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 – Schwab Target Index Funds
(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 – Target Index Funds
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: March 31
Date of reporting period: September 30, 2021
Item 1: Report(s) to Shareholders.
Total Returns For the 6 Months Ended September 30, 2021 | |
Schwab Target 2010 Index Fund (Ticker Symbol: SWYAX) | 3.60% |
Target 2010 Passive Composite Index | 3.82% |
Fund Category: Morningstar Target-Date 2000-20101 | 3.38% |
Performance Details | pages 7-8 |
Schwab Target 2015 Index Fund (Ticker Symbol: SWYBX) | 3.82% |
Target 2015 Passive Composite Index | 3.98% |
Fund Category: Morningstar Target-Date 20151 | 3.70% |
Performance Details | pages 9-10 |
Schwab Target 2020 Index Fund (Ticker Symbol: SWYLX) | 3.91% |
Target 2020 Passive Composite Index | 4.09% |
Fund Category: Morningstar Target-Date 20201 | 3.86% |
Performance Details | pages 11-12 |
Schwab Target 2025 Index Fund (Ticker Symbol: SWYDX) | 4.34% |
Target 2025 Passive Composite Index | 4.57% |
Fund Category: Morningstar Target-Date 20251 | 4.14% |
Performance Details | pages 13-14 |
Schwab Target 2030 Index Fund (Ticker Symbol: SWYEX) | 4.79% |
Target 2030 Passive Composite Index | 5.05% |
Fund Category: Morningstar Target-Date 20301 | 4.49% |
Performance Details | pages 15-16 |
Schwab Target 2035 Index Fund (Ticker Symbol: SWYFX) | 5.11% |
Target 2035 Passive Composite Index | 5.39% |
Fund Category: Morningstar Target-Date 20351 | 4.86% |
Performance Details | pages 17-18 |
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. |
Total Returns For the 6 Months Ended September 30, 2021 | |
Schwab Target 2040 Index Fund (Ticker Symbol: SWYGX) | 5.38% |
Target 2040 Passive Composite Index | 5.66% |
Fund Category: Morningstar Target-Date 20401 | 5.09% |
Performance Details | pages 19-20 |
Schwab Target 2045 Index Fund (Ticker Symbol: SWYHX) | 5.65% |
Target 2045 Passive Composite Index | 5.89% |
Fund Category: Morningstar Target-Date 20451 | 5.29% |
Performance Details | pages 21-22 |
Schwab Target 2050 Index Fund (Ticker Symbol: SWYMX) | 5.79% |
Target 2050 Passive Composite Index | 6.02% |
Fund Category: Morningstar Target-Date 20501 | 5.34% |
Performance Details | pages 23-24 |
Schwab Target 2055 Index Fund (Ticker Symbol: SWYJX) | 5.79% |
Target 2055 Passive Composite Index | 6.10% |
Fund Category: Morningstar Target-Date 20551 | 5.38% |
Performance Details | pages 25-26 |
Schwab Target 2060 Index Fund (Ticker Symbol: SWYNX) | 5.89% |
Target 2060 Passive Composite Index | 6.18% |
Fund Category: Morningstar Target-Date 20601 | 5.39% |
Performance Details | pages 27-28 |
Schwab Target 2065 Index Fund (Ticker Symbol: SWYOX) | 5.88% |
Target 2065 Passive Composite Index | 6.19% |
Fund Category: Morningstar Target-Date 2065+1 | 5.50% |
Performance Details | pages 29-30 |
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. |
* | The net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes. |
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 from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management 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. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2010 Index Fund (8/25/16) | 3.60% | 9.79% | 7.00% | 6.88% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2010 Passive Composite Index | 3.82% | 9.95% | 7.11% | 6.98% |
Fund Category: Morningstar Target-Date 2000-20103 | 3.38% | 10.70% | 6.89% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.13% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.05% 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. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 8% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2015 Index Fund (8/25/16) | 3.82% | 10.62% | 7.26% | 7.14% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2015 Passive Composite Index | 3.98% | 10.82% | 7.39% | 7.26% |
Fund Category: Morningstar Target-Date 20153 | 3.70% | 12.47% | 7.57% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.12% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.04% 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. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 8% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2020 Index Fund (8/25/16) | 3.91% | 11.21% | 7.97% | 7.83% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2020 Passive Composite Index | 4.09% | 11.40% | 8.06% | 7.92% |
Fund Category: Morningstar Target-Date 20203 | 3.86% | 13.70% | 8.05% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.13% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.05% 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. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 6% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2025 Index Fund (8/25/16) | 4.34% | 14.93% | 9.32% | 9.15% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2025 Passive Composite Index | 4.57% | 15.17% | 9.43% | 9.25% |
Fund Category: Morningstar Target-Date 20253 | 4.14% | 15.51% | 8.87% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.12% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.04% 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. |
Number of Holdings | 11 |
Portfolio Turnover Rate | 3% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2030 Index Fund (8/25/16) | 4.79% | 18.07% | 10.33% | 10.16% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2030 Passive Composite Index | 5.05% | 18.41% | 10.45% | 10.26% |
Fund Category: Morningstar Target-Date 20303 | 4.49% | 18.33% | 9.99% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.12% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.04% 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. |
Number of Holdings | 11 |
Portfolio Turnover Rate | 2% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2035 Index Fund (8/25/16) | 5.11% | 20.65% | 11.11% | 10.91% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2035 Passive Composite Index | 5.39% | 21.01% | 11.22% | 11.02% |
Fund Category: Morningstar Target-Date 20353 | 4.86% | 21.49% | 10.98% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.12% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.04% 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. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 3% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2040 Index Fund (8/25/16) | 5.38% | 22.92% | 11.77% | 11.56% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2040 Passive Composite Index | 5.66% | 23.26% | 11.89% | 11.67% |
Fund Category: Morningstar Target-Date 20403 | 5.09% | 24.09% | 11.65% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.12% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.04% 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. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 2% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2045 Index Fund (8/25/16) | 5.65% | 25.07% | 12.28% | 12.05% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2045 Passive Composite Index | 5.89% | 25.39% | 12.40% | 12.17% |
Fund Category: Morningstar Target-Date 20453 | 5.29% | 25.84% | 12.13% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.13% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.05% 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. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 2% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
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. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2050 Index Fund (8/25/16) | 5.79% | 26.33% | 12.54% | 12.33% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2050 Passive Composite Index | 6.02% | 26.63% | 12.69% | 12.46% |
Fund Category: Morningstar Target-Date 20503 | 5.34% | 26.57% | 12.27% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.13% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.05% 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. |
Number of Holdings | 10 |
Portfolio Turnover Rate | 2% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
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. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2055 Index Fund (8/25/16) | 5.79% | 27.12% | 12.77% | 12.55% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2055 Passive Composite Index | 6.10% | 27.47% | 12.92% | 12.68% |
Fund Category: Morningstar Target-Date 20553 | 5.38% | 26.96% | 12.41% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.13% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.05% 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. |
Number of Holdings | 9 |
Portfolio Turnover Rate | 1% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
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. |
Fund and Inception Date | 6 Months | 1 Year | 5 Years | Since Inception |
Schwab Target 2060 Index Fund (8/25/16) | 5.89% | 27.95% | 12.90% | 12.67% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 32.13% | 16.82% | 16.51% |
Bloomberg US Aggregate Bond Index | 1.88% | -0.90% | 2.94% | 2.89% |
Target 2060 Passive Composite Index | 6.18% | 28.29% | 13.06% | 12.82% |
Fund Category: Morningstar Target-Date 20603 | 5.39% | 27.26% | 12.50% | N/A |
Fund Expense Ratios4: Net 0.08%; Gross 0.13% |
1 | Fund expenses 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 July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds within the category as of the report date. |
4 | As stated in the prospectus. Includes 0.05% 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. |
Number of Holdings | 8 |
Portfolio Turnover Rate | 1% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
Fund and Inception Date | 6 Months | Since Inception |
Schwab Target 2065 Index Fund (2/25/21) | 5.88% | 8.10% |
Dow Jones U.S. Total Stock Market IndexSM | 8.16% | 11.58% |
Bloomberg US Aggregate Bond Index | 1.88% | 1.45% |
Target 2065 Passive Composite Index | 6.19% | 7.74% |
Fund Category: Morningstar Target-Date 2065+2 | 5.50% | N/A |
Fund Expense Ratios3: Net 0.08%; Gross 0.13% |
1 | Fund expenses 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 0.05% 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. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements. |
Number of Holdings | 8 |
Portfolio Turnover Rate | 2% 1 |
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 primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and Laudus Funds, and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”). |
4 | This list is not a recommendation of any security by the investment adviser. |
5 | The holdings listed exclude any temporary liquidity investments. |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 4/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 9/30/212 | EXPENSES PAID DURING PERIOD 4/1/21-9/30/212,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 4/1/21-9/30/214,5 | |
Schwab Target 2010 Index Fund | ||||||
Actual Return | 0.03% | 0.08% | $1,000.00 | $1,036.00 | $0.15 | $0.41 |
Hypothetical 5% Return | 0.03% | 0.08% | $1,000.00 | $1,024.92 | $0.15 | $0.41 |
Schwab Target 2015 Index Fund | ||||||
Actual Return | 0.03% | 0.08% | $1,000.00 | $1,038.20 | $0.15 | $0.41 |
Hypothetical 5% Return | 0.03% | 0.08% | $1,000.00 | $1,024.92 | $0.15 | $0.41 |
Schwab Target 2020 Index Fund | ||||||
Actual Return | 0.03% | 0.08% | $1,000.00 | $1,039.10 | $0.15 | $0.41 |
Hypothetical 5% Return | 0.03% | 0.08% | $1,000.00 | $1,024.92 | $0.15 | $0.41 |
Schwab Target 2025 Index Fund | ||||||
Actual Return | 0.04% | 0.08% | $1,000.00 | $1,043.40 | $0.20 | $0.41 |
Hypothetical 5% Return | 0.04% | 0.08% | $1,000.00 | $1,024.87 | $0.20 | $0.41 |
Schwab Target 2030 Index Fund | ||||||
Actual Return | 0.04% | 0.08% | $1,000.00 | $1,047.90 | $0.21 | $0.41 |
Hypothetical 5% Return | 0.04% | 0.08% | $1,000.00 | $1,024.87 | $0.20 | $0.41 |
Schwab Target 2035 Index Fund | ||||||
Actual Return | 0.04% | 0.08% | $1,000.00 | $1,051.10 | $0.21 | $0.41 |
Hypothetical 5% Return | 0.04% | 0.08% | $1,000.00 | $1,024.87 | $0.20 | $0.41 |
Schwab Target 2040 Index Fund | ||||||
Actual Return | 0.04% | 0.08% | $1,000.00 | $1,053.80 | $0.21 | $0.41 |
Hypothetical 5% Return | 0.04% | 0.08% | $1,000.00 | $1,024.87 | $0.20 | $0.41 |
Schwab Target 2045 Index Fund | ||||||
Actual Return | 0.04% | 0.08% | $1,000.00 | $1,056.50 | $0.21 | $0.41 |
Hypothetical 5% Return | 0.04% | 0.08% | $1,000.00 | $1,024.87 | $0.20 | $0.41 |
Schwab Target 2050 Index Fund | ||||||
Actual Return | 0.03% | 0.08% | $1,000.00 | $1,057.90 | $0.15 | $0.41 |
Hypothetical 5% Return | 0.03% | 0.08% | $1,000.00 | $1,024.92 | $0.15 | $0.41 |
Schwab Target 2055 Index Fund | ||||||
Actual Return | 0.03% | 0.08% | $1,000.00 | $1,057.90 | $0.15 | $0.41 |
Hypothetical 5% Return | 0.03% | 0.08% | $1,000.00 | $1,024.92 | $0.15 | $0.41 |
EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 4/1/21 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 9/30/212 | EXPENSES PAID DURING PERIOD 4/1/21-9/30/212,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 4/1/21-9/30/214,5 | |
Schwab Target 2060 Index Fund | ||||||
Actual Return | 0.03% | 0.08% | $1,000.00 | $1,058.90 | $0.15 | $0.41 |
Hypothetical 5% Return | 0.03% | 0.08% | $1,000.00 | $1,024.92 | $0.15 | $0.41 |
Schwab Target 2065 Index Fund | ||||||
Actual Return | 0.03% | 0.08% | $1,000.00 | $1,058.80 | $0.15 | $0.41 |
Hypothetical 5% Return | 0.03% | 0.08% | $1,000.00 | $1,024.92 | $0.15 | $0.41 |
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 expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense 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 183 days of the period, and divided by the 365 days of the fiscal year. |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $12.49 | $10.70 | $10.88 | $10.59 | $10.15 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.22 | 0.27 | 0.27 | 0.22 | 0.12 |
Net realized and unrealized gains (losses) | 0.33 | 1.82 | (0.19) | 0.23 | 0.34 | 0.10 |
Total from investment operations | 0.45 | 2.04 | 0.08 | 0.50 | 0.56 | 0.22 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.21) | (0.25) | (0.20) | (0.12) | (0.07) |
Distributions from net realized gains | — | (0.04) | (0.01) | (0.01) | (0.00) 4 | — |
Total distributions | — | (0.25) | (0.26) | (0.21) | (0.12) | (0.07) |
Net asset value at end of period | $12.94 | $12.49 | $10.70 | $10.88 | $10.59 | $10.15 |
Total return | 3.60% 5 | 19.04% | 0.58% | 4.81% | 5.57% | 2.26% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.03% 7 | 0.03% | 0.03% | 0.03% | 0.03% | 0.02% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.78% 7 | 1.83% | 2.43% | 2.53% | 2.11% | 1.99% 7 |
Portfolio turnover rate | 8% 5 | 21% | 19% | 30% | 28% | 2% 5 |
Net assets, end of period (x 1,000) | $58,853 | $55,137 | $35,614 | $25,391 | $14,185 | $955 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.05% (annualized), 0.05%, 0.05%, 0.05%, 0.05% and 0.06% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 100.6% OF NET ASSETS | ||
U.S. Stocks 24.0% | ||
Large-Cap 22.6% | ||
Schwab U.S. Large-Cap ETF | 127,678 | 13,282,342 |
Small-Cap 1.4% | ||
Schwab U.S. Small-Cap ETF | 8,319 | 832,732 |
14,115,074 | ||
International Stocks 9.2% | ||
Developed Markets 9.2% | ||
Schwab International Equity ETF | 140,547 | 5,439,169 |
Real Estate 1.7% | ||
U.S. REITs 1.7% | ||
Schwab U.S. REIT ETF | 22,182 | 1,013,274 |
Fixed Income 62.2% | ||
Inflation-Protected Bond 6.7% | ||
Schwab U.S. TIPS ETF | 63,143 | 3,951,489 |
Intermediate-Term Bond 46.3% | ||
Schwab U.S. Aggregate Bond ETF | 501,796 | 27,227,451 |
Treasury Bond 9.2% | ||
Schwab Short-Term U.S. Treasury ETF | 105,859 | 5,418,922 |
36,597,862 | ||
Money Market Funds 3.5% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 2,037,228 | 2,037,839 |
Total Affiliated Underlying Funds (Cost $51,432,186) | 59,203,218 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.3% OF NET ASSETS | ||
Time Deposits 1.3% | ||
Australia & New Zealand Banking Group Ltd. | ||
0.01%, 10/01/21 (b) | 603,607 | 603,607 |
Sumitomo Mitsui Banking Corp. | ||
0.01%, 10/01/21 (b) | 193,157 | 193,157 |
Total Short-Term Investments (Cost $796,764) | 796,764 | |
Total Investments in Securities (Cost $52,228,950) | 59,999,982 |
(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 |
TIPS — | Treasury Inflation Protected Securities |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 100.6% OF NET ASSETS | ||||||||
U.S. Stocks 24.0% | ||||||||
Large-Cap 22.6% | ||||||||
Schwab U.S. Large-Cap ETF | $12,348,690 | $1,648,427 | ($1,760,211) | $111,461 | $933,975 | $13,282,342 | 127,678 | $84,796 |
Small-Cap 1.4% | ||||||||
Schwab U.S. Small-Cap ETF | 799,851 | 29,430 | — | — | 3,451 | 832,732 | 8,319 | 4,123 |
14,115,074 | ||||||||
International Stocks 9.2% | ||||||||
Developed Markets 9.2% | ||||||||
Schwab International Equity ETF | 5,021,292 | 678,043 | (404,660) | 29,808 | 114,686 | 5,439,169 | 140,547 | 45,309 |
Real Estate 1.7% | ||||||||
U.S. REITs 1.7% | ||||||||
Schwab U.S. REIT ETF | 952,795 | — | (47,342) | 3,698 | 104,123 | 1,013,274 | 22,182 | 9,731 |
Fixed Income 62.2% | ||||||||
Inflation-Protected Bond 6.7% | ||||||||
Schwab U.S. TIPS ETF | 3,603,364 | 301,201 | (39,112) | (288) | 86,324 | 3,951,489 | 63,143 | 100,837 |
Intermediate-Term Bond 46.3% | ||||||||
Schwab U.S. Aggregate Bond ETF | 24,867,066 | 4,272,469 | (2,044,471) | (65,654) | 198,041 | 27,227,451 | 501,796 | 282,998 |
Treasury Bond 9.2% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 4,941,717 | 717,052 | (227,261) | (1,585) | (11,001) | 5,418,922 | 105,859 | 10,760 |
36,597,862 | ||||||||
Money Market Funds 3.5% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 2,037,532 | 307 | — | — | — | 2,037,839 | 2,037,228 | 306 |
Total Affiliated Underlying Funds | $54,572,307 | $7,646,929 | ($4,523,057) | $77,440 | $1,429,599 | $59,203,218 | $538,860 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $59,203,218 | $— | $— | $59,203,218 |
Short-Term Investments1 | — | 796,764 | — | 796,764 |
Total | $59,203,218 | $796,764 | $— | $59,999,982 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $51,432,186) | $59,203,218 | |
Investments in securities, at value - unaffiliated (cost $796,764) | 796,764 | |
Receivables: | ||
Investments sold | 404,013 | |
Fund shares sold | 6,760 | |
Dividends | + | 27 |
Total assets | 60,410,782 | |
Liabilities | ||
Payables: | ||
Fund shares redeemed | 1,271,255 | |
Investments bought | 284,329 | |
Investment adviser fees | + | 1,702 |
Total liabilities | 1,557,286 | |
Net assets | $58,853,496 | |
Net Assets by Source | ||
Capital received from investors | $50,754,204 | |
Total distributable earnings | + | 8,099,292 |
Net assets | $58,853,496 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$58,853,496 | 4,547,591 | $12.94 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $538,860 | |
Interest received from securities - unaffiliated | + | 19 |
Total investment income | 538,879 | |
Expenses | ||
Investment adviser fees | + | 23,770 |
Total expenses | 23,770 | |
Expense reduction by CSIM and its affiliates | – | 13,775 |
Net expenses | – | 9,995 |
Net investment income | 528,884 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - affiliated | 77,440 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 1,429,599 |
Net realized and unrealized gains | 1,507,039 | |
Increase in net assets resulting from operations | $2,035,923 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $528,884 | $834,578 | |
Net realized gains | 77,440 | 68,428 | |
Net change in unrealized appreciation (depreciation) | + | 1,429,599 | 6,372,932 |
Increase in net assets from operations | $2,035,923 | $7,275,938 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($992,119) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 776,666 | $10,049,398 | 2,108,080 | $25,488,388 | |
Shares reinvested | — | — | 75,235 | 935,167 | |
Shares redeemed | + | (645,046) | (8,368,856) | (1,096,596) | (13,184,147) |
Net transactions in fund shares | 131,620 | $1,680,542 | 1,086,719 | $13,239,408 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 4,415,971 | $55,137,031 | 3,329,252 | $35,613,804 | |
Total increase | + | 131,620 | 3,716,465 | 1,086,719 | 19,523,227 |
End of period | 4,547,591 | $58,853,496 | 4,415,971 | $55,137,031 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $12.58 | $10.68 | $10.92 | $10.61 | $10.17 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.22 | 0.28 | 0.27 | 0.22 | 0.13 |
Net realized and unrealized gains (losses) | 0.36 | 1.97 | (0.26) | 0.22 | 0.38 | 0.12 |
Total from investment operations | 0.48 | 2.19 | 0.02 | 0.49 | 0.60 | 0.25 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.22) | (0.25) | (0.17) | (0.15) | (0.08) |
Distributions from net realized gains | — | (0.07) | (0.01) | (0.01) | (0.01) | — |
Total distributions | — | (0.29) | (0.26) | (0.18) | (0.16) | (0.08) |
Net asset value at end of period | $13.06 | $12.58 | $10.68 | $10.92 | $10.61 | $10.17 |
Total return | 3.82% 4 | 20.52% | (0.02%) | 4.74% | 5.83% | 2.49% 4 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses5 | 0.03% 6 | 0.04% | 0.03% | 0.03% | 0.03% | 0.02% 6 |
Gross operating expenses5 | 0.08% 6 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 6 |
Net investment income (loss) | 1.76% 6 | 1.85% | 2.45% | 2.54% | 2.06% | 2.15% 6 |
Portfolio turnover rate | 8% 4 | 30% | 24% | 29% | 47% | 15% 4 |
Net assets, end of period (x 1,000) | $78,158 | $73,384 | $57,790 | $45,688 | $20,229 | $797 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Not annualized. |
5 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.05% (annualized), 0.04%, 0.05%, 0.05%, 0.05% and 0.06% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
6 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.8% OF NET ASSETS | ||
U.S. Stocks 25.3% | ||
Large-Cap 23.8% | ||
Schwab U.S. Large-Cap ETF | 178,711 | 18,591,305 |
Small-Cap 1.5% | ||
Schwab U.S. Small-Cap ETF | 11,747 | 1,175,875 |
19,767,180 | ||
International Stocks 10.2% | ||
Developed Markets 10.2% | ||
Schwab International Equity ETF | 206,071 | 7,974,948 |
Real Estate 1.8% | ||
U.S. REITs 1.8% | ||
Schwab U.S. REIT ETF | 30,990 | 1,415,623 |
Fixed Income 58.4% | ||
Inflation-Protected Bond 6.3% | ||
Schwab U.S. TIPS ETF | 78,307 | 4,900,452 |
Intermediate-Term Bond 43.7% | ||
Schwab U.S. Aggregate Bond ETF | 629,015 | 34,130,354 |
Treasury Bond 8.4% | ||
Schwab Short-Term U.S. Treasury ETF | 129,178 | 6,612,622 |
45,643,428 | ||
Money Market Funds 3.1% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 2,436,147 | 2,436,878 |
Total Affiliated Underlying Funds (Cost $65,647,251) | 77,238,057 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.2% OF NET ASSETS | ||
Time Deposits 1.2% | ||
BNP Paribas SA | ||
0.01%, 10/01/21 (b) | 171,823 | 171,823 |
National Australia Bank Ltd. | ||
0.01%, 10/01/21 (b) | 785,307 | 785,307 |
Total Short-Term Investments (Cost $957,130) | 957,130 | |
Total Investments in Securities (Cost $66,604,381) | 78,195,187 |
(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 |
TIPS — | Treasury Inflation Protected Securities |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.8% OF NET ASSETS | ||||||||
U.S. Stocks 25.3% | ||||||||
Large-Cap 23.8% | ||||||||
Schwab U.S. Large-Cap ETF | $17,590,679 | $1,893,438 | ($2,390,344) | $349,247 | $1,148,285 | $18,591,305 | 178,711 | $117,450 |
Small-Cap 1.5% | ||||||||
Schwab U.S. Small-Cap ETF | 1,170,824 | — | — | — | 5,051 | 1,175,875 | 11,747 | 6,036 |
19,767,180 | ||||||||
International Stocks 10.2% | ||||||||
Developed Markets 10.2% | ||||||||
Schwab International Equity ETF | 7,511,284 | 973,686 | (738,774) | 45,911 | 182,841 | 7,974,948 | 206,071 | 66,324 |
Real Estate 1.8% | ||||||||
U.S. REITs 1.8% | ||||||||
Schwab U.S. REIT ETF | 1,382,802 | 59,008 | (184,511) | 13,630 | 144,694 | 1,415,623 | 30,990 | 13,547 |
Fixed Income 58.4% | ||||||||
Inflation-Protected Bond 6.3% | ||||||||
Schwab U.S. TIPS ETF | 4,572,933 | 353,632 | (135,427) | 715 | 108,599 | 4,900,452 | 78,307 | 126,609 |
Intermediate-Term Bond 43.7% | ||||||||
Schwab U.S. Aggregate Bond ETF | 31,762,091 | 4,301,694 | (2,106,871) | (55,853) | 229,293 | 34,130,354 | 629,015 | 359,796 |
Treasury Bond 8.4% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 6,191,783 | 670,933 | (234,798) | (1,380) | (13,916) | 6,612,622 | 129,178 | 13,386 |
45,643,428 | ||||||||
Money Market Funds 3.1% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 2,436,510 | 368 | — | — | — | 2,436,878 | 2,436,147 | 365 |
Total Affiliated Underlying Funds | $72,618,906 | $8,252,759 | ($5,790,725) | $352,270 | $1,804,847 | $77,238,057 | $703,513 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $77,238,057 | $— | $— | $77,238,057 |
Short-Term Investments1 | — | 957,130 | — | 957,130 |
Total | $77,238,057 | $957,130 | $— | $78,195,187 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $65,647,251) | $77,238,057 | |
Investments in securities, at value - unaffiliated (cost $957,130) | 957,130 | |
Receivables: | ||
Investments sold | 444,040 | |
Fund shares sold | 13,508 | |
Dividends | + | 32 |
Total assets | 78,652,767 | |
Liabilities | ||
Payables: | ||
Investments bought | 446,902 | |
Fund shares redeemed | 45,159 | |
Investment adviser fees | + | 2,234 |
Total liabilities | 494,295 | |
Net assets | $78,158,472 | |
Net Assets by Source | ||
Capital received from investors | $65,770,041 | |
Total distributable earnings | + | 12,388,431 |
Net assets | $78,158,472 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$78,158,472 | 5,985,596 | $13.06 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $703,513 | |
Interest received from securities - unaffiliated | + | 15 |
Total investment income | 703,528 | |
Expenses | ||
Investment adviser fees | + | 31,298 |
Total expenses | 31,298 | |
Expense reduction by CSIM and its affiliates | – | 17,984 |
Net expenses | – | 13,314 |
Net investment income | 690,214 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - affiliated | 352,270 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 1,804,847 |
Net realized and unrealized gains | 2,157,117 | |
Increase in net assets resulting from operations | $2,847,331 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $690,214 | $1,225,059 | |
Net realized gains | 352,270 | 429,126 | |
Net change in unrealized appreciation (depreciation) | + | 1,804,847 | 10,180,159 |
Increase in net assets from operations | $2,847,331 | $11,834,344 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($1,653,449) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 848,363 | $11,047,161 | 2,294,441 | $28,073,103 | |
Shares reinvested | — | — | 125,594 | 1,568,669 | |
Shares redeemed | + | (697,119) | (9,120,151) | (1,997,955) | (24,228,989) |
Net transactions in fund shares | 151,244 | $1,927,010 | 422,080 | $5,412,783 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 5,834,352 | $73,384,131 | 5,412,272 | $57,790,453 | |
Total increase | + | 151,244 | 4,774,341 | 422,080 | 15,593,678 |
End of period | 5,985,596 | $78,158,472 | 5,834,352 | $73,384,131 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $13.05 | $10.93 | $11.18 | $10.92 | $10.30 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.23 | 0.29 | 0.27 | 0.23 | 0.16 |
Net realized and unrealized gains (losses) | 0.39 | 2.12 | (0.29) | 0.22 | 0.52 | 0.21 |
Total from investment operations | 0.51 | 2.35 | 0.00 4 | 0.49 | 0.75 | 0.37 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.21) | (0.25) | (0.23) | (0.13) | (0.07) |
Distributions from net realized gains | — | (0.02) | (0.00) 4 | (0.00) 4 | (0.00) 4 | — |
Total distributions | — | (0.23) | (0.25) | (0.23) | (0.13) | (0.07) |
Net asset value at end of period | $13.56 | $13.05 | $10.93 | $11.18 | $10.92 | $10.30 |
Total return | 3.91% 5 | 21.51% | (0.17%) | 4.73% | 7.30% | 3.69% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.03% 7 | 0.03% | 0.03% | 0.03% | 0.03% | 0.03% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.76% 7 | 1.86% | 2.46% | 2.48% | 2.15% | 2.68% 7 |
Portfolio turnover rate | 6% 5 | 13% | 22% | 13% | 21% | 17% 5 |
Net assets, end of period (x 1,000) | $302,882 | $277,678 | $172,353 | $129,760 | $70,841 | $5,455 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.05% (annualized), 0.05%, 0.05%, 0.05%, 0.05% and 0.05% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||
U.S. Stocks 26.3% | ||
Large-Cap 24.6% | ||
Schwab U.S. Large-Cap ETF | 717,792 | 74,671,902 |
Small-Cap 1.7% | ||
Schwab U.S. Small-Cap ETF | 50,520 | 5,057,052 |
79,728,954 | ||
International Stocks 11.1% | ||
Developed Markets 11.1% | ||
Schwab International Equity ETF | 869,073 | 33,633,125 |
Real Estate 1.9% | ||
U.S. REITs 1.9% | ||
Schwab U.S. REIT ETF | 127,762 | 5,836,168 |
Fixed Income 56.6% | ||
Inflation-Protected Bond 6.1% | ||
Schwab U.S. TIPS ETF | 294,420 | 18,424,803 |
Intermediate-Term Bond 42.5% | ||
Schwab U.S. Aggregate Bond ETF | 2,371,265 | 128,664,839 |
Treasury Bond 8.0% | ||
Schwab Short-Term U.S. Treasury ETF | 473,857 | 24,256,740 |
171,346,382 | ||
Money Market Funds 2.8% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 8,380,399 | 8,382,913 |
Total Affiliated Underlying Funds (Cost $257,445,049) | 298,927,542 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.3% OF NET ASSETS | ||
Time Deposits 1.3% | ||
Skandinaviska Enskilda Banken AB | ||
0.01%, 10/01/21 (b) | 1,062,620 | 1,062,620 |
Sumitomo Mitsui Banking Corp. | ||
0.01%, 10/01/21 (b) | 3,042,283 | 3,042,283 |
Total Short-Term Investments (Cost $4,104,903) | 4,104,903 | |
Total Investments in Securities (Cost $261,549,952) | 303,032,445 |
(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 |
TIPS — | Treasury Inflation Protected Securities |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||||||||
U.S. Stocks 26.3% | ||||||||
Large-Cap 24.6% | ||||||||
Schwab U.S. Large-Cap ETF | $69,291,983 | $9,114,001 | ($9,564,275) | $811,920 | $5,018,273 | $74,671,902 | 717,792 | $471,266 |
Small-Cap 1.7% | ||||||||
Schwab U.S. Small-Cap ETF | 4,665,354 | 374,281 | — | — | 17,417 | 5,057,052 | 50,520 | 25,132 |
79,728,954 | ||||||||
International Stocks 11.1% | ||||||||
Developed Markets 11.1% | ||||||||
Schwab International Equity ETF | 31,002,115 | 3,577,671 | (1,816,147) | 55,891 | 813,595 | 33,633,125 | 869,073 | 277,544 |
Real Estate 1.9% | ||||||||
U.S. REITs 1.9% | ||||||||
Schwab U.S. REIT ETF | 5,518,387 | 153,059 | (452,712) | 13,061 | 604,373 | 5,836,168 | 127,762 | 55,009 |
Fixed Income 56.6% | ||||||||
Inflation-Protected Bond 6.1% | ||||||||
Schwab U.S. TIPS ETF | 16,753,131 | 1,524,762 | (242,246) | (2,208) | 391,364 | 18,424,803 | 294,420 | 467,799 |
Intermediate-Term Bond 42.5% | ||||||||
Schwab U.S. Aggregate Bond ETF | 117,167,693 | 15,689,181 | (4,792,154) | (151,241) | 751,360 | 128,664,839 | 2,371,265 | 1,331,613 |
Treasury Bond 8.0% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 22,051,960 | 3,151,441 | (890,658) | (7,243) | (48,760) | 24,256,740 | 473,857 | 48,008 |
171,346,382 | ||||||||
Money Market Funds 2.8% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 8,381,645 | 1,268 | — | — | — | 8,382,913 | 8,380,399 | 1,261 |
Total Affiliated Underlying Funds | $274,832,268 | $33,585,664 | ($17,758,192) | $720,180 | $7,547,622 | $298,927,542 | $2,677,632 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $298,927,542 | $— | $— | $298,927,542 |
Short-Term Investments1 | — | 4,104,903 | — | 4,104,903 |
Total | $298,927,542 | $4,104,903 | $— | $303,032,445 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $257,445,049) | $298,927,542 | |
Investments in securities, at value - unaffiliated (cost $4,104,903) | 4,104,903 | |
Receivables: | ||
Investments sold | 1,642,638 | |
Fund shares sold | 75,027 | |
Dividends | + | 111 |
Total assets | 304,750,221 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,737,829 | |
Fund shares redeemed | 121,586 | |
Investment adviser fees | + | 8,873 |
Total liabilities | 1,868,288 | |
Net assets | $302,881,933 | |
Net Assets by Source | ||
Capital received from investors | $258,613,005 | |
Total distributable earnings | + | 44,268,928 |
Net assets | $302,881,933 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$302,881,933 | 22,334,945 | $13.56 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $2,677,632 | |
Interest received from securities - unaffiliated | + | 92 |
Total investment income | 2,677,724 | |
Expenses | ||
Investment adviser fees | + | 119,374 |
Total expenses | 119,374 | |
Expense reduction by CSIM and its affiliates | – | 67,909 |
Net expenses | – | 51,465 |
Net investment income | 2,626,259 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - affiliated | 720,180 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 7,547,622 |
Net realized and unrealized gains | 8,267,802 | |
Increase in net assets resulting from operations | $10,894,061 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $2,626,259 | $4,308,014 | |
Net realized gains | 720,180 | 274,486 | |
Net change in unrealized appreciation (depreciation) | + | 7,547,622 | 36,384,546 |
Increase in net assets from operations | $10,894,061 | $40,967,046 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($4,687,144) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 4,066,748 | $55,267,293 | 11,635,221 | $145,527,249 | |
Shares reinvested | — | — | 344,207 | 4,454,042 | |
Shares redeemed | + | (3,010,798) | (40,957,640) | (6,467,255) | (80,935,744) |
Net transactions in fund shares | 1,055,950 | $14,309,653 | 5,512,173 | $69,045,547 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 21,278,995 | $277,678,219 | 15,766,822 | $172,352,770 | |
Total increase | + | 1,055,950 | 25,203,714 | 5,512,173 | 105,325,449 |
End of period | 22,334,945 | $302,881,933 | 21,278,995 | $277,678,219 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $13.83 | $10.92 | $11.46 | $11.18 | $10.40 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.25 | 0.30 | 0.28 | 0.25 | 0.14 |
Net realized and unrealized gains (losses) | 0.48 | 2.90 | (0.61) | 0.23 | 0.68 | 0.34 |
Total from investment operations | 0.60 | 3.15 | (0.31) | 0.51 | 0.93 | 0.48 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.23) | (0.23) | (0.23) | (0.15) | (0.08) |
Distributions from net realized gains | — | (0.01) | (0.00) 4 | (0.00) 4 | (0.00) 4 | — |
Total distributions | — | (0.24) | (0.23) | (0.23) | (0.15) | (0.08) |
Net asset value at end of period | $14.43 | $13.83 | $10.92 | $11.46 | $11.18 | $10.40 |
Total return | 4.34% 5 | 28.91% | (2.89%) | 4.79% | 8.93% | 4.82% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.04% 7 | 0.04% | 0.03% | 0.03% | 0.04% | 0.03% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.64% 7 | 1.90% | 2.50% | 2.46% | 2.22% | 2.41% 7 |
Portfolio turnover rate | 3% 5 | 15% | 19% | 13% | 14% | 6% 5 |
Net assets, end of period (x 1,000) | $517,505 | $443,433 | $264,880 | $154,328 | $84,235 | $1,649 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.04%, 0.05%, 0.05%, 0.04% and 0.05% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.8% OF NET ASSETS | ||
U.S. Stocks 33.3% | ||
Large-Cap 30.9% | ||
Schwab U.S. Large-Cap ETF | 1,537,444 | 159,940,299 |
Small-Cap 2.4% | ||
Schwab U.S. Small-Cap ETF | 123,085 | 12,320,809 |
172,261,108 | ||
International Stocks 15.8% | ||
Developed Markets 14.1% | ||
Schwab International Equity ETF | 1,890,880 | 73,177,056 |
Emerging Markets 1.7% | ||
Schwab Emerging Markets Equity ETF | 285,208 | 8,693,140 |
81,870,196 | ||
Real Estate 2.5% | ||
U.S. REITs 2.5% | ||
Schwab U.S. REIT ETF | 286,046 | 13,066,581 |
Fixed Income 45.3% | ||
Inflation-Protected Bond 2.9% | ||
Schwab U.S. TIPS ETF | 241,701 | 15,125,649 |
Intermediate-Term Bond 37.5% | ||
Schwab U.S. Aggregate Bond ETF | 3,570,348 | 193,727,082 |
Treasury Bond 4.9% | ||
Schwab Short-Term U.S. Treasury ETF | 494,497 | 25,313,301 |
234,166,032 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 1.9% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 9,720,284 | 9,723,200 |
Total Affiliated Underlying Funds (Cost $434,846,624) | 511,087,117 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.4% OF NET ASSETS | ||
Time Deposits 1.4% | ||
Bank of Montreal | ||
0.01%, 10/01/21 (b) | 5,205,932 | 5,205,932 |
National Australia Bank Ltd. | ||
0.01%, 10/01/21 (b) | 2,015,216 | 2,015,216 |
Total Short-Term Investments (Cost $7,221,148) | 7,221,148 | |
Total Investments in Securities (Cost $442,067,772) | 518,308,265 |
(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 |
TIPS — | Treasury Inflation Protected Securities |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.8% OF NET ASSETS | ||||||||
U.S. Stocks 33.3% | ||||||||
Large-Cap 30.9% | ||||||||
Schwab U.S. Large-Cap ETF | $138,193,028 | $19,928,610 | ($9,789,596) | $102,736 | $11,505,521 | $159,940,299 | 1,537,444 | $990,864 |
Small-Cap 2.4% | ||||||||
Schwab U.S. Small-Cap ETF | 10,553,956 | 2,049,680 | (290,348) | (1,590) | 9,111 | 12,320,809 | 123,085 | 61,230 |
172,261,108 | ||||||||
International Stocks 15.8% | ||||||||
Developed Markets 14.1% | ||||||||
Schwab International Equity ETF | 62,677,704 | 10,652,472 | (1,794,865) | 32,636 | 1,609,109 | 73,177,056 | 1,890,880 | 579,894 |
Emerging Markets 1.7% | ||||||||
Schwab Emerging Markets Equity ETF | 7,522,072 | 1,874,134 | (353,112) | (997) | (348,957) | 8,693,140 | 285,208 | 52,925 |
81,870,196 | ||||||||
Real Estate 2.5% | ||||||||
U.S. REITs 2.5% | ||||||||
Schwab U.S. REIT ETF | 11,524,101 | 728,606 | (459,922) | (15,771) | 1,289,567 | 13,066,581 | 286,046 | 121,394 |
Fixed Income 45.3% | ||||||||
Inflation-Protected Bond 2.9% | ||||||||
Schwab U.S. TIPS ETF | 12,462,084 | 2,366,310 | — | — | 297,255 | 15,125,649 | 241,701 | 364,430 |
Intermediate-Term Bond 37.5% | ||||||||
Schwab U.S. Aggregate Bond ETF | 164,692,086 | 30,578,565 | (2,312,115) | (83,958) | 852,504 | 193,727,082 | 3,570,348 | 1,923,421 |
Treasury Bond 4.9% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 21,290,623 | 4,591,289 | (511,335) | (4,479) | (52,797) | 25,313,301 | 494,497 | 47,682 |
234,166,032 | ||||||||
Money Market Funds 1.9% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 9,721,730 | 1,470 | — | — | — | 9,723,200 | 9,720,284 | 1,462 |
Total Affiliated Underlying Funds | $438,637,384 | $72,771,136 | ($15,511,293) | $28,577 | $15,161,313 | $511,087,117 | $4,143,302 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $511,087,117 | $— | $— | $511,087,117 |
Short-Term Investments1 | — | 7,221,148 | — | 7,221,148 |
Total | $511,087,117 | $7,221,148 | $— | $518,308,265 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $434,846,624) | $511,087,117 | |
Investments in securities, at value - unaffiliated (cost $7,221,148) | 7,221,148 | |
Receivables: | ||
Investments sold | 2,823,451 | |
Fund shares sold | 321,692 | |
Dividends | + | 128 |
Total assets | 521,453,536 | |
Liabilities | ||
Payables: | ||
Investments bought | 2,858,131 | |
Fund shares redeemed | 1,075,306 | |
Investment adviser fees | + | 15,112 |
Total liabilities | 3,948,549 | |
Net assets | $517,504,987 | |
Net Assets by Source | ||
Capital received from investors | $439,567,796 | |
Total distributable earnings | + | 77,937,191 |
Net assets | $517,504,987 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$517,504,987 | 35,865,287 | $14.43 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $4,143,302 | |
Interest received from securities - unaffiliated | + | 168 |
Total investment income | 4,143,470 | |
Expenses | ||
Investment adviser fees | + | 197,516 |
Total expenses | 197,516 | |
Expense reduction by CSIM and its affiliates | – | 111,096 |
Net expenses | – | 86,420 |
Net investment income | 4,057,050 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - affiliated | 28,577 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 15,161,313 |
Net realized and unrealized gains | 15,189,890 | |
Increase in net assets resulting from operations | $19,246,940 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $4,057,050 | $6,737,674 | |
Net realized gains (losses) | 28,577 | (718,045) | |
Net change in unrealized appreciation (depreciation) | + | 15,161,313 | 76,142,000 |
Increase in net assets from operations | $19,246,940 | $82,161,629 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($7,138,221) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 7,753,423 | $111,972,293 | 15,334,187 | $200,810,712 | |
Shares reinvested | — | — | 507,299 | 6,894,197 | |
Shares redeemed | + | (3,957,602) | (57,147,338) | (8,030,698) | (104,175,236) |
Net transactions in fund shares | 3,795,821 | $54,824,955 | 7,810,788 | $103,529,673 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 32,069,466 | $443,433,092 | 24,258,678 | $264,880,011 | |
Total increase | + | 3,795,821 | 74,071,895 | 7,810,788 | 178,553,081 |
End of period | 35,865,287 | $517,504,987 | 32,069,466 | $443,433,092 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $14.41 | $10.86 | $11.65 | $11.37 | $10.46 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.26 | 0.31 | 0.28 | 0.26 | 0.15 |
Net realized and unrealized gains (losses) | 0.57 | 3.53 | (0.86) | 0.24 | 0.80 | 0.41 |
Total from investment operations | 0.69 | 3.79 | (0.55) | 0.52 | 1.06 | 0.56 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.24) | (0.24) | (0.24) | (0.15) | (0.10) |
Distributions from net realized gains | — | (0.00) 4 | (0.00) 4 | — | (0.00) 4 | — |
Total distributions | — | (0.24) | (0.24) | (0.24) | (0.15) | (0.10) |
Net asset value at end of period | $15.10 | $14.41 | $10.86 | $11.65 | $11.37 | $10.46 |
Total return | 4.79% 5 | 34.98% | (4.99%) | 4.76% | 10.12% | 5.66% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.04% 7 | 0.04% | 0.03% | 0.03% | 0.04% | 0.03% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.55% 7 | 1.94% | 2.53% | 2.46% | 2.30% | 2.49% 7 |
Portfolio turnover rate | 2% 5 | 13% | 13% | 8% | 8% | 7% 5 |
Net assets, end of period (x 1,000) | $741,569 | $622,076 | $352,969 | $201,250 | $109,554 | $3,258 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.04%, 0.05%, 0.05%, 0.04% and 0.05% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||
U.S. Stocks 39.7% | ||
Large-Cap 36.6% | ||
Schwab U.S. Large-Cap ETF | 2,605,505 | 271,050,685 |
Small-Cap 3.1% | ||
Schwab U.S. Small-Cap ETF | 232,193 | 23,242,520 |
294,293,205 | ||
International Stocks 20.0% | ||
Developed Markets 17.2% | ||
Schwab International Equity ETF | 3,297,166 | 127,600,324 |
Emerging Markets 2.8% | ||
Schwab Emerging Markets Equity ETF | 692,618 | 21,110,997 |
148,711,321 | ||
Real Estate 3.1% | ||
U.S. REITs 3.1% | ||
Schwab U.S. REIT ETF | 502,833 | 22,969,411 |
Fixed Income 34.7% | ||
Inflation-Protected Bond 0.8% | ||
Schwab U.S. TIPS ETF | 94,083 | 5,887,714 |
Intermediate-Term Bond 31.2% | ||
Schwab U.S. Aggregate Bond ETF | 4,265,771 | 231,460,734 |
Treasury Bond 2.7% | ||
Schwab Short-Term U.S. Treasury ETF | 385,820 | 19,750,126 |
257,098,574 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 1.2% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 8,988,108 | 8,990,804 |
Total Affiliated Underlying Funds (Cost $614,060,071) | 732,063,315 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.4% OF NET ASSETS | ||
Time Deposits 1.4% | ||
BNP Paribas SA | ||
0.01%, 10/01/21 (b) | 2,713,654 | 2,713,654 |
Skandinaviska Enskilda Banken AB | ||
0.01%, 10/01/21 (b) | 7,466,102 | 7,466,102 |
Total Short-Term Investments (Cost $10,179,756) | 10,179,756 | |
Total Investments in Securities (Cost $624,239,827) | 742,243,071 |
(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 |
TIPS — | Treasury Inflation Protected Securities |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||||||||
U.S. Stocks 39.7% | ||||||||
Large-Cap 36.6% | ||||||||
Schwab U.S. Large-Cap ETF | $229,846,172 | $30,465,439 | ($8,982,546) | $132,851 | $19,588,769 | $271,050,685 | 2,605,505 | $1,692,816 |
Small-Cap 3.1% | ||||||||
Schwab U.S. Small-Cap ETF | 19,733,763 | 3,478,451 | — | — | 30,306 | 23,242,520 | 232,193 | 115,314 |
294,293,205 | ||||||||
International Stocks 20.0% | ||||||||
Developed Markets 17.2% | ||||||||
Schwab International Equity ETF | 107,198,754 | 19,206,870 | (1,656,786) | 27,785 | 2,823,701 | 127,600,324 | 3,297,166 | 1,021,018 |
Emerging Markets 2.8% | ||||||||
Schwab Emerging Markets Equity ETF | 17,508,365 | 4,467,598 | — | — | (864,966) | 21,110,997 | 692,618 | 119,940 |
148,711,321 | ||||||||
Real Estate 3.1% | ||||||||
U.S. REITs 3.1% | ||||||||
Schwab U.S. REIT ETF | 19,612,134 | 1,161,306 | — | — | 2,195,971 | 22,969,411 | 502,833 | 214,221 |
Fixed Income 34.7% | ||||||||
Inflation-Protected Bond 0.8% | ||||||||
Schwab U.S. TIPS ETF | 4,531,344 | 1,241,558 | — | — | 114,812 | 5,887,714 | 94,083 | 140,372 |
Intermediate-Term Bond 31.2% | ||||||||
Schwab U.S. Aggregate Bond ETF | 192,236,960 | 41,500,448 | (3,195,355) | (116,030) | 1,034,711 | 231,460,734 | 4,265,771 | 2,298,017 |
Treasury Bond 2.7% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 16,147,257 | 3,646,111 | — | — | (43,242) | 19,750,126 | 385,820 | 36,803 |
257,098,574 | ||||||||
Money Market Funds 1.2% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 8,989,445 | 1,359 | — | — | — | 8,990,804 | 8,988,108 | 1,352 |
Total Affiliated Underlying Funds | $615,804,194 | $105,169,140 | ($13,834,687) | $44,606 | $24,880,062 | $732,063,315 | $5,639,853 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $732,063,315 | $— | $— | $732,063,315 |
Short-Term Investments1 | — | 10,179,756 | — | 10,179,756 |
Total | $732,063,315 | $10,179,756 | $— | $742,243,071 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $614,060,071) | $732,063,315 | |
Investments in securities, at value - unaffiliated (cost $10,179,756) | 10,179,756 | |
Receivables: | ||
Investments sold | 3,195,357 | |
Fund shares sold | 525,432 | |
Dividends | + | 118 |
Total assets | 745,963,978 | |
Liabilities | ||
Payables: | ||
Investments bought | 3,652,486 | |
Fund shares redeemed | 720,589 | |
Investment adviser fees | + | 22,230 |
Total liabilities | 4,395,305 | |
Net assets | $741,568,673 | |
Net Assets by Source | ||
Capital received from investors | $620,513,236 | |
Total distributable earnings | + | 121,055,437 |
Net assets | $741,568,673 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$741,568,673 | 49,098,517 | $15.10 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $5,639,853 | |
Interest received from securities - unaffiliated | + | 246 |
Total investment income | 5,640,099 | |
Expenses | ||
Investment adviser fees | + | 284,471 |
Total expenses | 284,471 | |
Expense reduction by CSIM and its affiliates | – | 158,102 |
Net expenses | – | 126,369 |
Net investment income | 5,513,730 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - affiliated | 44,606 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 24,880,062 |
Net realized and unrealized gains | 24,924,668 | |
Increase in net assets resulting from operations | $30,438,398 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $5,513,730 | $9,188,035 | |
Net realized gains (losses) | 44,606 | (2,335,859) | |
Net change in unrealized appreciation (depreciation) | + | 24,880,062 | 123,671,535 |
Increase in net assets from operations | $30,438,398 | $130,523,711 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($9,236,247) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 9,956,859 | $150,400,970 | 19,840,138 | $266,949,865 | |
Shares reinvested | — | — | 638,370 | 8,962,715 | |
Shares redeemed | + | (4,032,334) | (61,346,464) | (9,799,265) | (128,093,640) |
Net transactions in fund shares | 5,924,525 | $89,054,506 | 10,679,243 | $147,818,940 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 43,173,992 | $622,075,769 | 32,494,749 | $352,969,365 | |
Total increase | + | 5,924,525 | 119,492,904 | 10,679,243 | 269,106,404 |
End of period | 49,098,517 | $741,568,673 | 43,173,992 | $622,075,769 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $14.86 | $10.81 | $11.82 | $11.53 | $10.54 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.26 | 0.31 | 0.29 | 0.26 | 0.12 |
Net realized and unrealized gains (losses) | 0.64 | 4.04 | (1.06) | 0.22 | 0.90 | 0.52 |
Total from investment operations | 0.76 | 4.30 | (0.75) | 0.51 | 1.16 | 0.64 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.24) | (0.26) | (0.22) | (0.17) | (0.10) |
Distributions from net realized gains | — | (0.01) | (0.00) 4 | (0.00) 4 | (0.00) 4 | — |
Total distributions | — | (0.25) | (0.26) | (0.22) | (0.17) | (0.10) |
Net asset value at end of period | $15.62 | $14.86 | $10.81 | $11.82 | $11.53 | $10.54 |
Total return | 5.11% 5 | 39.84% | (6.72%) | 4.68% | 10.96% | 6.44% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.04% 7 | 0.04% | 0.03% | 0.03% | 0.04% | 0.03% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.50% 7 | 1.93% | 2.53% | 2.49% | 2.29% | 2.04% 7 |
Portfolio turnover rate | 3% 5 | 12% | 12% | 6% | 14% | 13% 5 |
Net assets, end of period (x 1,000) | $449,551 | $372,100 | $196,194 | $126,200 | $62,526 | $1,904 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.04%, 0.05%, 0.05%, 0.04% and 0.05% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||
U.S. Stocks 44.4% | ||
Large-Cap 40.5% | ||
Schwab U.S. Large-Cap ETF | 1,750,148 | 182,067,897 |
Small-Cap 3.9% | ||
Schwab U.S. Small-Cap ETF | 176,874 | 17,705,087 |
199,772,984 | ||
International Stocks 23.4% | ||
Developed Markets 19.6% | ||
Schwab International Equity ETF | 2,272,704 | 87,953,645 |
Emerging Markets 3.8% | ||
Schwab Emerging Markets Equity ETF | 560,703 | 17,090,227 |
105,043,872 | ||
Real Estate 3.5% | ||
U.S. REITs 3.5% | ||
Schwab U.S. REIT ETF | 347,432 | 15,870,694 |
Fixed Income 26.6% | ||
Intermediate-Term Bond 25.0% | ||
Schwab U.S. Aggregate Bond ETF | 2,071,324 | 112,390,040 |
Treasury Bond 1.6% | ||
Schwab Short-Term U.S. Treasury ETF | 145,137 | 7,429,563 |
119,819,603 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 0.8% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 3,483,131 | 3,484,176 |
Total Affiliated Underlying Funds (Cost $366,933,368) | 443,991,329 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.4% OF NET ASSETS | ||
Time Deposits 1.4% | ||
National Australia Bank Ltd. | ||
0.01%, 10/01/21 (b) | 1,607,840 | 1,607,840 |
Skandinaviska Enskilda Banken AB | ||
0.01%, 10/01/21 (b) | 4,521,596 | 4,521,596 |
Total Short-Term Investments (Cost $6,129,436) | 6,129,436 | |
Total Investments in Securities (Cost $373,062,804) | 450,120,765 |
(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 |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.7% OF NET ASSETS | ||||||||
U.S. Stocks 44.4% | ||||||||
Large-Cap 40.5% | ||||||||
Schwab U.S. Large-Cap ETF | $151,940,779 | $25,087,073 | ($7,674,240) | $35,777 | $12,678,508 | $182,067,897 | 1,750,148 | $1,123,789 |
Small-Cap 3.9% | ||||||||
Schwab U.S. Small-Cap ETF | 14,712,787 | 2,982,231 | — | — | 10,069 | 17,705,087 | 176,874 | 86,843 |
199,772,984 | ||||||||
International Stocks 23.4% | ||||||||
Developed Markets 19.6% | ||||||||
Schwab International Equity ETF | 72,812,645 | 16,180,681 | (2,868,888) | (3,117) | 1,832,324 | 87,953,645 | 2,272,704 | 686,496 |
Emerging Markets 3.8% | ||||||||
Schwab Emerging Markets Equity ETF | 14,175,215 | 3,628,352 | — | — | (713,340) | 17,090,227 | 560,703 | 97,011 |
105,043,872 | ||||||||
Real Estate 3.5% | ||||||||
U.S. REITs 3.5% | ||||||||
Schwab U.S. REIT ETF | 13,346,689 | 1,410,923 | (369,856) | (21,365) | 1,504,303 | 15,870,694 | 347,432 | 144,599 |
Fixed Income 26.6% | ||||||||
Intermediate-Term Bond 25.0% | ||||||||
Schwab U.S. Aggregate Bond ETF | 91,994,947 | 21,404,973 | (1,415,528) | (51,401) | 457,049 | 112,390,040 | 2,071,324 | 1,094,292 |
Treasury Bond 1.6% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 5,675,604 | 1,769,701 | — | — | (15,742) | 7,429,563 | 145,137 | 13,149 |
119,819,603 | ||||||||
Money Market Funds 0.8% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 3,483,649 | 527 | — | — | — | 3,484,176 | 3,483,131 | 524 |
Total Affiliated Underlying Funds | $368,142,315 | $72,464,461 | ($12,328,512) | ($40,106) | $15,753,171 | $443,991,329 | $3,246,703 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $443,991,329 | $— | $— | $443,991,329 |
Short-Term Investments1 | — | 6,129,436 | — | 6,129,436 |
Total | $443,991,329 | $6,129,436 | $— | $450,120,765 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $366,933,368) | $443,991,329 | |
Investments in securities, at value - unaffiliated (cost $6,129,436) | 6,129,436 | |
Receivables: | ||
Investments sold | 1,415,528 | |
Fund shares sold | 235,692 | |
Dividends | + | 46 |
Total assets | 451,772,031 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,982,768 | |
Fund shares redeemed | 225,017 | |
Investment adviser fees | + | 13,186 |
Total liabilities | 2,220,971 | |
Net assets | $449,551,060 | |
Net Assets by Source | ||
Capital received from investors | $370,371,852 | |
Total distributable earnings | + | 79,179,208 |
Net assets | $449,551,060 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$449,551,060 | 28,780,908 | $15.62 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $3,246,703 | |
Interest received from securities - unaffiliated | + | 137 |
Total investment income | 3,246,840 | |
Expenses | ||
Investment adviser fees | + | 169,635 |
Total expenses | 169,635 | |
Expense reduction by CSIM and its affiliates | – | 94,583 |
Net expenses | – | 75,052 |
Net investment income | 3,171,788 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on sales of securities - affiliated | (40,106) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 15,753,171 |
Net realized and unrealized gains | 15,713,065 | |
Increase in net assets resulting from operations | $18,884,853 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $3,171,788 | $5,367,225 | |
Net realized losses | (40,106) | (830,253) | |
Net change in unrealized appreciation (depreciation) | + | 15,753,171 | 81,016,060 |
Increase in net assets from operations | $18,884,853 | $85,553,032 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($5,583,495) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 6,108,652 | $95,713,318 | 11,722,751 | $160,905,162 | |
Shares reinvested | — | — | 378,126 | 5,433,666 | |
Shares redeemed | + | (2,375,076) | (37,147,255) | (5,196,060) | (70,402,360) |
Net transactions in fund shares | 3,733,576 | $58,566,063 | 6,904,817 | $95,936,468 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 25,047,332 | $372,100,144 | 18,142,515 | $196,194,139 | |
Total increase | + | 3,733,576 | 77,450,916 | 6,904,817 | 175,906,005 |
End of period | 28,780,908 | $449,551,060 | 25,047,332 | $372,100,144 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $15.24 | $10.76 | $11.95 | $11.69 | $10.59 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.26 | 0.32 | 0.29 | 0.27 | 0.15 |
Net realized and unrealized gains (losses) | 0.70 | 4.48 | (1.26) | 0.21 | 1.00 | 0.55 |
Total from investment operations | 0.82 | 4.74 | (0.94) | 0.50 | 1.27 | 0.70 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.25) | (0.25) | (0.24) | (0.17) | (0.11) |
Distributions from net realized gains | — | (0.01) | (0.00) 4 | — | (0.00) 4 | — |
Total distributions | — | (0.26) | (0.25) | (0.24) | (0.17) | (0.11) |
Net asset value at end of period | $16.06 | $15.24 | $10.76 | $11.95 | $11.69 | $10.59 |
Total return | 5.38% 5 | 44.07% | (8.20%) | 4.49% | 11.97% | 7.09% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.04% 7 | 0.04% | 0.03% | 0.03% | 0.04% | 0.03% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.47% 7 | 1.93% | 2.54% | 2.48% | 2.33% | 2.48% 7 |
Portfolio turnover rate | 2% 5 | 9% | 7% | 2% | 15% | 8% 5 |
Net assets, end of period (x 1,000) | $569,007 | $473,638 | $249,144 | $143,404 | $72,830 | $1,514 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.04%, 0.05%, 0.05%, 0.04% and 0.05% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.9% OF NET ASSETS | ||
U.S. Stocks 48.2% | ||
Large-Cap 43.4% | ||
Schwab U.S. Large-Cap ETF | 2,373,055 | 246,868,911 |
Small-Cap 4.8% | ||
Schwab U.S. Small-Cap ETF | 272,138 | 27,241,014 |
274,109,925 | ||
International Stocks 26.4% | ||
Developed Markets 21.5% | ||
Schwab International Equity ETF | 3,168,891 | 122,636,082 |
Emerging Markets 4.9% | ||
Schwab Emerging Markets Equity ETF | 909,884 | 27,733,264 |
150,369,346 | ||
Real Estate 3.9% | ||
U.S. REITs 3.9% | ||
Schwab U.S. REIT ETF | 480,892 | 21,967,147 |
Fixed Income 20.0% | ||
Intermediate-Term Bond 18.9% | ||
Schwab U.S. Aggregate Bond ETF | 1,987,185 | 107,824,658 |
Treasury Bond 1.1% | ||
Schwab Short-Term U.S. Treasury ETF | 117,806 | 6,030,489 |
113,855,147 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 0.4% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 2,363,922 | 2,364,631 |
Total Affiliated Underlying Funds (Cost $458,781,791) | 562,666,196 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.0% OF NET ASSETS | ||
Time Deposits 1.0% | ||
ING Bank NV | ||
0.01%, 10/01/21 (b) | 311,797 | 311,797 |
Sumitomo Mitsui Trust Bank, Ltd. | ||
0.01%, 10/01/21 (b) | 5,720,179 | 5,720,179 |
Total Short-Term Investments (Cost $6,031,976) | 6,031,976 | |
Total Investments in Securities (Cost $464,813,767) | 568,698,172 |
(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 |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.9% OF NET ASSETS | ||||||||
U.S. Stocks 48.2% | ||||||||
Large-Cap 43.4% | ||||||||
Schwab U.S. Large-Cap ETF | $207,518,717 | $27,559,568 | ($5,803,603) | $26,022 | $17,568,207 | $246,868,911 | 2,373,055 | $1,545,351 |
Small-Cap 4.8% | ||||||||
Schwab U.S. Small-Cap ETF | 22,726,255 | 4,778,687 | (302,401) | (14,049) | 52,522 | 27,241,014 | 272,138 | 133,338 |
274,109,925 | ||||||||
International Stocks 26.4% | ||||||||
Developed Markets 21.5% | ||||||||
Schwab International Equity ETF | 101,691,713 | 19,529,294 | (1,179,606) | 16,484 | 2,578,197 | 122,636,082 | 3,168,891 | 968,680 |
Emerging Markets 4.9% | ||||||||
Schwab Emerging Markets Equity ETF | 22,773,898 | 6,089,079 | — | — | (1,129,713) | 27,733,264 | 909,884 | 158,015 |
150,369,346 | ||||||||
Real Estate 3.9% | ||||||||
U.S. REITs 3.9% | ||||||||
Schwab U.S. REIT ETF | 18,606,292 | 2,088,712 | (799,314) | (28,280) | 2,099,737 | 21,967,147 | 480,892 | 201,060 |
Fixed Income 20.0% | ||||||||
Intermediate-Term Bond 18.9% | ||||||||
Schwab U.S. Aggregate Bond ETF | 87,899,386 | 21,019,396 | (1,500,824) | (54,498) | 461,198 | 107,824,658 | 1,987,185 | 1,055,701 |
Treasury Bond 1.1% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 4,864,855 | 1,178,806 | — | — | (13,172) | 6,030,489 | 117,806 | 10,995 |
113,855,147 | ||||||||
Money Market Funds 0.4% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 2,364,274 | 357 | — | — | — | 2,364,631 | 2,363,922 | 356 |
Total Affiliated Underlying Funds | $468,445,390 | $82,243,899 | ($9,585,748) | ($54,321) | $21,616,976 | $562,666,196 | $4,073,496 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $562,666,196 | $— | $— | $562,666,196 |
Short-Term Investments1 | — | 6,031,976 | — | 6,031,976 |
Total | $562,666,196 | $6,031,976 | $— | $568,698,172 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $458,781,791) | $562,666,196 | |
Investments in securities, at value - unaffiliated (cost $6,031,976) | 6,031,976 | |
Receivables: | ||
Investments sold | 1,803,225 | |
Fund shares sold | 449,657 | |
Dividends | + | 32 |
Total assets | 570,951,086 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,881,290 | |
Fund shares redeemed | 45,748 | |
Investment adviser fees | + | 16,574 |
Total liabilities | 1,943,612 | |
Net assets | $569,007,474 | |
Net Assets by Source | ||
Capital received from investors | $461,844,282 | |
Total distributable earnings | + | 107,163,192 |
Net assets | $569,007,474 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$569,007,474 | 35,426,830 | $16.06 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $4,073,496 | |
Interest received from securities - unaffiliated | + | 180 |
Total investment income | 4,073,676 | |
Expenses | ||
Investment adviser fees | + | 216,750 |
Total expenses | 216,750 | |
Expense reduction by CSIM and its affiliates | – | 121,480 |
Net expenses | – | 95,270 |
Net investment income | 3,978,406 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on sales of securities - affiliated | (54,321) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 21,616,976 |
Net realized and unrealized gains | 21,562,655 | |
Increase in net assets resulting from operations | $25,541,061 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $3,978,406 | $6,842,400 | |
Net realized losses | (54,321) | (1,148,984) | |
Net change in unrealized appreciation (depreciation) | + | 21,616,976 | 113,618,478 |
Increase in net assets from operations | $25,541,061 | $119,311,894 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($6,957,762) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 6,432,622 | $103,592,027 | 13,428,778 | $186,407,776 | |
Shares reinvested | — | — | 465,178 | 6,814,844 | |
Shares redeemed | + | (2,088,301) | (33,764,034) | (5,964,631) | (81,082,577) |
Net transactions in fund shares | 4,344,321 | $69,827,993 | 7,929,325 | $112,140,043 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 31,082,509 | $473,638,420 | 23,153,184 | $249,144,245 | |
Total increase | + | 4,344,321 | 95,369,054 | 7,929,325 | 224,494,175 |
End of period | 35,426,830 | $569,007,474 | 31,082,509 | $473,638,420 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $15.57 | $10.68 | $12.05 | $11.81 | $10.64 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.27 | 0.32 | 0.29 | 0.28 | 0.10 |
Net realized and unrealized gains (losses) | 0.76 | 4.86 | (1.43) | 0.19 | 1.06 | 0.65 |
Total from investment operations | 0.88 | 5.13 | (1.11) | 0.48 | 1.34 | 0.75 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.24) | (0.26) | (0.24) | (0.17) | (0.11) |
Distributions from net realized gains | — | (0.00) 4 | (0.00) 4 | (0.00) 4 | (0.00) 4 | — |
Total distributions | — | (0.24) | (0.26) | (0.24) | (0.17) | (0.11) |
Net asset value at end of period | $16.45 | $15.57 | $10.68 | $12.05 | $11.81 | $10.64 |
Total return | 5.65% 5 | 48.20% | (9.63%) | 4.33% | 12.57% | 7.51% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.04% 7 | 0.03% | 0.03% | 0.03% | 0.03% | 0.02% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.43% 7 | 1.93% | 2.54% | 2.43% | 2.39% | 1.68% 7 |
Portfolio turnover rate | 2% 5 | 6% | 6% | 7% | 11% | 8% 5 |
Net assets, end of period (x 1,000) | $334,479 | $274,502 | $135,960 | $84,790 | $44,817 | $1,261 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.05%, 0.05%, 0.05%, 0.05% and 0.06% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4 ). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 98.9% OF NET ASSETS | ||
U.S. Stocks 51.7% | ||
Large-Cap 46.1% | ||
Schwab U.S. Large-Cap ETF | 1,481,974 | 154,169,755 |
Small-Cap 5.6% | ||
Schwab U.S. Small-Cap ETF | 186,065 | 18,625,107 |
172,794,862 | ||
International Stocks 29.3% | ||
Developed Markets 23.4% | ||
Schwab International Equity ETF | 2,026,004 | 78,406,355 |
Emerging Markets 5.9% | ||
Schwab Emerging Markets Equity ETF | 642,116 | 19,571,696 |
97,978,051 | ||
Real Estate 4.2% | ||
U.S. REITs 4.2% | ||
Schwab U.S. REIT ETF | 307,986 | 14,068,800 |
Fixed Income 13.7% | ||
Intermediate-Term Bond 13.1% | ||
Schwab U.S. Aggregate Bond ETF | 805,944 | 43,730,521 |
Treasury Bond 0.6% | ||
Schwab Short-Term U.S. Treasury ETF | 40,584 | 2,077,495 |
45,808,016 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 0.0% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 45,986 | 46,000 |
Total Affiliated Underlying Funds (Cost $266,127,986) | 330,695,729 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.1% OF NET ASSETS | ||
Time Deposits 1.1% | ||
Bank of Montreal | ||
0.01%, 10/01/21 (b) | 3,366,214 | 3,366,214 |
Sumitomo Mitsui Banking Corp. | ||
0.01%, 10/01/21 (b) | 395,995 | 395,995 |
Total Short-Term Investments (Cost $3,762,209) | 3,762,209 | |
Total Investments in Securities (Cost $269,890,195) | 334,457,938 |
(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 |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 98.9% OF NET ASSETS | ||||||||
U.S. Stocks 51.7% | ||||||||
Large-Cap 46.1% | ||||||||
Schwab U.S. Large-Cap ETF | $127,888,625 | $20,522,581 | ($5,050,749) | $26,409 | $10,782,889 | $154,169,755 | 1,481,974 | $955,648 |
Small-Cap 5.6% | ||||||||
Schwab U.S. Small-Cap ETF | 15,153,428 | 3,439,003 | — | — | 32,676 | 18,625,107 | 186,065 | 91,526 |
172,794,862 | ||||||||
International Stocks 29.3% | ||||||||
Developed Markets 23.4% | ||||||||
Schwab International Equity ETF | 64,007,797 | 14,086,196 | (1,342,972) | 10,059 | 1,645,275 | 78,406,355 | 2,026,004 | 612,586 |
Emerging Markets 5.9% | ||||||||
Schwab Emerging Markets Equity ETF | 15,808,071 | 4,559,197 | — | — | (795,572) | 19,571,696 | 642,116 | 111,415 |
97,978,051 | ||||||||
Real Estate 4.2% | ||||||||
U.S. REITs 4.2% | ||||||||
Schwab U.S. REIT ETF | 11,928,221 | 1,440,407 | (613,654) | (15,311) | 1,329,137 | 14,068,800 | 307,986 | 127,741 |
Fixed Income 13.7% | ||||||||
Intermediate-Term Bond 13.1% | ||||||||
Schwab U.S. Aggregate Bond ETF | 34,830,120 | 9,477,358 | (729,003) | (25,544) | 177,590 | 43,730,521 | 805,944 | 423,022 |
Treasury Bond 0.6% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 1,696,001 | 386,018 | — | — | (4,524) | 2,077,495 | 40,584 | 3,782 |
45,808,016 | ||||||||
Money Market Funds 0.0% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 45,993 | 7 | — | — | — | 46,000 | 45,986 | 7 |
Total Affiliated Underlying Funds | $271,358,256 | $53,910,767 | ($7,736,378) | ($4,387) | $13,167,471 | $330,695,729 | $2,325,727 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $330,695,729 | $— | $— | $330,695,729 |
Short-Term Investments1 | — | 3,762,209 | — | 3,762,209 |
Total | $330,695,729 | $3,762,209 | $— | $334,457,938 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $266,127,986) | $330,695,729 | |
Investments in securities, at value - unaffiliated (cost $3,762,209) | 3,762,209 | |
Receivables: | ||
Investments sold | 558,171 | |
Fund shares sold | + | 340,200 |
Total assets | 335,356,309 | |
Liabilities | ||
Payables: | ||
Investments bought | 816,444 | |
Fund shares redeemed | 51,204 | |
Investment adviser fees | + | 9,823 |
Total liabilities | 877,471 | |
Net assets | $334,478,838 | |
Net Assets by Source | ||
Capital received from investors | $268,282,854 | |
Total distributable earnings | + | 66,195,984 |
Net assets | $334,478,838 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$334,478,838 | 20,329,668 | $16.45 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $2,325,727 | |
Interest received from securities - unaffiliated | + | 106 |
Total investment income | 2,325,833 | |
Expenses | ||
Investment adviser fees | + | 126,585 |
Total expenses | 126,585 | |
Expense reduction by CSIM and its affiliates | – | 71,193 |
Net expenses | – | 55,392 |
Net investment income | 2,270,441 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on sales of securities - affiliated | (4,387) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 13,167,471 |
Net realized and unrealized gains | 13,163,084 | |
Increase in net assets resulting from operations | $15,433,525 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $2,270,441 | $3,856,932 | |
Net realized losses | (4,387) | (502,630) | |
Net change in unrealized appreciation (depreciation) | + | 13,167,471 | 68,833,002 |
Increase in net assets from operations | $15,433,525 | $72,187,304 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($3,841,391) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 4,235,721 | $69,943,839 | 7,425,308 | $104,668,863 | |
Shares reinvested | — | — | 249,308 | 3,709,701 | |
Shares redeemed | + | (1,531,110) | (25,400,882) | (2,774,172) | (38,182,388) |
Net transactions in fund shares | 2,704,611 | $44,542,957 | 4,900,444 | $70,196,176 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 17,625,057 | $274,502,356 | 12,724,613 | $135,960,267 | |
Total increase | + | 2,704,611 | 59,976,482 | 4,900,444 | 138,542,089 |
End of period | 20,329,668 | $334,478,838 | 17,625,057 | $274,502,356 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $15.73 | $10.63 | $12.09 | $11.85 | $10.65 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.27 | 0.32 | 0.29 | 0.28 | 0.15 |
Net realized and unrealized gains (losses) | 0.79 | 5.08 | (1.52) | 0.18 | 1.09 | 0.62 |
Total from investment operations | 0.91 | 5.35 | (1.20) | 0.47 | 1.37 | 0.77 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.24) | (0.26) | (0.23) | (0.17) | (0.12) |
Distributions from net realized gains | — | (0.01) | (0.00) 4 | — | (0.00) 4 | — |
Total distributions | — | (0.25) | (0.26) | (0.23) | (0.17) | (0.12) |
Net asset value at end of period | $16.64 | $15.73 | $10.63 | $12.09 | $11.85 | $10.65 |
Total return | 5.79% 5 | 50.43% | (10.35%) | 4.23% | 12.85% | 7.80% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.03% 7 | 0.03% | 0.03% | 0.03% | 0.03% | 0.02% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.42% 7 | 1.93% | 2.55% | 2.48% | 2.37% | 2.54% 7 |
Portfolio turnover rate | 2% 5 | 6% | 3% | 0% 8 | 15% | 4% 5 |
Net assets, end of period (x 1,000) | $391,297 | $321,048 | $146,944 | $88,727 | $37,619 | $793 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.05% (annualized), 0.05%, 0.05%, 0.05%, 0.05% and 0.06% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
8 | Less than 0.5% |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 99.2% OF NET ASSETS | ||
U.S. Stocks 53.6% | ||
Large-Cap 47.5% | ||
Schwab U.S. Large-Cap ETF | 1,788,027 | 186,008,449 |
Small-Cap 6.1% | ||
Schwab U.S. Small-Cap ETF | 237,939 | 23,817,694 |
209,826,143 | ||
International Stocks 31.2% | ||
Developed Markets 24.7% | ||
Schwab International Equity ETF | 2,494,203 | 96,525,656 |
Emerging Markets 6.5% | ||
Schwab Emerging Markets Equity ETF | 838,085 | 25,544,831 |
122,070,487 | ||
Real Estate 4.4% | ||
U.S. REITs 4.4% | ||
Schwab U.S. REIT ETF | 376,471 | 17,197,195 |
Fixed Income 10.0% | ||
Intermediate-Term Bond 9.5% | ||
Schwab U.S. Aggregate Bond ETF | 684,646 | 37,148,892 |
Treasury Bond 0.5% | ||
Schwab Short-Term U.S. Treasury ETF | 33,635 | 1,721,776 |
38,870,668 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 0.0% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 62,925 | 62,943 |
Total Affiliated Underlying Funds (Cost $312,861,980) | 388,027,436 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 1.0% OF NET ASSETS | ||
Time Deposits 1.0% | ||
National Australia Bank Ltd. | ||
0.01%, 10/01/21 (b) | 3,931,330 | 3,931,330 |
Sumitomo Mitsui Banking Corp. | ||
0.01%, 10/01/21 (b) | 208,093 | 208,093 |
Total Short-Term Investments (Cost $4,139,423) | 4,139,423 | |
Total Investments in Securities (Cost $317,001,403) | 392,166,859 |
(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 |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 99.2% OF NET ASSETS | ||||||||
U.S. Stocks 53.6% | ||||||||
Large-Cap 47.5% | ||||||||
Schwab U.S. Large-Cap ETF | $154,398,474 | $22,637,250 | ($3,995,203) | $14,323 | $12,953,605 | $186,008,449 | 1,788,027 | $1,156,766 |
Small-Cap 6.1% | ||||||||
Schwab U.S. Small-Cap ETF | 19,564,125 | 4,227,795 | — | — | 25,774 | 23,817,694 | 237,939 | 117,087 |
209,826,143 | ||||||||
International Stocks 31.2% | ||||||||
Developed Markets 24.7% | ||||||||
Schwab International Equity ETF | 78,491,609 | 17,493,202 | (1,377,244) | 20,237 | 1,897,852 | 96,525,656 | 2,494,203 | 754,452 |
Emerging Markets 6.5% | ||||||||
Schwab Emerging Markets Equity ETF | 20,756,885 | 5,827,236 | — | — | (1,039,290) | 25,544,831 | 838,085 | 145,816 |
122,070,487 | ||||||||
Real Estate 4.4% | ||||||||
U.S. REITs 4.4% | ||||||||
Schwab U.S. REIT ETF | 14,568,131 | 1,731,590 | (694,469) | (12,444) | 1,604,387 | 17,197,195 | 376,471 | 157,283 |
Fixed Income 10.0% | ||||||||
Intermediate-Term Bond 9.5% | ||||||||
Schwab U.S. Aggregate Bond ETF | 29,414,943 | 7,805,785 | (207,435) | (7,532) | 143,131 | 37,148,892 | 684,646 | 355,866 |
Treasury Bond 0.5% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 1,165,763 | 559,583 | — | — | (3,570) | 1,721,776 | 33,635 | 2,843 |
38,870,668 | ||||||||
Money Market Funds 0.0% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 62,934 | 9 | — | — | — | 62,943 | 62,925 | 9 |
Total Affiliated Underlying Funds | $318,422,864 | $60,282,450 | ($6,274,351) | $14,584 | $15,581,889 | $388,027,436 | $2,690,122 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $388,027,436 | $— | $— | $388,027,436 |
Short-Term Investments1 | — | 4,139,423 | — | 4,139,423 |
Total | $388,027,436 | $4,139,423 | $— | $392,166,859 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $312,861,980) | $388,027,436 | |
Investments in securities, at value - unaffiliated (cost $4,139,423) | 4,139,423 | |
Receivables: | ||
Fund shares sold | 638,664 | |
Investments sold | + | 207,436 |
Total assets | 393,012,959 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,593,407 | |
Fund shares redeemed | 111,445 | |
Investment adviser fees | + | 11,270 |
Total liabilities | 1,716,122 | |
Net assets | $391,296,837 | |
Net Assets by Source | ||
Capital received from investors | $313,749,196 | |
Total distributable earnings | + | 77,547,641 |
Net assets | $391,296,837 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$391,296,837 | 23,521,464 | $16.64 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $2,690,122 | |
Interest received from securities - unaffiliated | + | 93 |
Total investment income | 2,690,215 | |
Expenses | ||
Investment adviser fees | + | 147,625 |
Total expenses | 147,625 | |
Expense reduction by CSIM and its affiliates | – | 84,284 |
Net expenses | – | 63,341 |
Net investment income | 2,626,874 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - affiliated | 14,584 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 15,581,889 |
Net realized and unrealized gains | 15,596,473 | |
Increase in net assets resulting from operations | $18,223,347 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $2,626,874 | $4,403,783 | |
Net realized gains (losses) | 14,584 | (716,331) | |
Net change in unrealized appreciation (depreciation) | + | 15,581,889 | 81,119,691 |
Increase in net assets from operations | $18,223,347 | $84,807,143 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($4,431,058) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 4,820,443 | $80,570,098 | 10,144,672 | $142,622,509 | |
Shares reinvested | — | — | 290,416 | 4,350,434 | |
Shares redeemed | + | (1,708,242) | (28,544,784) | (3,849,108) | (53,244,708) |
Net transactions in fund shares | 3,112,201 | $52,025,314 | 6,585,980 | $93,728,235 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 20,409,263 | $321,048,176 | 13,823,283 | $146,943,856 | |
Total increase | + | 3,112,201 | 70,248,661 | 6,585,980 | 174,104,320 |
End of period | 23,521,464 | $391,296,837 | 20,409,263 | $321,048,176 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $15.88 | $10.60 | $12.14 | $11.91 | $10.67 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.27 | 0.32 | 0.31 | 0.27 | 0.15 |
Net realized and unrealized gains (losses) | 0.80 | 5.25 | (1.60) | 0.15 | 1.15 | 0.65 |
Total from investment operations | 0.92 | 5.52 | (1.28) | 0.46 | 1.42 | 0.80 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.24) | (0.26) | (0.23) | (0.18) | (0.13) |
Distributions from net realized gains | — | (0.00) 4 | (0.00) 4 | — | (0.00) 4 | — |
Total distributions | — | (0.24) | (0.26) | (0.23) | (0.18) | (0.13) |
Net asset value at end of period | $16.80 | $15.88 | $10.60 | $12.14 | $11.91 | $10.67 |
Total return | 5.79% 5 | 52.24% | (10.96%) | 4.15% | 13.25% | 8.03% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.03% 7 | 0.03% | 0.03% | 0.03% | 0.03% | 0.02% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.41% 7 | 1.92% | 2.57% | 2.60% | 2.33% | 2.53% 7 |
Portfolio turnover rate | 1% 5 | 6% | 3% | 6% | 23% | 14% 5 |
Net assets, end of period (x 1,000) | $236,899 | $189,841 | $84,957 | $50,403 | $17,713 | $147 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.05% (annualized), 0.05%, 0.05%, 0.05%, 0.05% and 0.06% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 99.3% OF NET ASSETS | ||
U.S. Stocks 54.8% | ||
Large-Cap 48.4% | ||
Schwab U.S. Large-Cap ETF | 1,102,736 | 114,717,626 |
Small-Cap 6.4% | ||
Schwab U.S. Small-Cap ETF | 151,062 | 15,121,306 |
129,838,932 | ||
International Stocks 32.4% | ||
Developed Markets 25.4% | ||
Schwab International Equity ETF | 1,557,066 | 60,258,454 |
Emerging Markets 7.0% | ||
Schwab Emerging Markets Equity ETF | 542,432 | 16,533,328 |
76,791,782 | ||
Real Estate 4.5% | ||
U.S. REITs 4.5% | ||
Schwab U.S. REIT ETF | 232,522 | 10,621,605 |
Fixed Income 7.6% | ||
Intermediate-Term Bond 7.3% | ||
Schwab U.S. Aggregate Bond ETF | 316,386 | 17,167,104 |
Treasury Bond 0.3% | ||
Schwab Short-Term U.S. Treasury ETF | 13,493 | 690,707 |
17,857,811 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Money Market Funds 0.0% | ||
Schwab Variable Share Price Money Fund, Ultra Shares 0.03% (a) | 66,688 | 66,708 |
Total Affiliated Underlying Funds (Cost $190,033,079) | 235,176,838 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 0.7% OF NET ASSETS | ||
Time Deposits 0.7% | ||
Skandinaviska Enskilda Banken AB | ||
0.01%, 10/01/21 (b) | 1,734,625 | 1,734,625 |
Total Short-Term Investments (Cost $1,734,625) | 1,734,625 | |
Total Investments in Securities (Cost $191,767,704) | 236,911,463 |
(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 |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 99.3% OF NET ASSETS | ||||||||
U.S. Stocks 54.8% | ||||||||
Large-Cap 48.4% | ||||||||
Schwab U.S. Large-Cap ETF | $92,931,112 | $15,887,468 | ($1,967,063) | $8,296 | $7,857,813 | $114,717,626 | 1,102,736 | $712,980 |
Small-Cap 6.4% | ||||||||
Schwab U.S. Small-Cap ETF | 12,255,722 | 2,860,738 | — | — | 4,846 | 15,121,306 | 151,062 | 74,238 |
129,838,932 | ||||||||
International Stocks 32.4% | ||||||||
Developed Markets 25.4% | ||||||||
Schwab International Equity ETF | 47,760,020 | 12,058,299 | (720,645) | 6,286 | 1,154,494 | 60,258,454 | 1,557,066 | 468,820 |
Emerging Markets 7.0% | ||||||||
Schwab Emerging Markets Equity ETF | 13,109,631 | 4,204,315 | (97,573) | (4,710) | (678,335) | 16,533,328 | 542,432 | 93,820 |
76,791,782 | ||||||||
Real Estate 4.5% | ||||||||
U.S. REITs 4.5% | ||||||||
Schwab U.S. REIT ETF | 8,875,358 | 1,196,867 | (427,351) | (11,476) | 988,207 | 10,621,605 | 232,522 | 97,759 |
Fixed Income 7.6% | ||||||||
Intermediate-Term Bond 7.3% | ||||||||
Schwab U.S. Aggregate Bond ETF | 12,970,713 | 4,139,201 | — | — | 57,190 | 17,167,104 | 316,386 | 161,129 |
Treasury Bond 0.3% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 575,134 | 116,941 | — | — | (1,368) | 690,707 | 13,493 | 1,255 |
17,857,811 | ||||||||
Money Market Funds 0.0% | ||||||||
Schwab Variable Share Price Money Fund, Ultra Shares | 66,698 | 10 | — | — | — | 66,708 | 66,688 | 9 |
Total Affiliated Underlying Funds | $188,544,388 | $40,463,839 | ($3,212,632) | ($1,604) | $9,382,847 | $235,176,838 | $1,610,010 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $235,176,838 | $— | $— | $235,176,838 |
Short-Term Investments1 | — | 1,734,625 | — | 1,734,625 |
Total | $235,176,838 | $1,734,625 | $— | $236,911,463 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $190,033,079) | $235,176,838 | |
Investments in securities, at value - unaffiliated (cost $1,734,625) | 1,734,625 | |
Receivables: | ||
Fund shares sold | + | 321,818 |
Total assets | 237,233,281 | |
Liabilities | ||
Payables: | ||
Investments bought | 284,106 | |
Fund shares redeemed | 43,768 | |
Investment adviser fees | + | 6,729 |
Total liabilities | 334,603 | |
Net assets | $236,898,678 | |
Net Assets by Source | ||
Capital received from investors | $190,664,664 | |
Total distributable earnings | + | 46,234,014 |
Net assets | $236,898,678 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$236,898,678 | 14,101,488 | $16.80 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $1,610,010 | |
Interest received from securities - unaffiliated | + | 54 |
Total investment income | 1,610,064 | |
Expenses | ||
Investment adviser fees | + | 88,982 |
Total expenses | 88,982 | |
Expense reduction by CSIM and its affiliates | – | 51,356 |
Net expenses | – | 37,626 |
Net investment income | 1,572,438 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on sales of securities - affiliated | (1,604) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 9,382,847 |
Net realized and unrealized gains | 9,381,243 | |
Increase in net assets resulting from operations | $10,953,681 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $1,572,438 | $2,561,387 | |
Net realized losses | (1,604) | (368,513) | |
Net change in unrealized appreciation (depreciation) | + | 9,382,847 | 48,728,147 |
Increase in net assets from operations | $10,953,681 | $50,921,021 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($2,551,965) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 3,030,163 | $51,132,919 | 5,887,926 | $83,275,244 | |
Shares reinvested | — | — | 164,503 | 2,482,361 | |
Shares redeemed | + | (887,030) | (15,029,169) | (2,106,273) | (29,242,736) |
Net transactions in fund shares | 2,143,133 | $36,103,750 | 3,946,156 | $56,514,869 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 11,958,355 | $189,841,247 | 8,012,199 | $84,957,322 | |
Total increase | + | 2,143,133 | 47,057,431 | 3,946,156 | 104,883,925 |
End of period | 14,101,488 | $236,898,678 | 11,958,355 | $189,841,247 |
4/1/21– 9/30/21* | 4/1/20– 3/31/21 | 4/1/19– 3/31/20 | 4/1/18– 3/31/19 | 4/1/17– 3/31/181 | 8/25/16 2– 3/31/17 | |
Per-Share Data | ||||||
Net asset value at beginning of period | $15.95 | $10.55 | $12.16 | $11.92 | $10.68 | $10.00 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)3 | 0.12 | 0.27 | 0.32 | 0.30 | 0.29 | 0.18 |
Net realized and unrealized gains (losses) | 0.82 | 5.38 | (1.66) | 0.17 | 1.12 | 0.62 |
Total from investment operations | 0.94 | 5.65 | (1.34) | 0.47 | 1.41 | 0.80 |
Less distributions: | ||||||
Distributions from net investment income | — | (0.24) | (0.27) | (0.23) | (0.17) | (0.12) |
Distributions from net realized gains | — | (0.01) | (0.00) 4 | (0.00) 4 | (0.00) 4 | — |
Total distributions | — | (0.25) | (0.27) | (0.23) | (0.17) | (0.12) |
Net asset value at end of period | $16.89 | $15.95 | $10.55 | $12.16 | $11.92 | $10.68 |
Total return | 5.89% 5 | 53.70% | (11.50%) | 4.23% | 13.22% | 8.11% 5 |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses6 | 0.03% 7 | 0.03% | 0.03% | 0.03% | 0.03% | 0.02% 7 |
Gross operating expenses6 | 0.08% 7 | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% 7 |
Net investment income (loss) | 1.41% 7 | 1.92% | 2.54% | 2.50% | 2.43% | 2.94% 7 |
Portfolio turnover rate | 1% 5 | 7% | 4% | 2% | 19% | 0% 5 |
Net assets, end of period (x 1,000) | $289,786 | $226,973 | $100,674 | $58,895 | $24,224 | $166 |
* | Unaudited. |
1 | Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
2 | Commencement of operations. |
3 | Calculated based on the average shares outstanding during the period. |
4 | Per-share amount was less than $0.005. |
5 | Not annualized. |
6 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.05% (annualized), 0.05%, 0.05%, 0.05%, 0.05% and 0.06% (annualized), respectively, for the periods ended September 30, 2021, March 31, 2021, March 31, 2020, March 31, 2019, March 31, 2018 and March 31, 2017 (see financial note 4). |
7 | Annualized. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 99.4% OF NET ASSETS | ||
U.S. Stocks 56.1% | ||
Large-Cap 49.4% | ||
Schwab U.S. Large-Cap ETF | 1,376,652 | 143,213,108 |
Small-Cap 6.7% | ||
Schwab U.S. Small-Cap ETF | 194,330 | 19,452,433 |
162,665,541 | ||
International Stocks 33.6% | ||
Developed Markets 26.1% | ||
Schwab International Equity ETF | 1,952,899 | 75,577,191 |
Emerging Markets 7.5% | ||
Schwab Emerging Markets Equity ETF | 711,625 | 21,690,330 |
97,267,521 | ||
Real Estate 4.6% | ||
U.S. REITs 4.6% | ||
Schwab U.S. REIT ETF | 295,248 | 13,486,929 |
Fixed Income 5.1% | ||
Intermediate-Term Bond 4.9% | ||
Schwab U.S. Aggregate Bond ETF | 261,086 | 14,166,526 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Treasury Bond 0.2% | ||
Schwab Short-Term U.S. Treasury ETF | 9,884 | 505,962 |
14,672,488 | ||
Total Affiliated Underlying Funds (Cost $233,764,890) | 288,092,479 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 0.9% OF NET ASSETS | ||
Time Deposits 0.9% | ||
Skandinaviska Enskilda Banken AB | ||
0.01%, 10/01/21 (a) | 2,626,465 | 2,626,465 |
Total Short-Term Investments (Cost $2,626,465) | 2,626,465 | |
Total Investments in Securities (Cost $236,391,355) | 290,718,944 |
(a) | The rate shown is the current daily overnight rate. |
ETF — | Exchange traded fund |
REIT — | Real Estate Investment Trust |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 99.4% OF NET ASSETS | ||||||||
U.S. Stocks 56.1% | ||||||||
Large-Cap 49.4% | ||||||||
Schwab U.S. Large-Cap ETF | $112,947,221 | $22,956,306 | ($2,275,391) | $7,423 | $9,577,549 | $143,213,108 | 1,376,652 | $885,472 |
Small-Cap 6.7% | ||||||||
Schwab U.S. Small-Cap ETF | 15,359,047 | 4,104,243 | — | — | (10,857) | 19,452,433 | 194,330 | 95,497 |
162,665,541 | ||||||||
International Stocks 33.6% | ||||||||
Developed Markets 26.1% | ||||||||
Schwab International Equity ETF | 58,640,138 | 16,571,579 | (999,104) | 6,987 | 1,357,591 | 75,577,191 | 1,952,899 | 587,818 |
Emerging Markets 7.5% | ||||||||
Schwab Emerging Markets Equity ETF | 16,807,234 | 5,754,106 | — | — | (871,010) | 21,690,330 | 711,625 | 122,886 |
97,267,521 | ||||||||
Real Estate 4.6% | ||||||||
U.S. REITs 4.6% | ||||||||
Schwab U.S. REIT ETF | 10,944,157 | 1,649,066 | (306,474) | 1,390 | 1,198,790 | 13,486,929 | 295,248 | 122,331 |
Fixed Income 5.1% | ||||||||
Intermediate-Term Bond 4.9% | ||||||||
Schwab U.S. Aggregate Bond ETF | 10,598,046 | 3,521,363 | — | — | 47,117 | 14,166,526 | 261,086 | 133,625 |
Treasury Bond 0.2% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 365,994 | 141,099 | — | — | (1,131) | 505,962 | 9,884 | 982 |
14,672,488 | ||||||||
Total Affiliated Underlying Funds | $225,661,837 | $54,697,762 | ($3,580,969) | $15,800 | $11,298,049 | $288,092,479 | $1,948,611 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $288,092,479 | $— | $— | $288,092,479 |
Short-Term Investments1 | — | 2,626,465 | — | 2,626,465 |
Total | $288,092,479 | $2,626,465 | $— | $290,718,944 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $233,764,890) | $288,092,479 | |
Investments in securities, at value - unaffiliated (cost $2,626,465) | 2,626,465 | |
Receivables: | ||
Fund shares sold | + | 426,244 |
Total assets | 291,145,188 | |
Liabilities | ||
Payables: | ||
Investments bought | 1,257,313 | |
Fund shares redeemed | 94,185 | |
Investment adviser fees | + | 8,118 |
Total liabilities | 1,359,616 | |
Net assets | $289,785,572 | |
Net Assets by Source | ||
Capital received from investors | $234,450,340 | |
Total distributable earnings | + | 55,335,232 |
Net assets | $289,785,572 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$289,785,572 | 17,157,495 | $16.89 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $1,948,611 | |
Interest received from securities - unaffiliated | + | 56 |
Total investment income | 1,948,667 | |
Expenses | ||
Investment adviser fees | + | 108,174 |
Total expenses | 108,174 | |
Expense reduction by CSIM and its affiliates | – | 63,057 |
Net expenses | – | 45,117 |
Net investment income | 1,903,550 | |
Realized and Unrealized Gains (Losses) | ||
Net realized gains on sales of securities - affiliated | 15,800 | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | 11,298,049 |
Net realized and unrealized gains | 11,313,849 | |
Increase in net assets resulting from operations | $13,217,399 |
OPERATIONS | |||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||
Net investment income | $1,903,550 | $3,002,737 | |
Net realized gains (losses) | 15,800 | (619,971) | |
Net change in unrealized appreciation (depreciation) | + | 11,298,049 | 58,871,843 |
Increase in net assets from operations | $13,217,399 | $61,254,609 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | $— | ($3,027,524) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 4,211,322 | $71,403,426 | 7,841,414 | $111,818,240 | |
Shares reinvested | — | — | 194,228 | 2,936,732 | |
Shares redeemed | + | (1,284,149) | (21,807,864) | (3,351,894) | (46,683,614) |
Net transactions in fund shares | 2,927,173 | $49,595,562 | 4,683,748 | $68,071,358 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 4/1/20-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 14,230,322 | $226,972,611 | 9,546,574 | $100,674,168 | |
Total increase | + | 2,927,173 | 62,812,961 | 4,683,748 | 126,298,443 |
End of period | 17,157,495 | $289,785,572 | 14,230,322 | $226,972,611 |
4/1/21– 9/30/21* | 2/26/21 1– 3/31/21 | |||||
Per-Share Data | ||||||
Net asset value at beginning of period | $10.21 | $10.00 | ||||
Income (loss) from investment operations: | ||||||
Net investment income (loss)2 | 0.09 | 0.02 | ||||
Net realized and unrealized gains (losses) | 0.51 | 0.19 | ||||
Total from investment operations | 0.60 | 0.21 | ||||
Net asset value at end of period | $10.81 | $10.21 | ||||
Total return | 5.88% 3 | 2.10% 3 | ||||
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Net operating expenses4 | 0.03% 5 | 0.04% 5 | ||||
Gross operating expenses4 | 0.08% 5 | 0.08% 5 | ||||
Net investment income (loss) | 1.61% 5 | 2.46% 5 | ||||
Portfolio turnover rate | 2% 3 | 0% 3,6 | ||||
Net assets, end of period (x 1,000) | $13,847 | $1,820 |
* | Unaudited. |
1 | Commencement of operations. |
2 | Calculated based on the average shares outstanding during the period. |
3 | Not annualized. |
4 | Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds .If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.05% (annualized) and 0.04% (annualized), respectively, for the period ended September 30, 2021 and March 31, 2021 (see financial note 4). |
5 | Annualized. |
6 | Portfolio turnover was 0%; portfolio turnover is calculated by factoring in the lesser of long-term purchases or sales of securities. The fund had no sales of securities during the period. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
AFFILIATED UNDERLYING FUNDS 99.5% OF NET ASSETS | ||
U.S. Stocks 56.4% | ||
Large-Cap 49.6% | ||
Schwab U.S. Large-Cap ETF | 65,980 | 6,863,900 |
Small-Cap 6.8% | ||
Schwab U.S. Small-Cap ETF | 9,471 | 948,047 |
7,811,947 | ||
International Stocks 33.8% | ||
Developed Markets 26.2% | ||
Schwab International Equity ETF | 93,617 | 3,622,978 |
Emerging Markets 7.6% | ||
Schwab Emerging Markets Equity ETF | 34,505 | 1,051,712 |
4,674,690 | ||
Real Estate 4.7% | ||
U.S. REITs 4.7% | ||
Schwab U.S. REIT ETF | 14,180 | 647,742 |
Fixed Income 4.6% | ||
Intermediate-Term Bond 4.4% | ||
Schwab U.S. Aggregate Bond ETF | 11,308 | 613,572 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Treasury Bond 0.2% | ||
Schwab Short-Term U.S. Treasury ETF | 560 | 28,667 |
642,239 | ||
Total Affiliated Underlying Funds (Cost $13,868,062) | 13,776,618 |
ISSUER | FACE AMOUNT ($) | VALUE ($) |
SHORT-TERM INVESTMENTS 0.8% OF NET ASSETS | ||
Time Deposits 0.8% | ||
Citibank NA | ||
0.01%, 10/01/21 (a) | 112,463 | 112,463 |
Total Short-Term Investments (Cost $112,463) | 112,463 | |
Total Investments in Securities (Cost $13,980,525) | 13,889,081 |
(a) | The rate shown is the current daily overnight rate. |
ETF — | Exchange traded fund |
REIT — | Real Estate Investment Trust |
VALUE AT 3/31/21 | PURCHASES | SALES | REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | VALUE AT 9/30/21 | BALANCE OF SHARES HELD AT 9/30/21 | DISTRIBUTIONS RECEIVED* | |
AFFILIATED UNDERLYING FUNDS 99.5% OF NET ASSETS | ||||||||
U.S. Stocks 56.4% | ||||||||
Large-Cap 49.6% | ||||||||
Schwab U.S. Large-Cap ETF | $894,424 | $6,087,672 | ($127,919) | ($823) | $10,546 | $6,863,900 | 65,980 | $30,075 |
Small-Cap 6.8% | ||||||||
Schwab U.S. Small-Cap ETF | 121,298 | 841,567 | — | — | (14,818) | 948,047 | 9,471 | 3,391 |
7,811,947 | ||||||||
International Stocks 33.8% | ||||||||
Developed Markets 26.2% | ||||||||
Schwab International Equity ETF | 469,460 | 3,243,012 | (23,529) | (542) | (65,423) | 3,622,978 | 93,617 | 12,902 |
Emerging Markets 7.6% | ||||||||
Schwab Emerging Markets Equity ETF | 135,319 | 953,580 | — | — | (37,187) | 1,051,712 | 34,505 | 2,686 |
4,674,690 | ||||||||
Real Estate 4.7% | ||||||||
U.S. REITs 4.7% | ||||||||
Schwab U.S. REIT ETF | 85,098 | 573,682 | (12,131) | (20) | 1,113 | 647,742 | 14,180 | 4,209 |
Fixed Income 4.6% | ||||||||
Intermediate-Term Bond 4.4% | ||||||||
Schwab U.S. Aggregate Bond ETF | 77,904 | 542,080 | (3,526) | 7 | (2,893) | 613,572 | 11,308 | 2,718 |
Treasury Bond 0.2% | ||||||||
Schwab Short-Term U.S. Treasury ETF | 2,565 | 26,144 | — | — | (42) | 28,667 | 560 | 18 |
642,239 | ||||||||
Total Affiliated Underlying Funds | $1,786,068 | $12,267,737 | ($167,105) | ($1,378) | ($108,704) | $13,776,618 | $55,999 |
* | Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. |
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 | $13,776,618 | $— | $— | $13,776,618 |
Short-Term Investments1 | — | 112,463 | — | 112,463 |
Total | $13,776,618 | $112,463 | $— | $13,889,081 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - affiliated (cost $13,868,062) | $13,776,618 | |
Investments in securities, at value - unaffiliated (cost $112,463) | 112,463 | |
Receivables: | ||
Fund shares sold | + | 33,235 |
Total assets | 13,922,316 | |
Liabilities | ||
Payables: | ||
Investments bought | 71,229 | |
Fund shares redeemed | 3,426 | |
Investment adviser fees | + | 316 |
Total liabilities | 74,971 | |
Net assets | $13,847,345 | |
Net Assets by Source | ||
Capital received from investors | $13,882,807 | |
Total distributable loss | + | (35,462) |
Net assets | $13,847,345 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$13,847,345 | 1,281,111 | $10.81 | ||
For the period April 1, 2021 through September 30, 2021; unaudited | ||
Investment Income | ||
Dividends received from securities - affiliated | $55,999 | |
Interest received from securities - unaffiliated | + | 3 |
Total investment income | 56,002 | |
Expenses | ||
Investment adviser fees | + | 2,722 |
Total expenses | 2,722 | |
Expense reduction by CSIM and its affiliates | – | 1,650 |
Net expenses | – | 1,072 |
Net investment income | 54,930 | |
Realized and Unrealized Gains (Losses) | ||
Net realized losses on sales of securities - affiliated | (1,378) | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | + | (108,704) |
Net realized and unrealized losses | (110,082) | |
Decrease in net assets resulting from operations | ($55,152) |
OPERATIONS | |||
4/1/21-9/30/21 | 2/26/21*-3/31/21 | ||
Net investment income | $54,930 | $2,430 | |
Net realized losses | (1,378) | — | |
Net change in unrealized appreciation (depreciation) | + | (108,704) | 17,260 |
Increase (decrease) in net assets from operations | ($55,152) | $19,690 |
TRANSACTIONS IN FUND SHARES | |||||
4/1/21-9/30/21 | 2/26/21*-3/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 1,172,786 | $12,848,190 | 181,848 | $1,835,930 | |
Shares redeemed | + | (69,991) | (765,779) | (3,532) | (35,534) |
Net transactions in fund shares | 1,102,795 | $12,082,411 | 178,316 | $1,800,396 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/21-9/30/21 | 2/26/21*-3/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 178,316 | $1,820,086 | — | $— | |
Total increase | + | 1,102,795 | 12,027,259 | 178,316 | 1,820,086 |
End of period | 1,281,111 | $13,847,345 | 178,316 | $1,820,086 |
* | Commencement of operations. |
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) | |
Schwab Target 2010 Index Fund | Schwab Large-Cap Growth Fund |
Schwab Target 2015 Index Fund | Schwab Small-Cap Equity Fund |
Schwab Target 2020 Index Fund | Schwab Hedged Equity Fund |
Schwab Target 2025 Index Fund | Schwab Health Care Fund |
Schwab Target 2030 Index Fund | Schwab International Core Equity Fund |
Schwab Target 2035 Index Fund | Schwab Target 2010 Fund |
Schwab Target 2040 Index Fund | Schwab Target 2015 Fund |
Schwab Target 2045 Index Fund | Schwab Target 2020 Fund |
Schwab Target 2050 Index Fund | Schwab Target 2025 Fund |
Schwab Target 2055 Index Fund | Schwab Target 2030 Fund |
Schwab Target 2060 Index Fund | Schwab Target 2035 Fund |
Schwab Target 2065 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 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 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 |
UNDERLYING FUNDS | SCHWAB TARGET 2010 INDEX FUND | SCHWAB TARGET 2015 INDEX FUND | SCHWAB TARGET 2020 INDEX FUND | SCHWAB TARGET 2025 INDEX FUND | SCHWAB TARGET 2030 INDEX FUND | SCHWAB TARGET 2035 INDEX FUND | SCHWAB TARGET 2040 INDEX FUND | SCHWAB TARGET 2045 INDEX FUND | SCHWAB TARGET 2050 INDEX FUND | SCHWAB TARGET 2055 INDEX FUND | SCHWAB TARGET 2060 INDEX FUND | SCHWAB TARGET 2065 INDEX FUND |
Schwab Emerging Markets Equity ETF | —% | —% | —% | 0.1% | 0.2% | 0.2% | 0.3% | 0.2% | 0.3% | 0.2% | 0.2% | 0.0%* |
Schwab International Equity ETF | 0.0%* | 0.0%* | 0.1% | 0.3% | 0.5% | 0.3% | 0.4% | 0.3% | 0.3% | 0.2% | 0.3% | 0.0%* |
Schwab Short-Term U.S. Treasury ETF | 0.1% | 0.1% | 0.3% | 0.3% | 0.2% | 0.1% | 0.1% | 0.0%* | 0.0%* | 0.0%* | 0.0%* | 0.0%* |
Schwab U.S. Aggregate Bond ETF | 0.3% | 0.4% | 1.4% | 2.1% | 2.5% | 1.2% | 1.2% | 0.5% | 0.4% | 0.2% | 0.2% | 0.0%* |
Schwab U.S. Large-Cap ETF | 0.0%* | 0.1% | 0.2% | 0.5% | 0.9% | 0.6% | 0.8% | 0.5% | 0.6% | 0.4% | 0.5% | 0.0%* |
Schwab U.S. REIT ETF | 0.0%* | 0.0%* | 0.1% | 0.2% | 0.4% | 0.3% | 0.4% | 0.2% | 0.3% | 0.2% | 0.2% | 0.0%* |
Schwab U.S. Small-Cap ETF | 0.0%* | 0.0%* | 0.0%* | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% | 0.0%* |
Schwab U.S. TIPS ETF | 0.0%* | 0.0%* | 0.1% | 0.1% | 0.0%* | —% | —% | —% | —% | —% | —% | —% |
Schwab Variable Share Price Money Fund, Ultra Shares | 0.1% | 0.1% | 0.3% | 0.4% | 0.3% | 0.1% | 0.1% | 0.0%* | 0.0%* | 0.0%* | —% | —% |
* | Less than 0.05% |
PURCHASES OF SECURITIES | SALES OF SECURITIES | |
Schwab Target 2010 Index Fund | $7,646,929 | $4,523,057 |
Schwab Target 2015 Index Fund | 8,252,759 | 5,790,725 |
Schwab Target 2020 Index Fund | 33,585,664 | 17,758,192 |
Schwab Target 2025 Index Fund | 72,771,136 | 15,511,293 |
Schwab Target 2030 Index Fund | 105,169,140 | 13,834,687 |
Schwab Target 2035 Index Fund | 72,464,461 | 12,328,512 |
Schwab Target 2040 Index Fund | 82,243,899 | 9,585,748 |
Schwab Target 2045 Index Fund | 53,910,767 | 7,736,378 |
Schwab Target 2050 Index Fund | 60,282,450 | 6,274,351 |
Schwab Target 2055 Index Fund | 40,463,839 | 3,212,632 |
Schwab Target 2060 Index Fund | 54,697,762 | 3,580,969 |
Schwab Target 2065 Index Fund | 12,267,737 | 167,105 |
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) | |
Schwab Target 2010 Index Fund | $52,761,909 | $7,238,083 | ($10) | $7,238,073 |
Schwab Target 2015 Index Fund | 67,279,725 | 10,915,701 | (239) | 10,915,462 |
Schwab Target 2020 Index Fund | 263,388,884 | 39,643,561 | - | 39,643,561 |
Schwab Target 2025 Index Fund | 445,981,153 | 72,327,173 | (61) | 72,327,112 |
Schwab Target 2030 Index Fund | 628,676,675 | 113,566,556 | (160) | 113,566,396 |
Schwab Target 2035 Index Fund | 375,176,566 | 74,944,234 | (35) | 74,944,199 |
Schwab Target 2040 Index Fund | 466,788,088 | 101,910,162 | (78) | 101,910,084 |
Schwab Target 2045 Index Fund | 271,192,620 | 63,265,322 | (4) | 63,265,318 |
Schwab Target 2050 Index Fund | 317,943,259 | 74,223,600 | - | 74,223,600 |
Schwab Target 2055 Index Fund | 192,643,804 | 44,268,255 | (596) | 44,267,659 |
Schwab Target 2060 Index Fund | 237,739,804 | 52,979,140 | - | 52,979,140 |
Schwab Target 2065 Index Fund | 13,981,914 | 27,352 | (120,185) | (92,833) |
PRIOR FISCAL YEAR END DISTRIBUTIONS | ||
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | |
Schwab Target 2010 Index Fund | $885,461 | $106,658 |
Schwab Target 2015 Index Fund | 1,305,865 | 347,584 |
Schwab Target 2020 Index Fund | 4,687,144 | — |
Schwab Target 2025 Index Fund | 6,774,266 | 363,955 |
Schwab Target 2030 Index Fund | 9,209,541 | 26,706 |
Schwab Target 2035 Index Fund | 5,480,139 | 103,356 |
Schwab Target 2040 Index Fund | 6,943,973 | 13,789 |
Schwab Target 2045 Index Fund | 3,838,268 | 3,123 |
Schwab Target 2050 Index Fund | 4,431,058 | — |
Schwab Target 2055 Index Fund | 2,551,965 | — |
Schwab Target 2060 Index Fund | 3,026,320 | 1,204 |
Schwab Target 2065 Index Fund | — | — |
1. | the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of CSIM and its affiliates dedicated to the Funds; |
2. | each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data; |
3. | each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds, exchange-traded funds and other accounts; |
4. | the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to CSIM and its affiliates; and |
5. | the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors. |
1 | The meeting on June 8, 2021 was held by means of videoconference in reliance on exemptive relief from the in-person voting requirement under the 1940 Act as provided by the Securities and Exchange Commission. |
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 |
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 and Chief Executive Officer (Oct. 2008 – present) and President (Oct. 2008 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), 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 – Oct. 2021), Charles Schwab Investment Management, Inc. | 103 | Director (2008 – present), The Charles Schwab Corporation |
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. |
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 |
Catherine MacGregor 1964 Chief Legal Officer and 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; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), 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. (Schwab), 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 Schwab. |
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 Funds
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. |
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.
(2) |
(3) | Not applicable. |
(b) |
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 – Schwab Target Index Funds
By: | /s/ Jonathan de St. Paer | |
Jonathan de St. Paer Chief Executive Officer | ||
Date: | November 15, 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: | November 15, 2021 | |
By: | /s/ Mark Fischer | |
Mark Fischer Chief Financial Officer | ||
Date: | November 15, 2021 |