US Large Company Index Fund | — | 41,000 | — | — | 6,444 | 47,444 | 2,184 | — |
| Schwab Global Real Estate Fund | 847,973 | 28,323 | — | — | 217,693 | 1,093,989 | 141,892 | 28,322 |
| Schwab International Core Equity Fund | 1,781,129 | 270,393 | (811,000) | 30,153 | 326,261 | 1,596,936 | 144,258 | 20,392 |
| Schwab S&P 500 Index Fund | 5,731,755 | 910,357 | (1,194,000) | 108,792 | 1,395,911 | 6,952,815 | 108,282 | 116,356 |
| Schwab Short-Term Bond Index Fund | 5,538,328 | 644,900 | (318,014) | (2,389) | (42,678) | 5,820,147 | 566,162 | 43,887 |
| Schwab Small-Cap Equity Fund | 608,229 | 1,413 | (164,000) | 13,174 | 280,436 | 739,252 | 32,885 | 1,413 |
| Schwab Treasury Inflation Protected Securities Index Fund | 3,472,960 | 452,361 | (170,000) | (2,301) | 36,760 | 3,789,780 | 308,614 | 41,360 |
| Schwab U.S. Aggregate Bond Index Fund | 14,401,866 | 2,478,590 | (1,236,916) | (28,236) | (408,088) | 15,207,216 | 1,456,630 | 176,551 |
| Schwab U.S. Mid-Cap Index Fund | 406,110 | 6,933 | (108,999) | 25,904 | 102,469 | 432,417 | 7,201 | 6,934 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 2,040,684 | 600,303 | (600,000) | 38 | (242) | 2,040,783 | 2,040,171 | 303 |
| Total | $40,899,342 | $5,916,836 | ($6,466,823) | $407,484 | $2,834,402 | $43,591,241 | | $788,339 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $43,591,241 | $— | $— | $43,591,241 | |
| Unaffiliated Underlying Funds1 | 14,384,501 | — | — | 14,384,501 | |
| Short-Term Investments1 | — | 692,812 | — | 692,812 | |
| Total | $57,975,742 | $692,812 | $— | $58,668,554 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $34,847,059) | | $43,591,241 |
| Investments in securities, at value - unaffiliated (cost $13,617,792) | | 15,077,313 |
| Receivables: | | |
| Investments sold | | 440,000 |
| Dividends | | 40,104 |
| Fund shares sold | | 7,863 |
| Due from investment adviser | | 5,671 |
| Prepaid expenses | + | 5,890 |
| Total assets | | 59,168,082 |
| Liabilities |
| Payables: | | |
| Investments bought | | 449,707 |
| Independent trustees’ fees | | 189 |
| Fund shares redeemed | | 1,152 |
| Accrued expenses | + | 23,268 |
| Total liabilities | | 474,316 |
| Net Assets |
| Total assets | | 59,168,082 |
| Total liabilities | – | 474,316 |
| Net assets | | $58,693,766 |
| Net Assets by Source | | |
| Capital received from investors | | 47,150,001 |
| Total distributable earnings | | 11,543,765 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $58,693,766 | | 3,993,400 | | $14.70 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $402,190 |
| Dividends received from securities - unaffiliated | | 107,705 |
| Interest received from securities - unaffiliated | + | 22 |
| Total investment income | | 509,917 |
| Expenses |
| Professional fees | | 10,775 |
| Registration fees | | 10,480 |
| Portfolio accounting fees | | 6,143 |
| Independent trustees’ fees | | 3,504 |
| Shareholder reports | | 1,407 |
| Transfer agent fees | | 669 |
| Custodian fees | | 36 |
| Other expenses | + | 1,434 |
| Total expenses | | 34,448 |
| Expense reduction by CSIM and its affiliates | – | 34,448 |
| Net expenses | – | — |
| Net investment income | | 509,917 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 386,149 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 540,290 |
| Net realized gains on sales of securities - affiliated | | 407,484 |
| Net realized gains on sales of securities - unaffiliated | + | 343,166 |
| Net realized gains | | 1,677,089 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 2,834,402 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 277,966 |
| Net change in unrealized appreciation (depreciation) | + | 3,112,368 |
| Net realized and unrealized gains | | 4,789,457 |
| Increase in net assets resulting from operations | | $5,299,374 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $509,917 | $1,088,288 |
| Net realized gains | | 1,677,089 | 391,654 |
| Net change in unrealized appreciation (depreciation) | + | 3,112,368 | 1,752,405 |
| Increase in net assets from operations | | 5,299,374 | 3,232,347 |
| Distributions to Shareholders | |
| Total distributions | | ($1,544,083) | ($2,519,058) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 531,390 | $7,674,414 | 1,235,019 | $16,620,379 |
| Shares reinvested | | 94,692 | 1,353,144 | 172,129 | 2,273,818 |
| Shares redeemed | + | (667,804) | (9,595,855) | (1,139,051) | (15,206,801) |
| Net transactions in fund shares | | (41,722) | ($568,297) | 268,097 | $3,687,396 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 4,035,122 | $55,506,772 | 3,767,025 | $51,106,087 |
| Total increase (decrease) | + | (41,722) | 3,186,994 | 268,097 | 4,400,685 |
| End of period | | 3,993,400 | $58,693,766 | 4,035,122 | $55,506,772 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $12.18 | $12.07 | $11.49 | $12.21 | $11.72 | $12.23 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.11 | 0.25 | 0.27 | 0.25 | 0.20 | 0.18 |
| Net realized and unrealized gains (losses) | 1.14 | 0.50 | 0.86 | (0.30) | 0.88 | 0.11 |
| Total from investment operations | 1.25 | 0.75 | 1.13 | (0.05) | 1.08 | 0.29 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.24) | (0.31) | (0.30) | (0.27) | (0.22) | (0.21) |
| Distributions from net realized gains | (0.31) | (0.33) | (0.25) | (0.40) | (0.37) | (0.59) |
| Total distributions | (0.55) | (0.64) | (0.55) | (0.67) | (0.59) | (0.80) |
| Net asset value at end of period | $12.88 | $12.18 | $12.07 | $11.49 | $12.21 | $11.72 |
| Total return | 10.42% 2 | 6.41% | 10.48% | (0.57%) | 9.67% | 2.59% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.00% 4 | 0.00% | 0.00% | 0.00% 5 | 0.00% | 0.00% 5 |
| Gross operating expenses3 | 0.09% 4 | 0.10% | 0.11% | 0.07% | 0.09% | 0.08% |
| Net investment income (loss) | 1.74% 4 | 2.07% | 2.35% | 2.12% | 1.74% | 1.59% |
| Portfolio turnover rate | 11% 2 | 15% | 10% | 14% | 52% 6 | 14% |
| Net assets, end of period (x 1,000,000) | $82 | $77 | $81 | $90 | $103 | $104 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
6
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 33% without including these transactions. There were no transaction costs associated with these transactions.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 74.2% of net assets |
| |
| Equity Funds 31.1% |
| Global Real Estate 2.0% |
| Schwab Global Real Estate Fund | 212,070 | 1,635,057 |
| International 10.4% |
| Laudus International MarketMasters Fund * | 199,853 | 5,905,670 |
| Schwab International Core Equity Fund | 237,301 | 2,626,919 |
| | | 8,532,589 |
| Large-Cap 16.5% |
| Schwab Core Equity Fund | 113,916 | 3,063,195 |
| Schwab Fundamental US Large Company Index Fund | 3,623 | 78,687 |
| Schwab S&P 500 Index Fund | 163,103 | 10,472,866 |
| | | 13,614,748 |
| Mid-Cap 0.8% |
| Schwab U.S. Mid-Cap Index Fund | 10,762 | 646,272 |
| Small-Cap 1.4% |
| Schwab Small-Cap Equity Fund | 51,032 | 1,147,210 |
| | | 25,575,876 |
| |
| Fixed-Income Funds 39.9% |
| Inflation-Protected Bond 6.1% |
| Schwab Treasury Inflation Protected Securities Index Fund | 408,729 | 5,019,187 |
| Intermediate-Term Bond 24.5% |
| Schwab U.S. Aggregate Bond Index Fund | 1,933,318 | 20,183,838 |
| Short-Term Bond 9.3% |
| Schwab Short-Term Bond Index Fund | 740,708 | 7,614,481 |
| | | 32,817,506 |
| |
| Money Market Fund 3.2% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 2,589,271 | 2,590,047 |
| Total Affiliated Underlying Funds |
| (Cost $46,556,331) | | 60,983,429 |
|
| Unaffiliated Underlying Funds 24.6% of net assets |
| |
| Equity Funds 7.3% |
| Large-Cap 6.5% |
| ClearBridge Large Cap Growth Fund, Class IS | 37,419 | 2,727,079 |
| Dodge & Cox Stock Fund | 11,029 | 2,567,979 |
| | | 5,295,058 |
| Security | Number
of Shares | Value ($) |
| Small-Cap 0.8% |
| ClearBridge Small Cap Growth Fund, Class IS * | 11,462 | 653,807 |
| | | 5,948,865 |
| |
| Fixed-Income Funds 17.3% |
| Intermediate-Term Bond 15.1% |
| Baird Aggregate Bond Fund, Institutional Class | 327,162 | 3,729,642 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 94,454 | 1,081,495 |
| Metropolitan West Total Return Bond Fund, Class I | 695,138 | 7,577,000 |
| | | 12,388,137 |
| International Bond 2.2% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 169,085 | 1,839,649 |
| | | 14,227,786 |
| Total Unaffiliated Underlying Funds |
| (Cost $17,911,296) | | 20,176,651 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.9% of net assets |
| |
| Time Deposit 0.9% |
| Sumitomo Mitsui Banking Corp. |
| 0.01%, 05/03/21 (b) | 750,953 | 750,953 |
| Total Short-Term Investment |
| (Cost $750,953) | | 750,953 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $5,392,510 | $576,964 | ($1,202,000) | $131,672 | $1,006,524 | $5,905,670 | 199,853 | $366,965 |
| Schwab Core Equity Fund | 3,737,720 | 162,390 | (1,484,000) | 522,631 | 124,454 | 3,063,195 | 113,916 | 162,388 |
| Schwab Dividend Equity Fund | 89,000 | — | (102,489) | 22,868 | (9,379) | — | — | 652 |
| Schwab Fundamental US Large Company Index Fund | — | 68,000 | — | — | 10,687 | 78,687 | 3,623 | — |
| Schwab Global Real Estate Fund | 1,318,093 | 102,779 | (114,000) | 12,729 | 315,456 | 1,635,057 | 212,070 | 42,779 |
| Schwab International Core Equity Fund | 2,755,151 | 30,691 | (721,000) | 62,449 | 499,628 | 2,626,919 | 237,301 | 30,690 |
| Schwab S&P 500 Index Fund | 8,418,126 | 874,772 | (1,063,300) | 155,339 | 2,087,929 | 10,472,866 | 163,103 | 169,065 |
| Schwab Short-Term Bond Index Fund | 7,265,534 | 660,479 | (254,128) | (802) | (56,602) | 7,614,481 | 740,708 | 56,457 |
| Schwab Small-Cap Equity Fund | 1,003,720 | 2,332 | (330,000) | 90,879 | 380,279 | 1,147,210 | 51,032 | 2,332 |
| Schwab Treasury Inflation Protected Securities Index Fund | 4,745,389 | 226,804 | — | — | 46,994 | 5,019,187 | 408,729 | 54,804 |
| Schwab U.S. Aggregate Bond Index Fund | 19,039,900 | 2,239,567 | (541,431) | (14,526) | (539,672) | 20,183,838 | 1,933,318 | 229,534 |
| Schwab U.S. Mid-Cap Index Fund | 608,622 | 10,392 | (165,000) | 39,235 | 153,023 | 646,272 | 10,762 | 10,392 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 2,289,929 | 300,377 | — | — | (259) | 2,590,047 | 2,589,271 | 381 |
| Total | $56,663,694 | $5,255,547 | ($5,977,348) | $1,022,474 | $4,019,062 | $60,983,429 | | $1,126,439 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $60,983,429 | $— | $— | $60,983,429 | |
| Unaffiliated Underlying Funds1 | 20,176,651 | — | — | 20,176,651 | |
| Short-Term Investment1 | — | 750,953 | — | 750,953 | |
| Total | $81,160,080 | $750,953 | $— | $81,911,033 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $46,556,331) | | $60,983,429 |
| Investments in securities, at value - unaffiliated (cost $18,662,249) | | 20,927,604 |
| Receivables: | | |
| Investments sold | | 550,000 |
| Dividends | | 53,697 |
| Fund shares sold | | 36,822 |
| Due from investment adviser | | 5,631 |
| Prepaid expenses | + | 12,807 |
| Total assets | | 82,569,990 |
| Liabilities |
| Payables: | | |
| Investments bought | | 383,113 |
| Independent trustees’ fees | | 197 |
| Fund shares redeemed | | 7,728 |
| Accrued expenses | + | 24,255 |
| Total liabilities | | 415,293 |
| Net Assets |
| Total assets | | 82,569,990 |
| Total liabilities | – | 415,293 |
| Net assets | | $82,154,697 |
| Net Assets by Source | | |
| Capital received from investors | | 63,309,040 |
| Total distributable earnings | | 18,845,657 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $82,154,697 | | 6,376,276 | | $12.88 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $552,526 |
| Dividends received from securities - unaffiliated | | 148,798 |
| Interest received from securities - unaffiliated | + | 31 |
| Total investment income | | 701,355 |
| Expenses |
| Professional fees | | 10,795 |
| Registration fees | | 10,252 |
| Portfolio accounting fees | | 6,266 |
| Independent trustees’ fees | | 3,547 |
| Shareholder reports | | 1,500 |
| Transfer agent fees | | 964 |
| Other expenses | + | 1,524 |
| Total expenses | | 34,848 |
| Expense reduction by CSIM and its affiliates | – | 34,848 |
| Net expenses | – | — |
| Net investment income | | 701,355 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 573,913 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 752,439 |
| Net realized gains on sales of securities - affiliated | | 1,022,474 |
| Net realized gains on sales of securities - unaffiliated | + | 364,380 |
| Net realized gains | | 2,713,206 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 4,019,062 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 567,802 |
| Net change in unrealized appreciation (depreciation) | + | 4,586,864 |
| Net realized and unrealized gains | | 7,300,070 |
| Increase in net assets resulting from operations | | $8,001,425 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $701,355 | $1,605,087 |
| Net realized gains | | 2,713,206 | 1,910,607 |
| Net change in unrealized appreciation (depreciation) | + | 4,586,864 | 1,251,931 |
| Increase in net assets from operations | | 8,001,425 | 4,767,625 |
| Distributions to Shareholders | |
| Total distributions | | ($3,467,726) | ($4,189,125) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 456,715 | $5,785,402 | 767,274 | $9,075,200 |
| Shares reinvested | | 263,836 | 3,295,303 | 335,649 | 3,930,448 |
| Shares redeemed | + | (689,064) | (8,734,000) | (1,481,051) | (17,448,525) |
| Net transactions in fund shares | | 31,487 | $346,705 | (378,128) | ($4,442,877) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 6,344,789 | $77,274,293 | 6,722,917 | $81,138,670 |
| Total increase (decrease) | + | 31,487 | 4,880,404 | (378,128) | (3,864,377) |
| End of period | | 6,376,276 | $82,154,697 | 6,344,789 | $77,274,293 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $14.55 | $14.46 | $13.87 | $14.71 | $13.84 | $14.33 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.13 | 0.30 | 0.32 | 0.30 | 0.23 | 0.22 |
| Net realized and unrealized gains (losses) | 1.45 | 0.58 | 1.04 | (0.33) | 1.39 | 0.06 |
| Total from investment operations | 1.58 | 0.88 | 1.36 | (0.03) | 1.62 | 0.28 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.29) | (0.36) | (0.35) | (0.33) | (0.24) | (0.27) |
| Distributions from net realized gains | (0.29) | (0.43) | (0.42) | (0.48) | (0.51) | (0.50) |
| Total distributions | (0.58) | (0.79) | (0.77) | (0.81) | (0.75) | (0.77) |
| Net asset value at end of period | $15.55 | $14.55 | $14.46 | $13.87 | $14.71 | $13.84 |
| Total return | 11.06% 2 | 6.33% | 10.58% | (0.32%) | 12.28% | 2.05% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.00% 4 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% 5 |
| Gross operating expenses3 | 0.02% 4 | 0.02% | 0.03% | 0.02% | 0.03% | 0.03% |
| Net investment income (loss) | 1.75% 4 | 2.13% | 2.28% | 2.07% | 1.67% | 1.59% |
| Portfolio turnover rate | 8% 2 | 17% | 14% | 18% | 47% 6 | 9% |
| Net assets, end of period (x 1,000,000) | $538 | $525 | $549 | $542 | $579 | $530 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
6
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 31% without including these transactions. There were no transaction costs associated with these transactions.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 74.5% of net assets |
| |
| Equity Funds 33.0% |
| Global Real Estate 2.1% |
| Schwab Global Real Estate Fund | 1,478,811 | 11,401,632 |
| International 11.3% |
| Laudus International MarketMasters Fund * | 1,413,494 | 41,768,761 |
| Schwab International Core Equity Fund | 1,716,907 | 19,006,158 |
| | | 60,774,919 |
| Large-Cap 17.3% |
| Schwab Core Equity Fund | 770,741 | 20,725,246 |
| Schwab Fundamental US Large Company Index Fund | 27,171 | 590,154 |
| Schwab S&P 500 Index Fund | 1,113,911 | 71,524,210 |
| | | 92,839,610 |
| Mid-Cap 0.8% |
| Schwab U.S. Mid-Cap Index Fund | 75,958 | 4,561,258 |
| Small-Cap 1.5% |
| Schwab Small-Cap Equity Fund | 365,851 | 8,224,335 |
| | | 177,801,754 |
| |
| Fixed-Income Funds 38.5% |
| Inflation-Protected Bond 6.0% |
| Schwab Treasury Inflation Protected Securities Index Fund | 2,638,505 | 32,400,844 |
| Intermediate-Term Bond 23.7% |
| Schwab U.S. Aggregate Bond Index Fund | 12,190,499 | 127,268,805 |
| Short-Term Bond 8.8% |
| Schwab Short-Term Bond Index Fund | 4,624,701 | 47,541,927 |
| | | 207,211,576 |
| |
| Money Market Fund 3.0% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 15,944,395 | 15,949,178 |
| Total Affiliated Underlying Funds |
| (Cost $299,971,741) | | 400,962,508 |
|
| Unaffiliated Underlying Funds 24.5% of net assets |
| |
| Equity Funds 7.4% |
| Large-Cap 6.7% |
| ClearBridge Large Cap Growth Fund, Class IS | 262,605 | 19,138,696 |
| Dodge & Cox Stock Fund | 72,174 | 16,804,931 |
| | | 35,943,627 |
| Security | Number
of Shares | Value ($) |
| Small-Cap 0.7% |
| ClearBridge Small Cap Growth Fund, Class IS * | 63,847 | 3,641,806 |
| | | 39,585,433 |
| |
| Fixed-Income Funds 17.1% |
| Intermediate-Term Bond 14.7% |
| Baird Aggregate Bond Fund, Institutional Class | 2,112,080 | 24,077,712 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 690,355 | 7,904,571 |
| Metropolitan West Total Return Bond Fund, Class I | 4,355,642 | 47,476,496 |
| | | 79,458,779 |
| International Bond 2.4% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 1,178,071 | 12,817,414 |
| | | 92,276,193 |
| Total Unaffiliated Underlying Funds |
| (Cost $116,736,437) | | 131,861,626 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 1.0% of net assets |
| |
| Time Deposit 1.0% |
| Sumitomo Mitsui Banking Corp. |
| 0.01%, 05/03/21 (b) | 5,374,004 | 5,374,004 |
| Total Short-Term Investment |
| (Cost $5,374,004) | | 5,374,004 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $40,299,521 | $2,654,741 | ($9,557,943) | $1,390,358 | $6,982,084 | $41,768,761 | 1,413,494 | $2,654,742 |
| Schwab Core Equity Fund | 26,819,643 | 1,271,702 | (11,878,000) | 3,729,807 | 782,094 | 20,725,246 | 770,741 | 1,271,702 |
| Schwab Dividend Equity Fund | 494,768 | — | (569,758) | 128,535 | (53,545) | — | — | 3,627 |
| Schwab Fundamental US Large Company Index Fund | — | 510,000 | — | — | 80,154 | 590,154 | 27,171 | — |
| Schwab Global Real Estate Fund | 9,469,280 | 308,220 | (730,000) | (54,303) | 2,408,435 | 11,401,632 | 1,478,811 | 308,220 |
| Schwab International Core Equity Fund | 20,415,732 | 226,200 | (5,793,000) | 457,034 | 3,700,192 | 19,006,158 | 1,716,907 | 226,200 |
| Schwab S&P 500 Index Fund | 60,049,369 | 3,290,415 | (7,665,000) | 1,572,155 | 14,277,271 | 71,524,210 | 1,113,911 | 1,180,417 |
| Schwab Short-Term Bond Index Fund | 47,708,605 | 2,273,581 | (2,070,000) | (12,239) | (358,020) | 47,541,927 | 4,624,701 | 365,466 |
| Schwab Small-Cap Equity Fund | 7,030,894 | 15,715 | (2,080,000) | 442,862 | 2,814,864 | 8,224,335 | 365,851 | 15,715 |
| Schwab Treasury Inflation Protected Securities Index Fund | 30,768,451 | 2,278,679 | (948,330) | (11,810) | 313,854 | 32,400,844 | 2,638,505 | 358,680 |
| Schwab U.S. Aggregate Bond Index Fund | 125,652,527 | 14,351,450 | (9,156,722) | (191,974) | (3,386,476) | 127,268,805 | 12,190,499 | 1,478,414 |
| Schwab U.S. Mid-Cap Index Fund | 4,522,092 | 65,662 | (1,370,000) | 280,175 | 1,063,329 | 4,561,258 | 75,958 | 65,661 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 14,748,426 | 1,202,346 | — | — | (1,594) | 15,949,178 | 15,944,395 | 2,360 |
| Total | $387,979,308 | $28,448,711 | ($51,818,753) | $7,730,600 | $28,622,642 | $400,962,508 | | $7,931,204 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $400,962,508 | $— | $— | $400,962,508 | |
| Unaffiliated Underlying Funds1 | 131,861,626 | — | — | 131,861,626 | |
| Short-Term Investment1 | — | 5,374,004 | — | 5,374,004 | |
| Total | $532,824,134 | $5,374,004 | $— | $538,198,138 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $299,971,741) | | $400,962,508 |
| Investments in securities, at value - unaffiliated (cost $122,110,441) | | 137,235,630 |
| Receivables: | | |
| Investments sold | | 3,049,999 |
| Fund shares sold | | 849,066 |
| Dividends | | 341,604 |
| Due from investment adviser | | 9,408 |
| Prepaid expenses | + | 11,394 |
| Total assets | | 542,459,609 |
| Liabilities |
| Payables: | | |
| Investments bought | | 4,149,800 |
| Independent trustees’ fees | | 309 |
| Fund shares redeemed | | 113,314 |
| Accrued expenses | + | 47,368 |
| Total liabilities | | 4,310,791 |
| Net Assets |
| Total assets | | 542,459,609 |
| Total liabilities | – | 4,310,791 |
| Net assets | | $538,148,818 |
| Net Assets by Source | | |
| Capital received from investors | | 404,327,908 |
| Total distributable earnings | | 133,820,910 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $538,148,818 | | 34,599,066 | | $15.55 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $3,734,928 |
| Dividends received from securities - unaffiliated | | 992,763 |
| Interest received from securities - unaffiliated | + | 184 |
| Total investment income | | 4,727,875 |
| Expenses |
| Registration fees | | 16,124 |
| Portfolio accounting fees | | 13,038 |
| Professional fees | | 11,146 |
| Shareholder reports | | 7,649 |
| Independent trustees’ fees | | 4,398 |
| Transfer agent fees | | 3,872 |
| Other expenses | + | 3,563 |
| Total expenses | | 59,790 |
| Expense reduction by CSIM and its affiliates | – | 59,790 |
| Net expenses | – | — |
| Net investment income | | 4,727,875 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 4,196,276 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 5,149,139 |
| Net realized gains on sales of securities - affiliated | | 7,730,600 |
| Net realized gains on sales of securities - unaffiliated | + | 2,894,147 |
| Net realized gains | | 19,970,162 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 28,622,642 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 3,304,477 |
| Net change in unrealized appreciation (depreciation) | + | 31,927,119 |
| Net realized and unrealized gains | | 51,897,281 |
| Increase in net assets resulting from operations | | $56,625,156 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $4,727,875 | $11,277,294 |
| Net realized gains | | 19,970,162 | 10,062,566 |
| Net change in unrealized appreciation (depreciation) | + | 31,927,119 | 9,049,897 |
| Increase in net assets from operations | | 56,625,156 | 30,389,757 |
| Distributions to Shareholders | |
| Total distributions | | ($20,699,693) | ($29,966,408) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,318,252 | $35,401,593 | 5,736,654 | $81,673,353 |
| Shares reinvested | | 1,291,646 | 19,426,353 | 1,985,761 | 27,880,086 |
| Shares redeemed | + | (5,112,315) | (78,048,184) | (9,574,984) | (133,223,621) |
| Net transactions in fund shares | | (1,502,417) | ($23,220,238) | (1,852,569) | ($23,670,182) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 36,101,483 | $525,443,593 | 37,954,052 | $548,690,426 |
| Total increase (decrease) | + | (1,502,417) | 12,705,225 | (1,852,569) | (23,246,833) |
| End of period | | 34,599,066 | $538,148,818 | 36,101,483 | $525,443,593 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $14.81 | $14.74 | $14.10 | $14.71 | $13.45 | $14.11 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.14 | 0.31 | 0.30 | 0.28 | 0.22 | 0.20 |
| Net realized and unrealized gains (losses) | 2.09 | 0.55 | 1.10 | (0.34) | 1.73 | 0.06 |
| Total from investment operations | 2.23 | 0.86 | 1.40 | (0.06) | 1.95 | 0.26 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.28) | (0.35) | (0.34) | (0.34) | (0.23) | (0.26) |
| Distributions from net realized gains | (0.19) | (0.44) | (0.42) | (0.21) | (0.46) | (0.66) |
| Total distributions | (0.47) | (0.79) | (0.76) | (0.55) | (0.69) | (0.92) |
| Net asset value at end of period | $16.57 | $14.81 | $14.74 | $14.10 | $14.71 | $13.45 |
| Total return | 15.18% 2 | 5.98% | 10.79% | (0.53%) | 15.17% | 2.01% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.00% 4 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% 5 |
| Gross operating expenses3 | 0.02% 4 | 0.02% | 0.03% | 0.02% | 0.03% | 0.04% |
| Net investment income (loss) | 1.75% 4 | 2.14% | 2.10% | 1.88% | 1.59% | 1.53% |
| Portfolio turnover rate | 13% 2 | 16% | 15% | 13% | 36% 6 | 5% |
| Net assets, end of period (x 1,000,000) | $631 | $572 | $577 | $531 | $521 | $443 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
6
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 26% without including these transactions. There were no transaction costs associated with these transactions.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 72.3% of net assets |
| |
| Equity Funds 43.2% |
| Global Real Estate 2.7% |
| Schwab Global Real Estate Fund | 2,211,779 | 17,052,816 |
| International 14.7% |
| Laudus International MarketMasters Fund * | 2,099,056 | 62,027,098 |
| Schwab International Core Equity Fund | 2,782,895 | 30,806,650 |
| | | 92,833,748 |
| Large-Cap 22.5% |
| Laudus U.S. Large Cap Growth Fund * | 154,193 | 4,849,378 |
| Schwab Core Equity Fund | 1,326,687 | 35,674,612 |
| Schwab Fundamental US Large Company Index Fund | 35,695 | 775,301 |
| Schwab S&P 500 Index Fund | 1,566,417 | 100,579,633 |
| | | 141,878,924 |
| Mid-Cap 1.0% |
| Schwab U.S. Mid-Cap Index Fund | 109,795 | 6,593,175 |
| Small-Cap 2.3% |
| Schwab Small-Cap Equity Fund | 638,447 | 14,352,294 |
| | | 272,710,957 |
| |
| Fixed-Income Funds 27.1% |
| Inflation-Protected Bond 2.8% |
| Schwab Treasury Inflation Protected Securities Index Fund | 1,440,600 | 17,690,572 |
| Intermediate-Term Bond 17.8% |
| Schwab U.S. Aggregate Bond Index Fund | 10,751,629 | 112,247,011 |
| Short-Term Bond 6.5% |
| Schwab Short-Term Bond Index Fund | 3,957,460 | 40,682,688 |
| | | 170,620,271 |
| |
| Money Market Fund 2.0% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 12,647,655 | 12,651,449 |
| Total Affiliated Underlying Funds |
| (Cost $340,572,068) | | 455,982,677 |
|
| Unaffiliated Underlying Funds 26.5% of net assets |
| |
| Equity Funds 9.5% |
| International 0.8% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 410,621 | 5,235,412 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 7.7% |
| ClearBridge Large Cap Growth Fund, Class IS | 310,950 | 22,662,039 |
| Dodge & Cox Stock Fund | 110,458 | 25,718,975 |
| | | 48,381,014 |
| Small-Cap 1.0% |
| ClearBridge Small Cap Growth Fund, Class IS * | 107,133 | 6,110,859 |
| | | 59,727,285 |
| |
| Fixed-Income Funds 17.0% |
| Intermediate-Term Bond 13.1% |
| Baird Aggregate Bond Fund, Institutional Class | 1,576,045 | 17,966,910 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 1,265,897 | 14,494,517 |
| Metropolitan West Total Return Bond Fund, Class I | 4,608,273 | 50,230,173 |
| | | 82,691,600 |
| International Bond 3.9% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 2,290,441 | 24,919,997 |
| | | 107,611,597 |
| Total Unaffiliated Underlying Funds |
| (Cost $146,699,799) | | 167,338,882 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investments 1.1% of net assets |
| |
| Time Deposits 1.1% |
| Australia & New Zealand Banking Group Ltd. |
| 0.01%, 05/03/21 (b) | 6,345,016 | 6,345,016 |
| Sumitomo Mitsui Banking Corp. |
| 0.01%, 05/03/21 (b) | 443,269 | 443,269 |
| Total Short-Term Investments |
| (Cost $6,788,285) | | 6,788,285 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $57,737,488 | $4,947,890 | ($12,786,000) | $1,449,058 | $10,678,662 | $62,027,098 | 2,099,056 | $3,897,890 |
| Laudus U.S. Large Cap Growth Fund | 7,470,645 | 383,139 | (3,920,000) | 1,974,880 | (1,059,286) | 4,849,378 | 154,193 | 383,138 |
| Schwab Core Equity Fund | 46,480,332 | 2,304,654 | (20,963,000) | 2,908,718 | 4,943,908 | 35,674,612 | 1,326,687 | 2,304,654 |
| Schwab Dividend Equity Fund | 930,257 | — | (1,071,251) | 303,691 | (162,697) | — | — | 6,820 |
| Schwab Fundamental US Large Company Index Fund | — | 670,000 | — | — | 105,301 | 775,301 | 35,695 | — |
| Schwab Global Real Estate Fund | 14,248,053 | 462,750 | (1,170,000) | (89,234) | 3,601,247 | 17,052,816 | 2,211,779 | 462,749 |
| Schwab International Core Equity Fund | 32,272,214 | 1,223,533 | (9,174,000) | 266,188 | 6,218,715 | 30,806,650 | 2,782,895 | 363,532 |
| Schwab S&P 500 Index Fund | 77,105,046 | 10,424,641 | (8,210,000) | 703,539 | 20,556,407 | 100,579,633 | 1,566,417 | 1,554,640 |
| Schwab Short-Term Bond Index Fund | 36,034,341 | 6,147,465 | (1,200,000) | (8,141) | (290,977) | 40,682,688 | 3,957,460 | 287,376 |
| Schwab Small-Cap Equity Fund | 12,279,447 | 28,532 | (3,720,000) | 485,154 | 5,279,161 | 14,352,294 | 638,447 | 28,532 |
| Schwab Treasury Inflation Protected Securities Index Fund | 12,560,445 | 4,994,141 | — | — | 135,986 | 17,690,572 | 1,440,600 | 156,142 |
| Schwab U.S. Aggregate Bond Index Fund | 93,421,065 | 23,864,798 | (2,000,000) | (43,396) | (2,995,456) | 112,247,011 | 10,751,629 | 1,204,559 |
| Schwab U.S. Mid-Cap Index Fund | 6,590,860 | 97,533 | (2,059,998) | 417,514 | 1,547,266 | 6,593,175 | 109,795 | 97,534 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 10,650,887 | 2,001,827 | — | — | (1,265) | 12,651,449 | 12,647,655 | 1,854 |
| Total | $407,781,080 | $57,550,903 | ($66,274,249) | $8,367,971 | $48,556,972 | $455,982,677 | | $10,749,420 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $455,982,677 | $— | $— | $455,982,677 | |
| Unaffiliated Underlying Funds1 | 167,338,882 | — | — | 167,338,882 | |
| Short-Term Investments1 | — | 6,788,285 | — | 6,788,285 | |
| Total | $623,321,559 | $6,788,285 | $— | $630,109,844 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $340,572,068) | | $455,982,677 |
| Investments in securities, at value - unaffiliated (cost $153,488,084) | | 174,127,167 |
| Receivables: | | |
| Investments sold | | 6,730,000 |
| Dividends | | 325,790 |
| Fund shares sold | | 245,306 |
| Due from investment adviser | | 10,105 |
| Prepaid expenses | + | 21,196 |
| Total assets | | 637,442,241 |
| Liabilities |
| Payables: | | |
| Investments bought | | 5,962,460 |
| Independent trustees’ fees | | 293 |
| Fund shares redeemed | | 435,710 |
| Accrued expenses | + | 47,799 |
| Total liabilities | | 6,446,262 |
| Net Assets |
| Total assets | | 637,442,241 |
| Total liabilities | – | 6,446,262 |
| Net assets | | $630,995,979 |
| Net Assets by Source | | |
| Capital received from investors | | 475,656,446 |
| Total distributable earnings | | 155,339,533 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $630,995,979 | | 38,083,190 | | $16.57 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $4,051,623 |
| Dividends received from securities - unaffiliated | | 1,343,866 |
| Interest received from securities - unaffiliated | + | 238 |
| Total investment income | | 5,395,727 |
| Expenses |
| Registration fees | | 18,696 |
| Portfolio accounting fees | | 13,215 |
| Professional fees | | 11,175 |
| Shareholder reports | | 8,183 |
| Transfer agent fees | | 5,096 |
| Independent trustees’ fees | | 4,489 |
| Other expenses | + | 3,763 |
| Total expenses | | 64,617 |
| Expense reduction by CSIM and its affiliates | – | 64,617 |
| Net expenses | – | — |
| Net investment income | | 5,395,727 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 6,697,797 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 6,003,462 |
| Net realized gains on sales of securities - affiliated | | 8,367,971 |
| Net realized gains on sales of securities - unaffiliated | + | 2,186,318 |
| Net realized gains | | 23,255,548 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 48,556,972 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 8,649,432 |
| Net change in unrealized appreciation (depreciation) | + | 57,206,404 |
| Net realized and unrealized gains | | 80,461,952 |
| Increase in net assets resulting from operations | | $85,857,679 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $5,395,727 | $12,235,811 |
| Net realized gains | | 23,255,548 | 6,167,034 |
| Net change in unrealized appreciation (depreciation) | + | 57,206,404 | 11,665,987 |
| Increase in net assets from operations | | 85,857,679 | 30,068,832 |
| Distributions to Shareholders | |
| Total distributions | | ($17,910,599) | ($31,204,773) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 3,679,346 | $59,080,308 | 6,665,930 | $96,099,310 |
| Shares reinvested | | 1,088,638 | 17,189,589 | 2,073,359 | 29,960,039 |
| Shares redeemed | + | (5,282,344) | (84,958,832) | (9,291,366) | (130,280,378) |
| Net transactions in fund shares | | (514,360) | ($8,688,935) | (552,077) | ($4,221,029) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 38,597,550 | $571,737,834 | 39,149,627 | $577,094,804 |
| Total increase (decrease) | + | (514,360) | 59,258,145 | (552,077) | (5,356,970) |
| End of period | | 38,083,190 | $630,995,979 | 38,597,550 | $571,737,834 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $15.67 | $15.79 | $15.24 | $16.10 | $14.51 | $15.59 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.15 | 0.33 | 0.30 | 0.29 | 0.23 | 0.22 |
| Net realized and unrealized gains (losses) | 2.73 | 0.57 | 1.21 | (0.38) | 2.18 | 0.01 |
| Total from investment operations | 2.88 | 0.90 | 1.51 | (0.09) | 2.41 | 0.23 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.27) | (0.37) | (0.37) | (0.39) | (0.24) | (0.30) |
| Distributions from net realized gains | (0.28) | (0.65) | (0.59) | (0.38) | (0.58) | (1.01) |
| Total distributions | (0.55) | (1.02) | (0.96) | (0.77) | (0.82) | (1.31) |
| Net asset value at end of period | $18.00 | $15.67 | $15.79 | $15.24 | $16.10 | $14.51 |
| Total return | 18.59% 2 | 5.81% | 10.94% | (0.75%) | 17.47% | 1.72% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.00% 4 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% 5 |
| Gross operating expenses3 | 0.01% 4 | 0.02% | 0.02% | 0.02% | 0.02% | 0.03% |
| Net investment income (loss) | 1.70% 4 | 2.15% | 2.00% | 1.79% | 1.53% | 1.51% |
| Portfolio turnover rate | 13% 2 | 13% | 17% | 14% | 30% | 5% |
| Net assets, end of period (x 1,000,000) | $1,114 | $965 | $999 | $958 | $966 | $814 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 71.5% of net assets |
| |
| Equity Funds 52.3% |
| Global Real Estate 3.2% |
| Schwab Global Real Estate Fund | 4,699,732 | 36,234,934 |
| International 17.8% |
| Laudus International MarketMasters Fund * | 4,352,439 | 128,614,569 |
| Schwab International Core Equity Fund | 6,326,729 | 70,036,892 |
| | | 198,651,461 |
| Large-Cap 26.9% |
| Laudus U.S. Large Cap Growth Fund * | 668,100 | 21,011,738 |
| Schwab Core Equity Fund | 2,853,669 | 76,735,168 |
| Schwab Fundamental US Large Company Index Fund | 254,129 | 5,519,680 |
| Schwab S&P 500 Index Fund | 3,056,999 | 196,289,891 |
| | | 299,556,477 |
| Mid-Cap 1.3% |
| Schwab U.S. Mid-Cap Index Fund | 232,696 | 13,973,401 |
| Small-Cap 3.1% |
| Schwab Small-Cap Equity Fund | 1,526,551 | 34,316,875 |
| | | 582,733,148 |
| |
| Fixed-Income Funds 17.9% |
| Inflation-Protected Bond 0.8% |
| Schwab Treasury Inflation Protected Securities Index Fund | 696,871 | 8,557,570 |
| Intermediate-Term Bond 12.6% |
| Schwab U.S. Aggregate Bond Index Fund | 13,495,479 | 140,892,804 |
| Short-Term Bond 4.5% |
| Schwab Short-Term Bond Index Fund | 4,863,533 | 49,997,123 |
| | | 199,447,497 |
| |
| Money Market Fund 1.3% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 14,652,976 | 14,657,372 |
| Total Affiliated Underlying Funds |
| (Cost $535,938,296) | | 796,838,017 |
|
| Unaffiliated Underlying Funds 27.2% of net assets |
| |
| Equity Funds 11.6% |
| International 1.8% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 1,535,842 | 19,581,984 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 8.6% |
| ClearBridge Large Cap Growth Fund, Class IS | 570,223 | 41,557,857 |
| Dodge & Cox Stock Fund | 235,395 | 54,809,450 |
| | | 96,367,307 |
| Small-Cap 1.2% |
| ClearBridge Small Cap Growth Fund, Class IS * | 239,493 | 13,660,672 |
| | | 129,609,963 |
| |
| Fixed-Income Funds 15.6% |
| Intermediate-Term Bond 11.1% |
| Baird Aggregate Bond Fund, Institutional Class | 1,642,102 | 18,719,959 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 2,786,960 | 31,910,691 |
| Metropolitan West Total Return Bond Fund, Class I | 6,709,085 | 73,129,028 |
| | | 123,759,678 |
| International Bond 4.5% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 4,561,693 | 49,631,220 |
| | | 173,390,898 |
| Total Unaffiliated Underlying Funds |
| (Cost $261,803,257) | | 303,000,861 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investments 1.2% of net assets |
| |
| Time Deposits 1.2% |
| Barclays Bank PLC |
| 0.01%, 05/03/21 (b) | 11,210,662 | 11,210,662 |
| Sumitomo Mitsui Banking Corp. |
| 0.01%, 05/03/21 (b) | 2,104,753 | 2,104,753 |
| Total Short-Term Investments |
| (Cost $13,315,415) | | 13,315,415 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $112,996,078 | $7,775,592 | ($16,124,000) | $1,632,463 | $22,334,436 | $128,614,569 | 4,352,439 | $7,775,592 |
| Laudus U.S. Large Cap Growth Fund | 23,072,141 | 1,298,085 | (6,600,000) | 3,712,958 | (471,446) | 21,011,738 | 668,100 | 1,298,085 |
| Schwab Core Equity Fund | 92,635,966 | 4,671,441 | (36,545,000) | 6,895,199 | 9,077,562 | 76,735,168 | 2,853,669 | 4,671,441 |
| Schwab Dividend Equity Fund | 7,754,406 | — | (8,910,071) | 1,860,615 | (704,950) | — | — | 52,968 |
| Schwab Fundamental US Large Company Index Fund | — | 4,770,000 | — | — | 749,680 | 5,519,680 | 254,129 | — |
| Schwab Global Real Estate Fund | 28,896,417 | 954,809 | (920,000) | (85,831) | 7,389,539 | 36,234,934 | 4,699,732 | 954,809 |
| Schwab International Core Equity Fund | 66,512,210 | 741,111 | (10,881,000) | (10,559) | 13,675,130 | 70,036,892 | 6,326,729 | 741,111 |
| Schwab S&P 500 Index Fund | 142,592,653 | 26,363,956 | (12,980,000) | 1,398,787 | 38,914,495 | 196,289,891 | 3,056,999 | 2,843,956 |
| Schwab Short-Term Bond Index Fund | 43,172,563 | 7,187,619 | — | — | (363,059) | 49,997,123 | 4,863,533 | 347,511 |
| Schwab Small-Cap Equity Fund | 28,900,959 | 65,408 | (7,921,601) | 1,255,243 | 12,016,866 | 34,316,875 | 1,526,551 | 65,407 |
| Schwab Treasury Inflation Protected Securities Index Fund | 4,607,974 | 4,599,387 | (702,353) | (10,965) | 63,527 | 8,557,570 | 696,871 | 59,387 |
| Schwab U.S. Aggregate Bond Index Fund | 112,389,577 | 35,299,689 | (3,071,835) | (80,725) | (3,643,902) | 140,892,804 | 13,495,479 | 1,470,192 |
| Schwab U.S. Mid-Cap Index Fund | 11,503,681 | 196,417 | (1,490,000) | 332,885 | 3,430,418 | 13,973,401 | 232,696 | 196,417 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 12,656,711 | 2,002,126 | — | — | (1,465) | 14,657,372 | 14,652,976 | 2,152 |
| Total | $687,691,336 | $95,925,640 | ($106,145,860) | $16,900,070 | $102,466,831 | $796,838,017 | | $20,479,028 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $796,838,017 | $— | $— | $796,838,017 | |
| Unaffiliated Underlying Funds1 | 303,000,861 | — | — | 303,000,861 | |
| Short-Term Investments1 | — | 13,315,415 | — | 13,315,415 | |
| Total | $1,099,838,878 | $13,315,415 | $— | $1,113,154,293 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $535,938,296) | | $796,838,017 |
| Investments in securities, at value - unaffiliated (cost $275,118,672) | | 316,316,276 |
| Receivables: | | |
| Investments sold | | 9,375,002 |
| Dividends | | 443,451 |
| Fund shares sold | | 400,175 |
| Due from investment adviser | | 11,866 |
| Prepaid expenses | + | 13,850 |
| Total assets | | 1,123,398,637 |
| Liabilities |
| Payables: | | |
| Investments bought | | 9,239,154 |
| Independent trustees’ fees | | 346 |
| Fund shares redeemed | | 195,345 |
| Accrued expenses | + | 66,406 |
| Total liabilities | | 9,501,251 |
| Net Assets |
| Total assets | | 1,123,398,637 |
| Total liabilities | – | 9,501,251 |
| Net assets | | $1,113,897,386 |
| Net Assets by Source | | |
| Capital received from investors | | 774,340,397 |
| Total distributable earnings | | 339,556,989 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,113,897,386 | | 61,890,055 | | $18.00 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $6,697,181 |
| Dividends received from securities - unaffiliated | | 2,413,950 |
| Interest received from securities - unaffiliated | + | 388 |
| Total investment income | | 9,111,519 |
| Expenses |
| Registration fees | | 18,616 |
| Portfolio accounting fees | | 15,080 |
| Shareholder reports | | 14,718 |
| Professional fees | | 11,489 |
| Transfer agent fees | | 5,773 |
| Independent trustees’ fees | | 5,253 |
| Other expenses | + | 5,538 |
| Total expenses | | 76,467 |
| Expense reduction by CSIM and its affiliates | – | 76,467 |
| Net expenses | – | — |
| Net investment income | | 9,111,519 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 13,781,847 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 10,186,371 |
| Net realized gains on sales of securities - affiliated | | 16,900,070 |
| Net realized gains on sales of securities - unaffiliated | + | 3,639,370 |
| Net realized gains | | 44,507,658 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 102,466,831 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 22,141,428 |
| Net change in unrealized appreciation (depreciation) | + | 124,608,259 |
| Net realized and unrealized gains | | 169,115,917 |
| Increase in net assets resulting from operations | | $178,227,436 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $9,111,519 | $20,928,995 |
| Net realized gains | | 44,507,658 | 16,570,661 |
| Net change in unrealized appreciation (depreciation) | + | 124,608,259 | 11,397,857 |
| Increase in net assets from operations | | 178,227,436 | 48,897,513 |
| Distributions to Shareholders | |
| Total distributions | | ($33,685,506) | ($64,665,015) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 4,835,965 | $83,446,826 | 8,331,450 | $126,649,806 |
| Shares reinvested | | 1,918,145 | 32,455,024 | 4,044,928 | 62,251,430 |
| Shares redeemed | + | (6,476,141) | (111,834,571) | (14,016,675) | (206,526,474) |
| Net transactions in fund shares | | 277,969 | $4,067,279 | (1,640,297) | ($17,625,238) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 61,612,086 | $965,288,177 | 63,252,383 | $998,680,917 |
| Total increase (decrease) | + | 277,969 | 148,609,209 | (1,640,297) | (33,392,740) |
| End of period | | 61,890,055 | $1,113,897,386 | 61,612,086 | $965,288,177 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $15.34 | $15.46 | $14.94 | $15.58 | $13.82 | $14.70 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.14 | 0.31 | 0.28 | 0.27 | 0.21 | 0.20 |
| Net realized and unrealized gains (losses) | 3.09 | 0.53 | 1.19 | (0.38) | 2.32 | 0.01 |
| Total from investment operations | 3.23 | 0.84 | 1.47 | (0.11) | 2.53 | 0.21 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.24) | (0.34) | (0.36) | (0.39) | (0.22) | (0.28) |
| Distributions from net realized gains | (0.24) | (0.62) | (0.59) | (0.14) | (0.55) | (0.81) |
| Total distributions | (0.48) | (0.96) | (0.95) | (0.53) | (0.77) | (1.09) |
| Net asset value at end of period | $18.09 | $15.34 | $15.46 | $14.94 | $15.58 | $13.82 |
| Total return | 21.32% 2 | 5.51% | 10.90% | (0.88%) | 19.19% | 1.63% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.00% 4 | 0.00% | 0.00% | 0.00% 5 | 0.00% | 0.00% 5 |
| Gross operating expenses3 | 0.02% 4 | 0.03% | 0.03% | 0.03% | 0.04% | 0.04% |
| Net investment income (loss) | 1.65% 4 | 2.06% | 1.87% | 1.70% | 1.48% | 1.46% |
| Portfolio turnover rate | 12% 2 | 12% | 15% | 14% | 24% | 3% |
| Net assets, end of period (x 1,000,000) | $581 | $477 | $483 | $447 | $440 | $361 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 72.5% of net assets |
| |
| Equity Funds 59.2% |
| Global Real Estate 3.7% |
| Schwab Global Real Estate Fund | 2,814,480 | 21,699,637 |
| International 20.0% |
| Laudus International MarketMasters Fund * | 2,557,542 | 75,575,368 |
| Schwab International Core Equity Fund | 3,687,988 | 40,826,028 |
| | | 116,401,396 |
| Large-Cap 30.3% |
| Laudus U.S. Large Cap Growth Fund * | 574,129 | 18,056,370 |
| Schwab Core Equity Fund | 1,648,752 | 44,334,952 |
| Schwab Fundamental US Large Company Index Fund | 311,135 | 6,757,848 |
| Schwab S&P 500 Index Fund | 1,666,858 | 107,028,937 |
| | | 176,178,107 |
| Mid-Cap 1.5% |
| Schwab U.S. Mid-Cap Index Fund | 140,455 | 8,434,335 |
| Small-Cap 3.7% |
| Schwab Small-Cap Equity Fund | 952,940 | 21,422,098 |
| | | 344,135,573 |
| |
| Fixed-Income Funds 12.3% |
| Intermediate-Term Bond 9.1% |
| Schwab U.S. Aggregate Bond Index Fund | 5,083,139 | 53,067,974 |
| Short-Term Bond 3.2% |
| Schwab Short-Term Bond Index Fund | 1,783,154 | 18,330,823 |
| | | 71,398,797 |
| |
| Money Market Fund 1.0% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 6,013,788 | 6,015,592 |
| Total Affiliated Underlying Funds |
| (Cost $295,229,621) | | 421,549,962 |
|
| Unaffiliated Underlying Funds 26.5% of net assets |
| |
| Equity Funds 13.2% |
| International 2.5% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 1,139,943 | 14,534,267 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 9.2% |
| ClearBridge Large Cap Growth Fund, Class IS | 285,014 | 20,771,796 |
| Dodge & Cox Stock Fund | 138,973 | 32,358,471 |
| | | 53,130,267 |
| Small-Cap 1.5% |
| ClearBridge Small Cap Growth Fund, Class IS * | 151,416 | 8,636,762 |
| | | 76,301,296 |
| |
| Fixed-Income Funds 13.3% |
| Intermediate-Term Bond 9.4% |
| Baird Aggregate Bond Fund, Institutional Class | 574,122 | 6,544,987 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 1,525,739 | 17,469,710 |
| Metropolitan West Total Return Bond Fund, Class I | 2,834,749 | 30,898,770 |
| | | 54,913,467 |
| International Bond 3.9% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 2,060,886 | 22,422,441 |
| | | 77,335,908 |
| Total Unaffiliated Underlying Funds |
| (Cost $131,089,027) | | 153,637,204 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investments 1.0% of net assets |
| |
| Time Deposits 1.0% |
| Barclays Bank PLC |
| 0.01%, 05/03/21 (b) | 105,037 | 105,037 |
| Royal Bank of Canada |
| 0.01%, 05/03/21 (b) | 5,858,804 | 5,858,804 |
| Total Short-Term Investments |
| (Cost $5,963,841) | | 5,963,841 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $63,600,010 | $5,701,508 | ($7,450,000) | $564,014 | $13,159,836 | $75,575,368 | 2,557,542 | $4,321,507 |
| Laudus U.S. Large Cap Growth Fund | 16,683,899 | 938,670 | (2,230,001) | 763,290 | 1,900,512 | 18,056,370 | 574,129 | 938,669 |
| Schwab Core Equity Fund | 51,276,494 | 3,259,778 | (19,070,001) | 1,588,797 | 7,279,884 | 44,334,952 | 1,648,752 | 2,582,087 |
| Schwab Dividend Equity Fund | 7,043,705 | — | (8,111,279) | 738,519 | 329,055 | — | — | 51,638 |
| Schwab Fundamental US Large Company Index Fund | — | 5,840,000 | — | — | 917,848 | 6,757,848 | 311,135 | — |
| Schwab Global Real Estate Fund | 16,026,608 | 1,482,478 | — | — | 4,190,551 | 21,699,637 | 2,814,480 | 552,478 |
| Schwab International Core Equity Fund | 36,326,402 | 1,507,886 | (4,690,000) | 15,621 | 7,666,119 | 40,826,028 | 3,687,988 | 427,886 |
| Schwab S&P 500 Index Fund | 71,231,322 | 18,935,736 | (4,210,001) | 235,257 | 20,836,623 | 107,028,937 | 1,666,858 | 1,460,277 |
| Schwab Short-Term Bond Index Fund | 15,108,866 | 3,353,323 | — | — | (131,366) | 18,330,823 | 1,783,154 | 123,287 |
| Schwab Small-Cap Equity Fund | 17,736,031 | 449,881 | (4,930,000) | (242,007) | 8,408,193 | 21,422,098 | 952,940 | 39,882 |
| Schwab U.S. Aggregate Bond Index Fund | 40,060,770 | 15,392,003 | (1,000,001) | (21,698) | (1,363,100) | 53,067,974 | 5,083,139 | 541,895 |
| Schwab U.S. Mid-Cap Index Fund | 7,118,767 | 121,549 | (1,060,001) | 180,921 | 2,073,099 | 8,434,335 | 140,455 | 121,548 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 4,015,524 | 2,000,669 | — | — | (601) | 6,015,592 | 6,013,788 | 697 |
| Total | $346,228,398 | $58,983,481 | ($52,751,284) | $3,822,714 | $65,266,653 | $421,549,962 | | $11,161,851 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $421,549,962 | $— | $— | $421,549,962 | |
| Unaffiliated Underlying Funds1 | 153,637,204 | — | — | 153,637,204 | |
| Short-Term Investments1 | — | 5,963,841 | — | 5,963,841 | |
| Total | $575,187,166 | $5,963,841 | $— | $581,151,007 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $295,229,621) | | $421,549,962 |
| Investments in securities, at value - unaffiliated (cost $137,052,868) | | 159,601,045 |
| Receivables: | | |
| Investments sold | | 2,420,000 |
| Fund shares sold | | 272,365 |
| Dividends | | 174,561 |
| Due from investment adviser | | 9,150 |
| Prepaid expenses | + | 19,114 |
| Total assets | | 584,046,197 |
| Liabilities |
| Payables: | | |
| Investments bought | | 2,242,788 |
| Independent trustees’ fees | | 242 |
| Fund shares redeemed | | 500,459 |
| Accrued expenses | + | 48,677 |
| Total liabilities | | 2,792,166 |
| Net Assets |
| Total assets | | 584,046,197 |
| Total liabilities | – | 2,792,166 |
| Net assets | | $581,254,031 |
| Net Assets by Source | | |
| Capital received from investors | | 417,127,488 |
| Total distributable earnings | | 164,126,543 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $581,254,031 | | 32,128,252 | | $18.09 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $3,339,323 |
| Dividends received from securities - unaffiliated | | 1,162,496 |
| Interest received from securities - unaffiliated | + | 209 |
| Total investment income | | 4,502,028 |
| Expenses |
| Registration fees | | 15,487 |
| Portfolio accounting fees | | 12,698 |
| Professional fees | | 11,102 |
| Shareholder reports | | 8,449 |
| Transfer agent fees | | 5,112 |
| Independent trustees’ fees | | 4,313 |
| Other expenses | + | 3,180 |
| Total expenses | | 60,341 |
| Expense reduction by CSIM and its affiliates | – | 60,341 |
| Net expenses | – | — |
| Net investment income | | 4,502,028 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 7,822,528 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 4,907,393 |
| Net realized gains on sales of securities - affiliated | | 3,822,714 |
| Net realized gains on sales of securities - unaffiliated | + | 1,511,483 |
| Net realized gains | | 18,064,118 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 65,266,653 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 14,113,951 |
| Net change in unrealized appreciation (depreciation) | + | 79,380,604 |
| Net realized and unrealized gains | | 97,444,722 |
| Increase in net assets resulting from operations | | $101,946,750 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $4,502,028 | $9,814,349 |
| Net realized gains | | 18,064,118 | 7,393,258 |
| Net change in unrealized appreciation (depreciation) | + | 79,380,604 | 5,898,345 |
| Increase in net assets from operations | | 101,946,750 | 23,105,952 |
| Distributions to Shareholders | |
| Total distributions | | ($15,121,800) | ($30,104,205) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 3,594,465 | $61,978,733 | 4,950,446 | $73,475,207 |
| Shares reinvested | | 875,675 | 14,737,609 | 1,911,963 | 29,023,597 |
| Shares redeemed | + | (3,421,995) | (59,197,812) | (7,041,886) | (101,780,856) |
| Net transactions in fund shares | | 1,048,145 | $17,518,530 | (179,477) | $717,948 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 31,080,107 | $476,910,551 | 31,259,584 | $483,190,856 |
| Total increase (decrease) | + | 1,048,145 | 104,343,480 | (179,477) | (6,280,305) |
| End of period | | 32,128,252 | $581,254,031 | 31,080,107 | $476,910,551 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $16.24 | $16.61 | $16.27 | $17.14 | $15.12 | $16.42 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.15 | 0.32 | 0.28 | 0.28 | 0.23 | 0.22 |
| Net realized and unrealized gains (losses) | 3.63 | 0.56 | 1.28 | (0.45) | 2.78 | (0.03) 2 |
| Total from investment operations | 3.78 | 0.88 | 1.56 | (0.17) | 3.01 | 0.19 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.24) | (0.35) | (0.39) | (0.44) | (0.24) | (0.32) |
| Distributions from net realized gains | (0.36) | (0.90) | (0.83) | (0.26) | (0.75) | (1.17) |
| Total distributions | (0.60) | (1.25) | (1.22) | (0.70) | (0.99) | (1.49) |
| Net asset value at end of period | $19.42 | $16.24 | $16.61 | $16.27 | $17.14 | $15.12 |
| Total return | 23.57% 3 | 5.31% | 10.90% | (1.17%) | 21.02% | 1.38% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses4 | 0.00% 5 | 0.00% | 0.00% | 0.00% 6 | 0.00% | 0.00% 6 |
| Gross operating expenses4 | 0.02% 5 | 0.02% | 0.02% | 0.02% | 0.02% | 0.03% |
| Net investment income (loss) | 1.61% 5 | 2.01% | 1.78% | 1.65% | 1.44% | 1.45% |
| Portfolio turnover rate | 13% 3 | 10% | 15% | 17% | 21% | 4% |
| Net assets, end of period (x 1,000,000) | $1,178 | $985 | $1,012 | $962 | $998 | $841 |
| |
1
Calculated based on the average shares outstanding during the period.
2
The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3
Not annualized.
4
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
5
Annualized.
6
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 74.3% of net assets |
| |
| Equity Funds 65.3% |
| Global Real Estate 4.1% |
| Schwab Global Real Estate Fund | 6,268,750 | 48,332,066 |
| International 22.1% |
| Laudus International MarketMasters Fund * | 5,713,990 | 168,848,396 |
| Schwab International Core Equity Fund | 8,293,745 | 91,811,758 |
| | | 260,660,154 |
| Large-Cap 33.3% |
| Laudus U.S. Large Cap Growth Fund * | 1,664,634 | 52,352,753 |
| Schwab Core Equity Fund | 3,609,198 | 97,051,340 |
| Schwab Fundamental US Large Company Index Fund | 940,181 | 20,420,734 |
| Schwab S&P 500 Index Fund | 3,457,138 | 221,982,860 |
| | | 391,807,687 |
| Mid-Cap 1.5% |
| Schwab U.S. Mid-Cap Index Fund | 294,308 | 17,673,167 |
| Small-Cap 4.3% |
| Schwab Small-Cap Equity Fund | 2,269,490 | 51,018,137 |
| | | 769,491,211 |
| |
| Fixed-Income Funds 8.6% |
| Intermediate-Term Bond 6.4% |
| Schwab U.S. Aggregate Bond Index Fund | 7,228,827 | 75,468,949 |
| Short-Term Bond 2.2% |
| Schwab Short-Term Bond Index Fund | 2,465,719 | 25,347,588 |
| | | 100,816,537 |
| |
| Money Market Fund 0.4% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 4,875,892 | 4,877,355 |
| Total Affiliated Underlying Funds |
| (Cost $555,782,321) | | 875,185,103 |
|
| Unaffiliated Underlying Funds 24.6% of net assets |
| |
| Equity Funds 14.2% |
| International 3.4% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 3,131,892 | 39,931,629 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 9.1% |
| ClearBridge Large Cap Growth Fund, Class IS | 537,301 | 39,158,506 |
| Dodge & Cox Stock Fund | 294,688 | 68,615,267 |
| | | 107,773,773 |
| Small-Cap 1.7% |
| ClearBridge Small Cap Growth Fund, Class IS * | 340,960 | 19,448,378 |
| | | 167,153,780 |
| |
| Fixed-Income Funds 10.4% |
| Intermediate-Term Bond 7.5% |
| Baird Aggregate Bond Fund, Institutional Class | 701,531 | 7,997,450 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 2,898,737 | 33,190,534 |
| Metropolitan West Total Return Bond Fund, Class I | 4,316,420 | 47,048,974 |
| | | 88,236,958 |
| International Bond 2.9% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 3,093,610 | 33,658,480 |
| | | 121,895,438 |
| Total Unaffiliated Underlying Funds |
| (Cost $240,118,153) | | 289,049,218 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.9% of net assets |
| |
| Time Deposit 0.9% |
| Skandinaviska Enskilda Banken AB |
| 0.01%, 05/03/21 (b) | 10,923,931 | 10,923,931 |
| Total Short-Term Investment |
| (Cost $10,923,931) | | 10,923,931 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $139,977,655 | $15,921,427 | ($17,450,000) | $1,711,963 | $28,687,351 | $168,848,396 | 5,713,990 | $9,721,427 |
| Laudus U.S. Large Cap Growth Fund | 45,866,279 | 3,737,247 | (4,690,001) | 646,097 | 6,793,131 | 52,352,753 | 1,664,634 | 2,637,247 |
| Schwab Core Equity Fund | 114,355,888 | 5,759,619 | (42,880,000) | 6,766,511 | 13,049,322 | 97,051,340 | 3,609,198 | 5,759,619 |
| Schwab Dividend Equity Fund | 19,513,656 | — | (22,554,863) | 2,216,161 | 825,046 | — | — | 143,057 |
| Schwab Fundamental US Large Company Index Fund | — | 18,520,000 | (910,000) | 37,200 | 2,773,534 | 20,420,734 | 940,181 | — |
| Schwab Global Real Estate Fund | 36,808,630 | 1,987,748 | — | — | 9,535,688 | 48,332,066 | 6,268,750 | 1,237,748 |
| Schwab International Core Equity Fund | 83,622,077 | 969,793 | (10,340,000) | (485,124) | 18,045,012 | 91,811,758 | 8,293,745 | 969,793 |
| Schwab S&P 500 Index Fund | 148,784,034 | 38,660,146 | (9,525,000) | 721,875 | 43,341,805 | 221,982,860 | 3,457,138 | 3,050,146 |
| Schwab Short-Term Bond Index Fund | 21,554,981 | 3,975,213 | — | — | (182,606) | 25,347,588 | 2,465,719 | 175,159 |
| Schwab Small-Cap Equity Fund | 42,629,978 | 94,900 | (11,260,000) | 1,178,477 | 18,374,782 | 51,018,137 | 2,269,490 | 94,899 |
| Schwab U.S. Aggregate Bond Index Fund | 58,368,806 | 20,052,235 | (1,000,000) | (21,698) | (1,930,394) | 75,468,949 | 7,228,827 | 772,080 |
| Schwab U.S. Mid-Cap Index Fund | 15,436,223 | 263,561 | (2,890,000) | 556,563 | 4,306,820 | 17,673,167 | 294,308 | 263,562 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 4,877,113 | 730 | — | — | (488) | 4,877,355 | 4,875,892 | 729 |
| Total | $731,795,320 | $109,942,619 | ($123,499,864) | $13,328,025 | $143,619,003 | $875,185,103 | | $24,825,466 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $875,185,103 | $— | $— | $875,185,103 | |
| Unaffiliated Underlying Funds1 | 289,049,218 | — | — | 289,049,218 | |
| Short-Term Investment1 | — | 10,923,931 | — | 10,923,931 | |
| Total | $1,164,234,321 | $10,923,931 | $— | $1,175,158,252 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $555,782,321) | | $875,185,103 |
| Investments in securities, at value - unaffiliated (cost $251,042,084) | | 299,973,149 |
| Receivables: | | |
| Investments sold | | 9,035,000 |
| Fund shares sold | | 594,624 |
| Dividends | | 252,997 |
| Due from investment adviser | | 12,604 |
| Prepaid expenses | + | 10,565 |
| Total assets | | 1,185,064,042 |
| Liabilities |
| Payables: | | |
| Investments bought | | 6,530,321 |
| Independent trustees’ fees | | 321 |
| Fund shares redeemed | | 624,195 |
| Accrued expenses | + | 81,151 |
| Total liabilities | | 7,235,988 |
| Net Assets |
| Total assets | | 1,185,064,042 |
| Total liabilities | – | 7,235,988 |
| Net assets | | $1,177,828,054 |
| Net Assets by Source | | |
| Capital received from investors | | 773,383,596 |
| Total distributable earnings | | 404,444,458 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,177,828,054 | | 60,664,208 | | $19.42 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $6,827,301 |
| Dividends received from securities - unaffiliated | | 2,244,186 |
| Interest received from securities - unaffiliated | + | 382 |
| Total investment income | | 9,071,869 |
| Expenses |
| Shareholder reports | | 21,625 |
| Registration fees | | 19,337 |
| Portfolio accounting fees | | 15,070 |
| Professional fees | | 11,500 |
| Transfer agent fees | | 7,025 |
| Independent trustees’ fees | | 5,297 |
| Other expenses | + | 5,609 |
| Total expenses | | 85,463 |
| Expense reduction by CSIM and its affiliates | – | 85,463 |
| Net expenses | – | — |
| Net investment income | | 9,071,869 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 17,998,165 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 9,789,923 |
| Net realized gains on sales of securities - affiliated | | 13,328,025 |
| Net realized gains on sales of securities - unaffiliated | + | 3,810,116 |
| Net realized gains | | 44,926,229 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 143,619,003 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 33,449,745 |
| Net change in unrealized appreciation (depreciation) | + | 177,068,748 |
| Net realized and unrealized gains | | 221,994,977 |
| Increase in net assets resulting from operations | | $231,066,846 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $9,071,869 | $19,809,310 |
| Net realized gains | | 44,926,229 | 20,142,431 |
| Net change in unrealized appreciation (depreciation) | + | 177,068,748 | 7,925,275 |
| Increase in net assets from operations | | 231,066,846 | 47,877,016 |
| Distributions to Shareholders | |
| Total distributions | | ($36,450,563) | ($75,661,959) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 4,510,509 | $82,605,477 | 7,287,918 | $111,975,602 |
| Shares reinvested | | 1,997,627 | 35,757,521 | 4,584,013 | 74,123,497 |
| Shares redeemed | + | (6,532,040) | (120,476,583) | (12,097,184) | (184,546,752) |
| Net transactions in fund shares | | (23,904) | ($2,113,585) | (225,253) | $1,552,347 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 60,688,112 | $985,325,356 | 60,913,365 | $1,011,557,952 |
| Total increase (decrease) | + | (23,904) | 192,502,698 | (225,253) | (26,232,596) |
| End of period | | 60,664,208 | $1,177,828,054 | 60,688,112 | $985,325,356 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $13.83 | $13.88 | $13.35 | $13.92 | $12.00 | $12.51 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.12 | 0.25 | 0.22 | 0.21 | 0.17 | 0.16 |
| Net realized and unrealized gains (losses) | 3.39 | 0.46 | 1.09 | (0.39) | 2.37 | 0.00 2 |
| Total from investment operations | 3.51 | 0.71 | 1.31 | (0.18) | 2.54 | 0.16 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.18) | (0.28) | (0.31) | (0.36) | (0.18) | (0.23) |
| Distributions from net realized gains | (0.20) | (0.48) | (0.47) | (0.03) | (0.44) | (0.44) |
| Total distributions | (0.38) | (0.76) | (0.78) | (0.39) | (0.62) | (0.67) |
| Net asset value at end of period | $16.96 | $13.83 | $13.88 | $13.35 | $13.92 | $12.00 |
| Total return | 25.65% 3 | 5.10% | 10.91% | (1.43%) | 22.11% | 1.40% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses4 | 0.00% 5 | 0.00% | 0.00% | 0.00% 6 | 0.00% | 0.00% 6 |
| Gross operating expenses4 | 0.04% 5 | 0.05% | 0.08% | 0.06% | 0.10% | 0.13% |
| Net investment income (loss) | 1.55% 5 | 1.87% | 1.65% | 1.52% | 1.31% | 1.34% |
| Portfolio turnover rate | 11% 3 | 6% | 8% | 12% | 11% | 1% |
| Net assets, end of period (x 1,000,000) | $229 | $178 | $162 | $139 | $121 | $82 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Per-share amount was less than $0.005.
3
Not annualized.
4
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
5
Annualized.
6
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 75.8% of net assets |
| |
| Equity Funds 70.6% |
| Global Real Estate 4.4% |
| Schwab Global Real Estate Fund | 1,306,182 | 10,070,665 |
| International 23.8% |
| Laudus International MarketMasters Fund * | 1,180,090 | 34,871,652 |
| Schwab International Core Equity Fund | 1,769,731 | 19,590,921 |
| | | 54,462,573 |
| Large-Cap 36.1% |
| Laudus U.S. Large Cap Growth Fund * | 425,759 | 13,390,115 |
| Schwab Core Equity Fund | 747,523 | 20,100,905 |
| Schwab Fundamental US Large Company Index Fund | 253,063 | 5,496,537 |
| Schwab S&P 500 Index Fund | 682,108 | 43,798,131 |
| | | 82,785,688 |
| Mid-Cap 1.5% |
| Schwab U.S. Mid-Cap Index Fund | 58,566 | 3,516,900 |
| Small-Cap 4.8% |
| Schwab Small-Cap Equity Fund | 489,204 | 10,997,310 |
| | | 161,833,136 |
| |
| Fixed-Income Funds 5.0% |
| Intermediate-Term Bond 3.7% |
| Schwab U.S. Aggregate Bond Index Fund | 804,563 | 8,399,641 |
| Short-Term Bond 1.3% |
| Schwab Short-Term Bond Index Fund | 286,176 | 2,941,882 |
| | | 11,341,523 |
| |
| Money Market Fund 0.2% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 425,225 | 425,352 |
| Total Affiliated Underlying Funds |
| (Cost $129,776,744) | | 173,600,011 |
|
| Unaffiliated Underlying Funds 23.3% of net assets |
| |
| Equity Funds 15.4% |
| International 4.3% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 772,411 | 9,848,236 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 9.2% |
| ClearBridge Large Cap Growth Fund, Class IS | 91,035 | 6,634,675 |
| Dodge & Cox Stock Fund | 62,537 | 14,561,091 |
| | | 21,195,766 |
| Small-Cap 1.9% |
| ClearBridge Small Cap Growth Fund, Class IS * | 76,352 | 4,355,103 |
| | | 35,399,105 |
| |
| Fixed-Income Funds 7.9% |
| Intermediate-Term Bond 5.8% |
| Baird Aggregate Bond Fund, Institutional Class | 100,935 | 1,150,657 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 464,221 | 5,315,331 |
| Metropolitan West Total Return Bond Fund, Class I | 623,460 | 6,795,718 |
| | | 13,261,706 |
| International Bond 2.1% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 437,658 | 4,761,715 |
| | | 18,023,421 |
| Total Unaffiliated Underlying Funds |
| (Cost $43,866,295) | | 53,422,526 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.9% of net assets |
| |
| Time Deposit 0.9% |
| Barclays Bank PLC |
| 0.01%, 05/03/21 (b) | 2,121,877 | 2,121,877 |
| Total Short-Term Investment |
| (Cost $2,121,877) | | 2,121,877 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $27,175,788 | $3,711,714 | ($1,979,998) | $114,568 | $5,849,580 | $34,871,652 | 1,180,090 | $1,909,428 |
| Laudus U.S. Large Cap Growth Fund | 10,802,694 | 1,755,333 | (1,000,000) | 28,679 | 1,803,409 | 13,390,115 | 425,759 | 609,923 |
| Schwab Core Equity Fund | 22,076,096 | 1,503,552 | (7,369,999) | 268,146 | 3,623,110 | 20,100,905 | 747,523 | 1,120,680 |
| Schwab Dividend Equity Fund | 3,996,168 | — | (4,601,847) | (391,953) | 997,632 | — | — | 29,295 |
| Schwab Fundamental US Large Company Index Fund | — | 4,750,000 | — | — | 746,537 | 5,496,537 | 253,063 | — |
| Schwab Global Real Estate Fund | 7,063,252 | 1,127,861 | — | — | 1,879,552 | 10,070,665 | 1,306,182 | 248,410 |
| Schwab International Core Equity Fund | 16,458,791 | 1,010,551 | (1,379,999) | (113,788) | 3,615,366 | 19,590,921 | 1,769,731 | 191,831 |
| Schwab S&P 500 Index Fund | 27,015,854 | 9,039,026 | (509,999) | 20,881 | 8,232,369 | 43,798,131 | 682,108 | 577,624 |
| Schwab Short-Term Bond Index Fund | 2,462,881 | 499,430 | — | — | (20,429) | 2,941,882 | 286,176 | 19,425 |
| Schwab Small-Cap Equity Fund | 8,281,447 | 18,836 | (1,249,999) | (141,252) | 4,088,278 | 10,997,310 | 489,204 | 18,836 |
| Schwab U.S. Aggregate Bond Index Fund | 6,574,580 | 2,249,420 | (200,000) | (4,292) | (220,067) | 8,399,641 | 804,563 | 87,861 |
| Schwab U.S. Mid-Cap Index Fund | 2,782,886 | 47,516 | (239,999) | 45,373 | 881,124 | 3,516,900 | 58,566 | 47,516 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 425,331 | 64 | — | — | (43) | 425,352 | 425,225 | 63 |
| Total | $135,115,768 | $25,713,303 | ($18,531,840) | ($173,638) | $31,476,418 | $173,600,011 | | $4,860,892 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $173,600,011 | $— | $— | $173,600,011 | |
| Unaffiliated Underlying Funds1 | 53,422,526 | — | — | 53,422,526 | |
| Short-Term Investment1 | — | 2,121,877 | — | 2,121,877 | |
| Total | $227,022,537 | $2,121,877 | $— | $229,144,414 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $129,776,744) | | $173,600,011 |
| Investments in securities, at value - unaffiliated (cost $45,988,172) | | 55,544,403 |
| Receivables: | | |
| Fund shares sold | | 309,943 |
| Dividends | | 30,970 |
| Due from investment adviser | | 6,777 |
| Prepaid expenses | + | 15,597 |
| Total assets | | 229,507,701 |
| Liabilities |
| Payables: | | |
| Investments bought | | 30,561 |
| Independent trustees’ fees | | 189 |
| Fund shares redeemed | | 336,078 |
| Accrued expenses | + | 31,236 |
| Total liabilities | | 398,064 |
| Net Assets |
| Total assets | | 229,507,701 |
| Total liabilities | – | 398,064 |
| Net assets | | $229,109,637 |
| Net Assets by Source | | |
| Capital received from investors | | 170,713,879 |
| Total distributable earnings | | 58,395,758 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $229,109,637 | | 13,507,832 | | $16.96 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $1,252,052 |
| Dividends received from securities - unaffiliated | | 378,620 |
| Interest received from securities - unaffiliated | + | 60 |
| Total investment income | | 1,630,732 |
| Expenses |
| Registration fees | | 12,004 |
| Professional fees | | 10,876 |
| Portfolio accounting fees | | 6,677 |
| Shareholder reports | | 5,161 |
| Independent trustees’ fees | | 3,735 |
| Transfer agent fees | | 1,927 |
| Other expenses | + | 1,928 |
| Total expenses | | 42,308 |
| Expense reduction by CSIM and its affiliates | – | 42,308 |
| Net expenses | – | — |
| Net investment income | | 1,630,732 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 3,608,840 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 1,655,948 |
| Net realized losses on sales of securities - affiliated | | (173,638) |
| Net realized gains on sales of securities - unaffiliated | + | 452,368 |
| Net realized gains | | 5,543,518 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 31,476,418 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 7,444,660 |
| Net change in unrealized appreciation (depreciation) | + | 38,921,078 |
| Net realized and unrealized gains | | 44,464,596 |
| Increase in net assets resulting from operations | | $46,095,328 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $1,630,732 | $3,165,797 |
| Net realized gains | | 5,543,518 | 2,612,624 |
| Net change in unrealized appreciation (depreciation) | + | 38,921,078 | 2,859,982 |
| Increase in net assets from operations | | 46,095,328 | 8,638,403 |
| Distributions to Shareholders | |
| Total distributions | | ($4,963,016) | ($8,999,527) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,792,864 | $28,580,429 | 2,950,192 | $38,924,237 |
| Shares reinvested | | 312,568 | 4,851,051 | 634,950 | 8,781,363 |
| Shares redeemed | + | (1,468,307) | (23,445,867) | (2,390,959) | (31,369,522) |
| Net transactions in fund shares | | 637,125 | $9,985,613 | 1,194,183 | $16,336,078 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 12,870,707 | $177,991,712 | 11,676,524 | $162,016,758 |
| Total increase | + | 637,125 | 51,117,925 | 1,194,183 | 15,974,954 |
| End of period | | 13,507,832 | $229,109,637 | 12,870,707 | $177,991,712 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $14.03 | $14.03 | $13.49 | $14.07 | $12.08 | $12.60 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.12 | 0.25 | 0.21 | 0.21 | 0.16 | 0.15 |
| Net realized and unrealized gains (losses) | 3.63 | 0.45 | 1.11 | (0.41) | 2.47 | 0.01 |
| Total from investment operations | 3.75 | 0.70 | 1.32 | (0.20) | 2.63 | 0.16 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.17) | (0.27) | (0.31) | (0.36) | (0.18) | (0.23) |
| Distributions from net realized gains | (0.20) | (0.43) | (0.47) | (0.02) | (0.46) | (0.45) |
| Total distributions | (0.37) | (0.70) | (0.78) | (0.38) | (0.64) | (0.68) |
| Net asset value at end of period | $17.41 | $14.03 | $14.03 | $13.49 | $14.07 | $12.08 |
| Total return | 27.02% 2 | 4.96% | 10.87% | (1.50%) | 22.68% | 1.39% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.00% 4 | 0.00% | 0.00% | 0.00% 5 | 0.00% | 0.01% 6 |
| Gross operating expenses3 | 0.04% 4 | 0.06% | 0.08% | 0.07% | 0.11% | 0.16% |
| Net investment income (loss) | 1.53% 4 | 1.83% | 1.54% | 1.45% | 1.27% | 1.31% |
| Portfolio turnover rate | 16% 2 | 5% | 7% | 10% | 10% | 1% |
| Net assets, end of period (x 1,000,000) | $218 | $181 | $161 | $122 | $104 | $68 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
6
The ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 77.4% of net assets |
| |
| Equity Funds 74.0% |
| Global Real Estate 4.6% |
| Schwab Global Real Estate Fund | 1,301,911 | 10,037,735 |
| International 24.8% |
| Laudus International MarketMasters Fund * | 1,174,425 | 34,704,250 |
| Schwab International Core Equity Fund | 1,754,198 | 19,418,971 |
| | | 54,123,221 |
| Large-Cap 37.6% |
| Laudus U.S. Large Cap Growth Fund * | 454,133 | 14,282,473 |
| Schwab Core Equity Fund | 743,207 | 19,984,839 |
| Schwab Fundamental US Large Company Index Fund | 305,807 | 6,642,131 |
| Schwab S&P 500 Index Fund | 642,373 | 41,246,783 |
| | | 82,156,226 |
| Mid-Cap 1.7% |
| Schwab U.S. Mid-Cap Index Fund | 61,485 | 3,692,200 |
| Small-Cap 5.3% |
| Schwab Small-Cap Equity Fund | 519,679 | 11,682,380 |
| | | 161,691,762 |
| |
| Fixed-Income Funds 3.4% |
| Intermediate-Term Bond 2.6% |
| Schwab U.S. Aggregate Bond Index Fund | 533,095 | 5,565,509 |
| Short-Term Bond 0.8% |
| Schwab Short-Term Bond Index Fund | 173,071 | 1,779,170 |
| | | 7,344,679 |
| |
| Money Market Fund 0.0% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 28,043 | 28,051 |
| Total Affiliated Underlying Funds |
| (Cost $125,086,471) | | 169,064,492 |
|
| Unaffiliated Underlying Funds 21.7% of net assets |
| |
| Equity Funds 16.2% |
| International 5.0% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 851,384 | 10,855,143 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 9.2% |
| ClearBridge Large Cap Growth Fund, Class IS | 82,982 | 6,047,759 |
| Dodge & Cox Stock Fund | 60,314 | 14,043,576 |
| | | 20,091,335 |
| Small-Cap 2.0% |
| ClearBridge Small Cap Growth Fund, Class IS * | 75,802 | 4,323,718 |
| | | 35,270,196 |
| |
| Fixed-Income Funds 5.5% |
| Intermediate-Term Bond 4.1% |
| Baird Aggregate Bond Fund, Institutional Class | 58,665 | 668,783 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 367,257 | 4,205,096 |
| Metropolitan West Total Return Bond Fund, Class I | 381,778 | 4,161,385 |
| | | 9,035,264 |
| International Bond 1.4% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 280,659 | 3,053,568 |
| | | 12,088,832 |
| Total Unaffiliated Underlying Funds |
| (Cost $37,820,678) | | 47,359,028 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.9% of net assets |
| |
| Time Deposit 0.9% |
| Barclays Bank PLC |
| 0.01%, 05/03/21 (b) | 1,908,352 | 1,908,352 |
| Total Short-Term Investment |
| (Cost $1,908,352) | | 1,908,352 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $29,200,634 | $4,202,718 | ($5,200,000) | $567,773 | $5,933,125 | $34,704,250 | 1,174,425 | $2,060,939 |
| Laudus U.S. Large Cap Growth Fund | 12,216,880 | 2,359,689 | (2,400,000) | 272,646 | 1,833,258 | 14,282,473 | 454,133 | 724,098 |
| Schwab Core Equity Fund | 23,187,335 | 1,177,090 | (8,450,000) | 354,102 | 3,716,312 | 19,984,839 | 743,207 | 1,177,091 |
| Schwab Dividend Equity Fund | 4,987,939 | — | (5,743,936) | (316,062) | 1,072,059 | — | — | 36,567 |
| Schwab Fundamental US Large Company Index Fund | — | 5,740,000 | — | — | 902,131 | 6,642,131 | 305,807 | — |
| Schwab Global Real Estate Fund | 7,584,737 | 1,213,100 | (740,000) | (89,243) | 2,069,141 | 10,037,735 | 1,301,911 | 253,100 |
| Schwab International Core Equity Fund | 17,195,358 | 1,020,467 | (2,510,000) | (71,103) | 3,784,249 | 19,418,971 | 1,754,198 | 205,552 |
| Schwab S&P 500 Index Fund | 27,248,154 | 9,923,637 | (4,165,002) | 229,497 | 8,010,497 | 41,246,783 | 642,373 | 573,635 |
| Schwab Short-Term Bond Index Fund | 1,709,365 | 83,069 | — | — | (13,264) | 1,779,170 | 173,071 | 13,065 |
| Schwab Small-Cap Equity Fund | 9,203,031 | 21,384 | (1,950,000) | (132,488) | 4,540,453 | 11,682,380 | 519,679 | 21,384 |
| Schwab U.S. Aggregate Bond Index Fund | 4,740,365 | 956,246 | — | — | (131,102) | 5,565,509 | 533,095 | 56,237 |
| Schwab U.S. Mid-Cap Index Fund | 3,036,218 | 51,841 | (399,999) | 86,118 | 918,022 | 3,692,200 | 61,485 | 51,841 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 28,050 | 4 | — | — | (3) | 28,051 | 28,043 | 4 |
| Total | $140,338,066 | $26,749,245 | ($31,558,937) | $901,240 | $32,634,878 | $169,064,492 | | $5,173,513 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $169,064,492 | $— | $— | $169,064,492 | |
| Unaffiliated Underlying Funds1 | 47,359,028 | — | — | 47,359,028 | |
| Short-Term Investment1 | — | 1,908,352 | — | 1,908,352 | |
| Total | $216,423,520 | $1,908,352 | $— | $218,331,872 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $125,086,471) | | $169,064,492 |
| Investments in securities, at value - unaffiliated (cost $39,729,030) | | 49,267,380 |
| Receivables: | | |
| Investments sold | | 330,000 |
| Fund shares sold | | 181,568 |
| Dividends | | 19,844 |
| Due from investment adviser | | 6,997 |
| Prepaid expenses | + | 16,088 |
| Total assets | | 218,886,369 |
| Liabilities |
| Payables: | | |
| Investments bought | | 89,604 |
| Independent trustees’ fees | | 189 |
| Fund shares redeemed | | 399,334 |
| Accrued expenses | + | 33,641 |
| Total liabilities | | 522,768 |
| Net Assets |
| Total assets | | 218,886,369 |
| Total liabilities | – | 522,768 |
| Net assets | | $218,363,601 |
| Net Assets by Source | | |
| Capital received from investors | | 158,391,478 |
| Total distributable earnings | | 59,972,123 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $218,363,601 | | 12,539,203 | | $17.41 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $1,251,711 |
| Dividends received from securities - unaffiliated | | 350,296 |
| Interest received from securities - unaffiliated | + | 63 |
| Total investment income | | 1,602,070 |
| Expenses |
| Registration fees | | 12,275 |
| Professional fees | | 10,895 |
| Portfolio accounting fees | | 6,666 |
| Shareholder reports | | 6,167 |
| Independent trustees’ fees | | 3,737 |
| Transfer agent fees | | 2,128 |
| Other expenses | + | 1,932 |
| Total expenses | | 43,800 |
| Expense reduction by CSIM and its affiliates | – | 43,800 |
| Net expenses | – | — |
| Net investment income | | 1,602,070 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 3,921,802 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 1,558,744 |
| Net realized gains on sales of securities - affiliated | | 901,240 |
| Net realized gains on sales of securities - unaffiliated | + | 763,784 |
| Net realized gains | | 7,145,570 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 32,634,878 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 7,753,046 |
| Net change in unrealized appreciation (depreciation) | + | 40,387,924 |
| Net realized and unrealized gains | | 47,533,494 |
| Increase in net assets resulting from operations | | $49,135,564 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $1,602,070 | $3,085,100 |
| Net realized gains | | 7,145,570 | 2,499,877 |
| Net change in unrealized appreciation (depreciation) | + | 40,387,924 | 2,239,611 |
| Increase in net assets from operations | | 49,135,564 | 7,824,588 |
| Distributions to Shareholders | |
| Total distributions | | ($4,905,042) | ($8,146,453) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,850,382 | $30,214,666 | 3,278,640 | $44,358,522 |
| Shares reinvested | | 302,276 | 4,791,072 | 564,445 | 7,947,390 |
| Shares redeemed | + | (2,539,268) | (42,263,840) | (2,395,025) | (31,595,800) |
| Net transactions in fund shares | | (386,610) | ($7,258,102) | 1,448,060 | $20,710,112 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 12,925,813 | $181,391,181 | 11,477,753 | $161,002,934 |
| Total increase (decrease) | + | (386,610) | 36,972,420 | 1,448,060 | 20,388,247 |
| End of period | | 12,539,203 | $218,363,601 | 12,925,813 | $181,391,181 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $14.11 | $14.15 | $13.60 | $14.18 | $12.09 | $12.63 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.12 | 0.24 | 0.21 | 0.20 | 0.16 | 0.15 |
| Net realized and unrealized gains (losses) | 3.76 | 0.45 | 1.10 | (0.39) | 2.55 | 0.00 2 |
| Total from investment operations | 3.88 | 0.69 | 1.31 | (0.19) | 2.71 | 0.15 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.16) | (0.27) | (0.31) | (0.37) | (0.17) | (0.23) |
| Distributions from net realized gains | (0.19) | (0.46) | (0.45) | (0.02) | (0.45) | (0.46) |
| Total distributions | (0.35) | (0.73) | (0.76) | (0.39) | (0.62) | (0.69) |
| Net asset value at end of period | $17.64 | $14.11 | $14.15 | $13.60 | $14.18 | $12.09 |
| Total return | 27.82% 3 | 4.86% | 10.73% | (1.49%) | 23.35% | 1.28% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses4 | 0.00% 5 | 0.00% | 0.00% | 0.00% 6 | 0.00% | 0.01% 7 |
| Gross operating expenses4 | 0.06% 5 | 0.09% | 0.13% | 0.11% | 0.19% | 0.27% |
| Net investment income (loss) | 1.48% 5 | 1.78% | 1.53% | 1.41% | 1.24% | 1.26% |
| Portfolio turnover rate | 10% 3 | 6% | 6% | 10% | 9% | 1% |
| Net assets, end of period (x 1,000,000) | $144 | $107 | $94 | $73 | $60 | $38 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Per-share amount was less than $0.005.
3
Not annualized.
4
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
5
Annualized.
6
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
7
The ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 78.5% of net assets |
| |
| Equity Funds 76.2% |
| Global Real Estate 4.7% |
| Schwab Global Real Estate Fund | 883,407 | 6,811,071 |
| International 25.5% |
| Laudus International MarketMasters Fund * | 804,347 | 23,768,454 |
| Schwab International Core Equity Fund | 1,173,324 | 12,988,697 |
| | | 36,757,151 |
| Large-Cap 38.7% |
| Laudus U.S. Large Cap Growth Fund * | 334,205 | 10,510,754 |
| Schwab Core Equity Fund | 487,024 | 13,096,079 |
| Schwab Fundamental US Large Company Index Fund | 207,878 | 4,515,114 |
| Schwab S&P 500 Index Fund | 429,470 | 27,576,258 |
| | | 55,698,205 |
| Mid-Cap 1.8% |
| Schwab U.S. Mid-Cap Index Fund | 42,588 | 2,557,394 |
| Small-Cap 5.5% |
| Schwab Small-Cap Equity Fund | 349,904 | 7,865,843 |
| | | 109,689,664 |
| |
| Fixed-Income Funds 2.3% |
| Intermediate-Term Bond 1.7% |
| Schwab U.S. Aggregate Bond Index Fund | 231,854 | 2,420,560 |
| Short-Term Bond 0.6% |
| Schwab Short-Term Bond Index Fund | 85,543 | 879,387 |
| | | 3,299,947 |
| Total Affiliated Underlying Funds |
| (Cost $85,095,041) | | 112,989,611 |
|
| Unaffiliated Underlying Funds 20.8% of net assets |
| |
| Equity Funds 16.5% |
| International 5.4% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 608,708 | 7,761,026 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 9.1% |
| ClearBridge Large Cap Growth Fund, Class IS | 46,521 | 3,390,480 |
| Dodge & Cox Stock Fund | 41,780 | 9,728,055 |
| | | 13,118,535 |
| Small-Cap 2.0% |
| ClearBridge Small Cap Growth Fund, Class IS * | 51,319 | 2,927,255 |
| | | 23,806,816 |
| |
| Fixed-Income Funds 4.3% |
| Intermediate-Term Bond 3.3% |
| Baird Aggregate Bond Fund, Institutional Class | 31,793 | 362,440 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 206,457 | 2,363,929 |
| Metropolitan West Total Return Bond Fund, Class I | 183,432 | 1,999,414 |
| | | 4,725,783 |
| International Bond 1.0% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 128,481 | 1,397,876 |
| | | 6,123,659 |
| Total Unaffiliated Underlying Funds |
| (Cost $23,632,916) | | 29,930,475 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.9% of net assets |
| |
| Time Deposit 0.9% |
| Sumitomo Mitsui Trust Bank, Limited |
| 0.01%, 05/03/21 (a) | 1,296,700 | 1,296,700 |
| Total Short-Term Investment |
| (Cost $1,296,700) | | 1,296,700 |
| * | Non-income producing security. |
| (a) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $17,531,912 | $3,587,881 | ($1,300,000) | $138,830 | $3,809,831 | $23,768,454 | 804,347 | $1,237,377 |
| Laudus U.S. Large Cap Growth Fund | 8,126,767 | 1,577,229 | (621,290) | 30,954 | 1,397,094 | 10,510,754 | 334,205 | 457,228 |
| Schwab Core Equity Fund | 13,835,514 | 702,351 | (3,959,998) | 110,210 | 2,408,002 | 13,096,079 | 487,024 | 702,351 |
| Schwab Dividend Equity Fund | 3,126,027 | — | (3,599,823) | (234,162) | 707,958 | — | — | 22,917 |
| Schwab Fundamental US Large Company Index Fund | — | 3,920,000 | — | — | 595,114 | 4,515,114 | 207,878 | — |
| Schwab Global Real Estate Fund | 4,687,042 | 856,596 | — | — | 1,267,433 | 6,811,071 | 883,407 | 166,595 |
| Schwab International Core Equity Fund | 10,523,299 | 335,794 | (150,000) | (3,462) | 2,283,066 | 12,988,697 | 1,173,324 | 125,794 |
| Schwab S&P 500 Index Fund | 16,166,175 | 6,858,610 | (516,273) | 11,990 | 5,055,756 | 27,576,258 | 429,470 | 347,611 |
| Schwab Short-Term Bond Index Fund | 729,579 | 155,615 | — | — | (5,807) | 879,387 | 85,543 | 5,614 |
| Schwab Small-Cap Equity Fund | 5,575,641 | 292,955 | (730,000) | (55,514) | 2,782,761 | 7,865,843 | 349,904 | 12,956 |
| Schwab U.S. Aggregate Bond Index Fund | 1,909,309 | 775,417 | (200,000) | (4,154) | (60,012) | 2,420,560 | 231,854 | 25,414 |
| Schwab U.S. Mid-Cap Index Fund | 1,888,066 | 32,237 | — | — | 637,091 | 2,557,394 | 42,588 | 32,237 |
| Total | $84,099,331 | $19,094,685 | ($11,077,384) | ($5,308) | $20,878,287 | $112,989,611 | | $3,136,094 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $112,989,611 | $— | $— | $112,989,611 | |
| Unaffiliated Underlying Funds1 | 29,930,475 | — | — | 29,930,475 | |
| Short-Term Investment1 | — | 1,296,700 | — | 1,296,700 | |
| Total | $142,920,086 | $1,296,700 | $— | $144,216,786 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $85,095,041) | | $112,989,611 |
| Investments in securities, at value - unaffiliated (cost $24,929,616) | | 31,227,175 |
| Receivables: | | |
| Fund shares sold | | 48,383 |
| Dividends | | 9,081 |
| Due from investment adviser | | 6,489 |
| Prepaid expenses | + | 14,657 |
| Total assets | | 144,295,396 |
| Liabilities |
| Payables: | | |
| Investments bought | | 310,566 |
| Independent trustees’ fees | | 181 |
| Fund shares redeemed | | 30,734 |
| Accrued expenses | + | 30,868 |
| Total liabilities | | 372,349 |
| Net Assets |
| Total assets | | 144,295,396 |
| Total liabilities | – | 372,349 |
| Net assets | | $143,923,047 |
| Net Assets by Source | | |
| Capital received from investors | | 106,930,770 |
| Total distributable earnings | | 36,992,277 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $143,923,047 | | 8,157,815 | | $17.64 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $757,597 |
| Dividends received from securities - unaffiliated | | 210,025 |
| Interest received from securities - unaffiliated | + | 30 |
| Total investment income | | 967,652 |
| Expenses |
| Registration fees | | 10,863 |
| Professional fees | | 10,830 |
| Portfolio accounting fees | | 6,342 |
| Shareholder reports | | 6,010 |
| Independent trustees’ fees | | 3,601 |
| Transfer agent fees | | 1,447 |
| Other expenses | + | 1,643 |
| Total expenses | | 40,736 |
| Expense reduction by CSIM and its affiliates | – | 40,736 |
| Net expenses | – | — |
| Net investment income | | 967,652 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 2,378,497 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 899,150 |
| Net realized losses on sales of securities - affiliated | | (5,308) |
| Net realized gains on sales of securities - unaffiliated | + | 182,478 |
| Net realized gains | | 3,454,817 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 20,878,287 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 5,189,678 |
| Net change in unrealized appreciation (depreciation) | + | 26,067,965 |
| Net realized and unrealized gains | | 29,522,782 |
| Increase in net assets resulting from operations | | $30,490,434 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $967,652 | $1,785,195 |
| Net realized gains | | 3,454,817 | 1,028,863 |
| Net change in unrealized appreciation (depreciation) | + | 26,067,965 | 2,151,448 |
| Increase in net assets from operations | | 30,490,434 | 4,965,506 |
| Distributions to Shareholders | |
| Total distributions | | ($2,778,154) | ($4,969,426) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,378,004 | $22,743,170 | 2,219,735 | $29,888,670 |
| Shares reinvested | | 169,303 | 2,710,532 | 340,618 | 4,836,775 |
| Shares redeemed | + | (999,131) | (16,644,208) | (1,576,305) | (21,062,762) |
| Net transactions in fund shares | | 548,176 | $8,809,494 | 984,048 | $13,662,683 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 7,609,639 | $107,401,273 | 6,625,591 | $93,742,510 |
| Total increase | + | 548,176 | 36,521,774 | 984,048 | 13,658,763 |
| End of period | | 8,157,815 | $143,923,047 | 7,609,639 | $107,401,273 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 8/25/16 1–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $12.21 | $12.16 | $11.53 | $12.02 | $9.83 | $10.00 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.10 | 0.20 | 0.16 | 0.14 | 0.08 | 0.01 |
| Net realized and unrealized gains (losses) | 3.38 | 0.38 | 0.99 | (0.32) | 2.22 | (0.18) |
| Total from investment operations | 3.48 | 0.58 | 1.15 | (0.18) | 2.30 | (0.17) |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.13) | (0.22) | (0.26) | (0.29) | (0.11) | — |
| Distributions from net realized gains | (0.12) | (0.31) | (0.26) | (0.02) | — | — |
| Total distributions | (0.25) | (0.53) | (0.52) | (0.31) | (0.11) | — |
| Net asset value at end of period | $15.44 | $12.21 | $12.16 | $11.53 | $12.02 | $9.83 |
| Total return | 28.72% 3 | 4.73% | 10.85% | (1.64%) | 23.63% | (1.70%) 3 |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses4 | 0.00% 5 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% 6 |
| Gross operating expenses4 | 0.25% 5 | 0.41% | 0.67% | 0.73% | 1.89% | 7.87% 6 |
| Net investment income (loss) | 1.42% 5 | 1.67% | 1.42% | 1.18% | 0.75% | 0.43% 6 |
| Portfolio turnover rate | 12% 3 | 8% | 13% | 22% | 7% | 0% 3 |
| Net assets, end of period (x 1,000,000) | $32 | $22 | $16 | $10 | $6 | $1 |
| |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
3
Not annualized.
4
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
5
Annualized.
6
Annualized (except for non-recurring professional fees and shareholder report fees).
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 79.5% of net assets |
| |
| Equity Funds 78.4% |
| Global Real Estate 4.8% |
| Schwab Global Real Estate Fund | 200,686 | 1,547,287 |
| International 26.3% |
| Laudus International MarketMasters Fund * | 182,164 | 5,382,936 |
| Schwab International Core Equity Fund | 279,113 | 3,089,778 |
| | | 8,472,714 |
| Large-Cap 39.6% |
| Laudus U.S. Large Cap Growth Fund * | 82,264 | 2,587,208 |
| Schwab Core Equity Fund | 111,529 | 2,999,020 |
| Schwab Fundamental US Large Company Index Fund | 49,720 | 1,079,915 |
| Schwab S&P 500 Index Fund | 94,575 | 6,072,633 |
| | | 12,738,776 |
| Mid-Cap 1.9% |
| Schwab U.S. Mid-Cap Index Fund | 9,976 | 599,046 |
| Small-Cap 5.8% |
| Schwab Small-Cap Equity Fund | 83,189 | 1,870,083 |
| | | 25,227,906 |
| |
| Fixed-Income Funds 1.1% |
| Intermediate-Term Bond 0.9% |
| Schwab U.S. Aggregate Bond Index Fund | 26,396 | 275,572 |
| Short-Term Bond 0.2% |
| Schwab Short-Term Bond Index Fund | 7,610 | 78,232 |
| | | 353,804 |
| Total Affiliated Underlying Funds |
| (Cost $20,353,808) | | 25,581,710 |
|
| Unaffiliated Underlying Funds 19.9% of net assets |
| |
| Equity Funds 16.9% |
| International 5.8% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 145,797 | 1,858,907 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 9.0% |
| ClearBridge Large Cap Growth Fund, Class IS | 9,526 | 694,237 |
| Dodge & Cox Stock Fund | 9,415 | 2,192,286 |
| | | 2,886,523 |
| Small-Cap 2.1% |
| ClearBridge Small Cap Growth Fund, Class IS * | 11,736 | 669,401 |
| | | 5,414,831 |
| |
| Fixed-Income Funds 3.0% |
| Intermediate-Term Bond 2.4% |
| Baird Aggregate Bond Fund, Institutional Class | 6,408 | 73,053 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 33,523 | 383,837 |
| Metropolitan West Total Return Bond Fund, Class I | 28,729 | 313,146 |
| | | 770,036 |
| International Bond 0.6% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 19,091 | 207,705 |
| | | 977,741 |
| Total Unaffiliated Underlying Funds |
| (Cost $5,051,192) | | 6,392,572 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.5% of net assets |
| |
| Time Deposit 0.5% |
| Skandinaviska Enskilda Banken AB |
| 0.01%, 05/03/21 (a) | 155,501 | 155,501 |
| Total Short-Term Investment |
| (Cost $155,501) | | 155,501 |
| * | Non-income producing security. |
| (a) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $3,562,611 | $1,404,575 | ($421,000) | $30,272 | $806,478 | $5,382,936 | 182,164 | $257,246 |
| Laudus U.S. Large Cap Growth Fund | 1,763,036 | 596,080 | (100,000) | 4,148 | 323,944 | 2,587,208 | 82,264 | 102,187 |
| Schwab Core Equity Fund | 2,819,014 | 327,364 | (690,000) | 25,463 | 517,179 | 2,999,020 | 111,529 | 143,106 |
| Schwab Dividend Equity Fund | 677,221 | — | (785,181) | (19,295) | 127,255 | — | — | 4,965 |
| Schwab Fundamental US Large Company Index Fund | — | 990,000 | (50,000) | 331 | 139,584 | 1,079,915 | 49,720 | — |
| Schwab Global Real Estate Fund | 944,042 | 374,310 | (40,000) | (6,298) | 275,233 | 1,547,287 | 200,686 | 35,863 |
| Schwab International Core Equity Fund | 2,127,378 | 592,273 | (105,000) | (4,219) | 479,346 | 3,089,778 | 279,113 | 26,168 |
| Schwab S&P 500 Index Fund | 3,253,286 | 2,183,232 | (431,000) | 10,160 | 1,056,955 | 6,072,633 | 94,575 | 70,978 |
| Schwab Short-Term Bond Index Fund | 78,241 | 598 | — | — | (607) | 78,232 | 7,610 | 598 |
| Schwab Small-Cap Equity Fund | 1,201,420 | 146,791 | (80,000) | (880) | 602,752 | 1,870,083 | 83,189 | 2,791 |
| Schwab U.S. Aggregate Bond Index Fund | 232,349 | 139,908 | (90,000) | (1,436) | (5,249) | 275,572 | 26,396 | 2,908 |
| Schwab U.S. Mid-Cap Index Fund | 377,955 | 91,454 | — | — | 129,637 | 599,046 | 9,976 | 6,453 |
| Total | $17,036,553 | $6,846,585 | ($2,792,181) | $38,246 | $4,452,507 | $25,581,710 | | $653,263 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $25,581,710 | $— | $— | $25,581,710 | |
| Unaffiliated Underlying Funds1 | 6,392,572 | — | — | 6,392,572 | |
| Short-Term Investment1 | — | 155,501 | — | 155,501 | |
| Total | $31,974,282 | $155,501 | $— | $32,129,783 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $20,353,808) | | $25,581,710 |
| Investments in securities, at value - unaffiliated (cost $5,206,693) | | 6,548,073 |
| Receivables: | | |
| Investments sold | | 102,000 |
| Fund shares sold | | 35,492 |
| Due from investment adviser | | 5,722 |
| Dividends | | 1,177 |
| Prepaid expenses | + | 7,362 |
| Total assets | | 32,281,536 |
| Liabilities |
| Payables: | | |
| Investments bought | | 1,157 |
| Independent trustees’ fees | | 176 |
| Fund shares redeemed | | 105,684 |
| Accrued expenses | + | 25,051 |
| Total liabilities | | 132,068 |
| Net Assets |
| Total assets | | 32,281,536 |
| Total liabilities | – | 132,068 |
| Net assets | | $32,149,468 |
| Net Assets by Source | | |
| Capital received from investors | | 25,102,730 |
| Total distributable earnings | | 7,046,738 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $32,149,468 | | 2,082,115 | | $15.44 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $154,223 |
| Dividends received from securities - unaffiliated | | 41,423 |
| Interest received from securities - unaffiliated | + | 4 |
| Total investment income | | 195,650 |
| Expenses |
| Professional fees | | 10,748 |
| Registration fees | | 10,294 |
| Portfolio accounting fees | | 5,965 |
| Independent trustees’ fees | | 3,438 |
| Shareholder reports | | 2,563 |
| Transfer agent fees | | 455 |
| Other expenses | + | 1,287 |
| Total expenses | | 34,750 |
| Expense reduction by CSIM and its affiliates | – | 34,750 |
| Net expenses | – | — |
| Net investment income | | 195,650 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 499,040 |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 170,008 |
| Net realized gains on sales of securities - affiliated | | 38,246 |
| Net realized gains on sales of securities - unaffiliated | + | 22,173 |
| Net realized gains | | 729,467 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 4,452,507 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 1,150,537 |
| Net change in unrealized appreciation (depreciation) | + | 5,603,044 |
| Net realized and unrealized gains | | 6,332,511 |
| Increase in net assets resulting from operations | | $6,528,161 |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $195,650 | $303,465 |
| Net realized gains | | 729,467 | 84,396 |
| Net change in unrealized appreciation (depreciation) | + | 5,603,044 | 471,488 |
| Increase in net assets from operations | | 6,528,161 | 859,349 |
| Distributions to Shareholders | |
| Total distributions | | ($458,337) | ($715,136) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 639,610 | $9,233,999 | 930,416 | $10,935,135 |
| Shares reinvested | | 31,814 | 444,437 | 55,993 | 689,274 |
| Shares redeemed | + | (350,746) | (5,107,703) | (521,878) | (6,024,879) |
| Net transactions in fund shares | | 320,678 | $4,570,733 | 464,531 | $5,599,530 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 1,761,437 | $21,508,911 | 1,296,906 | $15,765,168 |
| Total increase | + | 320,678 | 10,640,557 | 464,531 | 5,743,743 |
| End of period | | 2,082,115 | $32,149,468 | 1,761,437 | $21,508,911 |
Schwab Target Funds | Semiannual Report
Financial Statements
Financial Highlights
| | 2/26/21 1–
4/30/21* | | | | | |
| Per-Share Data |
| Net asset value at beginning of period | $10.00 | | | | | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)2 | 0.01 | | | | | |
| Net realized and unrealized gains (losses) | 0.65 | | | | | |
| Total from investment operations | 0.66 | | | | | |
| Net asset value at end of period | $10.66 | | | | | |
| Total return | 6.60% 3 | | | | | |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses4 | 0.00% 5 | | | | | |
| Gross operating expenses4 | 5.28% 5 | | | | | |
| Net investment income (loss) | 0.56% 5 | | | | | |
| Portfolio turnover rate | 7% 3 | | | | | |
| Net assets, end of period (x 1,000,000) | $1 | | | | | |
| |
1
Commencement of operations.
2
Calculated based on the average shares outstanding during the period.
3
Not annualized.
4
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
5
Annualized.
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 80.1% of net assets |
| |
| Equity Funds 78.9% |
| Global Real Estate 4.8% |
| Schwab Global Real Estate Fund | 9,284 | 71,579 |
| International 26.3% |
| Laudus International MarketMasters Fund * | 8,090 | 239,064 |
| Schwab International Core Equity Fund | 13,898 | 153,855 |
| | | 392,919 |
| Large-Cap 40.1% |
| Laudus U.S. Large Cap Growth Fund * | 3,803 | 119,604 |
| Schwab Core Equity Fund | 5,028 | 135,212 |
| Schwab Fundamental US Large Company Index Fund | 2,788 | 60,557 |
| Schwab S&P 500 Index Fund | 4,411 | 283,253 |
| | | 598,626 |
| Mid-Cap 1.8% |
| Schwab U.S. Mid-Cap Index Fund | 445 | 26,723 |
| Small-Cap 5.9% |
| Schwab Small-Cap Equity Fund | 3,939 | 88,543 |
| | | 1,178,390 |
| |
| Fixed-Income Funds 1.2% |
| Intermediate-Term Bond 0.8% |
| Schwab U.S. Aggregate Bond Index Fund | 1,210 | 12,638 |
| Short-Term Bond 0.4% |
| Schwab Short-Term Bond Index Fund | 536 | 5,505 |
| | | 18,143 |
| Total Affiliated Underlying Funds |
| (Cost $1,145,311) | | 1,196,533 |
|
| Unaffiliated Underlying Funds 19.0% of net assets |
| |
| Equity Funds 16.4% |
| International 5.9% |
| Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | 6,899 | 87,963 |
| Security | Number
of Shares | Value ($) |
| Large-Cap 8.6% |
| ClearBridge Large Cap Growth Fund, Class IS | 423 | 30,822 |
| Dodge & Cox Stock Fund | 417 | 97,210 |
| | | 128,032 |
| Small-Cap 1.9% |
| ClearBridge Small Cap Growth Fund, Class IS * | 509 | 29,042 |
| | | 245,037 |
| |
| Fixed-Income Funds 2.6% |
| Intermediate-Term Bond 2.2% |
| Baird Aggregate Bond Fund, Institutional Class | 310 | 3,538 |
| Loomis Sayles Investment Grade Bond Fund, Class Y | 1,334 | 15,276 |
| Metropolitan West Total Return Bond Fund, Class I | 1,222 | 13,322 |
| | | 32,136 |
| International Bond 0.4% |
| PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | 593 | 6,449 |
| | | 38,585 |
| Total Unaffiliated Underlying Funds |
| (Cost $273,314) | | 283,622 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.7% of net assets |
| |
| Time Deposit 0.7% |
| Brown Brothers Harriman & Co. |
| 0.01%, 05/03/21 (a) | 9,997 | 9,997 |
| Total Short-Term Investment |
| (Cost $9,997) | | 9,997 |
| * | Non-income producing security. |
| (a) | The rate shown is the current daily overnight rate. |
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
02/26/21(a) | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus International MarketMasters Fund | $— | $244,985 | ($12,090) | $213 | $5,956 | $239,064 | 8,090 | $— |
| Laudus U.S. Large Cap Growth Fund | — | 118,600 | (6,463) | (2) | 7,469 | 119,604 | 3,803 | — |
| Schwab Core Equity Fund | — | 134,203 | (7,164) | 38 | 8,135 | 135,212 | 5,028 | — |
| Schwab Fundamental US Large Company Index Fund | — | 57,736 | — | — | 2,821 | 60,557 | 2,788 | — |
| Schwab Global Real Estate Fund | — | 71,504 | (3,408) | 18 | 3,465 | 71,579 | 9,284 | 518 |
| Schwab International Core Equity Fund | — | 157,237 | (6,330) | 39 | 2,909 | 153,855 | 13,898 | — |
| Schwab S&P 500 Index Fund | — | 281,245 | (14,841) | 53 | 16,796 | 283,253 | 4,411 | — |
| Schwab Short-Term Bond Index Fund | — | 5,508 | — | — | (3) | 5,505 | 536 | 5 |
| Schwab Small-Cap Equity Fund | — | 91,749 | (5,617) | 3 | 2,408 | 88,543 | 3,939 | — |
| Schwab U.S. Aggregate Bond Index Fund | — | 12,617 | — | — | 21 | 12,638 | 1,210 | 36 |
| Schwab U.S. Mid-Cap Index Fund | — | 25,478 | — | — | 1,245 | 26,723 | 445 | — |
| Total | $— | $1,200,862 | ($55,913) | $362 | $51,222 | $1,196,533 | | $559 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| (a) | Commencement of operations. |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $1,196,533 | $— | $— | $1,196,533 | |
| Unaffiliated Underlying Funds1 | 283,622 | — | — | 283,622 | |
| Short-Term Investment1 | — | 9,997 | — | 9,997 | |
| Total | $1,480,155 | $9,997 | $— | $1,490,152 | |
| 1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $1,145,311) | | $1,196,533 |
| Investments in securities, at value - unaffiliated (cost $283,311) | | 293,619 |
| Receivables: | | |
| Due from investment adviser | | 4,451 |
| Fund shares sold | | 3,853 |
| Dividends | + | 45 |
| Total assets | | 1,498,501 |
| Liabilities |
| Payables: | | |
| Independent trustees’ fees | | 24 |
| Accrued expenses | + | 5,497 |
| Total liabilities | | 5,521 |
| Net Assets |
| Total assets | | 1,498,501 |
| Total liabilities | – | 5,521 |
| Net assets | | $1,492,980 |
| Net Assets by Source | | |
| Capital received from investors | | 1,429,688 |
| Total distributable earnings | | 63,292 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $1,492,980 | | 140,120 | | $10.66 |
| | | | | |
Schwab Target Funds | Semiannual Report
Statement of Operations
For the period February 26, 2021* through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $559 |
| Dividends received from securities - unaffiliated | + | 402 |
| Total investment income | | 961 |
| Expenses |
| Professional fees | | 2,862 |
| Portfolio accounting fees | | 2,163 |
| Independent trustees’ fees | | 1,612 |
| Registration fees | | 1,289 |
| Custodian fees | | 374 |
| Shareholder reports | | 160 |
| Transfer agent fees | | 18 |
| Other expenses | + | 609 |
| Total expenses | | 9,087 |
| Expense reduction by CSIM and its affiliates | – | 9,087 |
| Net expenses | – | — |
| Net investment income | | 961 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - unaffiliated | | 380 |
| Net realized gains on sales of securities - affiliated | | 362 |
| Net realized gains on sales of securities - unaffiliated | + | 59 |
| Net realized gains | | 801 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | | 51,222 |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | 10,308 |
| Net change in unrealized appreciation (depreciation) | + | 61,530 |
| Net realized and unrealized gains | | 62,331 |
| Increase in net assets resulting from operations | | $63,292 |
| * | Commencement of operations. |
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current period only.
Figures for the current period are unaudited
| Operations |
| | 2/26/21*-4/30/21 |
| Net investment income | | $961 |
| Net realized gains | | 801 |
| Net change in unrealized appreciation (depreciation) | + | 61,530 |
| Increase in net assets from operations | | 63,292 |
| Transactions in Fund Shares | |
| | | 2/26/21*-4/30/21 |
| | | SHARES | VALUE |
| Shares sold | | 148,562 | $1,519,779 |
| Shares redeemed | + | (8,442) | (90,091) |
| Net transactions in fund shares | | 140,120 | $1,429,688 |
| Shares Outstanding and Net Assets | |
| | | 2/26/21*-4/30/21 |
| | | SHARES | NET ASSETS |
| Beginning of period | | — | $— |
| Total increase | + | 140,120 | 1,492,980 |
| End of period | | 140,120 | $1,492,980 |
| * | Commencement of operations. |
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
| SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
| Schwab Target 2010 Fund | Schwab Large-Cap Growth Fund |
| Schwab Target 2015 Fund | Schwab Small-Cap Equity Fund |
| Schwab Target 2020 Fund | Schwab Hedged Equity Fund |
| Schwab Target 2025 Fund | Schwab Health Care Fund |
| Schwab Target 2030 Fund | Schwab International Core Equity Fund |
| Schwab Target 2035 Fund | Schwab Fundamental US Large Company Index Fund |
| Schwab Target 2040 Fund | Schwab Fundamental US Small Company Index Fund |
| Schwab Target 2045 Fund | Schwab Fundamental International Large Company Index Fund |
| Schwab Target 2050 Fund | Schwab Fundamental International Small Company Index Fund |
| Schwab Target 2055 Fund | Schwab Fundamental Emerging Markets Large Company Index Fund |
| Schwab Target 2060 Fund | Schwab Fundamental Global Real Estate Index Fund |
| Schwab Target 2065 Fund | Schwab Target 2010 Index Fund |
| Schwab S&P 500 Index Fund | Schwab Target 2015 Index Fund |
| Schwab Small-Cap Index Fund® | Schwab Target 2020 Index Fund |
| Schwab Total Stock Market Index Fund® | Schwab Target 2025 Index Fund |
| Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2030 Index Fund |
| Schwab U.S. Large-Cap Value Index Fund | Schwab Target 2035 Index Fund |
| Schwab U.S. Mid-Cap Index Fund | Schwab Target 2040 Index Fund |
| Schwab International Index Fund® | Schwab Target 2045 Index Fund |
| Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2050 Index Fund |
| Schwab MarketTrack Growth Portfolio™ | Schwab Target 2055 Index Fund |
| Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2060 Index Fund |
| Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2065 Index Fund |
| Laudus International MarketMasters Fund™ | Schwab Monthly Income Fund - Moderate Payout |
| Schwab Balanced Fund | Schwab Monthly Income Fund - Enhanced Payout |
| Schwab Core Equity Fund | Schwab Monthly Income Fund - Maximum Payout |
| Schwab Dividend Equity Fund | |
The Schwab Target Funds are “funds of funds.” Each of the funds seeks to achieve its investment objective by investing in a combination of other affiliated Schwab and/or Laudus Funds and other unaffiliated, third-party mutual funds, (all such mutual funds referred to as “underlying funds”), in accordance with its target portfolio allocation. Each fund may also invest directly in equity and fixed-income securities, exchange-traded funds (ETFs), and cash and cash equivalents, including money market securities.
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.
The Schwab Target 2065 Fund commenced operations on February 26, 2021.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab Target Funds | Semiannual Report
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 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:
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Cash management sweep time deposits: Balances held in cash management sweep time deposits are accounted for on a cost basis, which approximates fair value.
• 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.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the underlying securities held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
• Level 3—significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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, 2021 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Cash Management Transactions: The funds 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 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.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
(e) Expenses:
Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets. Each fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by the fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(i) Indemnification:
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
3. Risk Factors:
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The funds are subject to the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments may cause the fund to underperform other funds with a similar investment objective.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of a fund. However, the investment adviser is a fiduciary to the fund and is legally obligated to act in the fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
Direct Investment Risk. The funds may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain their allocations. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Underlying Fund Investment Risk. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest, which include any combination of the risks described below.
• Investment Risk. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
• Management Risk. Generally, the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or sub-adviser(s)) will make poor security selections. An underlying fund’s adviser applies its own investment techniques and risk analyses in making investment decisions for the underlying fund, but there can be no guarantee that they will produce the desired results.
• Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
• Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• 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, an underlying fund’s performance could be impacted.
• Money Market Fund Risk. The funds may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when a fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares or may temporarily suspend the ability to sell shares if such fund’s liquidity falls below required minimums.
• ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
• Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers 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 an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. 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.
• 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, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying 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.
• Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk, market risk and management risk, are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
• Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
• Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
• Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in, 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’ 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. The investment adviser does not receive a fee for the services it performs for the funds. However, the investment adviser is entitled to receive an annual management fee from each of the affiliated Schwab Funds and/or Laudus Funds that serve as underlying funds.
Shareholder Servicing
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc., a broker-dealer affiliate of CSIM (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. The funds are not subject to any fee under the Plan.
Expense Limitation
CSIM and its affiliates have agreed with the funds, for so long as CSIM serves as the investment adviser to the funds, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses to 0.00%.
The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in the underlying funds.
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments in Affiliates
The funds may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other related funds. As of April 30, 2021, each Schwab Target Fund’s ownership percentages of other related funds’ shares are:
| Underlying Funds | Schwab
Target
2010
Fund | Schwab
Target
2015
Fund | Schwab
Target
2020
Fund | Schwab
Target
2025
Fund | Schwab
Target
2030
Fund | Schwab
Target
2035
Fund | Schwab
Target
2040
Fund | Schwab
Target
2045
Fund | Schwab
Target
2050
Fund | Schwab
Target
2055
Fund | Schwab
Target
2060
Fund | Schwab
Target
2065
Fund |
| Laudus International MarketMasters Fund | 0.3% | 0.4% | 2.9% | 4.3% | 8.8% | 5.2% | 11.6% | 2.4% | 2.4% | 1.6% | 0.4% | 0.0%* |
| Laudus U.S. Large Cap Growth Fund | —% | —% | —% | 0.2% | 0.7% | 0.6% | 1.7% | 0.4% | 0.5% | 0.3% | 0.1% | 0.0%* |
| Schwab Core Equity Fund | 0.1% | 0.2% | 1.1% | 2.0% | 4.3% | 2.5% | 5.4% | 1.1% | 1.1% | 0.7% | 0.2% | 0.0%* |
| Schwab Fundamental US Large Company Index Fund | 0.0%* | 0.0%* | 0.0%* | 0.0%* | 0.1% | 0.1% | 0.3% | 0.1% | 0.1% | 0.1% | 0.0%* | 0.0%* |
| Schwab Global Real Estate Fund | 0.4% | 0.5% | 3.7% | 5.6% | 11.9% | 7.1% | 15.8% | 3.3% | 3.3% | 2.2% | 0.5% | 0.0%* |
| Schwab International Core Equity Fund | 0.2% | 0.4% | 2.7% | 4.4% | 9.9% | 5.8% | 13.0% | 2.8% | 2.8% | 1.8% | 0.4% | 0.0%* |
| Schwab S&P 500 Index Fund | 0.0%* | 0.0%* | 0.1% | 0.2% | 0.3% | 0.2% | 0.4% | 0.1% | 0.1% | 0.0%* | 0.0%* | 0.0%* |
| Schwab Short-Term Bond Index Fund | 0.3% | 0.3% | 2.2% | 1.9% | 2.3% | 0.8% | 1.2% | 0.1% | 0.1% | 0.0%* | 0.0%* | 0.0%* |
| Schwab Small-Cap Equity Fund | 0.1% | 0.2% | 1.3% | 2.2% | 5.3% | 3.3% | 7.9% | 1.7% | 1.8% | 1.2% | 0.3% | 0.0%* |
| Schwab Treasury Inflation Protected Securities Index Fund | 0.2% | 0.3% | 1.7% | 0.9% | 0.4% | —% | —% | —% | —% | —% | —% | —% |
| Schwab U.S. Aggregate Bond Index Fund | 0.3% | 0.4% | 2.5% | 2.2% | 2.7% | 1.0% | 1.5% | 0.2% | 0.1% | 0.0%* | 0.0%* | 0.0%* |
| Schwab U.S. Mid-Cap Index Fund | 0.1% | 0.1% | 0.6% | 0.9% | 1.9% | 1.1% | 2.4% | 0.5% | 0.5% | 0.3% | 0.1% | 0.0%* |
| Schwab Variable Share Price Money Fund, Ultra Shares | 0.1% | 0.1% | 0.5% | 0.4% | 0.5% | 0.2% | 0.2% | 0.0%* | 0.0%* | —% | —% | —% |
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 (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
Shareholder Concentration
Certain accounts or CSIM affiliates may from time to time own (beneficially) or control a significant percentage of a fund’s shares. As of April 30, 2021, CSIM affiliated ownership held 36% of the outstanding shares of the Schwab Target 2065 Fund. The CSIM affiliated ownership percentage is related to seed capital invested on the first day of operations to assist the fund in meeting its investment objective.
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 trusts did not pay any of these interested persons for their services as trustees, but they 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.
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
6. Borrowing from Banks:
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by 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 funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. 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.
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, 2021, purchases and sales of securities (excluding short-term obligations) were as follows:
| | Purchases
of Securities | Sales
of Securities |
| Schwab Target 2010 Fund | $8,345,538 | $9,211,198 |
| Schwab Target 2015 Fund | 8,432,362 | 9,531,380 |
| Schwab Target 2020 Fund | 42,759,162 | 71,680,307 |
| Schwab Target 2025 Fund | 76,869,818 | 85,984,245 |
| Schwab Target 2030 Fund | 131,681,843 | 131,774,281 |
| Schwab Target 2035 Fund | 82,351,088 | 64,111,280 |
| Schwab Target 2040 Fund | 145,274,764 | 151,519,864 |
| Schwab Target 2045 Fund | 33,443,111 | 22,201,839 |
| Schwab Target 2050 Fund | 33,584,007 | 39,133,935 |
| Schwab Target 2055 Fund | 23,094,568 | 13,091,559 |
| Schwab Target 2060 Fund | 8,003,444 | 3,097,178 |
| Schwab Target 2065 Fund | 1,484,773 | 66,569 |
8. Federal Income Taxes:
As of April 30, 2021, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | Schwab
Target
2010
Fund | | Schwab
Target
2015
Fund | | Schwab
Target
2020
Fund | | Schwab
Target
2025
Fund | | Schwab
Target
2030
Fund | | Schwab
Target
2035
Fund |
| Tax cost | $48,783,605 | | $65,755,892 | | $424,330,748 | | $497,423,281 | | $817,450,845 | | $434,655,182 |
| Gross unrealized appreciation | $9,908,713 | | $16,163,124 | | $113,987,347 | | $132,875,826 | | $295,916,785 | | $146,495,825 |
| Gross unrealized depreciation | (23,764) | | (7,983) | | (119,957) | | (189,263) | | (213,337) | | — |
| Net unrealized appreciation (depreciation) | $9,884,949 | | $16,155,141 | | $113,867,390 | | $132,686,563 | | $295,703,448 | | $146,495,825 |
Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
8. Federal Income Taxes (continued):
| | Schwab
Target
2040
Fund | | Schwab
Target
2045
Fund | | Schwab
Target
2050
Fund | | Schwab
Target
2055
Fund | | Schwab
Target
2060
Fund | | Schwab
Target
2065
Fund |
| Tax cost | $814,818,798 | | $176,277,158 | | $165,452,741 | | $110,695,055 | | $25,807,390 | | $1,428,629 |
| Gross unrealized appreciation | $360,404,088 | | $52,871,535 | | $52,882,302 | | $33,522,424 | | $6,323,259 | | $61,558 |
| Gross unrealized depreciation | (64,634) | | (4,279) | | (3,171) | | (693) | | (866) | | (35) |
| Net unrealized appreciation (depreciation) | $360,339,454 | | $52,867,256 | | $52,879,131 | | $33,521,731 | | $6,322,393 | | $61,523 |
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2020, the funds had no capital loss carryforwards available to offset future net capital gains.
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, 2021. The tax-basis components of distributions paid during the fiscal year ended October 31, 2020, were as follows:
| | Schwab
Target
2010
Fund | Schwab
Target
2015
Fund | Schwab
Target
2020
Fund | Schwab
Target
2025
Fund | Schwab
Target
2030
Fund | Schwab
Target
2035
Fund |
| Ordinary income | $1,314,831 | $2,018,665 | $13,636,822 | $13,898,587 | $23,515,128 | $10,709,488 |
| Long-term capital gains | 1,204,227 | 2,170,460 | 16,329,586 | 17,306,186 | 41,149,887 | 19,394,717 |
| | Schwab
Target
2040
Fund | Schwab
Target
2045
Fund | Schwab
Target
2050
Fund | Schwab
Target
2055
Fund | Schwab
Target
2060
Fund | Schwab
Target
2065
Fund |
| Ordinary income | $21,322,805 | $3,301,292 | $3,187,945 | $1,817,735 | $302,277 | $— |
| Long-term capital gains | 54,339,154 | 5,698,235 | 4,958,508 | 3,151,691 | 412,859 | — |
As of October 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended October 31, 2020, the funds did not incur any interest or penalties.
9. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab Target Funds | Semiannual Report
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
Initial Approval of Investment Advisory Agreement
The Board of Trustees (the Board or the Trustees, as appropriate) called and held a meeting on December 8, 2020, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (CSIM) as investment adviser to the Schwab Target 2065 Fund (the Fund) under the investment advisory agreement between Schwab Capital Trust (the Trust) and CSIM (the Agreement). In preparation for the meeting, the Board requested and reviewed a wide variety of materials provided by CSIM and considered information that the Board receives from CSIM throughout the year, including information about CSIM’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. The Board also received data provided by an independent provider of investment company data. In recognition of the fact that the Fund had not yet commenced operations, the Board also considered information provided by CSIM in connection with the Board’s consideration of approval of the investment advisory agreement and administration with respect to the other funds within the Trust. The Board also took into account the detailed information about other funds within the Trust that the Board reviews during the course of each year, including information that relates to those funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. The Independent Trustees received advice from Independent Trustees’ legal counsel. In addition, the Independent Trustees participated in question and answer sessions with representatives of CSIM and met in executive session outside the presence of Fund management.
At the meeting on December 8, 2020, the Board, including a majority of the Independent Trustees, approved the Agreement with respect to the Fund. The Board’s approval was based on
consideration and evaluation of a variety of specific factors discussed at this meeting, including:
| 1. | the nature, extent and quality of the services to be provided to the Fund under the Agreement, including the resources of CSIM and its affiliates to be dedicated to the Fund; |
| 2. | CSIM’s experience in managing other comparable mutual funds and how the Fund’s glide path and asset allocations compare to those of other Schwab target date funds; |
| 3. | the Fund’s estimated expenses and how those expenses compared to those of certain other similar mutual funds; |
| 4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to its management of other funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and |
| 5. | the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors. |
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services to be provided by CSIM to the Fund and the resources of CSIM and its affiliates will dedicate to the Fund. In this regard, the Trustees evaluated, among other things, CSIM’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by CSIM relating to services and support to be provided with respect to the Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments CSIM has made in its infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Fund and its shareholders. The Trustees also considered Schwab’s wide range of products, services, and channel alternatives such as investment research tools and an array of account features that benefit Fund shareholders who are brokerage clients of Schwab. Finally, the Trustees also considered Schwab’s reputation as a full service brokerage firm and its overall financial condition including Schwab’s ability to maintain consistent operations and service levels during recent periods of remote work and market volatility. Following such evaluation, the Board concluded, within the context of its full
Schwab Target Funds | Semiannual Report
deliberations that the nature, extent and quality of services to be provided by CSIM to the Fund and the resources of CSIM and its affiliates dedicated to the Fund supported approval of the Agreement with respect to the Fund.
Fund Performance. With regard to Fund performance, since the Fund had not commenced operations and therefore did not have any performance of its own, the Board considered performance of other funds advised by CSIM having comparable investment objectives in determining whether to approve the Agreement with respect to the Fund. The Trustees also considered the asset allocation expectations for the Fund over time. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected performance of the Fund supported approval of the Agreement with respect to the Fund.
Fund Expenses. With respect to the Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and the Fund’s estimated net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated based on data provided by an independent provider of investment company data. The Trustees considered that CSIM had contractually agreed to limit certain expenses of the Fund to a specified level. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported approval of the Agreement with respect to the Fund.
Profitability. With regard to profitability, the Trustees considered the expected compensation to be flowing to CSIM and its affiliates, directly or indirectly, and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain fixed costs across the Fund and other funds in the complex. The Trustees also considered any other potential benefits to be derived by CSIM from its relationship with the Fund, such as whether, by virtue of its management of the Fund, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the expected compensation and profitability with respect to the Fund under the Agreement and other service agreements were reasonable and justified in light
of the quality of all services to be rendered to the Fund by CSIM and its affiliates. The Trustees noted that CSIM continues to invest substantial sums in its business in order to provide enhanced research capabilities, services, and systems that would benefit the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM, albeit uncertain, is reasonable and supported approval of the Agreement with respect to the Fund.
Economies of Scale. Recognizing that the Fund had not yet commenced operations and had no assets, the Trustees considered the potential existence of any economies of scale and whether those could be expected to be passed along to the Fund’s shareholders through (i) the enhancement of services provided to the Fund in return for fees paid, including through investments by CSIM in CSIM’s infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence, and information security programs, which are designed to provide enhanced services to the Fund and its shareholders; (ii) expense cap by CSIM and its affiliates; and (iii) pricing the Fund to scale and keeping overall expenses down as the Fund grows. The Trustees acknowledged that CSIM will share any economies of scale with the Fund by investing in CSIM’s infrastructure, as discussed above, over time and that CSIM’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Fund may increase as a result of regulatory or other developments. The Trustees considered that CSIM had contractually agreed to an expense cap with respect to the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund may be expected to obtain reasonable benefits from economies of scale if such economies develop.
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously approved the Agreement with respect to the Fund and concluded that the compensation under the Agreement with respect to the Fund is fair and reasonable in light of such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.
Schwab Target Funds | Semiannual Report
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 103 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. | 103 | 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. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Schwab Target Funds | Semiannual Report
| 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 |
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). | 103 | 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). | 103 | None |
J. Derek Penn
1957
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Schwab Target Funds | Semiannual Report
| Interested 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 |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer, Chief Financial Officer and Chief Operating 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) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (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
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr.
1972
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Schwab Target Funds | Semiannual Report
| 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 |
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 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. 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. |
Schwab Target Funds | Semiannual Report
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 Government/Credit 1–5 Year Index An index that is a broad-based benchmark measuring the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational and local authority debt) and investment grade U.S. corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years. 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 a remaining maturity greater than or equal to one year and less than five years. The index excludes certain types of securities, including, bonds with equity type features (e.g., warrants, convertibles and preferreds), tax-exempt municipal securities, inflation-linked bonds, floating rate issues, strips, private placements, U.S. dollar-denominated 25 and 50 par retail bonds, structured notes and pass-through certificates. 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 $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L) An index which includes all publicly-issued U.S. Treasury Inflation-Protected Securities (TIPS) that have at least one year remaining to maturity, are rated investment grade and have $500 million or more of outstanding face value. The TIPS in the index must be denominated in U.S. dollars and must be fixed-rate and non-convertible. The index is market capitalization weighted and the TIPS in the index are updated on the last business day of each month. TIPS are publicly issued, dollar denominated U.S. Government securities issued by the U.S. Treasury that have principal and interest payments linked to an official inflation measure (as measured by the Consumer Price Index, or CPI) and their payments are supported by the full faith and credit of the United States.
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.
FTSE EPRA Nareit Global Index (Net) An index that provides a diverse representation of publicly traded equity real estate investment trusts (REITs) and listed property companies worldwide. The index constituents are free-float adjusted, and screened on liquidity, size and revenue. The index is comprised of countries in developed and emerging markets. The Net of Tax Index is calculated based on the maximum withholding tax rates applicable to dividends received by institutional investors who are not resident in the same country as the remitting company and who do not benefit from double taxation treaties.
FTSE non-US Dollar World Government Bond Index A market capitalization index that measures the total rate of return performance for the government bonds of 22 countries, excluding the U.S., with a remaining maturity of at least 1 year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE 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.
Schwab Target Funds | Semiannual Report
MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The 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.
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 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.
stock A share of ownership, or equity, in the issuing company.
Target 2010 Composite Index A custom blended index developed by CSIM based on the 2010 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 21.1% S&P 500 Index, 0.7% Russell Midcap Index, 1.9% Russell 2000 Index, 9.1% MSCI EAFE Index (Net), 40.8% Bloomberg Barclays US Aggregate Bond Index, 1.7% FTSE EPRA Nareit Global Index (Net), 6.5% Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L), 2.3% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 0.9% Bloomberg Barclays US Government/Credit Index, 10.2% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 4.7% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2015 Composite Index A custom blended index developed by CSIM based on the 2015 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 22.7% S&P 500 Index, 0.8% Russell Midcap Index, 2.0% Russell 2000 Index, 10.2% MSCI EAFE Index (Net), 38.8% Bloomberg Barclays US Aggregate Bond Index,
1.9% FTSE EPRA Nareit Global Index (Net), 6.2% Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L), 2.3% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 1.2% Bloomberg Barclays US Government/Credit Index, 9.6% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 4.3% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2020 Composite Index A custom blended index developed by CSIM based on the 2020 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 23.6% S&P 500 Index, 0.8% Russell Midcap Index, 2.1% Russell 2000 Index, 11.1% MSCI EAFE Index (Net), 37.4% Bloomberg Barclays US Aggregate Bond Index, 2.0% FTSE EPRA Nareit Global Index (Net), 6.0% Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L), 2.4% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 1.3% Bloomberg Barclays US Government/Credit Index, 9.1% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 4.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2025 Composite Index A custom blended index developed by CSIM based on the 2025 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000® Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 29.8% S&P 500 Index, 1.0% Russell Midcap Index, 3.1% Russell 2000 Index, 14.8% MSCI EAFE Index (Net), 29% Bloomberg Barclays US Aggregate Bond Index, 2.6% FTSE EPRA Nareit Global Index (Net), 0.6% MSCI Emerging Markets Index (Net), 2.9% Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L), 4.1% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 2.2% Bloomberg Barclays US Government/Credit Index, 6.7% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 3.2% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2030 Composite Index A custom blended index developed by CSIM based on the 2030 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 35.2% S&P 500 Index, 1.2% Russell Midcap Index, 4.2% Russell 2000 Index, 17.9% MSCI EAFE Index (Net), 21.3% Bloomberg Barclays US Aggregate Bond Index, 3.2% FTSE EPRA Nareit Global Index (Net), 1.5% MSCI Emerging Markets Index (Net), 0.8% Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series L), 4.7% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 2.7% Bloomberg Barclays US
Schwab Target Funds | Semiannual Report
Government/Credit Index, 4.8% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 2.5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2035 Composite Index A custom blended index developed by CSIM based on the 2035 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 39.0% S&P 500 Index, 1.4% Russell Midcap Index, 5.1% Russell 2000 Index, 20.2% MSCI EAFE Index (Net), 16.0% Bloomberg Barclays US Aggregate Bond Index, 3.6% FTSE EPRA Nareit Global Index (Net), 2.3% MSCI Emerging Markets Index (Net), 4.1% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 2.9% Bloomberg Barclays US Government/Credit Index, 3.4% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 2.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2040 Composite Index A custom blended index developed by CSIM based on the 2040 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 42.1% S&P 500 Index, 1.5% Russell Midcap Index, 5.9% Russell 2000 Index, 22.2% MSCI EAFE Index (Net), 11.5% Bloomberg Barclays US Aggregate Bond Index, 3.9% FTSE EPRA Nareit Global Index (Net), 3.2% MSCI Emerging Markets Index (Net), 3.1% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 2.7% Bloomberg Barclays US Government/Credit Index, 2.4% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 1.5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2045 Composite Index A custom blended index developed by CSIM based on the 2045 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 44.7% S&P 500 Index, 1.6% Russell Midcap Index, 6.6% Russell 2000 Index, 24.0% MSCI EAFE Index (Net), 7.5% Bloomberg Barclays US Aggregate Bond Index, 4.3% FTSE EPRA Nareit Global Index (Net), 4.2% MSCI Emerging Markets Index (Net), 2.1% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 2.2% Bloomberg Barclays US Government/Credit Index, 1.6% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 1.1% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2050 Composite Index A custom blended index developed by CSIM based on the 2050 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 46.3% S&P 500 Index, 1.7% Russell Midcap Index, 7.1% Russell 2000 Index, 25.1% MSCI EAFE Index (Net), 5.2% Bloomberg Barclays US Aggregate Bond Index, 4.5% FTSE EPRA Nareit Global Index (Net), 4.8% MSCI Emerging Markets Index (Net), 1.6% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 1.8% Bloomberg Barclays US Government/Credit Index, 1.1% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 0.9% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2055 Composite Index A custom blended index developed by CSIM based on the 2055 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 47.2% S&P 500 Index, 1.7% Russell Midcap Index, 7.4% Russell 2000 Index, 25.8% MSCI EAFE Index (Net), 3.8% Bloomberg Barclays US Aggregate Bond Index, 4.6% FTSE EPRA Nareit Global Index (Net), 5.3% MSCI Emerging Markets Index (Net), 1.2% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 1.5% Bloomberg Barclays US Government/Credit Index, 0.8% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 0.7% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2060 Composite Index: A custom blended index developed by CSIM based on the 2060 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Barclays Global Aggregate ex-US Hedged Index. Effective February 1, 2021, the composite is derived using the following portion allocations: 48.1% S&P 500 Index, 1.7% Russell Midcap Index, 7.7% Russell 2000 Index, 26.5% MSCI EAFE Index (Net), 2.5% Bloomberg Barclays US Aggregate Bond Index, 4.7% FTSE EPRA Nareit Global Index (Net), 5.7% MSCI Emerging Markets Index (Net), 0.8% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 1.1% Bloomberg Barclays US Government/Credit Index, 0.6% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 0.5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
Target 2065 Composite Index: A custom blended index developed by CSIM based on the 2065 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective February 25, 2021, the composite is derived using the following portion allocations: 48.3% S&P 500 Index, 1.7% Russell Midcap Index, 7.8% Russell 2000 Index, 26.6% MSCI EAFE Index (Net), 2.3% Bloomberg Barclays US Aggregate Bond Index, 4.8% FTSE EPRA Nareit Global Index (Net), 5.8% MSCI Emerging Markets Index (Net), 0.8% Bloomberg Barclays Global Aggregate ex-US Hedged Index, 1.0% Bloomberg Barclays US Government/Credit Index, 0.5% Bloomberg Barclays US
Schwab Target Funds | Semiannual Report
Government/Credit 1-5 Year Index, and 0.5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2021. Percentages listed may not total to 100% due to rounding.
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.
Schwab Target Funds | Semiannual Report
Charles Schwab Investment Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Hedged Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Asset Allocation Funds
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
Funds
Schwab Funds
1-877-824-5615
© 2021 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
| ¹ | State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation. |
| ² | You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
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Semiannual Report | April 30, 2021
Schwab Balanced Fund
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Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM)
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Balanced Fund | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Total Return for the 6 Months Ended April 30, 2021 |
| Schwab Balanced Fund (Ticker Symbol: SWOBX) | 16.39% |
| Balanced Blended Index | 17.73% |
| Fund Category: Morningstar Allocation—50% to 70% Equity1 | 20.30% |
| Performance Details | pages 6-7 |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up the composite index may vary over time. For index definition, please see the Glossary.
Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the 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. |
Schwab Balanced Fund | Semiannual Report
The Investment Environment
For the six-month reporting period ended April 30, 2021, U.S. and international equity markets generated solid returns, with major market indices ending the reporting period just shy of record highs. Despite persisting COVID-19 pandemic-driven stresses on the global economy—including widespread business disruptions, high unemployment, and prolonged stay-at-home orders—and a resurgence of COVID-19 cases in the fall and winter, equity markets continued to be buoyed by the extensive emergency rescue and fiscal stimulus measures passed by governments and central banks around the world beginning in March 2020, as well as the initial distribution of COVID-19 vaccines in December 2020 and the expanded rollout in 2021. The COVID-19 vaccine rollout helped fuel the early stages of a shift in the market towards cyclical sectors, beginning in November and December 2020 and continuing through the remainder of the reporting period. The U.S. dollar ended the reporting period weaker against a basket of foreign currencies, generally enhancing the returns of overseas investments in U.S. dollar terms. The S&P 500® Index, a bellwether for the overall U.S. stock market, returned 28.85% for the reporting period. U.S. small-cap stocks significantly outperformed U.S. large-cap stocks, with the Russell 2000® Index and the Russell 1000® Index returning 48.06% and 30.03%, respectively, for the reporting period. Outside the U.S., the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 28.84% for the reporting period, while the MSCI Emerging Markets Index (Net)* returned 22.95%. Bond markets were significantly weaker, with the Bloomberg Barclays US Aggregate Bond Index, representing the broad U.S. fixed-income market, returning -1.52% and the FTSE non-US Dollar World Government Bond Index returning -0.83% for the reporting period.
Bolstered by the extensive emergency rescue and fiscal stimulus measures passed by the U.S. Federal Reserve (Fed) and U.S. Congress, the U.S. economy has held up relatively well, especially given the intensity of the COVID-19 pandemic’s economic impact. After a steep slide in the second quarter of 2020 and subsequent recovery in the third quarter of 2020, U.S. gross domestic product (GDP) grew at an annualized rate of 4.3% for the fourth quarter of 2020 and an annualized rate of 6.4% for the first quarter of 2021. Unemployment, which skyrocketed in April 2020, fell in each subsequent month through March 2021 before experiencing a slight uptick in April 2021. Inflation remained well
Asset Class Performance Comparison % returns during the 6 months ended April 30, 2021
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. |
Schwab Balanced Fund | Semiannual Report
The Investment Environment (continued)
below the Fed’s traditional target of 2% until March 2021, when it jumped, largely due to supply and demand imbalances in the labor market, increased demand particularly for travel-related services, as well as increasing energy costs.
Outside the U.S., global economies wrestled with the fallout of the COVID-19 pandemic against the anticipation of its eventual end. In the eurozone, GDP growth jumped in the third quarter of 2020, regaining much of its losses from the second quarter, but turned slightly negative for both the fourth quarter of 2020 and the first quarter of 2021. The United Kingdom, which was particularly hard-hit by the COVID-19 pandemic, suffered its biggest slump in more than three centuries over the course of 2020, effectively wiping out its growth over the past seven years, but posted a small positive gain in GDP for the first quarter of 2021. Japan’s economy, after rebounding sharply in the third quarter of 2020, posted a positive, albeit smaller, gain in the fourth quarter of 2020 on strong exports and consumer spending. China, the only major economy to avoid contraction in the face of COVID-19 pandemic-related shocks, maintained positive GDP growth in the fourth quarter of 2020. China’s growth accelerated sharply for the first quarter of 2021 on rising domestic and global demand, strict COVID-19 containment measures, and continued fiscal and monetary support. India, after plunging into one of the worst recessions of any major economy, saw its first positive gain in GDP in the fourth quarter of 2020, but a huge spike in COVID-19 cases in April 2021 dampened its growth prospects.
Central banks around the world, including the Fed, maintained the low—and for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. In the U.S., the federal funds rate remained in a range of 0.00% to 0.25% throughout the reporting period. The Fed reiterated its intention to continue its support of the economy, and in April 2021 affirmed that despite showing signs of recovery, the U.S. economy still had a way to go before the Fed would consider raising interest rates or tapering its bond-buying policy. The Fed also maintained its revised approach to its interest rate policy, announced in August 2020, that would allow inflation to rise above its previous 2% target for periods of time, even in times of rising employment. Outside the U.S., the European Central Bank held its policy rate at 0.00%, unchanged since March 2016, and maintained its asset purchase program to help counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.01%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program. Central banks in key emerging market economies—including China, India, Russia, and Thailand—also maintained low rates to help counter the effects of the COVID-19 pandemic. Mexico reduced its benchmark interest rate by 0.25% in February 2021.
U.S. bond yields remained at historically low levels from the onset of the COVID-19 pandemic through the end of 2020. Beginning in 2021, U.S. bonds sold off, driving yields steadily higher as investors anticipated an accelerating economic recovery and inflation expectations for the second part of the year rose significantly. (Bond yields and bond prices typically move in opposite directions.) The yield on the 10-year U.S. Treasury, which began the reporting period at 0.88%, hit a high of 1.74% in March before dropping back slightly to end the reporting period at 1.65%. Short-term rates ended the reporting period at historic lows, as the three-month U.S. Treasury yield slid from 0.09% to 0.01% over the reporting period. Outside the U.S., bond yields remained low.
Schwab Balanced Fund | Semiannual Report
 | Zifan Tang, Ph.D., CFA, Senior Portfolio Manager, is responsible for the co-management of the fund. Prior to joining Schwab in January 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
 | Patrick Kwok, CFA, Portfolio Manager, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager with CSIM from 2012 to 2016. Prior to that, he worked as a fund administration manager for CSIM, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration for the Charles Schwab Trust Bank Collective Investment Trusts and Schwab’s multi-asset mutual funds. Prior to joining CSIM in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Schwab Balanced Fund | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab Balanced Fund (11/18/96) | 16.39% | 26.60% | 11.35% | 8.97% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Balanced Blended Index | 17.73% | 28.20% | 11.75% | 9.76% |
| Fund Category: Morningstar Allocation—50% to 70% Equity2 | 20.30% | 31.26% | 10.24% | 8.02% |
| Fund Expense Ratios3: Net 0.50%; Gross 0.53% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.50% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. 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, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab Balanced Fund | Semiannual Report
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 6 |
| Portfolio Turnover Rate | 5% 1 |
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
| 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. |
| 4 | The holdings listed exclude any temporary liquidity investments. |
Schwab Balanced Fund | Semiannual Report
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 transfer agent fees and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the 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, 2020 and held through April 30, 2021.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for the fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs. 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)1,2 | Effective
Expense Ratio
(Annualized)3,4 | Beginning
Account Value
at 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/21 | Expenses Paid
During Period
11/1/20-4/30/212,5 | Effective
Expenses Paid
During Period
11/1/20-4/30/214,5 |
| Schwab Balanced Fund | | | | | | |
| Actual Return | 0.00% | 0.51% | $1,000.00 | $1,163.90 | $0.00 | $2.74 |
| Hypothetical 5% Return | 0.00% | 0.51% | $1,000.00 | $1,024.80 | $0.00 | $2.56 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 3 | Based on the most recent six-month acquired fund fees and expense ratio; may differ from the acquired fund fees and expense ratio in the prospectus. |
| 4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 5 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year. |
Schwab Balanced Fund | Semiannual Report
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $16.50 | $15.99 | $15.41 | $15.60 | $14.51 | $15.40 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.12 | 0.20 | 0.24 | 0.23 | 0.21 | 0.19 |
| Net realized and unrealized gains (losses) | 2.56 | 1.13 | 1.32 | 0.08 2 | 1.96 | 0.00 3 |
| Total from investment operations | 2.68 | 1.33 | 1.56 | 0.31 | 2.17 | 0.19 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.19) | (0.22) | (0.37) | (0.48) | (0.22) | (0.32) |
| Distributions from net realized gains | (0.34) | (0.60) | (0.61) | (0.02) | (0.86) | (0.76) |
| Total distributions | (0.53) | (0.82) | (0.98) | (0.50) | (1.08) | (1.08) |
| Net asset value at end of period | $18.65 | $16.50 | $15.99 | $15.41 | $15.60 | $14.51 |
| Total return | 16.39% 4 | 8.58% | 11.19% | 1.94% | 15.90% | 1.41% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses5 | 0.00% 6 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% 7 |
| Gross operating expenses5 | 0.03% 6 | 0.03% | 0.04% | 0.04% | 0.06% | 0.06% |
| Net investment income (loss) | 1.33% 6 | 1.26% | 1.55% | 1.44% | 1.39% | 1.34% |
| Portfolio turnover rate | 5% 4 | 18% | 32% | 6% | 28% 8 | 19% |
| Net assets, end of period (x 1,000,000) | $730 | $577 | $526 | $447 | $386 | $282 |
| |
1
Calculated based on the average shares outstanding during the period.
2
The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3
Less than $0.005.
4
Not annualized.
5
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
6
Annualized.
7
Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses and/or interest expense had not been incurred.
8
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 7% without including these transactions. There were no transaction costs associated with these transactions.
Schwab Balanced Fund | Semiannual Report
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 98.8% of net assets |
| |
| Equity Funds 60.7% |
| Large-Cap 50.4% |
| Laudus U.S. Large Cap Growth Fund * | 3,521,391 | 110,747,760 |
| Schwab Core Equity Fund | 9,558,120 | 257,017,835 |
| | | 367,765,595 |
| Small-Cap 10.3% |
| Schwab Small-Cap Equity Fund | 3,347,079 | 75,242,325 |
| | | 443,007,920 |
| |
| Fixed-Income Funds 36.2% |
| Intermediate-Term Bond 36.2% |
| Schwab U.S. Aggregate Bond Index Fund | 25,344,587 | 264,597,492 |
| |
| Money Market Fund 1.9% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 13,713,324 | 13,717,438 |
| Total Affiliated Underlying Funds |
| (Cost $574,427,541) | | 721,322,850 |
| Security | Number
of Shares | Value ($) |
| Unaffiliated Underlying Fund 1.2% of net assets |
| |
| Money Market Fund 1.2% |
| State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03% (a) | 8,521,884 | 8,521,884 |
| Total Unaffiliated Underlying Fund |
| (Cost $8,521,884) | | 8,521,884 |
| * | Non-income producing security. |
| (a) | The rate shown is the 7-day yield. |
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Laudus U.S. Large Cap Growth Fund | $89,442,175 | $13,578,850 | ($7,340,000) | $99,111 | $14,967,624 | $110,747,760 | 3,521,391 | $4,989,675 |
| Schwab Core Equity Fund | 196,093,026 | 26,611,565 | (8,930,000) | 114,522 | 43,128,722 | 257,017,835 | 9,558,120 | 10,120,075 |
| Schwab Small-Cap Equity Fund | 59,916,522 | 2,383,453 | (14,960,000) | 2,030,868 | 25,871,482 | 75,242,325 | 3,347,079 | 133,454 |
| Schwab U.S. Aggregate Bond Index Fund | 214,337,213 | 57,180,016 | — | — | (6,919,737) | 264,597,492 | 25,344,587 | 2,770,027 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 10,216,799 | 3,501,809 | — | — | (1,170) | 13,717,438 | 13,713,324 | 1,860 |
| Total | $570,005,735 | $103,255,693 | ($31,230,000) | $2,244,501 | $77,046,921 | $721,322,850 | | $18,015,091 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
At April 30, 2021, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the investments held by the underlying securities, which could be Level 1, Level 2 or Level 3 (see financial note 2(a) for additional information).
Schwab Balanced Fund | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $574,427,541) | | $721,322,850 |
| Investments in securities, at value - unaffiliated (cost $8,521,884) | | 8,521,884 |
| Receivables: | | |
| Investments sold | | 4,210,000 |
| Dividends | | 475,771 |
| Fund shares sold | | 368,037 |
| Due from investment adviser | | 13,607 |
| Prepaid expenses | + | 22,487 |
| Total assets | | 734,934,636 |
| Liabilities |
| Payables: | | |
| Investments bought | | 4,656,398 |
| Independent trustees’ fees | | 222 |
| Fund shares redeemed | | 334,580 |
| Accrued expenses | + | 58,110 |
| Total liabilities | | 5,049,310 |
| Net Assets |
| Total assets | | 734,934,636 |
| Total liabilities | – | 5,049,310 |
| Net assets | | $729,885,326 |
| Net Assets by Source | | |
| Capital received from investors | | 575,070,232 |
| Total distributable earnings | | 154,815,094 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $729,885,326 | | 39,131,087 | | $18.65 |
| | | | | |
Schwab Balanced Fund | Semiannual Report
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $4,436,915 |
| Dividends received from securities - unaffiliated | + | 2,434 |
| Total investment income | | 4,439,349 |
| Expenses |
| Registration fees | | 27,479 |
| Shareholder reports | | 17,556 |
| Portfolio accounting fees | | 12,913 |
| Professional fees | | 11,150 |
| Transfer agent fees | | 6,913 |
| Independent trustees’ fees | | 4,472 |
| Custodian fees | | 945 |
| Other expenses | + | 3,665 |
| Total expenses | | 85,093 |
| Expense reduction by CSIM and its affiliates | – | 85,093 |
| Net expenses | – | — |
| Net investment income | | 4,439,349 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 13,578,176 |
| Net realized gains on sales of securities - affiliated | + | 2,244,501 |
| Net realized gains | | 15,822,677 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 77,046,921 |
| Net realized and unrealized gains | | 92,869,598 |
| Increase in net assets resulting from operations | | $97,308,947 |
Schwab Balanced Fund | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $4,439,349 | $6,859,312 |
| Net realized gains | | 15,822,677 | 8,022,226 |
| Net change in unrealized appreciation (depreciation) | + | 77,046,921 | 22,746,515 |
| Increase in net assets from operations | | 97,308,947 | 37,628,053 |
| Distributions to Shareholders | |
| Total distributions | | ($18,699,512) | ($27,287,501) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 6,401,433 | $114,567,005 | 11,812,461 | $187,887,955 |
| Shares reinvested | | 946,955 | 16,600,121 | 1,536,645 | 24,202,165 |
| Shares redeemed | + | (3,207,460) | (57,318,333) | (11,266,936) | (171,177,405) |
| Net transactions in fund shares | | 4,140,928 | $73,848,793 | 2,082,170 | $40,912,715 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 34,990,159 | $577,427,098 | 32,907,989 | $526,173,831 |
| Total increase | + | 4,140,928 | 152,458,228 | 2,082,170 | 51,253,267 |
| End of period | | 39,131,087 | $729,885,326 | 34,990,159 | $577,427,098 |
Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited
1. Business Structure of the Fund:
Schwab Balanced Fund is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:
| SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
| Schwab Balanced Fund | Schwab Target 2045 Fund |
| Schwab S&P 500 Index Fund | Schwab Target 2050 Fund |
| Schwab Small-Cap Index Fund® | Schwab Target 2055 Fund |
| Schwab Total Stock Market Index Fund® | Schwab Target 2060 Fund |
| Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2065 Fund |
| Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental US Large Company Index Fund |
| Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental US Small Company Index Fund |
| Schwab International Index Fund® | Schwab Fundamental International Large Company Index Fund |
| Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Company Index Fund |
| Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Large Company Index Fund |
| Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
| Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2010 Index Fund |
| Laudus International MarketMasters 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 Target 2065 Index Fund |
| Schwab Target 2025 Fund | Schwab Monthly Income Fund - Moderate Payout |
| Schwab Target 2030 Fund | Schwab Monthly Income Fund - Enhanced Payout |
| Schwab Target 2035 Fund | Schwab Monthly Income Fund - Maximum Payout |
| Schwab Target 2040 Fund | |
The Schwab Balanced Fund is a single class “fund of funds” which seeks to achieve its investment objective by investing in a diversified group of other affiliated Schwab and/or Laudus Funds (the underlying funds), but also may invest in other unaffiliated, third party mutual funds, including exchange-traded funds (ETFs). In addition, the fund may invest a portion of its assets directly in equity and fixed-income securities to maintain its allocations.
The fund offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of the fund. Each share has a par value of 1/1,000 of a cent, and the fund’s Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The financial statements of the fund should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab Balanced Fund | Semiannual Report
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 value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1—quoted prices in active markets for identical securities—Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the underlying securities held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
• Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
As disclosed in the Portfolio Holdings, as of April 30, 2021, all of the fund’s investments were classified as Level 1.
(b) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
(c) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
(d) Expenses:
Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets. The fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by the fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(e) Distributions to Shareholders:
The fund makes distributions from net investment income and net realized capital gains, if any, once a year.
(f) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(g) Federal Income Taxes:
The fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.
(h) Indemnification:
Under the fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.
3. Risk Factors:
Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The fund is subject to the risk that the selection of the underlying funds and the allocation of the fund’s assets among the various asset classes and market segments may cause the fund to underperform other funds with a similar investment objective.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to
Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of the fund. However, the investment adviser is a fiduciary to the fund and is legally obligated to act in the fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.
Direct Investment Risk. The fund may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain its allocations. The fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Underlying Fund Investment Risk. Before investing in the fund, investors should assess the risks associated with the underlying funds in which the fund may invest, which include any combination of the risks described below.
• Investment Risk. The fund may experience losses with respect to its investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
• Management Risk. Generally, the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or sub-adviser(s)) will select or allocate assets that could cause the fund to underperform or otherwise not meet its objective. An underlying fund’s adviser applies its own investment techniques and risk analyses in making investment decisions for the underlying fund, but there can be no guarantee that they will produce the desired results.
• Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
• 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, an underlying fund’s performance could be impacted.
• Growth Investing Risk. An underlying fund’s investments in growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
• Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
• ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
• Money Market Fund Risk. The fund may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when the fund sells the shares it owns they may be worth more or less
Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares or may temporarily suspend the ability to sell shares if such fund’s liquidity falls below required minimums.
• Foreign Investment Risk. An underlying 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 an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. 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.
• 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, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying 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.
• Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk, market risk and management risk, are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
• Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
• Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
• Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
• Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• Mortgage-Backed and Mortgage Pass-Through Securities Risk. Mortgage-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar or greater risk of decline in market value during periods of rising interest rates. Certain of the mortgage-backed securities in which an underlying fund may invest are issued or guaranteed by agencies or instrumentalities of the U.S. government but are not backed by the full faith and credit of the U.S. government. There can be no assurance that the U.S. government would provide financial support to its agencies or instrumentalities where it was not obligated to do so which can cause an underlying fund to lose money or underperform. The risks of investing in mortgage-backed securities include, among others, interest rate risk, credit risk, prepayment risk and extension risk. Transactions in mortgage pass-through securities often occur through to-be-announced (TBA) transactions. An underlying fund could lose money or underperform if a TBA counterparty defaults or goes bankrupt.
• Mortgage Dollar Rolls Risk. Mortgage dollar rolls are transactions in which an underlying fund sells mortgage-backed securities to a dealer and simultaneously agrees to repurchase similar securities in the future at a predetermined price. An underlying fund’s mortgage dollar rolls could lose money if the price of the mortgage-backed securities sold falls below the agreed upon repurchase price, or if the counterparty is unable to honor the agreement.
Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.
4. Affiliates and Affiliated Transactions:
Investment Adviser
Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between CSIM and the trust. The investment adviser does not receive a fee for the services it performs for the fund. However, the investment adviser is entitled to receive an annual management fee from each of the affiliated Schwab Funds and/or Laudus Funds that serve as underlying funds.
Shareholder Servicing
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc., a broker-dealer affiliate of CSIM (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund. The fund is not subject to any fee under the Plan.
Expense Limitation
CSIM and its affiliates have agreed with the fund, for so long as CSIM serves as the investment adviser to the fund, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses to 0.00%.
The agreement to limit the fund’s total expenses charged is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in the underlying funds.
Investments in Affiliates
The fund may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the fund may invest in other related funds. As of April 30, 2021, the fund’s ownership percentages of other related funds’ shares are:
| Laudus U.S. Large Cap Growth Fund | 3.5% |
| Schwab Core Equity Fund | 14.2% |
| Schwab Small-Cap Equity Fund | 11.7% |
| Schwab U.S. Aggregate Bond Index Fund | 5.1% |
| Schwab Variable Share Price Money Fund, Ultra Shares | 0.5% |
Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.
5. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on the fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
6. Borrowing from Banks:
During the period, the fund was a participant with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund paid a commitment fee of 0.15% per annum on the fund’s proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the fund was a participant with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount it borrows. There were no borrowings from either line of credit during the period.
The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is 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, 2021, purchases and sales of securities (excluding short-term obligations) were as follows:
Purchases
of Securities | Sales
of Securities |
| $103,255,693 | $31,230,000 |
8. Federal Income Taxes:
As of April 30, 2021, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| Tax cost | $592,651,321 |
| Gross unrealized appreciation | $137,194,203 |
| Gross unrealized depreciation | (790) |
| Net unrealized appreciation (depreciation) | $137,193,413 |
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2020, the fund had no capital loss carryforwards available to offset future net capital gains.
Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
8. Federal Income Taxes (continued):
The tax-basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2021. The tax-basis components of distributions paid during the fiscal year ended October 31, 2020, were as follows:
| Ordinary income | $7,431,786 |
| Long-term capital gains | 19,855,715 |
As of October 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended October 31, 2020, the fund did not incur any interest or penalties.
9. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab Balanced Fund | Semiannual Report
Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the fund covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 103 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the fund’s Statement of Additional Information, which is available free by calling 1-877-824-5615.
| 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. | 103 | 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. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | None |
Schwab Balanced Fund | Semiannual Report
| 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 |
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). | 103 | 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). | 103 | None |
J. Derek Penn
1957
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
Schwab Balanced Fund | Semiannual Report
| Interested 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 |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer, Chief Financial Officer and Chief Operating 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) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (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
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr.
1972
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Schwab Balanced Fund | Semiannual Report
| 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 |
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 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. 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. |
Schwab Balanced Fund | Semiannual Report
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Balanced Blended Index A custom blended index developed by CSIM that, effective January 29, 2019, is composed of 50% S&P 500 Index, 10% Russell 2000 Index, 37% Bloomberg Barclays US Aggregate Bond Index, and 3% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From August 1, 2013 through January 28, 2019, the composite was composed of 50% S&P 500 Index, 10% Russell 2000 Index, 25% Bloomberg Barclays US Aggregate Bond Index, 12% Bloomberg Barclays US Intermediate Aggregate Bond Index and 3% Bloomberg Barclays US Treasury Bills 1-3 Month Index. Prior to August 1, 2013 the Balanced Blended Index was composed of 60% S&P 500 Index and 40% Bloomberg Barclays US Aggregate Bond Index. Percentages listed may not total to 100% due to rounding.
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 Intermediate Aggregate Bond Index An index that represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
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 $300 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.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
FTSE non-US Dollar World Government Bond Index A market capitalization index that measures the total rate of return performance for the government bonds of 22 countries, excluding the U.S., with a remaining maturity of at least 1 year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE 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.
MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 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 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.
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 Balanced Fund | Semiannual Report
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.
Schwab Balanced Fund | Semiannual Report
Charles Schwab Investment Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Hedged Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Asset Allocation Funds
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
Funds
Schwab Funds
1-877-824-5615
© 2021 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
| ¹ | State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation. |
| ² | You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
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Semiannual Report | April 30, 2021
Schwab MarketTrack Portfolios®
Schwab MarketTrack
All Equity Portfolio™
Schwab MarketTrack
Growth Portfolio™
Schwab MarketTrack
Balanced Portfolio™
Schwab MarketTrack
Conservative Portfolio™
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Schwab MarketTrack Portfolios
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM)
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| Total Return for the 6 Months Ended April 30, 2021 |
| Schwab MarketTrack All Equity Portfolio (Ticker Symbol: SWEGX) | 34.44% |
| All Equity Composite Index | 34.84% |
| Fund Category: Morningstar Allocation—85%+ Equity1 | 30.27% |
| Performance Details | pages 6-7 |
| |
| Schwab MarketTrack Growth Portfolio (Ticker Symbol: SWHGX) | 26.89% |
| Growth Composite Index | 27.23% |
| Fund Category: Morningstar Allocation—70% to 85% Equity1 | 24.96% |
| Performance Details | pages 8-9 |
| |
| Schwab MarketTrack Balanced Portfolio (Ticker Symbol: SWBGX) | 19.10% |
| Balanced Composite Index | 19.42% |
| Fund Category: Morningstar Allocation—50% to 70% Equity1 | 20.30% |
| Performance Details | pages 10-11 |
| |
| Schwab MarketTrack Conservative Portfolio (Ticker Symbol: SWCGX) | 11.77% |
| Conservative Composite Index | 12.12% |
| Fund Category: Morningstar Allocation—30% to 50% Equity1 | 13.35% |
| Performance Details | pages 12-13 |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
| 1 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
The Investment Environment
For the six-month reporting period ended April 30, 2021, U.S. and international equity markets generated solid returns, with major market indices ending the reporting period just shy of record highs. Despite persisting COVID-19 pandemic-driven stresses on the global economy—including widespread business disruptions, high unemployment, and prolonged stay-at-home orders—and a resurgence of COVID-19 cases in the fall and winter, equity markets continued to be buoyed by the extensive emergency rescue and fiscal stimulus measures passed by governments and central banks around the world beginning in March 2020, as well as the initial distribution of COVID-19 vaccines in December 2020 and the expanded rollout in 2021. The COVID-19 vaccine rollout helped fuel the early stages of a shift in the market towards cyclical sectors, beginning in November and December 2020 and continuing through the remainder of the reporting period. The U.S. dollar ended the reporting period weaker against a basket of foreign currencies, generally enhancing the returns of overseas investments in U.S. dollar terms. The S&P 500® Index, a bellwether for the overall U.S. stock market, returned 28.85% for the reporting period. U.S. small-cap stocks significantly outperformed U.S. large-cap stocks, with the Russell 2000® Index and the Russell 1000® Index returning 48.06% and 30.03%, respectively, for the reporting period. Outside the U.S., the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 28.84% for the reporting period, while the MSCI Emerging Markets Index (Net)* returned 22.95%. Bond markets were significantly weaker, with the Bloomberg Barclays US Aggregate Bond Index, representing the broad U.S. fixed-income market, returning -1.52% and the FTSE non-US Dollar World Government Bond Index returning -0.83% for the reporting period.
Bolstered by the extensive emergency rescue and fiscal stimulus measures passed by the U.S. Federal Reserve (Fed) and U.S. Congress, the U.S. economy has held up relatively well, especially given the intensity of the COVID-19 pandemic’s economic impact. After a steep slide in the second quarter of 2020 and subsequent recovery in the third quarter of 2020, U.S. gross domestic product (GDP) grew at an annualized rate of 4.3% for the fourth quarter of 2020 and an annualized rate of 6.4% for the first quarter of 2021. Unemployment, which skyrocketed in April 2020, fell in each subsequent month through March 2021 before experiencing a slight uptick in April 2021. Inflation remained well
Asset Class Performance Comparison % returns during the 6 months ended April 30, 2021
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. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
The Investment Environment (continued)
below the Fed’s traditional target of 2% until March 2021, when it jumped, largely due to supply and demand imbalances in the labor market, increased demand particularly for travel-related services, as well as increasing energy costs.
Outside the U.S., global economies wrestled with the fallout of the COVID-19 pandemic against the anticipation of its eventual end. In the eurozone, GDP growth jumped in the third quarter of 2020, regaining much of its losses from the second quarter, but turned slightly negative for both the fourth quarter of 2020 and the first quarter of 2021. The United Kingdom, which was particularly hard-hit by the COVID-19 pandemic, suffered its biggest slump in more than three centuries over the course of 2020, effectively wiping out its growth over the past seven years, but posted a small positive gain in GDP for the first quarter of 2021. Japan’s economy, after rebounding sharply in the third quarter of 2020, posted a positive, albeit smaller, gain in the fourth quarter of 2020 on strong exports and consumer spending. China, the only major economy to avoid contraction in the face of COVID-19 pandemic-related shocks, maintained positive GDP growth in the fourth quarter of 2020. China’s growth accelerated sharply for the first quarter of 2021 on rising domestic and global demand, strict COVID-19 containment measures, and continued fiscal and monetary support. India, after plunging into one of the worst recessions of any major economy, saw its first positive gain in GDP in the fourth quarter of 2020, but a huge spike in COVID-19 cases in April 2021 dampened its growth prospects.
Central banks around the world, including the Fed, maintained the low—and for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. In the U.S., the federal funds rate remained in a range of 0.00% to 0.25% throughout the reporting period. The Fed reiterated its intention to continue its support of the economy, and in April 2021 affirmed that despite showing signs of recovery, the U.S. economy still had a way to go before the Fed would consider raising interest rates or tapering its bond-buying policy. The Fed also maintained its revised approach to its interest rate policy, announced in August 2020, that would allow inflation to rise above its previous 2% target for periods of time, even in times of rising employment. Outside the U.S., the European Central Bank held its policy rate at 0.00%, unchanged since March 2016, and maintained its asset purchase program to help counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.01%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program. Central banks in key emerging market economies—including China, India, Russia, and Thailand—also maintained low rates to help counter the effects of the COVID-19 pandemic. Mexico reduced its benchmark interest rate by 0.25% in February 2021.
U.S. bond yields remained at historically low levels from the onset of the COVID-19 pandemic through the end of 2020. Beginning in 2021, U.S. bonds sold off, driving yields steadily higher as investors anticipated an accelerating economic recovery and inflation expectations for the second part of the year rose significantly. (Bond yields and bond prices typically move in opposite directions.) The yield on the 10-year U.S. Treasury, which began the reporting period at 0.88%, hit a high of 1.74% in March before dropping back slightly to end the reporting period at 1.65%. Short-term rates ended the reporting period at historic lows, as the three-month U.S. Treasury yield slid from 0.09% to 0.01% over the reporting period. Outside the U.S., bond yields remained low.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
 | Zifan Tang, Ph.D., CFA, Senior Portfolio Manager, is responsible for the co-management of the funds. Prior to joining Schwab in January 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
 | Patrick Kwok, CFA, Portfolio Manager, is responsible for the co-management of the funds. Previously, Mr. Kwok served as an associate portfolio manager with CSIM from 2012 to 2016. Prior to that, he worked as a fund administration manager for CSIM, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration for the Charles Schwab Trust Bank Collective Investment Trusts and Schwab’s multi-asset mutual funds. Prior to joining CSIM in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab MarketTrack All Equity Portfolio (5/19/98) | 34.44% | 50.01% | 13.50% | 10.07% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| All Equity Composite Index | 34.84% | 50.47% | 14.01% | 10.71% |
| Fund Category: Morningstar Allocation—85%+ Equity2 | 30.27% | 48.08% | 13.10% | 9.86% |
| Fund Expense Ratio3: 0.53% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.13% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 11 |
| Portfolio Turnover Rate | 5% 1 |
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
| 1 | 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. |
| 4 | The holdings listed exclude any temporary liquidity investments. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab MarketTrack Growth Portfolio (11/20/95) | 26.89% | 39.05% | 11.74% | 9.04% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Growth Composite Index | 27.23% | 39.49% | 12.22% | 9.60% |
| Fund Category: Morningstar Allocation—70% to 85% Equity2 | 24.96% | 38.90% | 11.20% | 8.43% |
| Fund Expense Ratio3: 0.51% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.11% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 14 |
| Portfolio Turnover Rate | 7% 1 |
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
| 1 | 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. |
| 4 | The holdings listed exclude any temporary liquidity investments. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab MarketTrack Balanced Portfolio (11/20/95) | 19.10% | 27.94% | 9.53% | 7.57% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Balanced Composite Index | 19.42% | 28.43% | 10.05% | 8.13% |
| Fund Category: Morningstar Allocation—50% to 70% Equity2 | 20.30% | 31.26% | 10.24% | 8.02% |
| Fund Expense Ratio3: 0.49% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.09% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 15 |
| Portfolio Turnover Rate | 8% 1 |
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
| 1 | 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. |
| 4 | The holdings listed exclude any temporary liquidity investments. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| Fund and Inception Date | 6 Months | 1 Year | 5 Years | 10 Years |
| Fund: Schwab MarketTrack Conservative Portfolio (11/20/95) | 11.77% | 17.66% | 7.21% | 5.95% |
| S&P 500® Index | 28.85% | 45.98% | 17.42% | 14.17% |
| Bloomberg Barclays US Aggregate Bond Index | -1.52% | -0.27% | 3.19% | 3.39% |
| Conservative Composite Index | 12.12% | 18.21% | 7.79% | 6.58% |
| Fund Category: Morningstar Allocation—30% to 50% Equity2 | 13.35% | 22.16% | 7.27% | 5.88% |
| Fund Expense Ratio3: 0.50% |
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.
| 1 | Fund expenses may have been partially absorbed by CSIM and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. |
| 2 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
| 3 | As stated in the prospectus. Includes 0.08% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Performance and Fund Facts as of April 30, 2021
| Number of Holdings | 14 |
| Portfolio Turnover Rate | 10% 1 |
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
| 1 | 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. |
| 4 | The holdings listed exclude any temporary liquidity investments. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2020 and held through April 30, 2021.
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)1,2 | Effective
Expense Ratio
(Annualized)3,4 | Beginning
Account Value
at 11/1/20 | Ending
Account Value
(Net of Expenses)
at 4/30/21 | Expenses Paid
During Period
11/1/20-4/30/212,5 | Effective
Expenses Paid
During Period
11/1/20-4/30/214,5 |
| Schwab MarketTrack All Equity Portfolio | | | | | | |
| Actual Return | 0.39% | 0.51% | $1,000.00 | $1,344.40 | $2.27 | $2.96 |
| Hypothetical 5% Return | 0.39% | 0.51% | $1,000.00 | $1,022.87 | $1.96 | $2.56 |
| Schwab MarketTrack Growth Portfolio | | | | | | |
| Actual Return | 0.39% | 0.50% | $1,000.00 | $1,268.90 | $2.19 | $2.81 |
| Hypothetical 5% Return | 0.39% | 0.50% | $1,000.00 | $1,022.87 | $1.96 | $2.51 |
| Schwab MarketTrack Balanced Portfolio | | | | | | |
| Actual Return | 0.39% | 0.48% | $1,000.00 | $1,191.00 | $2.12 | $2.61 |
| Hypothetical 5% Return | 0.39% | 0.48% | $1,000.00 | $1,022.87 | $1.96 | $2.41 |
| Schwab MarketTrack Conservative Portfolio | | | | | | |
| Actual Return | 0.41% | 0.49% | $1,000.00 | $1,117.70 | $2.15 | $2.57 |
| Hypothetical 5% Return | 0.41% | 0.49% | $1,000.00 | $1,022.77 | $2.06 | $2.46 |
| 1 | Based on the most recent six-month expense ratio. |
| 2 | Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 3 | Based on the most recent six-month acquired fund fees and expense ratio; may differ from the acquired fund fees and expenses ratios in the prospectus. |
| 4 | Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 5 | Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year. |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $17.73 | $19.15 | $18.33 | $18.76 | $15.90 | $17.00 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.33 | 0.37 | 0.31 | 0.28 | 0.27 | 0.27 |
| Net realized and unrealized gains (losses) | 5.60 | (0.54) | 1.30 | (0.05) | 3.33 | 0.31 |
| Total from investment operations | 5.93 | (0.17) | 1.61 | 0.23 | 3.60 | 0.58 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.21) | (0.53) | (0.36) | (0.33) | (0.30) | (0.53) |
| Distributions from net realized gains | (1.13) | (0.72) | (0.43) | (0.33) | (0.44) | (1.15) |
| Total distributions | (1.34) | (1.25) | (0.79) | (0.66) | (0.74) | (1.68) |
| Net asset value at end of period | $22.32 | $17.73 | $19.15 | $18.33 | $18.76 | $15.90 |
| Total return | 34.44% 2 | (1.35%) | 9.58% | 1.10% | 23.33% | 3.99% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.39% 4 | 0.40% | 0.40% | 0.39% | 0.40% | 0.41% |
| Gross operating expenses3 | 0.39% 4 | 0.40% | 0.40% | 0.39% | 0.40% | 0.42% |
| Net investment income (loss) | 3.13% 4 | 2.08% | 1.72% | 1.46% | 1.56% | 1.73% |
| Portfolio turnover rate | 5% 2 | 18% | 6% | 5% | 5% | 6% |
| Net assets, end of period (x 1,000,000) | $814 | $623 | $691 | $660 | $662 | $553 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 99.6% of net assets |
| |
| Equity Funds 99.6% |
| International 29.7% |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 4,060,915 | 40,081,235 |
| Schwab Fundamental International Large Company Index Fund | 4,744,171 | 48,485,433 |
| Schwab Fundamental International Small Company Index Fund | 2,668,047 | 40,340,871 |
| Schwab International Index Fund | 4,811,844 | 112,645,258 |
| | | 241,552,797 |
| Large-Cap 50.1% |
| Schwab Fundamental US Large Company Index Fund | 5,133,535 | 111,500,378 |
| Schwab S&P 500 Index Fund | 3,995,107 | 256,525,829 |
| Schwab U.S. Large-Cap Growth Index Fund | 510,158 | 39,521,931 |
| | | 407,548,138 |
| Real Estate 5.2% |
| Schwab U.S. REIT ETF | 950,323 | 42,184,838 |
| Small-Cap 14.6% |
| Schwab Fundamental US Small Company Index Fund | 1,998,504 | 36,472,704 |
| Schwab Small-Cap Index Fund | 2,111,125 | 82,840,559 |
| | | 119,313,263 |
| Total Affiliated Underlying Funds |
| (Cost $430,707,140) | | 810,599,036 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.4% of net assets |
| |
| Time Deposit 0.4% |
| Barclays Bank PLC |
| 0.01%, 05/03/21 (a) | 3,368,369 | 3,368,369 |
| Total Short-Term Investment |
| (Cost $3,368,369) | | 3,368,369 |
| (a) | The rate shown is the current daily overnight rate. |
| | |
| ETF — | Exchange-traded fund |
| REIT — | Real Estate Investment Trust |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Schwab Fundamental Emerging Markets Large Company Index Fund | $31,985,158 | $1,095,412 | ($2,870,000) | ($84,839) | $9,955,504 | $40,081,235 | 4,060,915 | $1,095,412 |
| Schwab Fundamental International Large Company Index Fund | 37,247,617 | 1,066,811 | (3,052,593) | 71,806 | 13,151,792 | 48,485,433 | 4,744,171 | 1,066,811 |
| Schwab Fundamental International Small Company Index Fund | 31,385,635 | 735,350 | (1,713,277) | 44,891 | 9,888,272 | 40,340,871 | 2,668,047 | 735,350 |
| Schwab Fundamental US Large Company Index Fund | 83,840,241 | 5,809,078 | (6,781,838) | 728,876 | 27,904,021 | 111,500,378 | 5,133,535 | 5,809,078 |
| Schwab Fundamental US Small Company Index Fund | 29,146,693 | 483,721 | (7,360,000) | 1,306,868 | 12,895,422 | 36,472,704 | 1,998,504 | 483,721 |
| Schwab International Index Fund | 84,989,194 | 6,607,603 | (1,370,000) | 15,512 | 22,402,949 | 112,645,258 | 4,811,844 | 1,897,604 |
| Schwab S&P 500 Index Fund | 194,769,310 | 11,458,503 | (2,780,000) | 251,113 | 52,826,903 | 256,525,829 | 3,995,107 | 4,038,503 |
| Schwab Small-Cap Index Fund | 64,874,595 | 3,115,899 | (12,432,294) | 5,444,986 | 21,837,373 | 82,840,559 | 2,111,125 | 1,985,899 |
| Schwab U.S. Large-Cap Growth Index Fund | 31,408,980 | 691,223 | — | — | 7,421,728 | 39,521,931 | 510,158 | 241,223 |
| Schwab U.S. REIT ETF | 30,585,050 | 2,213,138 | — | — | 9,386,650 | 42,184,838 | 950,323 | 462,587 |
| Total | $620,232,473 | $33,276,738 | ($38,360,002) | $7,779,213 | $187,670,614 | $810,599,036 | | $17,816,188 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $810,599,036 | $— | $— | $810,599,036 | |
| Short-Term Investment1 | — | 3,368,369 | — | 3,368,369 | |
| Total | $810,599,036 | $3,368,369 | $— | $813,967,405 | |
| 1 | As categorized in Portfolio Holdings. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $430,707,140) | | $810,599,036 |
| Investments in securities, at value - unaffiliated (cost $3,368,369) | | 3,368,369 |
| Receivables: | | |
| Investments sold | | 2,780,001 |
| Fund shares sold | | 159,729 |
| Prepaid expenses | + | 22,845 |
| Total assets | | 816,929,980 |
| Liabilities |
| Payables: | | |
| Investments bought | | 1,950,000 |
| Investment adviser and administrator fees | | 91,876 |
| Shareholder service fees | | 164,441 |
| Independent trustees’ fees | | 254 |
| Fund shares redeemed | | 565,647 |
| Accrued expenses | + | 77,078 |
| Total liabilities | | 2,849,296 |
| Net Assets |
| Total assets | | 816,929,980 |
| Total liabilities | – | 2,849,296 |
| Net assets | | $814,080,684 |
| Net Assets by Source | | |
| Capital received from investors | | 431,294,132 |
| Total distributable earnings | | 382,786,552 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $814,080,684 | | 36,468,655 | | $22.32 |
| | | | | |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $13,185,021 |
| Interest received from securities - unaffiliated | + | 300 |
| Total investment income | | 13,185,321 |
| Expenses |
| Investment adviser and administrator fees | | 486,570 |
| Shareholder service fees | | 888,909 |
| Shareholder reports | | 21,989 |
| Registration fees | | 15,909 |
| Portfolio accounting fees | | 13,341 |
| Professional fees | | 11,224 |
| Transfer agent fees | | 5,637 |
| Independent trustees’ fees | | 4,630 |
| Other expenses | + | 4,054 |
| Total expenses | | 1,452,263 |
| Expense reduction by CSIM and its affiliates | – | 5,637 |
| Net expenses | – | 1,446,626 |
| Net investment income | | 11,738,695 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 4,631,167 |
| Net realized gains on sales of securities - affiliated | + | 7,779,213 |
| Net realized gains | | 12,410,380 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 187,670,614 |
| Net realized and unrealized gains | | 200,080,994 |
| Increase in net assets resulting from operations | | $211,819,689 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $11,738,695 | $13,459,757 |
| Net realized gains | | 12,410,380 | 40,017,288 |
| Net change in unrealized appreciation (depreciation) | + | 187,670,614 | (65,160,116) |
| Increase (decrease) in net assets from operations | | 211,819,689 | (11,683,071) |
| Distributions to Shareholders | |
| Total distributions | | ($46,815,289) | ($44,690,295) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,769,894 | $37,039,467 | 4,011,146 | $68,570,719 |
| Shares reinvested | | 2,118,421 | 41,923,540 | 2,115,919 | 40,244,771 |
| Shares redeemed | + | (2,555,569) | (52,981,634) | (7,060,916) | (120,148,036) |
| Net transactions in fund shares | | 1,332,746 | $25,981,373 | (933,851) | ($11,332,546) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 35,135,909 | $623,094,911 | 36,069,760 | $690,800,823 |
| Total increase (decrease) | + | 1,332,746 | 190,985,773 | (933,851) | (67,705,912) |
| End of period | | 36,468,655 | $814,080,684 | 35,135,909 | $623,094,911 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $22.42 | $23.54 | $22.67 | $23.47 | $20.54 | $22.68 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.35 | 0.43 | 0.41 | 0.37 | 0.34 | 0.32 |
| Net realized and unrealized gains (losses) | 5.49 | (0.20) | 1.62 | (0.04) | 3.37 | 0.41 |
| Total from investment operations | 5.84 | 0.23 | 2.03 | 0.33 | 3.71 | 0.73 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.39) | (0.47) | (0.45) | (0.40) | (0.36) | (0.39) |
| Distributions from net realized gains | (1.57) | (0.88) | (0.71) | (0.73) | (0.42) | (2.48) |
| Total distributions | (1.96) | (1.35) | (1.16) | (1.13) | (0.78) | (2.87) |
| Net asset value at end of period | $26.30 | $22.42 | $23.54 | $22.67 | $23.47 | $20.54 |
| Total return | 26.89% 2 | 0.74% | 9.86% | 1.28% | 18.52% | 3.88% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.39% 4 | 0.39% | 0.40% | 0.39% | 0.40% | 0.41% |
| Gross operating expenses3 | 0.39% 4 | 0.40% | 0.40% | 0.39% | 0.40% | 0.41% |
| Net investment income (loss) | 2.79% 4 | 1.92% | 1.82% | 1.59% | 1.57% | 1.61% |
| Portfolio turnover rate | 7% 2 | 19% | 7% | 7% | 20% 5 | 12% |
| Net assets, end of period (x 1,000,000) | $929 | $748 | $817 | $783 | $804 | $707 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 6% without including these transactions. There were no transaction costs associated with these transactions.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 98.6% of net assets |
| |
| Equity Funds 80.1% |
| International 20.1% |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 3,201,583 | 31,599,628 |
| Schwab Fundamental International Large Company Index Fund | 3,623,664 | 37,033,850 |
| Schwab Fundamental International Small Company Index Fund | 2,083,766 | 31,506,535 |
| Schwab International Index Fund | 3,686,455 | 86,299,912 |
| | | 186,439,925 |
| Large-Cap 43.5% |
| Schwab Fundamental US Large Company Index Fund | 5,170,997 | 112,314,057 |
| Schwab S&P 500 Index Fund | 4,055,841 | 260,425,535 |
| Schwab U.S. Large-Cap Growth Index Fund | 401,014 | 31,066,522 |
| | | 403,806,114 |
| Real Estate 4.1% |
| Schwab U.S. REIT ETF | 852,310 | 37,834,041 |
| | | 37,834,041 |
| Small-Cap 12.4% |
| Schwab Fundamental US Small Company Index Fund | 1,945,207 | 35,500,036 |
| Schwab Small-Cap Index Fund | 2,045,561 | 80,267,820 |
| | | 115,767,856 |
| | | 743,847,936 |
| |
| Security | Number
of Shares | Value ($) |
| Fixed-Income Funds 15.9% |
| Intermediate-Term Bond 15.9% |
| Schwab U.S. Aggregate Bond Index Fund | 14,123,524 | 147,449,591 |
| |
| Money Market Fund 2.6% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 24,561,588 | 24,568,956 |
| Total Affiliated Underlying Funds |
| (Cost $509,263,514) | | 915,866,483 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investments 1.3% of net assets |
| |
| Time Deposits 1.3% |
| Barclays Bank PLC |
| 0.01%, 05/03/21 (b) | 9,355,336 | 9,355,336 |
| Skandinaviska Enskilda Banken AB |
| 0.01%, 05/03/21 (b) | 2,169,654 | 2,169,654 |
| Total Short-Term Investments |
| (Cost $11,524,990) | | 11,524,990 |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
| | |
| ETF — | Exchange-traded fund |
| REIT — | Real Estate Investment Trust |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Schwab Fundamental Emerging Markets Large Company Index Fund | $24,569,478 | $848,894 | ($1,545,000) | ($278) | $7,726,534 | $31,599,628 | 3,201,583 | $848,893 |
| Schwab Fundamental International Large Company Index Fund | 30,102,153 | 831,877 | (4,320,001) | 250,380 | 10,169,441 | 37,033,850 | 3,623,664 | 831,876 |
| Schwab Fundamental International Small Company Index Fund | 25,073,791 | 575,777 | (1,970,000) | 163,242 | 7,663,725 | 31,506,535 | 2,083,766 | 575,778 |
| Schwab Fundamental US Large Company Index Fund | 89,154,595 | 6,035,161 | (12,610,000) | 1,906,772 | 27,827,529 | 112,314,057 | 5,170,997 | 6,035,162 |
| Schwab Fundamental US Small Company Index Fund | 29,234,040 | 482,019 | (8,190,000) | 1,365,390 | 12,608,587 | 35,500,036 | 1,945,207 | 482,018 |
| Schwab International Index Fund | 69,700,927 | 2,664,557 | (4,140,000) | 545,905 | 17,528,523 | 86,299,912 | 3,686,455 | 1,504,558 |
| Schwab S&P 500 Index Fund | 208,797,893 | 4,269,429 | (8,357,449) | 2,916,353 | 52,799,309 | 260,425,535 | 4,055,841 | 4,269,428 |
| Schwab Small-Cap Index Fund | 67,813,605 | 1,994,969 | (17,475,000) | 9,067,968 | 18,866,278 | 80,267,820 | 2,045,561 | 1,994,969 |
| Schwab U.S. Aggregate Bond Index Fund | 121,379,029 | 31,777,424 | (1,800,000) | (18,453) | (3,888,409) | 147,449,591 | 14,123,524 | 1,560,551 |
| Schwab U.S. Large-Cap Growth Index Fund | 25,481,188 | 195,697 | (555,000) | 110,082 | 5,834,555 | 31,066,522 | 401,014 | 195,697 |
| Schwab U.S. REIT ETF | 27,689,578 | 1,682,639 | — | — | 8,461,824 | 37,834,041 | 852,310 | 418,593 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 19,567,411 | 5,003,501 | — | — | (1,956) | 24,568,956 | 24,561,588 | 3,572 |
| Total | $738,563,688 | $56,361,944 | ($60,962,450) | $16,307,361 | $165,595,940 | $915,866,483 | | $18,721,095 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $915,866,483 | $— | $— | $915,866,483 | |
| Short-Term Investments1 | — | 11,524,990 | — | 11,524,990 | |
| Total | $915,866,483 | $11,524,990 | $— | $927,391,473 | |
| 1 | As categorized in Portfolio Holdings. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $509,263,514) | | $915,866,483 |
| Investments in securities, at value - unaffiliated (cost $11,524,990) | | 11,524,990 |
| Receivables: | | |
| Investments sold | | 6,279,998 |
| Dividends | | 265,224 |
| Fund shares sold | | 200,889 |
| Prepaid expenses | + | 16,556 |
| Total assets | | 934,154,140 |
| Liabilities |
| Payables: | | |
| Investments bought | | 5,051,680 |
| Investment adviser and administrator fees | | 104,859 |
| Shareholder service fees | | 187,879 |
| Independent trustees’ fees | | 296 |
| Fund shares redeemed | | 150,271 |
| Accrued expenses | + | 78,790 |
| Total liabilities | | 5,573,775 |
| Net Assets |
| Total assets | | 934,154,140 |
| Total liabilities | – | 5,573,775 |
| Net assets | | $928,580,365 |
| Net Assets by Source | | |
| Capital received from investors | | 502,597,248 |
| Total distributable earnings | | 425,983,117 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $928,580,365 | | 35,313,901 | | $26.30 |
| | | | | |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $13,804,858 |
| Interest received from securities - unaffiliated | + | 560 |
| Total investment income | | 13,805,418 |
| Expenses |
| Investment adviser and administrator fees | | 562,763 |
| Shareholder service fees | | 1,040,261 |
| Shareholder reports | | 21,170 |
| Registration fees | | 17,662 |
| Portfolio accounting fees | | 14,029 |
| Professional fees | | 11,491 |
| Transfer agent fees | | 6,086 |
| Independent trustees’ fees | | 4,865 |
| Other expenses | + | 4,635 |
| Total expenses | | 1,682,962 |
| Expense reduction by CSIM and its affiliates | – | 6,086 |
| Net expenses | – | 1,676,876 |
| Net investment income | | 12,128,542 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 4,916,237 |
| Net realized gains on sales of securities - affiliated | + | 16,307,361 |
| Net realized gains | | 21,223,598 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 165,595,940 |
| Net realized and unrealized gains | | 186,819,538 |
| Increase in net assets resulting from operations | | $198,948,080 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $12,128,542 | $14,877,513 |
| Net realized gains | | 21,223,598 | 51,128,856 |
| Net change in unrealized appreciation (depreciation) | + | 165,595,940 | (62,556,859) |
| Increase in net assets from operations | | 198,948,080 | 3,449,510 |
| Distributions to Shareholders | |
| Total distributions | | ($64,608,050) | ($46,215,156) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 1,925,102 | $48,310,820 | 3,194,314 | $69,920,922 |
| Shares reinvested | | 2,487,105 | 59,466,671 | 1,816,570 | 42,344,247 |
| Shares redeemed | + | (2,481,638) | (62,029,142) | (6,318,253) | (137,539,154) |
| Net transactions in fund shares | | 1,930,569 | $45,748,349 | (1,307,369) | ($25,273,985) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 33,383,332 | $748,491,986 | 34,690,701 | $816,531,617 |
| Total increase (decrease) | + | 1,930,569 | 180,088,379 | (1,307,369) | (68,039,631) |
| End of period | | 35,313,901 | $928,580,365 | 33,383,332 | $748,491,986 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $18.38 | $18.75 | $18.24 | $19.12 | $17.35 | $19.07 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.25 | 0.35 | 0.36 | 0.34 | 0.30 | 0.27 |
| Net realized and unrealized gains (losses) | 3.18 | 0.10 | 1.32 | (0.24) | 2.02 | 0.35 |
| Total from investment operations | 3.43 | 0.45 | 1.68 | 0.10 | 2.32 | 0.62 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.32) | (0.39) | (0.39) | (0.33) | (0.30) | (0.33) |
| Distributions from net realized gains | (0.92) | (0.43) | (0.78) | (0.65) | (0.25) | (2.01) |
| Total distributions | (1.24) | (0.82) | (1.17) | (0.98) | (0.55) | (2.34) |
| Net asset value at end of period | $20.57 | $18.38 | $18.75 | $18.24 | $19.12 | $17.35 |
| Total return | 19.10% 2 | 2.37% | 10.14% | 0.44% | 13.71% | 3.92% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.39% 4 | 0.40% | 0.40% | 0.40% | 0.40% | 0.41% |
| Gross operating expenses3 | 0.39% 4 | 0.40% | 0.40% | 0.40% | 0.40% | 0.41% |
| Net investment income (loss) | 2.49% 4 | 1.91% | 1.99% | 1.79% | 1.67% | 1.60% |
| Portfolio turnover rate | 8% 2 | 22% | 11% | 8% | 46% 5 | 15% |
| Net assets, end of period (x 1,000,000) | $619 | $518 | $545 | $515 | $551 | $516 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 10% without including these transactions. There were no transaction costs associated with these transactions.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 98.7% of net assets |
| |
| Equity Funds 60.2% |
| International 15.0% |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 1,549,013 | 15,288,761 |
| Schwab Fundamental International Large Company Index Fund | 1,793,623 | 18,330,829 |
| Schwab Fundamental International Small Company Index Fund | 1,048,935 | 15,859,901 |
| Schwab International Index Fund | 1,849,327 | 43,292,751 |
| | | 92,772,242 |
| Large-Cap 33.1% |
| Schwab Fundamental US Large Company Index Fund | 2,587,153 | 56,192,969 |
| Schwab S&P 500 Index Fund | 2,023,198 | 129,909,560 |
| Schwab U.S. Large-Cap Growth Index Fund | 246,141 | 19,068,512 |
| | | 205,171,041 |
| Real Estate 3.1% |
| Schwab U.S. REIT ETF | 434,827 | 19,301,970 |
| Small-Cap 9.0% |
| Schwab Fundamental US Small Company Index Fund | 943,019 | 17,210,105 |
| Schwab Small-Cap Index Fund | 980,644 | 38,480,454 |
| | | 55,690,559 |
| | | 372,935,812 |
| |
| Fixed-Income Funds 35.8% |
| Intermediate-Term Bond 34.9% |
| Schwab U.S. Aggregate Bond Index Fund | 20,670,782 | 215,802,962 |
| Security | Number
of Shares | Value ($) |
| Short-Term Bond 0.9% |
| Schwab Short-Term Bond Index Fund | 563,354 | 5,791,277 |
| | | 221,594,239 |
| |
| Money Market Fund 2.7% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 16,763,456 | 16,768,485 |
| Total Affiliated Underlying Funds |
| (Cost $400,798,065) | | 611,298,536 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investments 1.2% of net assets |
| |
| Time Deposits 1.2% |
| Australia & New Zealand Banking Group Ltd. |
| 0.01%, 05/03/21 (b) | 6,225,079 | 6,225,079 |
| Skandinaviska Enskilda Banken AB |
| 0.01%, 05/03/21 (b) | 1,639,768 | 1,639,768 |
| Total Short-Term Investments |
| (Cost $7,864,847) | | 7,864,847 |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
| | |
| ETF — | Exchange-traded fund |
| REIT — | Real Estate Investment Trust |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Schwab Fundamental Emerging Markets Large Company Index Fund | $12,691,376 | $427,486 | ($1,830,000) | $302,450 | $3,697,449 | $15,288,761 | 1,549,013 | $427,486 |
| Schwab Fundamental International Large Company Index Fund | 15,545,027 | 424,291 | (2,970,000) | 267,766 | 5,063,745 | 18,330,829 | 1,793,623 | 424,291 |
| Schwab Fundamental International Small Company Index Fund | 13,085,236 | 288,030 | (1,530,000) | 257,896 | 3,758,739 | 15,859,901 | 1,048,935 | 288,030 |
| Schwab Fundamental US Large Company Index Fund | 46,214,451 | 3,052,690 | (8,240,000) | 1,319,661 | 13,846,167 | 56,192,969 | 2,587,153 | 3,052,690 |
| Schwab Fundamental US Small Company Index Fund | 14,419,988 | 229,901 | (4,260,000) | 691,344 | 6,128,872 | 17,210,105 | 943,019 | 229,901 |
| Schwab International Index Fund | 35,858,755 | 1,877,304 | (3,660,000) | 443,125 | 8,773,567 | 43,292,751 | 1,849,327 | 767,029 |
| Schwab S&P 500 Index Fund | 108,431,681 | 3,185,619 | (10,200,000) | 4,586,840 | 23,905,420 | 129,909,560 | 2,023,198 | 2,185,619 |
| Schwab Short-Term Bond Index Fund | 5,403,247 | 432,220 | — | — | (44,190) | 5,791,277 | 563,354 | 42,208 |
| Schwab Small-Cap Index Fund | 33,339,271 | 966,833 | (9,430,000) | 5,256,327 | 8,348,023 | 38,480,454 | 980,644 | 966,833 |
| Schwab U.S. Aggregate Bond Index Fund | 182,212,199 | 40,851,033 | (1,400,000) | (14,352) | (5,845,918) | 215,802,962 | 20,670,782 | 2,341,904 |
| Schwab U.S. Large-Cap Growth Index Fund | 16,142,289 | 117,843 | (880,000) | 245,504 | 3,442,876 | 19,068,512 | 246,141 | 117,842 |
| Schwab U.S. REIT ETF | 13,880,515 | 1,943,511 | (922,219) | 20,878 | 4,379,285 | 19,301,970 | 434,827 | 219,650 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 13,767,457 | 3,002,404 | — | — | (1,376) | 16,768,485 | 16,763,456 | 2,445 |
| Total | $510,991,492 | $56,799,165 | ($45,322,219) | $13,377,439 | $75,452,659 | $611,298,536 | | $11,065,928 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $611,298,536 | $— | $— | $611,298,536 | |
| Short-Term Investments1 | — | 7,864,847 | — | 7,864,847 | |
| Total | $611,298,536 | $7,864,847 | $— | $619,163,383 | |
| 1 | As categorized in Portfolio Holdings. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $400,798,065) | | $611,298,536 |
| Investments in securities, at value - unaffiliated (cost $7,864,847) | | 7,864,847 |
| Receivables: | | |
| Investments sold | | 4,192,219 |
| Fund shares sold | | 446,947 |
| Dividends | | 398,318 |
| Prepaid expenses | + | 17,283 |
| Total assets | | 624,218,150 |
| Liabilities |
| Payables: | | |
| Investments bought | | 4,258,726 |
| Investment adviser and administrator fees | | 70,139 |
| Shareholder service fees | | 128,381 |
| Independent trustees’ fees | | 261 |
| Fund shares redeemed | | 231,362 |
| Accrued expenses | + | 54,200 |
| Total liabilities | | 4,743,069 |
| Net Assets |
| Total assets | | 624,218,150 |
| Total liabilities | – | 4,743,069 |
| Net assets | | $619,475,081 |
| Net Assets by Source | | |
| Capital received from investors | | 396,398,436 |
| Total distributable earnings | | 223,076,645 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $619,475,081 | | 30,115,138 | | $20.57 |
| | | | | |
Schwab MarketTrack Portfolios ��| Semiannual Report
Schwab MarketTrack Balanced Portfolio
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $8,445,960 |
| Interest received from securities - unaffiliated | + | 378 |
| Total investment income | | 8,446,338 |
| Expenses |
| Investment adviser and administrator fees | | 379,811 |
| Shareholder service fees | | 705,846 |
| Registration fees | | 16,606 |
| Portfolio accounting fees | | 12,947 |
| Shareholder reports | | 11,549 |
| Professional fees | | 10,907 |
| Independent trustees’ fees | | 4,396 |
| Transfer agent fees | | 3,859 |
| Other expenses | + | 3,513 |
| Total expenses | | 1,149,434 |
| Expense reduction by CSIM and its affiliates | – | 3,859 |
| Net expenses | – | 1,145,575 |
| Net investment income | | 7,300,763 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 2,619,968 |
| Net realized gains on sales of securities - affiliated | + | 13,377,439 |
| Net realized gains | | 15,997,407 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 75,452,659 |
| Net realized and unrealized gains | | 91,450,066 |
| Increase in net assets resulting from operations | | $98,750,829 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $7,300,763 | $10,037,628 |
| Net realized gains | | 15,997,407 | 25,599,831 |
| Net change in unrealized appreciation (depreciation) | + | 75,452,659 | (23,944,151) |
| Increase in net assets from operations | | 98,750,829 | 11,693,308 |
| Distributions to Shareholders | |
| Total distributions | | ($34,781,810) | ($23,741,670) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,515,369 | $50,015,121 | 3,534,438 | $63,437,613 |
| Shares reinvested | | 1,640,068 | 31,604,119 | 1,162,605 | 21,612,831 |
| Shares redeemed | + | (2,195,161) | (43,732,312) | (5,586,534) | (99,936,630) |
| Net transactions in fund shares | | 1,960,276 | $37,886,928 | (889,491) | ($14,886,186) |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 28,154,862 | $517,619,134 | 29,044,353 | $544,553,682 |
| Total increase (decrease) | + | 1,960,276 | 101,855,947 | (889,491) | (26,934,548) |
| End of period | | 30,115,138 | $619,475,081 | 28,154,862 | $517,619,134 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Financial Statements
Financial Highlights
| | 11/1/20–
4/30/21* | 11/1/19–
10/31/20 | 11/1/18–
10/31/19 | 11/1/17–
10/31/18 | 11/1/16–
10/31/17 | 11/1/15–
10/31/16 |
| Per-Share Data |
| Net asset value at beginning of period | $16.50 | $16.43 | $15.63 | $16.27 | $15.31 | $15.94 |
| Income (loss) from investment operations: | | | | | | |
| Net investment income (loss)1 | 0.19 | 0.30 | 0.35 | 0.31 | 0.27 | 0.24 |
| Net realized and unrealized gains (losses) | 1.74 | 0.27 | 1.18 | (0.38) | 1.09 | 0.30 |
| Total from investment operations | 1.93 | 0.57 | 1.53 | (0.07) | 1.36 | 0.54 |
| Less distributions: | | | | | | |
| Distributions from net investment income | (0.20) | (0.31) | (0.36) | (0.32) | (0.28) | (0.27) |
| Distributions from net realized gains | (0.29) | (0.19) | (0.37) | (0.25) | (0.12) | (0.90) |
| Total distributions | (0.49) | (0.50) | (0.73) | (0.57) | (0.40) | (1.17) |
| Net asset value at end of period | $17.94 | $16.50 | $16.43 | $15.63 | $16.27 | $15.31 |
| Total return | 11.77% 2 | 3.57% | 10.31% | (0.49%) | 9.07% | 3.68% |
| Ratios/Supplemental Data |
| Ratios to average net assets: | | | | | | |
| Net operating expenses3 | 0.41% 4 | 0.42% | 0.43% | 0.41% | 0.42% | 0.43% |
| Gross operating expenses3 | 0.41% 4 | 0.42% | 0.43% | 0.41% | 0.42% | 0.44% |
| Net investment income (loss) | 2.20% 4 | 1.84% | 2.19% | 1.93% | 1.71% | 1.61% |
| Portfolio turnover rate | 10% 2 | 35% | 26% | 9% | 74% 5 | 10% |
| Net assets, end of period (x 1,000,000) | $312 | $279 | $263 | $239 | $251 | $238 |
| |
1
Calculated based on the average shares outstanding during the period.
2
Not annualized.
3
Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
4
Annualized.
5
The portfolio turnover rate increased due to the in-kind transactions relating to Schwab Total Bond Market Fund and Schwab U.S. Aggregate Bond Index Fund. For comparison purposes, the portfolio turnover rate would have been 23% without including these transactions. There were no transaction costs associated with these transactions.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| Security | Number
of Shares | Value ($) |
| Affiliated Underlying Funds 98.9% of net assets |
| |
| Equity Funds 40.1% |
| International 10.0% |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 520,385 | 5,136,205 |
| Schwab Fundamental International Large Company Index Fund | 622,108 | 6,357,942 |
| Schwab Fundamental International Small Company Index Fund | 331,140 | 5,006,839 |
| Schwab International Index Fund | 621,677 | 14,553,459 |
| | | 31,054,445 |
| Large-Cap 22.1% |
| Schwab Fundamental US Large Company Index Fund | 872,213 | 18,944,456 |
| Schwab S&P 500 Index Fund | 680,899 | 43,720,534 |
| Schwab U.S. Large-Cap Growth Index Fund | 83,682 | 6,482,829 |
| | | 69,147,819 |
| Real Estate 2.0% |
| Schwab U.S. REIT ETF | 141,329 | 6,273,594 |
| Small-Cap 6.0% |
| Schwab Fundamental US Small Company Index Fund | 320,197 | 5,843,593 |
| Schwab Small-Cap Index Fund | 331,598 | 13,011,893 |
| | | 18,855,486 |
| | | 125,331,344 |
| |
| Fixed-Income Funds 55.8% |
| Intermediate-Term Bond 54.8% |
| Schwab U.S. Aggregate Bond Index Fund | 16,401,583 | 171,232,522 |
| Security | Number
of Shares | Value ($) |
| Short-Term Bond 1.0% |
| Schwab Short-Term Bond Index Fund | 288,684 | 2,967,670 |
| |
| Money Market Fund 3.0% |
| Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 9,216,665 | 9,219,430 |
| Total Affiliated Underlying Funds |
| (Cost $234,373,005) | | 308,750,966 |
Issuer
Rate, Maturity Date | Face
Amount ($) | Value ($) |
| Short-Term Investment 0.8% of net assets |
| |
| Time Deposit 0.8% |
| Sumitomo Mitsui Banking Corp. |
| 0.01%, 05/03/21 (b) | 2,711,892 | 2,711,892 |
| Total Short-Term Investment |
| (Cost $2,711,892) | | 2,711,892 |
| (a) | The rate shown is the 7-day yield. |
| (b) | The rate shown is the current daily overnight rate. |
| | |
| ETF — | Exchange-traded fund |
| REIT — | Real Estate Investment Trust |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of April 30, 2021 (Unaudited) (continued)
Below is a summary of the fund’s transactions with its affiliated underlying funds during the period ended April 30, 2021:
| Affiliated Underlying Funds |
Value at
10/31/20 | Gross
Purchases | Gross
Sales | Realized
Gains (Losses) | Net Change
in Unrealized
Appreciation
(depreciation) |
Value at
04/30/21 | Balance
of Shares
Held at
04/30/21 | Distributions
Received* |
| Schwab Fundamental Emerging Markets Large Company Index Fund | $4,603,691 | $151,585 | ($1,033,458) | $174,532 | $1,239,855 | $5,136,205 | 520,385 | $151,585 |
| Schwab Fundamental International Large Company Index Fund | 5,488,699 | 145,584 | (1,130,000) | 116,638 | 1,737,021 | 6,357,942 | 622,108 | 145,584 |
| Schwab Fundamental International Small Company Index Fund | 4,866,268 | 98,092 | (1,340,000) | 199,904 | 1,182,575 | 5,006,839 | 331,140 | 98,092 |
| Schwab Fundamental US Large Company Index Fund | 16,751,890 | 1,355,350 | (4,372,383) | 575,077 | 4,634,522 | 18,944,456 | 872,213 | 1,050,414 |
| Schwab Fundamental US Small Company Index Fund | 4,832,284 | 79,002 | (1,380,000) | 288,710 | 2,023,597 | 5,843,593 | 320,197 | 79,002 |
| Schwab International Index Fund | 12,901,329 | 261,112 | (1,760,000) | 166,124 | 2,984,894 | 14,553,459 | 621,677 | 261,112 |
| Schwab S&P 500 Index Fund | 39,174,699 | 2,479,403 | (7,742,130) | 4,037,730 | 5,770,832 | 43,720,534 | 680,899 | 742,125 |
| Schwab Short-Term Bond Index Fund | 2,968,009 | 22,692 | — | — | (23,031) | 2,967,670 | 288,684 | 22,685 |
| Schwab Small-Cap Index Fund | 11,934,226 | 326,907 | (3,924,616) | 2,164,787 | 2,510,589 | 13,011,893 | 331,598 | 326,907 |
| Schwab U.S. Aggregate Bond Index Fund | 153,199,010 | 27,997,078 | (5,300,000) | 26,580 | (4,690,146) | 171,232,522 | 16,401,583 | 1,884,462 |
| Schwab U.S. Large-Cap Growth Index Fund | 5,642,623 | 40,130 | (470,000) | 128,345 | 1,141,731 | 6,482,829 | 83,682 | 40,131 |
| Schwab U.S. REIT ETF | 5,577,477 | 174,795 | (1,030,561) | (94,305) | 1,646,188 | 6,273,594 | 141,329 | 76,992 |
| Schwab Variable Share Price Money Fund, Ultra Shares | 9,218,973 | 1,379 | — | — | (922) | 9,219,430 | 9,216,665 | 1,376 |
| Total | $277,159,178 | $33,133,109 | ($29,483,148) | $7,784,122 | $20,157,705 | $308,750,966 | | $4,880,467 |
| * | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
| | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2021 (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 | | | | | |
| Affiliated Underlying Funds1 | $308,750,966 | $— | $— | $308,750,966 | |
| Short-Term Investment1 | — | 2,711,892 | — | 2,711,892 | |
| Total | $308,750,966 | $2,711,892 | $— | $311,462,858 | |
| 1 | As categorized in Portfolio Holdings. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Statement of Assets and Liabilities
As of April 30, 2021; unaudited
| Assets |
| Investments in securities, at value - affiliated (cost $234,373,005) | | $308,750,966 |
| Investments in securities, at value - unaffiliated (cost $2,711,892) | | 2,711,892 |
| Receivables: | | |
| Investments sold | | 1,981,256 |
| Fund shares sold | | 513,381 |
| Dividends | | 317,295 |
| Prepaid expenses | + | 15,030 |
| Total assets | | 314,289,820 |
| Liabilities |
| Payables: | | |
| Investments bought | | 1,567,673 |
| Investment adviser and administrator fees | | 35,392 |
| Shareholder service fees | | 65,439 |
| Independent trustees’ fees | | 248 |
| Fund shares redeemed | | 322,954 |
| Accrued expenses | + | 41,202 |
| Total liabilities | | 2,032,908 |
| Net Assets |
| Total assets | | 314,289,820 |
| Total liabilities | – | 2,032,908 |
| Net assets | | $312,256,912 |
| Net Assets by Source | | |
| Capital received from investors | | 232,263,340 |
| Total distributable earnings | | 79,993,572 |
| Net Asset Value (NAV) |
| Net Assets | ÷ | Shares
Outstanding | = | NAV |
| $312,256,912 | | 17,404,465 | | $17.94 |
| | | | | |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Statement of Operations
For the period November 1, 2020 through April 30, 2021; unaudited
| Investment Income |
| Dividends received from securities - affiliated | | $3,880,046 |
| Interest received from securities - unaffiliated | + | 154 |
| Total investment income | | 3,880,200 |
| Expenses |
| Investment adviser and administrator fees | | 192,877 |
| Shareholder service fees | | 361,775 |
| Registration fees | | 18,165 |
| Portfolio accounting fees | | 11,674 |
| Professional fees | | 10,308 |
| Shareholder reports | | 5,731 |
| Independent trustees’ fees | | 3,934 |
| Transfer agent fees | | 2,300 |
| Custodian fees | | 471 |
| Other expenses | + | 2,454 |
| Total expenses | | 609,689 |
| Expense reduction by CSIM and its affiliates | – | 2,300 |
| Net expenses | – | 607,389 |
| Net investment income | | 3,272,811 |
| Realized and Unrealized Gains (Losses) |
| Realized capital gain distributions received from underlying funds - affiliated | | 1,000,421 |
| Net realized gains on sales of securities - affiliated | + | 7,784,122 |
| Net realized gains | | 8,784,543 |
| Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 20,157,705 |
| Net realized and unrealized gains | | 28,942,248 |
| Increase in net assets resulting from operations | | $32,215,059 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
| Operations | |
| | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| Net investment income | | $3,272,811 | $5,082,111 |
| Net realized gains | | 8,784,543 | 4,125,240 |
| Net change in unrealized appreciation (depreciation) | + | 20,157,705 | (555,553) |
| Increase in net assets from operations | | 32,215,059 | 8,651,798 |
| Distributions to Shareholders | |
| Total distributions | | ($8,055,327) | ($8,266,008) |
| Transactions in Fund Shares | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | VALUE | SHARES | VALUE |
| Shares sold | | 2,248,371 | $39,545,986 | 5,944,934 | $97,316,710 |
| Shares reinvested | | 394,206 | 6,849,440 | 435,195 | 7,084,017 |
| Shares redeemed | + | (2,142,864) | (37,180,895) | (5,509,526) | (89,276,819) |
| Net transactions in fund shares | | 499,713 | $9,214,531 | 870,603 | $15,123,908 |
| Shares Outstanding and Net Assets | | | |
| | | 11/1/20-4/30/21 | 11/1/19-10/31/20 |
| | | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period | | 16,904,752 | $278,882,649 | 16,034,149 | $263,372,951 |
| Total increase | + | 499,713 | 33,374,263 | 870,603 | 15,509,698 |
| End of period | | 17,404,465 | $312,256,912 | 16,904,752 | $278,882,649 |
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited
1. Business Structure of the Funds:
Schwab MarketTrack All Equity Portfolio, Schwab MarketTrack Growth Portfolio, Schwab MarketTrack Balanced Portfolio, and Schwab MarketTrack Conservative Portfolio (the funds) are each 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 MarketTrack All Equity Portfolio | Schwab Target 2045 Fund |
| Schwab MarketTrack Growth Portfolio | Schwab Target 2050 Fund |
| Schwab MarketTrack Balanced Portfolio | Schwab Target 2055 Fund |
| Schwab MarketTrack Conservative Portfolio | Schwab Target 2060 Fund |
| Schwab S&P 500 Index Fund | Schwab Target 2065 Fund |
| Schwab Small-Cap Index Fund® | Schwab Fundamental US Large Company Index Fund |
| Schwab Total Stock Market Index Fund® | Schwab Fundamental US Small Company Index Fund |
| Schwab U.S. Large-Cap Growth Index Fund | Schwab Fundamental International Large Company Index Fund |
| Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental International Small Company Index Fund |
| Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental Emerging Markets Large Company Index Fund |
| Schwab International Index Fund® | 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 Target 2065 Index Fund |
| Schwab Target 2025 Fund | Schwab Monthly Income Fund - Moderate Payout |
| Schwab Target 2030 Fund | Schwab Monthly Income Fund - Enhanced Payout |
| Schwab Target 2035 Fund | Schwab Monthly Income Fund - Maximum Payout |
| Schwab Target 2040 Fund | |
The Schwab MarketTrack Portfolios are primarily “funds of funds.” Each of the funds seeks to achieve its investment objective by investing mainly in a combination of other Schwab Funds (underlying funds) in accordance with its target portfolio allocation. The funds may also invest directly in equity or fixed-income securities, other mutual funds, exchange-traded funds (ETFs) and cash equivalents, including money market securities, to achieve their investment objectives.
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
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 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.
• Mutual funds: Mutual funds are valued at their respective net asset values (NAVs).
• Cash management sweep time deposits: Balances held in cash management sweep time deposits are accounted for on a cost basis, which approximates fair value.
• 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.
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, mutual funds and ETFs. 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 underlying securities held by an underlying fund.
• Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)—Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
• Level 3—significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments)—Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
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, 2021 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Cash Management Transactions: The funds 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 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.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
(e) Expenses:
Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets. Each fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by the fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year, except for the Schwab MarketTrack Conservative Portfolio, which makes distributions from net investment income quarterly.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
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Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(i) Indemnification:
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
3. Risk Factors:
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The funds are subject to the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments may cause the fund to underperform other funds with a similar investment objective.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of a fund. However, the investment adviser is a fiduciary to each fund and is legally obligated to act in each fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
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.
Direct Investment Risk. The funds may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain their allocations. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
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.
Underlying Fund Investment Risk. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest, which include any combination of the risks described below.
• Investment Risk. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
• Investment Style Risk. Certain underlying funds seek to track the performance of various segments of the stock market, as measured by their respective indices. Such underlying funds follow these stocks during upturns as well as downturns. Because of their indexing strategy, these underlying funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of an underlying fund’s expenses, the underlying fund’s performance is normally below that of the index. Errors relating to an index may occur from time to time and may not be identified by the underlying fund’s index provider for a period of time. In addition, market disruptions could cause delays in an underlying fund’s index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for an underlying fund.
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Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• Tracking Error Risk. Each underlying index 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 an underlying fund and its index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant. If an underlying fund utilizes a sampling approach, it may not track the return of the index as well as it would if the underlying fund purchased all of the securities in the index.
• Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
• Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
• 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, an underlying fund’s performance could be impacted.
• Real Estate Investment Risk. An underlying fund that has a policy of concentrating its investments in real estate companies and companies related to the real estate industry is subject to risks associated with the direct ownership of real estate securities. These risks include, among others, declines in the value of real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds or other limits to accessing the credit or capital markets; defaults by borrowers or tenants, particularly during an economic downturn; and changes in interest rates.
• Money Market Fund Risk. The funds may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when a fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares or may temporarily suspend the ability to sell shares if such fund’s liquidity falls below required minimums.
• Concentration Risk. To the extent that an underlying fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the underlying fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.
• Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers 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 an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. 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.
• 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, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more
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Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying 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.
• Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk and market risk are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
• Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
• Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
• Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
4. Affiliates and Affiliated Transactions:
Investment Adviser
Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between it and the trust.
For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee of 0.13%, payable monthly, based on a percentage of each 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 account maintenance, customer liaison and shareholder services to the current shareholders of the funds.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee of 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). 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 agreed with the funds, for so long as CSIM serves as the investment adviser to the funds, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses as a percentage of average daily net assets as follows:
Schwab
MarketTrack
All Equity
Portfolio | Schwab
MarketTrack
Growth
Portfolio | Schwab
MarketTrack
Balanced
Portfolio | Schwab
MarketTrack
Conservative
Portfolio |
| 0.50% | 0.50% | 0.50% | 0.50% |
The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by each fund through its investments in the underlying funds.
Investments in Affiliates
The funds may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other related funds. As of April 30, 2021, each Schwab MarketTrack Portfolio’s ownership percentages of other related funds’ shares are:
| Underlying Funds | Schwab
MarketTrack
All Equity
Portfolio | Schwab
MarketTrack
Growth
Portfolio | Schwab
MarketTrack
Balanced
Portfolio | Schwab
MarketTrack
Conservative
Portfolio |
| Schwab Fundamental Emerging Markets Large Company Index Fund | 5.3% | 4.2% | 2.0% | 0.7% |
| Schwab Fundamental International Large Company Index Fund | 3.8% | 2.9% | 1.4% | 0.5% |
| Schwab Fundamental International Small Company Index Fund | 5.1% | 4.0% | 2.0% | 0.6% |
| Schwab Fundamental US Large Company Index Fund | 1.7% | 1.8% | 0.9% | 0.3% |
| Schwab Fundamental US Small Company Index Fund | 1.8% | 1.7% | 0.8% | 0.3% |
| Schwab International Index Fund | 1.4% | 1.1% | 0.5% | 0.2% |
| Schwab S&P 500 Index Fund | 0.4% | 0.4% | 0.2% | 0.1% |
| Schwab Short-Term Bond Index Fund | —% | —% | 0.3% | 0.1% |
| Schwab Small-Cap Index Fund | 1.3% | 1.3% | 0.6% | 0.2% |
| Schwab U.S. Aggregate Bond Index Fund | —% | 2.8% | 4.2% | 3.3% |
| Schwab U.S. Large-Cap Growth Index Fund | 5.6% | 4.4% | 2.7% | 0.9% |
| Schwab U.S. REIT ETF | 0.7% | 0.7% | 0.3% | 0.1% |
| Schwab Variable Share Price Money Fund, Ultra Shares | —% | 0.8% | 0.6% | 0.3% |
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 (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
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Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
5. Board of Trustees:
The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
6. Borrowing from Banks:
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by 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 funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. 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.
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, 2021, purchases and sales of securities (excluding short-term obligations) were as follows:
| | Purchases
of Securities | Sales
of Securities |
| Schwab MarketTrack All Equity Portfolio | $33,276,738 | $38,360,002 |
| Schwab MarketTrack Growth Portfolio | 56,361,944 | 60,962,450 |
| Schwab MarketTrack Balanced Portfolio | 56,799,165 | 45,322,219 |
| Schwab MarketTrack Conservative Portfolio | 33,133,109 | 29,483,148 |
8. Federal Income Taxes:
As of April 30, 2021, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | Schwab
MarketTrack
All Equity
Portfolio | | Schwab
MarketTrack
Growth
Portfolio | | Schwab
MarketTrack
Balanced
Portfolio | | Schwab
MarketTrack
Conservative
Portfolio |
| Tax cost | $446,015,310 | | $522,497,013 | | $412,798,241 | | $240,027,852 |
| Gross unrealized appreciation | $367,952,095 | | $404,894,460 | | $206,365,142 | | $71,437,685 |
| Gross unrealized depreciation | — | | — | | — | | (2,679) |
| Net unrealized appreciation (depreciation) | $367,952,095 | | $404,894,460 | | $206,365,142 | | $71,435,006 |
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2020, the funds had no capital loss carryforwards available to offset future net capital gains.
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Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
8. Federal Income Taxes (continued):
For tax purposes, late-year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended October 31, 2020, the funds had ordinary losses deferred as follows:
| | Schwab
MarketTrack
All Equity
Portfolio | Schwab
MarketTrack
Growth
Portfolio | Schwab
MarketTrack
Balanced
Portfolio | Schwab
MarketTrack
Conservative
Portfolio |
| Ordinary losses deferred | ($1,603,991) | $— | $— | $— |
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, 2021. The tax-basis components of distributions paid during the fiscal year ended October 31, 2020, were as follows:
| | Schwab
MarketTrack
All Equity
Portfolio | Schwab
MarketTrack
Growth
Portfolio | Schwab
MarketTrack
Balanced
Portfolio | Schwab
MarketTrack
Conservative
Portfolio |
| Ordinary income | $19,507,535 | $16,953,005 | $12,876,300 | $5,723,865 |
| Long-term capital gains | 25,182,760 | 29,262,151 | 10,865,370 | 2,542,143 |
As of October 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended October 31, 2020, the funds did not incur any interest or penalties.
9. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Schwab MarketTrack Portfolios
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 103 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. | 103 | 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. | 103 | Director (2005 – 2020), Gilead Sciences, Inc. |
Nancy F. Heller
1956
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services). | 103 | None |
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. | 103 | Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – present), Adamas Pharmaceuticals, Inc.
Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff
1961
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 103 | 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 |
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). | 103 | 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). | 103 | None |
J. Derek Penn
1957
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 103 | None |
| Interested Trustees |
Name, Year of Birth, and
Position(s) with the trust
(Terms of office, and
length of Time Served1) | Principal Occupations
During the Past Five Years | Number of
Portfolios in
Fund Complex
Overseen by
the Trustee | Other Directorships |
Walter W. Bettinger II2
1960
Chairman and Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
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| Interested 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 |
Joseph R. Martinetto2
1962
Trustee
(Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation. | 103 | 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 (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc. |
Mark Fischer
1970
Treasurer, Chief Financial Officer and Chief Operating 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) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management. |
Omar Aguilar
1970
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (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
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm). |
William P. McMahon, Jr.
1972
Senior Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, 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 |
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 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. 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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All Equity Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation. Effective July 1, 2020, the index is composed of 31.33% S&P 500 Index, 5.0% Russell 1000 Growth Index, 13.5% Russell RAFI US Large Company Index, 10.33% Russell 2000 Index, 4.5% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6.0% Russell RAFI Developed ex US Large Company Index (Net), 5.0% Russell RAFI Developed ex US Small Company Index (Net), 5.0% Russell RAFI Emerging Markets Large Company Index (Net), 5.0% Dow Jones Equity All REIT Capped Index, and 0.5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 31.33% S&P 500 Index, 5.0% Russell 1000 Growth Index, 13.5% Russell RAFI US Large Company Index, 10.33% Russell 2000 Index, 4.5% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6.0% Russell RAFI Developed ex US Large Company Index (Net), 5.0% Russell RAFI Developed ex US Small Company Index (Net), 5.0% Russell RAFI Emerging Markets Large Company Index (Net), 5.0% Dow Jones U.S. Select REIT Index, and 0.5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From December 1, 2014 through February 27, 2020, the index was composed of 31.33% S&P 500 Index, 17.33% Russell 2000 Index, 13.50% Russell RAFI US Large Company Index, 7.50% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6% Russell RAFI Developed ex US Large Company Index (Net), 5% Russell RAFI Developed ex US Small Company Index (Net), 5% Russell RAFI Emerging Markets Large Company Index (Net), and 0.5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 45% S&P 500 Index, 25% Russell 2000 Index and 30% MSCI EAFE Index (Net). On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 70% Dow Jones U.S. Total Stock Market Index and 30% MSCI EAFE Index (Net). Percentages listed may not total to 100% due to rounding.
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Balanced Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation. Effective July 1, 2020 the index is composed of 21.0% S&P 500 Index, 3.0% Russell 1000 Growth Index, 9.0% Russell RAFI US Large Company Index, 6.3% Russell 2000 Index, 2.7% Russell RAFI US Small Company Index, 7.0% MSCI EAFE Index (Net), 3.0% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 3.0% Dow Jones Equity All REIT Capped Index, 35.0% Bloomberg Barclays US Aggregate Bond Index, 1.0% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 4.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 21% S&P 500 Index, 3.0% Russell 1000 Growth Index, 9.0% Russell RAFI US Large Company Index, 6.3% Russell 2000 Index, 2.7% Russell RAFI US Small Company Index, 7.0% MSCI EAFE Index (Net), 3.0% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 3.0% Dow Jones U.S. Select REIT Index, 35.0% Bloomberg Barclays US Aggregate Bond Index, 1.0% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 4.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From
December 1, 2014 through February 27, 2020, the Balanced Composite Index was composed of 21% S&P 500 Index, 10.5% Russell 2000 Index, 9% Russell RAFI US Large Company Index, 4.5% Russell RAFI US Small Company Index, 7% MSCI EAFE Index (Net), 3% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 35% Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 30% S&P 500 Index, 15% Russell 2000 Index, 15% MSCI EAFE Index (Net), 35% Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 45% Dow Jones U.S. Total Stock Market Index, 15% MSCI EAFE Index (Net), 35% Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
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 Government/Credit 1–5 Year Index An index that is a broad-based benchmark measuring the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational and local authority debt) and investment grade U.S. corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years. 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 a remaining maturity greater than or equal to one year and less than five years. The index excludes certain types of securities, including, bonds with equity type features (e.g., warrants, convertibles and preferreds), tax-exempt municipal securities, inflation-linked bonds, floating rate issues, strips, private placements, U.S. dollar-denominated 25 and 50 par retail bonds, structured notes and pass-through certificates. 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 $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Conservative Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation. Effective July 1, 2020, the index is composed of 14.0% S&P 500 Index, 2.0% Russell 1000 Growth Index, 6.0% Russell RAFI US Large Company Index, 4.67% MSCI EAFE Index (Net), 4.2% Russell 2000 Index, 1.8% Russell RAFI US Small Company Index, 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 2.0% Dow Jones Equity All REIT Capped Index, 55.0% Bloomberg Barclays US Aggregate Bond Index, 1.0% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 4.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 14.0% S&P 500 Index, 2.0% Russell 1000 Growth Index, 6.0% Russell RAFI US Large Company Index, 4.67% MSCI EAFE Index (Net), 4.2% Russell 2000 Index, 1.8% Russell RAFI US Small Company Index, 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 2.0% Dow Jones U.S. Select REIT Index, 55.0% Bloomberg Barclays US Aggregate Bond Index, 1.0% Bloomberg Barclays US Government/Credit 1-5 Year Index, and 4.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From December 1, 2014, through February 27, 2020, the index was composed of 14.0% S&P 500 Index, 7.0% Russell 2000 Index, 6.0% Russell RAFI US Large Company Index, 3.0% Russell RAFI US Small Company Index, 4.67% MSCI EAFE Index (Net), 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 55.0% Bloomberg Barclays US Aggregate Bond Index, and 5.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 20% S&P 500 Index, 10% Russell 2000 Index, 10% MSCI EAFE Index (Net), 55% Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 30% Dow Jones U.S. Total Stock Market Index, 10% MSCI EAFE Index (Net), 55% Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
Dow Jones Equity All REIT Capped Index A float-adjusted market cap weighted index that is designed to measure all equity real estate investment trusts (REITs) in the Dow Jones U.S. Total Stock Market Index, as defined by the S&P Dow Jones Indices REIT/RESI Industry Classification Hierarchy, that meet the minimum float market capitalization (FMC) and liquidity thresholds. The aggregate weight of all companies weighing more than 4.5% cannot exceed 22.5%, and no single company’s weight can exceed 10%. The index is reviewed daily based on each company’s capped market capitalization weight. Daily capping is only performed when the sum of companies with weights great than 5% exceeds 25%.
Dow Jones U.S. Select REIT Index An index that is a float-adjusted market-capitalization weighted index comprised of income-producing commercial and/or residential real estate investment trusts (REITs). The index excludes mortgage REITs, net-lease REITs, real estate finance companies, mortgage brokers and bankers, commercial and residential real estate brokers and estate agents, homebuilders, large landowners and sub-dividers of unimproved land, hybrid REITs, timber REITs and companies that have more than 25% of their assets in direct mortgage investments.
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.
FTSE non-US Dollar World Government Bond Index A market capitalization index that measures the total rate of return performance for the government bonds of 22 countries, excluding the U.S., with a remaining maturity of at least 1 year.
Growth Composite Index A custom blended index developed by CSIM based on a comparable portfolio asset allocation. Effective July 1, 2020 the index is composed of 28.0% S&P 500 Index, 3.3% Russell 1000 Growth Index, 12.0% Russell RAFI US Large Company Index, 8.9% Russell 2000 Index, 3.8% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4.0% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 4.0% Dow Jones Equity All REIT Capped Index, 16.0% Bloomberg Barclays US Aggregate Bond Index, and 4.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 28.0% S&P 500 Index, 3.3% Russell 1000 Growth Index, 12.0% Russell RAFI US Large Company Index, 8.9% Russell 2000 Index, 3.8% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4.0% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 4.0% Dow Jones U.S. Select REIT Index, 16.0% Bloomberg Barclays US Aggregate Bond Index, and 4.0% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From December 1, 2014 through February 27, 2020, the Growth Composite Index was composed of 28% S&P 500 Index, 14% Russell 2000 Index, 12% Russell RAFI US Large Company Index, 6% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 15% Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 40% S&P 500 Index, 20% Russell 2000 Index, 20% MSCI EAFE Index (Net), 15%
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014 the index was composed of 60% Dow Jones U.S. Total Stock Market Index, 20% MSCI EAFE Index (Net), 15% Bloomberg Barclays US Aggregate Bond Index, and 5% Bloomberg Barclays US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
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.
MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Growth Index An index that measures the performance of those Russell 1000 Index 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.
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 RAFI Developed ex US Large Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The
index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Developed ex US Small Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores rank below the 87.5% threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the smallest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Emerging Markets Large Company Index (Net) An index that ranks emerging market companies in the FTSE Global Total Cap Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the emerging companies in the FTSE Global Total Cap Index measures the performance of the investable securities in emerging countries globally.
Russell RAFI US Large Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Large Company Index includes only those securities that are members of the U.S. portion whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
Russell RAFI US Small Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Small Company Index includes only those securities that are members of the U.S. portion and rank below the 87.5% fundamental score threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
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.
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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Schwab MarketTrack Portfolios
Charles Schwab Investment Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Hedged Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Asset Allocation Funds
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab High Yield Municipal Bond Fund
Schwab Money Funds2
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
Funds
Schwab Funds
1-877-824-5615
© 2021 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
| ¹ | State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation. |
| ² | You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
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Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
| Item 9: | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
| (a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Jonathan de St. Paer and Registrant’s Chief Financial Officer, Mark Fischer, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
| (b) | During the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
| (a) (1) | Code of ethics – not applicable to this semi-annual report. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Capital Trust
| | |
| By: | | /s/ Jonathan de St. Paer |
| | Jonathan de St. Paer Chief Executive Officer |
| |
| Date: | | June 17, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By: | | /s/ Jonathan de St. Paer |
| | Jonathan de St. Paer Chief Executive Officer |
| |
| Date: | | June 17, 2021 |
| | |
| By: | | /s/ Mark Fischer |
| | Mark Fischer Chief Financial Officer |
| |
| Date: | | June 17, 2021 |
