UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07704
Schwab Capital Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Omar Aguilar
Schwab Capital Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: October 31
Date of reporting period: April 30, 2024
Item 1: Report(s) to Shareholders.
Semiannual Report | April 30, 2024
Schwab Equity Index Funds®
Schwab S&P 500 Index Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth
Index Fund
Schwab U.S. Large-Cap Value
Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess and monitor their fund investments. Other information, including financial statements, will not appear in the streamlined shareholder reports but will available online and delivered free of charge upon request. |
• If you already receive the full shareholder reports, you will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
Eight cost-efficient ways to tap into the power of the stock market for long-term growth potential.
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
1
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2024 |
Schwab S&P 500 Index Fund (Ticker Symbol: SWPPX) | |
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Fund Category: Morningstar Large Blend1 | |
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Schwab 1000 Index Fund (Ticker Symbol: SNXFX) | |
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Fund Category: Morningstar Large Blend1 | |
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Schwab Small-Cap Index Fund (Ticker Symbol: SWSSX) | |
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Fund Category: Morningstar Small Blend1 | |
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Schwab Total Stock Market Index Fund (Ticker Symbol: SWTSX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Fund Category: Morningstar Large Blend1 | |
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Total Return for the 6 Months Ended April 30, 2024 |
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Schwab U.S. Large-Cap Growth Index Fund (Ticker Symbol: SWLGX) | |
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Russell 1000® Growth Index | |
Fund Category: Morningstar Large Growth1 | |
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Schwab U.S. Large-Cap Value Index Fund (Ticker Symbol: SWLVX) | |
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Russell 1000® Value Index | |
Fund Category: Morningstar Large Value1 | |
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Schwab U.S. Mid-Cap Index Fund (Ticker Symbol: SWMCX) | |
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Fund Category: Morningstar Mid-Cap Blend1 | |
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Schwab International Index Fund4 (Ticker Symbol: SWISX) | |
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Fund Category: Morningstar Foreign Large Blend1 | |
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All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2
In anticipation of new regulatory requirements, the fund’s regulatory index has changed to the Russell 1000® Index. The Russell 1000® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the second index listed. The fund does not seek to track the regulatory index.
3
In anticipation of new regulatory requirements, the fund’s regulatory index has changed to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the second index listed. The fund does not seek to track the regulatory index.
4
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
5
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Schwab Equity Index Funds | Semiannual Report
2
Schwab Equity Index Funds
| Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs, and Schwab Personalized Indexing™ separately managed accounts. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
| Jeremy Brown, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining Schwab in 2017, Mr. Brown spent six years with ALPS Advisors, Inc. in Denver, most recently as a senior analyst on the ETF portfolio management and research team where he performed portfolio management, trading, and analytics/research functions for ALPS ETFs and passive funds. Additionally, Mr. Brown led a number of investment research, commentary, industry trend analysis, and sales and marketing support initiatives. |
| Joselle Duncan, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab International Index Fund. Prior to joining Schwab in 2022, Ms. Duncan worked at BlackRock, Inc. for over 20 years as a vice president and portfolio manager focused on international ETFs. Before that, she held several positions at BlackRock (formerly Barclays Global Investors) including portfolio manager for institutional and mutual funds, securities lending trader, and securities lending product specialist. |
| Jiwei Gu, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab International Index Fund. Ms. Gu joined the portfolio management team as an associate portfolio manager in 2018. Prior to joining Schwab, she spent four years at CoBank, most recently as an enterprise risk analyst performing bank-level loan portfolio credit risk analysis, data analytics, and risk management methodology research. Before that, Ms. Gu worked in commercial credit underwriting and capital markets supporting lending activities. |
| Ferian Juwono, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the oversight and day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining Schwab in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors) where he spent more than three years as a portfolio manager, managing equity index funds for institutional clients, and two years as a senior business analyst. Prior to that, Mr. Juwono worked for more than four years as a senior financial analyst with Union Bank of California. |
| David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab International Index Fund. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
3
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
Fund Management (continued)
| Agnes Zau, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining Schwab in 2018, Ms. Zau was at BlackRock for three years, most recently as a multi-asset portfolio investment consultant where she advised institutional clients on asset allocation and strategy, constructed risk decomposition and portfolio optimization, and conducted scenario analyses for the core multi-asset target risk strategies. She spent the preceding three years as a derivatives specialist at Mellon Capital. |
Schwab Equity Index Funds | Semiannual Report
4
Schwab S&P 500 Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab S&P 500 Index Fund (5/19/97) | | | | |
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Fund Category: Morningstar Large Blend 2 | | | | |
Fund Expense Ratio3: 0.02% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial Services LLC (S&P), and “Dow Jones®” is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. The “S&P 500® Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc. The Schwab S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
5
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Performance and Fund Facts as of April 30, 2024
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Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
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Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report
6
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab 1000 Index Fund (4/2/91) | | | | |
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Fund Category: Morningstar Large Blend 3 | | | | |
Fund Expense Ratio4: 0.05% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Schwab 1000 Index® to the Russell 1000® Index. The Russell 1000® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Schwab 1000 Index®. The fund does not seek to track the regulatory index.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus.
7
Schwab Equity Index Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
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Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
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Sector Weightings % of Investments5
Top Equity Holdings % of Net Assets7
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
2
As a result of the Schwab 1000 Index®’s once per year reconstitution and the effects of certain corporate actions, the fund may hold more or less than 1,000 securities.
4
Portfolio turnover rate excludes in-kind transactions.
5
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
6
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
7
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report
8
Schwab Small-Cap Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab Small-Cap Index Fund (5/19/97) | | | | |
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| | | | |
Fund Category: Morningstar Small Blend 3 | | | | |
Fund Expense Ratio4: 0.04% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “Russell 2000®” is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab Small-Cap Index Fund. The Schwab Small-Cap Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell 2000® Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell 2000® Index. The fund does not seek to track the regulatory index.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus.
9
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments4
Top Equity Holdings % of Net Assets6
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
3
Portfolio turnover rate excludes in-kind transactions.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
6
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report
10
Schwab Total Stock Market Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Total Stock Market Index Fund (6/1/99) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Fund Category: Morningstar Large Blend 2 | | | | |
Fund Expense Ratio3: 0.03% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “Standard & Poor’s®” and “S&P®” are registered trademarks of Standard & Poor’s Financial Services LLC (S&P), and “Dow Jones®” is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. The “Dow Jones U.S. Total Stock Market IndexSM” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc. The Schwab Total Stock Market Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
11
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments4
Top Equity Holdings % of Net Assets6
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
6
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report
12
Schwab U.S. Large-Cap Growth Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| | | | |
Fund: Schwab U.S. Large-Cap Growth Index Fund (12/20/17) | | | | |
| | | | |
Russell 1000® Growth Index | | | | |
Fund Category: Morningstar Large Growth 3 | | | | |
Fund Expense Ratio4: 0.035% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Russell 1000® Growth Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Large-Cap Growth Index Fund. The Schwab U.S. Large-Cap Growth Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell 1000® Growth Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell 1000® Growth Index. The fund does not seek to track the regulatory index.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus.
13
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report
14
Schwab U.S. Large-Cap Value Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| | | | |
Fund: Schwab U.S. Large-Cap Value Index Fund (12/20/17) | | | | |
| | | | |
Russell 1000® Value Index | | | | |
Fund Category: Morningstar Large Value 3 | | | | |
Fund Expense Ratio4: 0.035% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Russell 1000® Value Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Large-Cap Value Index Fund. The Schwab U.S. Large-Cap Value Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell 1000® Value Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell 1000® Value Index. The fund does not seek to track the regulatory index.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus.
15
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report
16
Schwab U.S. Mid-Cap Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| | | | |
Fund: Schwab U.S. Mid-Cap Index Fund (12/20/17) | | | | |
| | | | |
| | | | |
Fund Category: Morningstar Mid-Cap Blend 3 | | | | |
Fund Expense Ratio4: 0.04% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Russell Midcap® Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Mid-Cap Index Fund. The Schwab U.S. Mid-Cap Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell Midcap® Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell Midcap® Index. The fund does not seek to track the regulatory index.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus.
17
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report
18
Schwab International Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab International Index Fund (5/19/97) | | | | |
| | | | |
Fund Category: Morningstar Foreign Large Blend 4 | | | | |
Fund Expense Ratio5: 0.06% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “MSCI EAFE®” is a registered mark of MSCI and has been licensed for use by the Schwab International Index Fund. The Schwab International Index Fund is not sponsored, endorsed, sold or promoted by MSCI and MSCI bears no liability with respect to the fund. The Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus.
19
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets4
Top Country Weightings % of Investments5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
3
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
4
This list is not a recommendation of any security by the investment adviser.
5
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Equity Index Funds | Semiannual Report
20
Schwab Equity Index Funds
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2023 and held through April 30, 2024.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/23 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/24 | EXPENSES PAID
DURING PERIOD
|
Schwab S&P 500 Index Fund | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Schwab Small-Cap Index Fund | | | | |
| | | | |
| | | | |
Schwab Total Stock Market Index Fund | | | | |
| | | | |
| | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | |
| | | | |
| | | | |
Schwab U.S. Large-Cap Value Index Fund | | | | |
| | | | |
| | | | |
Schwab U.S. Mid-Cap Index Fund | | | | |
| | | | |
| | | | |
Schwab International Index Fund | | | | |
| | | | |
| | | | |
| Based on the most recent six-month expense ratio. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in the period, and divided by 366 days in the fiscal year. |
21
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.02%. The ratio presented for period ended October 31, 2019, is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report
22
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
Westinghouse Air Brake Technologies Corp. | | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.3% |
Automatic Data Processing, Inc. | | |
Broadridge Financial Solutions, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Republic Services, Inc., Class A | | |
| | |
| | |
| | |
Verisk Analytics, Inc., Class A | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.9% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
23
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 0.8% |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
Ralph Lauren Corp., Class A | | |
| | |
| | |
|
|
| | |
| | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc., Class A * | | |
| | |
| | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
| | |
MGM Resorts International * | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Royal Caribbean Cruises Ltd. * | | |
| | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
| | |
| | |
| | |
| | |
| | |
| | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
Baker Hughes Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.0% |
Alexandria Real Estate Equities, Inc. | | |
| | |
AvalonBay Communities, Inc. | | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
| | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Mid-America Apartment Communities, Inc. | | |
| | |
| | |
| | |
| | |
SBA Communications Corp., Class A | | |
Simon Property Group, Inc. | | |
| | |
| | |
VICI Properties, Inc., Class A | | |
| | |
| | |
| | |
|
|
| | |
Ameriprise Financial, Inc. | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
Capital One Financial Corp. | | |
Cboe Global Markets, Inc. | | |
| | |
| | |
| | |
Discover Financial Services | | |
FactSet Research Systems, Inc. | | |
Schwab Equity Index Funds | Semiannual Report
24
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.8% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
Philip Morris International, Inc. | | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 5.1% |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.5% |
Church & Dwight Co., Inc. | | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
| | |
Hartford Financial Services Group, Inc. | | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
| | |
| | |
| | |
| | |
|
25
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 8.2% |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Live Nation Entertainment, Inc. * | | |
| | |
Meta Platforms, Inc., Class A | | |
| | |
| | |
| | |
Paramount Global, Class B | | |
Take-Two Interactive Software, Inc. * | | |
| | |
Warner Bros Discovery, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.1% |
| | |
Agilent Technologies, Inc. | | |
| | |
| | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.1% |
CBRE Group, Inc., Class A * | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 10.1% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 11.3% |
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
| | |
Cadence Design Systems, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
Schwab Equity Index Funds | Semiannual Report
26
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
|
Technology Hardware & Equipment 7.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
Seagate Technology Holdings PLC | | |
Super Micro Computer, Inc. * | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.9% |
| | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
American Airlines Group, Inc. * | | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
Uber Technologies, Inc. * | | |
| | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $37,812,019,080) | |
Total Investments in Securities
(Cost $37,812,019,080) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| Issuer is affiliated with the fund’s investment adviser. |
27
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2024:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.3% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Equity Index Funds | Semiannual Report
28
Schwab S&P 500 Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $106,772,735) | | |
Investments in securities, at value - unaffiliated issuers (cost $37,705,246,345) | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
29
Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $158,849) | | |
| | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Equity Index Funds | Semiannual Report
30
Schwab S&P 500 Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
31
Schwab Equity Index Funds | Semiannual Report
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report
32
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.7% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
| | |
| | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Rivian Automotive, Inc., Class A *(a) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
| | |
| | |
AZEK Co., Inc., Class A * | | |
Beacon Roofing Supply, Inc. * | | |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Franklin Electric Co., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
33
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Sensata Technologies Holding PLC | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
Watts Water Technologies, Inc., Class A | | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 1.5% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
| | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
Republic Services, Inc., Class A | | |
| | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Verisk Analytics, Inc., Class A | | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.6% |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
34
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ralph Lauren Corp., Class A | | |
| | |
Skechers USA, Inc., Class A * | | |
| | |
Taylor Morrison Home Corp., Class A * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc., Class A * | | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
| | |
| | |
Hilton Grand Vacations, Inc. * | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
| | |
| | |
Marriott International, Inc., Class A | | |
| | |
MGM Resorts International * | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
| | |
Texas Roadhouse, Inc., Class A | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.8% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Performance Food Group Co. * | | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
Baker Hughes Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
35
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
Permian Resources Corp., Class A | | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC * | | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.2% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc., Class A | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
NET Lease Office Properties | | |
| | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
Ryman Hospitality Properties, Inc. | | |
SBA Communications Corp., Class A | | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
VICI Properties, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
ARES Management Corp., Class A | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
| | |
Blue Owl Capital, Inc., Class A | | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
Corebridge Financial, Inc. (a) | | |
| | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
| | |
| | |
| | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Houlihan Lokey, Inc., Class A | | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
36
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
| | |
SoFi Technologies, Inc. *(a) | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.7% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
National Beverage Corp. * | | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
|
Health Care Equipment & Services 5.0% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Inspire Medical Systems, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
Laboratory Corp. of America Holdings | | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
Option Care Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Shockwave Medical, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.4% |
| | |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
37
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Reynolds Consumer Products, Inc. | | |
| | |
|
|
| | |
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
Erie Indemnity Co., Class A | | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
Hartford Financial Services Group, Inc. | | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
Ryan Specialty Holdings, Inc., Class A | | |
Selective Insurance Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 7.8% |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
Endeavor Group Holdings, Inc., Class A | | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
| | |
Meta Platforms, Inc., Class A | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
Schwab Equity Index Funds | Semiannual Report
38
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
Trade Desk, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
Warner Music Group Corp., Class A | | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.9% |
10X Genomics, Inc., Class A * | | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
Agilent Technologies, Inc. | | |
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
Intra-Cellular Therapies, Inc. * | | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
Sarepta Therapeutics, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
| | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
CBRE Group, Inc., Class A * | | |
| | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 9.5% |
Advanced Micro Devices, Inc. * | | |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
GLOBALFOUNDRIES, Inc. *(a) | | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 11.7% |
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
39
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Cadence Design Systems, Inc. * | | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
Confluent, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
DocuSign, Inc., Class A * | | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 7.2% |
Advanced Energy Industries, Inc. | | |
| | |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
Seagate Technology Holdings PLC | | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.8% |
| | |
| | |
Iridium Communications, Inc. | | |
Liberty Global Ltd., Class C * | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
40
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
| | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co. - Non Voting | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $3,398,153,785) | |
| | |
SHORT-TERM INVESTMENTS 0.3% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $51,606,035) | |
Total Investments in Securities
(Cost $3,449,759,820) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $10,598,858. |
| Issuer is affiliated with the fund’s investment adviser. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2024:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
41
Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Equity Index Funds | Semiannual Report
42
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $4,611,974) | | |
Investments in securities, at value - unaffiliated issuers (cost $3,445,147,846) including securities on loan of $10,598,858 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
43
Schwab Equity Index Funds | Semiannual Report
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $33,573) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Equity Index Funds | Semiannual Report
44
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
45
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended October 31, 2019, is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report
46
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.7% OF NET ASSETS |
|
Automobiles & Components 1.3% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
Cooper-Standard Holdings, Inc. * | | |
| | |
| | |
Fox Factory Holding Corp. * | | |
| | |
Goodyear Tire & Rubber Co. * | | |
| | |
| | |
Livewire Group, Inc., Class A *(a) | | |
Luminar Technologies, Inc., Class A *(a) | | |
Modine Manufacturing Co. * | | |
| | |
| | |
Standard Motor Products, Inc. | | |
| | |
| | |
Winnebago Industries, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
Amalgamated Financial Corp. | | |
| | |
| | |
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bank of NT Butterfield & Son Ltd. | | |
| | |
| | |
Bankwell Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
Blue Ridge Bankshares, Inc. * | | |
Bridgewater Bancshares, Inc. * | | |
| | |
| | |
Burke & Herbert Financial Services Corp. (a) | | |
Business First Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Capital City Bank Group, Inc. | | |
Capitol Federal Financial, Inc. | | |
Carter Bankshares, Inc. * | | |
| | |
Central Pacific Financial Corp. | | |
| | |
ChoiceOne Financial Services, Inc. | | |
Citizens & Northern Corp. | | |
Citizens Financial Services, Inc. | | |
| | |
| | |
| | |
Coastal Financial Corp. * | | |
Codorus Valley Bancorp, Inc. | | |
| | |
Columbia Financial, Inc. * | | |
Community Bank System, Inc. | | |
Community Trust Bancorp, Inc. | | |
Community West Bancshares | | |
| | |
CrossFirst Bankshares, Inc. * | | |
Customers Bancorp, Inc. * | | |
| | |
Dime Community Bancshares, Inc. | | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
Equity Bancshares, Inc., Class A | | |
Esquire Financial Holdings, Inc. | | |
| | |
| | |
Farmers & Merchants Bancorp, Inc. | | |
Farmers National Banc Corp. | | |
| | |
Fidelity D&D Bancorp, Inc. | | |
Financial Institutions, Inc. | | |
| | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
| | |
| | |
First Business Financial Services, Inc. | | |
First Commonwealth Financial Corp. | | |
First Community Bankshares, Inc. | | |
| | |
| | |
47
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
First Financial Bankshares, Inc. | | |
| | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
First Mid Bancshares, Inc. | | |
First of Long Island Corp. | | |
First Western Financial, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
German American Bancorp, Inc. | | |
| | |
Great Southern Bancorp, Inc. | | |
Greene County Bancorp, Inc. | | |
Guaranty Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
Hingham Institution For Savings (a) | | |
| | |
| | |
| | |
HomeTrust Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
John Marshall Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
Live Oak Bancshares, Inc. | | |
| | |
MainStreet Bancshares, Inc. | | |
| | |
Metrocity Bankshares, Inc. | | |
Metropolitan Bank Holding Corp. * | | |
| | |
| | |
Midland States Bancorp, Inc. | | |
MidWestOne Financial Group, Inc. | | |
| | |
National Bank Holdings Corp., Class A | | |
National Bankshares, Inc. | | |
| | |
| | |
| | |
Northeast Community Bancorp, Inc. | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
| | |
| | |
OceanFirst Financial Corp. | | |
| | |
| | |
| | |
| | |
Orange County Bancorp, Inc. | | |
| | |
Orrstown Financial Services, Inc. | | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
Peapack-Gladstone Financial Corp. | | |
Penns Woods Bancorp, Inc. | | |
| | |
Peoples Financial Services Corp. | | |
| | |
| | |
Ponce Financial Group, Inc. * | | |
| | |
| | |
| | |
| | |
Provident Financial Services, Inc. | | |
| | |
| | |
Red River Bancshares, Inc. | | |
| | |
Republic Bancorp, Inc., Class A | | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
| | |
| | |
Simmons First National Corp., Class A | | |
| | |
South Plains Financial, Inc. | | |
Southern First Bancshares, Inc. * | | |
Southern Missouri Bancorp, Inc. | | |
Southern States Bancshares, Inc. | | |
Southside Bancshares, Inc. | | |
| | |
| | |
| | |
Stock Yards Bancorp, Inc. | | |
Summit Financial Group, Inc. | | |
Texas Capital Bancshares, Inc. * | | |
Third Coast Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
Triumph Financial, Inc. * | | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
USCB Financial Holdings, Inc. | | |
| | |
| | |
Virginia National Bankshares Corp. | | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
48
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Albany International Corp., Class A | | |
| | |
Alta Equipment Group, Inc. | | |
Ameresco, Inc., Class A * | | |
American Woodmark Corp. * | | |
Amprius Technologies, Inc. * | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Archer Aviation, Inc., Class A *(a) | | |
| | |
| | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
Atmus Filtration Technologies, Inc. * | | |
| | |
Babcock & Wilcox Enterprises, Inc. * | | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
Bloom Energy Corp., Class A *(a) | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
Bowman Consulting Group Ltd., Class A * | | |
Brookfield Business Corp., Class A | | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Commercial Vehicle Group, Inc. * | | |
Concrete Pumping Holdings, Inc. * | | |
Construction Partners, Inc., Class A * | | |
| | |
Custom Truck One Source, Inc. * | | |
Desktop Metal, Inc., Class A *(a) | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
Dragonfly Energy Holdings Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Energy Vault Holdings, Inc. * | | |
Enerpac Tool Group Corp., Class A | | |
| | |
| | |
| | |
Eos Energy Enterprises, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Franklin Electric Co., Inc. | | |
| | |
| | |
FuelCell Energy, Inc. *(a) | | |
| | |
Gencor Industries, Inc. * | | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
| | |
GrafTech International Ltd. | | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
| | |
| | |
H&E Equipment Services, Inc. | | |
Helios Technologies, Inc. | | |
| | |
| | |
Hillman Solutions Corp. * | | |
Hudson Technologies, Inc. * | | |
| | |
Hyster-Yale Materials Handling, Inc. | | |
| | |
| | |
| | |
Janus International Group, Inc. * | | |
| | |
John Bean Technologies Corp. | | |
| | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Masonite International Corp. * | | |
| | |
Mayville Engineering Co., Inc. * | | |
| | |
Microvast Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
49
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Quanex Building Products Corp. | | |
| | |
Resideo Technologies, Inc. * | | |
| | |
| | |
Rush Enterprises, Inc., Class A | | |
Rush Enterprises, Inc., Class B | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
| | |
Simpson Manufacturing Co., Inc. | | |
SKYX Platforms Corp. *(a) | | |
Southland Holdings, Inc. * | | |
| | |
Standex International Corp. | | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
Terran Orbital Corp. *(a) | | |
Thermon Group Holdings, Inc. * | | |
Titan International, Inc. * | | |
| | |
TPI Composites, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Virgin Galactic Holdings, Inc. * | | |
| | |
Watts Water Technologies, Inc., Class A | | |
Willis Lease Finance Corp. * | | |
Xometry, Inc., Class A *(a) | | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 4.1% |
| | |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
Aris Water Solutions, Inc., Class A | | |
| | |
| | |
Barrett Business Services, Inc. | | |
Blacksky Technology, Inc. * | | |
BrightView Holdings, Inc. * | | |
| | |
Casella Waste Systems, Inc., Class A * | | |
| | |
CECO Environmental Corp. * | | |
| | |
CompX International, Inc. | | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
FiscalNote Holdings, Inc. * | | |
Forrester Research, Inc. * | | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
HireRight Holdings Corp. * | | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
| | |
| | |
Li-Cycle Holdings Corp. * | | |
Liquidity Services, Inc. * | | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
| | |
Performant Financial Corp. * | | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Verra Mobility Corp., Class A * | | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 2.8% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
Big 5 Sporting Goods Corp. | | |
| | |
Boot Barn Holdings, Inc. * | | |
Schwab Equity Index Funds | Semiannual Report
50
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Build-A-Bear Workshop, Inc. | | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
| | |
| | |
Children's Place, Inc. *(a) | | |
ContextLogic, Inc., Class A * | | |
Designer Brands, Inc., Class A | | |
Destination XL Group, Inc. * | | |
| | |
Duluth Holdings, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
Lazydays Holdings, Inc. * | | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
| | |
OneWater Marine, Inc., Class A * | | |
| | |
Qurate Retail, Inc., Class B * | | |
Rent the Runway, Inc., Class A *(a) | | |
| | |
Sally Beauty Holdings, Inc. * | | |
Savers Value Village, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
| | |
Tile Shop Holdings, Inc. * | | |
| | |
Torrid Holdings, Inc. *(a) | | |
| | |
| | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.2% |
| | |
Allbirds, Inc., Class A * | | |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
Dream Finders Homes, Inc., Class A * | | |
| | |
Ethan Allen Interiors, Inc. | | |
| | |
| | |
| | |
| | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
| | |
| | |
| | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
| | |
Johnson Outdoors, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
MasterCraft Boat Holdings, Inc. * | | |
| | |
| | |
| | |
Purple Innovation, Inc., Class A * | | |
| | |
| | |
Smith & Wesson Brands, Inc. | | |
Snap One Holdings Corp. * | | |
Solo Brands, Inc., Class A * | | |
| | |
| | |
| | |
Taylor Morrison Home Corp., Class A * | | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
United Homes Group, Inc. * | | |
| | |
| | |
Vizio Holding Corp., Class A * | | |
VOXX International Corp., Class A * | | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
|
|
| | |
Accel Entertainment, Inc., Class A * | | |
Adtalem Global Education, Inc. * | | |
| | |
Biglari Holdings, Inc., Class B * | | |
| | |
| | |
Bowlero Corp., Class A (a) | | |
Brinker International, Inc. * | | |
Carriage Services, Inc., Class A | | |
Carrols Restaurant Group, Inc. | | |
| | |
| | |
| | |
| | |
51
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Cracker Barrel Old Country Store, Inc. (a) | | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
| | |
El Pollo Loco Holdings, Inc. * | | |
European Wax Center, Inc., Class A * | | |
| | |
First Watch Restaurant Group, Inc. * | | |
| | |
Full House Resorts, Inc. * | | |
Global Business Travel Group I * | | |
Golden Entertainment, Inc. | | |
Graham Holdings Co., Class B | | |
Hilton Grand Vacations, Inc. * | | |
Inspired Entertainment, Inc. * | | |
International Game Technology PLC | | |
| | |
| | |
Kura Sushi USA, Inc., Class A * | | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
Lincoln Educational Services Corp. * | | |
Lindblad Expeditions Holdings, Inc. * | | |
Monarch Casino & Resort, Inc. | | |
Mondee Holdings, Inc., Class A *(a) | | |
| | |
| | |
| | |
ONE Group Hospitality, Inc. * | | |
OneSpaWorld Holdings Ltd. * | | |
Papa John's International, Inc. | | |
| | |
| | |
Portillo's, Inc., Class A * | | |
| | |
RCI Hospitality Holdings, Inc. | | |
Red Robin Gourmet Burgers, Inc. * | | |
Red Rock Resorts, Inc., Class A | | |
Rush Street Interactive, Inc. * | | |
| | |
Shake Shack, Inc., Class A * | | |
Six Flags Entertainment Corp. * | | |
Strategic Education, Inc. | | |
| | |
| | |
Sweetgreen, Inc., Class A * | | |
Target Hospitality Corp. * | | |
| | |
United Parks & Resorts, Inc. * | | |
Universal Technical Institute, Inc. * | | |
| | |
Xponential Fitness, Inc., Class A * | | |
| | |
|
Consumer Staples Distribution & Retail 0.6% |
| | |
| | |
| | |
Ingles Markets, Inc., Class A | | |
Natural Grocers by Vitamin Cottage, Inc. | | |
| | |
| | |
Sprouts Farmers Market, Inc. * | | |
United Natural Foods, Inc. * | | |
| | |
Village Super Market, Inc., Class A | | |
| | |
| | |
|
|
| | |
| | |
| | |
Atlas Energy Solutions, Inc., Class A | | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
Centrus Energy Corp., Class A * | | |
| | |
| | |
| | |
Clean Energy Fuels Corp. * | | |
| | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
Delek U.S. Holdings, Inc. | | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
Empire Petroleum Corp. *(a) | | |
| | |
| | |
Equitrans Midstream Corp. | | |
Evolution Petroleum Corp. | | |
Excelerate Energy, Inc., Class A | | |
Expro Group Holdings NV * | | |
| | |
Forum Energy Technologies, Inc. * | | |
| | |
| | |
| | |
Granite Ridge Resources, Inc. | | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
HighPeak Energy, Inc. (a) | | |
International Seaways, Inc. | | |
Kinetik Holdings, Inc., Class A | | |
KLX Energy Services Holdings, Inc. *(a) | | |
Kodiak Gas Services, Inc. | | |
| | |
Liberty Energy, Inc., Class A | | |
Magnolia Oil & Gas Corp., Class A | | |
Mammoth Energy Services, Inc. * | | |
| | |
| | |
| | |
NACCO Industries, Inc., Class A | | |
Newpark Resources, Inc. * | | |
| | |
| | |
Nordic American Tankers Ltd. | | |
| | |
Schwab Equity Index Funds | Semiannual Report
52
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
Overseas Shipholding Group, Inc., Class A | | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
Permian Resources Corp., Class A | | |
PrimeEnergy Resources Corp. * | | |
ProFrac Holding Corp., Class A * | | |
| | |
Ranger Energy Services, Inc. | | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
| | |
| | |
SEACOR Marine Holdings, Inc. * | | |
| | |
Select Water Solutions, Inc. | | |
| | |
SilverBow Resources, Inc. * | | |
Sitio Royalties Corp., Class A | | |
| | |
Solaris Oilfield Infrastructure, Inc., Class A | | |
| | |
| | |
Teekay Tankers Ltd., Class A | | |
| | |
TETRA Technologies, Inc. * | | |
| | |
U.S. Silica Holdings, Inc. * | | |
| | |
| | |
| | |
Verde Clean Fuels, Inc. * | | |
| | |
| | |
| | |
| | |
Weatherford International PLC * | | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 5.0% |
| | |
Alexander & Baldwin, Inc. | | |
| | |
Alpine Income Property Trust, Inc. | | |
American Assets Trust, Inc. | | |
Apartment Investment & Management Co., Class A * | | |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
Braemar Hotels & Resorts, Inc. | | |
| | |
Broadstone Net Lease, Inc. | | |
| | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Community Healthcare Trust, Inc. | | |
| | |
| | |
DiamondRock Hospitality Co. | | |
Diversified Healthcare Trust (b) | | |
| | |
Easterly Government Properties, Inc., Class A | | |
| | |
Empire Resorts, Inc. *(c) | | |
Empire State Realty Trust, Inc., Class A | | |
| | |
Essential Properties Realty Trust, Inc. | | |
| | |
Four Corners Property Trust, Inc. | | |
| | |
Gladstone Commercial Corp. | | |
| | |
Global Medical REIT, Inc. | | |
| | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
National Health Investors, Inc. | | |
| | |
NexPoint Diversified Real Estate Trust | | |
NexPoint Residential Trust, Inc. | | |
Office Properties Income Trust | | |
One Liberty Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Phillips Edison & Co., Inc. | | |
Piedmont Office Realty Trust, Inc., Class A | | |
Plymouth Industrial REIT, Inc. | | |
Postal Realty Trust, Inc., Class A | | |
| | |
Retail Opportunity Investments Corp. | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
Universal Health Realty Income Trust | | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
53
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
|
| | |
| | |
| | |
| | |
A-Mark Precious Metals, Inc. | | |
Angel Oak Mortgage REIT, Inc. | | |
Apollo Commercial Real Estate Finance, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
Ares Commercial Real Estate Corp. | | |
ARMOUR Residential REIT, Inc. | | |
Artisan Partners Asset Management, Inc., Class A | | |
AssetMark Financial Holdings, Inc. * | | |
Atlanticus Holdings Corp. * | | |
AvidXchange Holdings, Inc. * | | |
B Riley Financial, Inc. (a) | | |
| | |
Banco Latinoamericano de Comercio Exterior SA, Class E | | |
| | |
Blackstone Mortgage Trust, Inc., Class A | | |
Bread Financial Holdings, Inc. | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc., Class A | | |
| | |
| | |
Cass Information Systems, Inc. | | |
Chicago Atlantic Real Estate Finance, Inc. | | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
Compass Diversified Holdings | | |
Consumer Portfolio Services, Inc. * | | |
Diamond Hill Investment Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
Ellington Financial, Inc. | | |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
| | |
Federal Agricultural Mortgage Corp., Class C | | |
Finance of America Cos., Inc., Class A * | | |
| | |
| | |
Forge Global Holdings, Inc. * | | |
Franklin BSP Realty Trust, Inc. | | |
GCM Grosvenor, Inc., Class A | | |
Granite Point Mortgage Trust, Inc. | | |
Green Dot Corp., Class A * | | |
Hamilton Lane, Inc., Class A | | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | |
I3 Verticals, Inc., Class A * | | |
International Money Express, Inc. * | | |
Invesco Mortgage Capital, Inc. | | |
Jackson Financial, Inc., Class A | | |
KKR Real Estate Finance Trust, Inc. | | |
Ladder Capital Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NerdWallet, Inc., Class A * | | |
New York Mortgage Trust, Inc. | | |
| | |
Nexpoint Real Estate Finance, Inc. | | |
NMI Holdings, Inc., Class A * | | |
| | |
Open Lending Corp., Class A * | | |
| | |
Orchid Island Capital, Inc. (a) | | |
| | |
Pagseguro Digital Ltd., Class A * | | |
Patria Investments Ltd., Class A | | |
| | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
Perella Weinberg Partners, Class A | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
Priority Technology Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Regional Management Corp. | | |
| | |
Repay Holdings Corp., Class A * | | |
Security National Financial Corp., Class A * | | |
Silvercrest Asset Management Group, Inc., Class A | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
| | |
TPG RE Finance Trust, Inc. | | |
Two Harbors Investment Corp. | | |
Upstart Holdings, Inc. *(a) | | |
| | |
Velocity Financial, Inc. * | | |
Victory Capital Holdings, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
Waterstone Financial, Inc. | | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 1.5% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Schwab Equity Index Funds | Semiannual Report
54
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Duckhorn Portfolio, Inc. * | | |
| | |
Fresh Del Monte Produce, Inc. | | |
Hain Celestial Group, Inc. * | | |
Ispire Technology, Inc. * | | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
| | |
| | |
National Beverage Corp. * | | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
| | |
Turning Point Brands, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 5.5% |
23andMe Holding Co., Class A * | | |
| | |
| | |
AdaptHealth Corp., Class A * | | |
| | |
| | |
AirSculpt Technologies, Inc. *(a) | | |
Alignment Healthcare, Inc. * | | |
Alphatec Holdings, Inc. * | | |
American Well Corp., Class A * | | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Aveanna Healthcare Holdings, Inc. * | | |
| | |
| | |
| | |
BrightSpring Health Services, Inc. * | | |
Brookdale Senior Living, Inc. * | | |
Butterfly Network, Inc. *(a) | | |
| | |
Castle Biosciences, Inc. * | | |
| | |
| | |
Community Health Systems, Inc. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
Definitive Healthcare Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
InfuSystem Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
iRhythm Technologies, Inc. * | | |
| | |
KORU Medical Systems, Inc. * | | |
Lantheus Holdings, Inc. * | | |
| | |
LifeStance Health Group, Inc. * | | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
| | |
National HealthCare Corp. | | |
| | |
| | |
| | |
| | |
OmniAb, Inc., Class A *(c) | | |
OmniAb, Inc., Class B *(c) | | |
| | |
| | |
| | |
Option Care Health, Inc. * | | |
OraSure Technologies, Inc. * | | |
Orchestra BioMed Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
P3 Health Partners, Inc. *(a) | | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
Pulse Biosciences, Inc. *(a) | | |
Quipt Home Medical Corp. * | | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Semler Scientific, Inc. * | | |
| | |
| | |
| | |
Silk Road Medical, Inc. * | | |
| | |
55
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Tactile Systems Technology, Inc. * | | |
| | |
TransMedics Group, Inc. * | | |
Treace Medical Concepts, Inc. * | | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
Utah Medical Products, Inc. | | |
| | |
Vicarious Surgical, Inc. * | | |
Viemed Healthcare, Inc. * | | |
| | |
| | |
| | |
|
Household & Personal Products 1.2% |
| | |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
Edgewell Personal Care Co. | | |
| | |
| | |
| | |
| | |
| | |
Nature's Sunshine Products, Inc. * | | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
USANA Health Sciences, Inc. * | | |
Waldencast PLC, Class A *(a) | | |
| | |
| | |
|
|
Ambac Financial Group, Inc. * | | |
American Coastal Insurance Corp., Class C * | | |
American Equity Investment Life Holding Co. | | |
| | |
BRP Group, Inc., Class A * | | |
CNO Financial Group, Inc. | | |
| | |
Donegal Group, Inc., Class A | | |
| | |
| | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelis Insurance Holdings Ltd. (a) | | |
Genworth Financial, Inc., Class A * | | |
GoHealth, Inc., Class A * | | |
Goosehead Insurance, Inc., Class A * | | |
Greenlight Capital Re Ltd., Class A * | | |
Hamilton Insurance Group Ltd., Class B * | | |
| | |
| | |
Horace Mann Educators Corp. | | |
| | |
James River Group Holdings Ltd. | | |
Kingsway Financial Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
National Western Life Group, Inc., Class A | | |
| | |
Oscar Health, Inc., Class A * | | |
| | |
| | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
| | |
| | |
Skyward Specialty Insurance Group, Inc. * | | |
Stewart Information Services Corp. | | |
| | |
| | |
| | |
Universal Insurance Holdings, Inc. | | |
| | |
|
|
5E Advanced Materials, Inc. *(a) | | |
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Caledonia Mining Corp. PLC | | |
Carpenter Technology Corp. | | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
Constellium SE, Class A * | | |
| | |
Core Molding Technologies, Inc. * | | |
| | |
Danimer Scientific, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Minerals Technologies, Inc. | | |
| | |
Schwab Equity Index Funds | Semiannual Report
56
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
NioCorp Developments Ltd. *(a) | | |
Novagold Resources, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Perpetua Resources Corp. * | | |
| | |
PureCycle Technologies, Inc. *(a) | | |
| | |
Radius Recycling, Inc., Class A | | |
Ramaco Resources, Inc., Class A | | |
Ramaco Resources, Inc., Class B | | |
Ranpak Holdings Corp., Class A * | | |
Rayonier Advanced Materials, Inc. * | | |
| | |
Sensient Technologies Corp. | | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
U.S. Lime & Minerals, Inc. | | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 1.7% |
Advantage Solutions, Inc. * | | |
AMC Networks, Inc., Class A * | | |
Atlanta Braves Holdings, Inc., Class C * | | |
Boston Omaha Corp., Class A * | | |
| | |
| | |
| | |
| | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
| | |
EchoStar Corp., Class A * | | |
| | |
Entravision Communications Corp., Class A | | |
Eventbrite, Inc., Class A * | | |
EverQuote, Inc., Class A * | | |
EW Scripps Co., Class A * | | |
| | |
Gambling.com Group Ltd. * | | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
| | |
Integral Ad Science Holding Corp. * | | |
John Wiley & Sons, Inc., Class A | | |
Lions Gate Entertainment Corp., Class A * | | |
| | |
Madison Square Garden Entertainment Corp., Class A * | | |
| | |
| | |
| | |
MediaAlpha, Inc., Class A * | | |
Nextdoor Holdings, Inc. * | | |
| | |
| | |
PubMatic, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Sphere Entertainment Co. * | | |
Stagwell, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Townsquare Media, Inc., Class A | | |
| | |
| | |
Urban One, Inc., Class A * | | |
| | |
Vivid Seats, Inc., Class A * | | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 9.4% |
| | |
4D Molecular Therapeutics, Inc. * | | |
| | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
| | |
Aclaris Therapeutics, Inc. * | | |
Acrivon Therapeutics, Inc. * | | |
Actinium Pharmaceuticals, Inc. * | | |
Adaptive Biotechnologies Corp. * | | |
| | |
| | |
Aerovate Therapeutics, Inc. * | | |
| | |
Agios Pharmaceuticals, Inc. * | | |
Akero Therapeutics, Inc. * | | |
Akoya Biosciences, Inc. *(a) | | |
Aldeyra Therapeutics, Inc. * | | |
| | |
| | |
| | |
Allogene Therapeutics, Inc. * | | |
| | |
Alpine Immune Sciences, Inc. * | | |
| | |
ALX Oncology Holdings, Inc. *(a) | | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
Amylyx Pharmaceuticals, Inc. * | | |
| | |
Anavex Life Sciences Corp. *(a) | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
| | |
Apogee Therapeutics, Inc. * | | |
Arbutus Biopharma Corp. * | | |
57
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
| | |
ArriVent Biopharma, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
ARS Pharmaceuticals, Inc. * | | |
| | |
Assertio Holdings, Inc. * | | |
Astria Therapeutics, Inc. * | | |
Atara Biotherapeutics, Inc. * | | |
Atea Pharmaceuticals, Inc. * | | |
| | |
Aurinia Pharmaceuticals, Inc. * | | |
| | |
Avidity Biosciences, Inc. * | | |
| | |
Axsome Therapeutics, Inc. * | | |
Beam Therapeutics, Inc. * | | |
| | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
BioLife Solutions, Inc. * | | |
| | |
| | |
| | |
Bioxcel Therapeutics, Inc. *(a) | | |
| | |
Blueprint Medicines Corp. * | | |
| | |
| | |
| | |
Cara Therapeutics, Inc. * | | |
| | |
Cargo Therapeutics, Inc. *(a) | | |
Caribou Biosciences, Inc. * | | |
Carisma Therapeutics, Inc. *(a) | | |
Cartesian Therapeutics, Inc. *(a) | | |
Cassava Sciences, Inc. *(a) | | |
Catalyst Pharmaceuticals, Inc. * | | |
| | |
Celldex Therapeutics, Inc. * | | |
Century Therapeutics, Inc. * | | |
Cerevel Therapeutics Holdings, Inc. * | | |
| | |
Citius Pharmaceuticals, Inc. * | | |
| | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Compass Therapeutics, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
| | |
Crinetics Pharmaceuticals, Inc. * | | |
| | |
| | |
Cullinan Therapeutics, Inc. * | | |
Cytek Biosciences, Inc. * | | |
| | |
Day One Biopharmaceuticals, Inc. * | | |
Deciphera Pharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
Design Therapeutics, Inc. * | | |
| | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Eagle Pharmaceuticals, Inc. * | | |
| | |
Edgewise Therapeutics, Inc. * | | |
| | |
Emergent BioSolutions, Inc. *(b) | | |
Enanta Pharmaceuticals, Inc. * | | |
Enliven Therapeutics, Inc. *(a) | | |
Entrada Therapeutics, Inc. * | | |
| | |
| | |
| | |
EyePoint Pharmaceuticals, Inc. * | | |
Fate Therapeutics, Inc. * | | |
Fennec Pharmaceuticals, Inc. * | | |
| | |
Foghorn Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Harvard Bioscience, Inc. * | | |
Heron Therapeutics, Inc. * | | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
Immuneering Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
Iovance Biotherapeutics, Inc. * | | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
iTeos Therapeutics, Inc. * | | |
Janux Therapeutics, Inc. * | | |
KalVista Pharmaceuticals, Inc. * | | |
Karyopharm Therapeutics, Inc. * | | |
Keros Therapeutics, Inc. * | | |
Kezar Life Sciences, Inc. * | | |
Kiniksa Pharmaceuticals Ltd., Class A * | | |
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Larimar Therapeutics, Inc. * | | |
| | |
Lexeo Therapeutics, Inc. * | | |
Lexicon Pharmaceuticals, Inc. *(a) | | |
Ligand Pharmaceuticals, Inc. * | | |
Lineage Cell Therapeutics, Inc. * | | |
| | |
Longboard Pharmaceuticals, Inc. * | | |
Lyell Immunopharma, Inc. * | | |
| | |
Madrigal Pharmaceuticals, Inc. * | | |
| | |
Marinus Pharmaceuticals, Inc. * | | |
| | |
| | |
Merrimack Pharmaceuticals, Inc. * | | |
Mersana Therapeutics, Inc. * | | |
Schwab Equity Index Funds | Semiannual Report
58
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Mineralys Therapeutics, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
Monte Rosa Therapeutics, Inc. *(a) | | |
| | |
| | |
| | |
Nautilus Biotechnology, Inc. * | | |
Neumora Therapeutics, Inc. *(a) | | |
| | |
| | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
Nuvectis Pharma, Inc. *(a) | | |
| | |
Ocular Therapeutix, Inc. * | | |
Olema Pharmaceuticals, Inc. * | | |
Omega Therapeutics, Inc. *(a) | | |
| | |
| | |
| | |
Organogenesis Holdings, Inc., Class A * | | |
ORIC Pharmaceuticals, Inc. * | | |
Outlook Therapeutics, Inc. * | | |
Ovid therapeutics, Inc. * | | |
Pacific Biosciences of California, Inc. * | | |
Pacira BioSciences, Inc. * | | |
PDS Biotechnology Corp. *(a) | | |
| | |
Phathom Pharmaceuticals, Inc. * | | |
Phibro Animal Health Corp., Class A | | |
Pliant Therapeutics, Inc. * | | |
PMV Pharmaceuticals, Inc. * | | |
Poseida Therapeutics, Inc., Class A * | | |
| | |
Prelude Therapeutics, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
Prime Medicine, Inc. *(a) | | |
| | |
Protagonist Therapeutics, Inc. * | | |
Protalix BioTherapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
RAPT Therapeutics, Inc. * | | |
Recursion Pharmaceuticals, Inc., Class A *(a) | | |
| | |
Relay Therapeutics, Inc. * | | |
Reneo Pharmaceuticals, Inc. * | | |
| | |
Revance Therapeutics, Inc. * | | |
REVOLUTION Medicines, Inc. * | | |
Rhythm Pharmaceuticals, Inc. * | | |
Rigel Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
Sage Therapeutics, Inc. * | | |
Sagimet Biosciences, Inc., Class A * | | |
Sana Biotechnology, Inc. * | | |
Sangamo Therapeutics, Inc. * | | |
| | |
Scholar Rock Holding Corp. * | | |
| | |
scPharmaceuticals, Inc. * | | |
| | |
| | |
Seres Therapeutics, Inc. * | | |
| | |
SpringWorks Therapeutics, Inc. * | | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
Syndax Pharmaceuticals, Inc. * | | |
Tango Therapeutics, Inc. * | | |
Taro Pharmaceutical Industries Ltd. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
Tenaya Therapeutics, Inc. * | | |
Terns Pharmaceuticals, Inc. * | | |
| | |
Theravance Biopharma, Inc. * | | |
Third Harmonic Bio, Inc. * | | |
Travere Therapeutics, Inc. * | | |
Trevi Therapeutics, Inc. * | | |
Turnstone Biologics Corp. * | | |
| | |
Tyra Biosciences, Inc. *(a) | | |
| | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
Vaxxinity, Inc., Class A * | | |
Ventyx Biosciences, Inc. * | | |
Vera Therapeutics, Inc., Class A * | | |
| | |
| | |
Verrica Pharmaceuticals, Inc. *(a) | | |
Verve Therapeutics, Inc. * | | |
Vigil Neuroscience, Inc. * | | |
Viking Therapeutics, Inc. * | | |
Vir Biotechnology, Inc. * | | |
Viridian Therapeutics, Inc. * | | |
| | |
Voyager Therapeutics, Inc. * | | |
WaVe Life Sciences Ltd. * | | |
X4 Pharmaceuticals, Inc. * | | |
| | |
Xeris Biopharma Holdings, Inc. * | | |
| | |
Y-mAbs Therapeutics, Inc. * | | |
Zentalis Pharmaceuticals, Inc. * | | |
Zevra Therapeutics, Inc. * | | |
| | |
| | |
| | |
|
Real Estate Management & Development 0.6% |
American Realty Investors, Inc. * | | |
Anywhere Real Estate, Inc. * | | |
| | |
Cushman & Wakefield PLC * | | |
DigitalBridge Group, Inc. | | |
| | |
eXp World Holdings, Inc. (a) | | |
| | |
| | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Maui Land & Pineapple Co., Inc. * | | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * | | |
RE/MAX Holdings, Inc., Class A | | |
| | |
59
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Stratus Properties, Inc. * | | |
| | |
Transcontinental Realty Investors, Inc. * | | |
| | |
|
Semiconductors & Semiconductor Equipment 3.1% |
ACM Research, Inc., Class A * | | |
| | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
| | |
Kulicke & Soffa Industries, Inc. | | |
MACOM Technology Solutions Holdings, Inc. * | | |
Maxeon Solar Technologies Ltd. *(a) | | |
| | |
Navitas Semiconductor Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
SMART Global Holdings, Inc. * | | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
Veeco Instruments, Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
American Software, Inc., Class A | | |
Amplitude, Inc., Class A * | | |
Appfolio, Inc., Class A * | | |
| | |
Applied Digital Corp. *(a) | | |
| | |
Aurora Innovation, Inc. * | | |
| | |
BigBear.ai Holdings, Inc. *(a) | | |
| | |
BigCommerce Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
C3.ai, Inc., Class A *(a) | | |
| | |
| | |
| | |
Clear Secure, Inc., Class A | | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
| | |
E2open Parent Holdings, Inc. * | | |
| | |
Enfusion, Inc., Class A * | | |
| | |
| | |
| | |
Expensify, Inc., Class A * | | |
| | |
Freshworks, Inc., Class A * | | |
Grid Dynamics Holdings, Inc. * | | |
| | |
Information Services Group, Inc. | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Marathon Digital Holdings, Inc. * | | |
| | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PowerSchool Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Rackspace Technology, Inc. * | | |
| | |
| | |
| | |
| | |
Sapiens International Corp. NV | | |
SEMrush Holdings, Inc., Class A * | | |
| | |
Schwab Equity Index Funds | Semiannual Report
60
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
SoundHound AI, Inc., Class A *(a) | | |
| | |
Sprinklr, Inc., Class A * | | |
Sprout Social, Inc., Class A * | | |
| | |
Squarespace, Inc., Class A * | | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
| | |
Varonis Systems, Inc., Class B * | | |
| | |
| | |
Viant Technology, Inc., Class A * | | |
Weave Communications, Inc. * | | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 5.1% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
Akoustis Technologies, Inc. * | | |
Arlo Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
Climb Global Solutions, Inc. | | |
CommScope Holding Co., Inc. * | | |
| | |
Comtech Telecommunications Corp. * | | |
| | |
| | |
| | |
| | |
Digi International, Inc. * | | |
| | |
| | |
| | |
Evolv Technologies Holdings, Inc. * | | |
| | |
| | |
FARO Technologies, Inc. * | | |
| | |
| | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
| | |
Kimball Electronics, Inc. * | | |
| | |
| | |
Lightwave Logic, Inc. *(a) | | |
| | |
| | |
Methode Electronics, Inc. | | |
| | |
Mirion Technologies, Inc., Class A * | | |
Napco Security Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Presto Automation, Inc. * | | |
Ribbon Communications, Inc. * | | |
Richardson Electronics Ltd. | | |
| | |
| | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
Vishay Precision Group, Inc. * | | |
| | |
| | |
| | |
|
Telecommunication Services 0.5% |
| | |
AST SpaceMobile, Inc., Class A *(a) | | |
| | |
Bandwidth, Inc., Class A * | | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
| | |
| | |
| | |
Liberty Latin America Ltd., Class C * | | |
Lumen Technologies, Inc. * | | |
| | |
Shenandoah Telecommunications Co. | | |
| | |
Telephone & Data Systems, Inc. | | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
| | |
Blade Air Mobility, Inc. * | | |
| | |
Covenant Logistics Group, Inc., Class A | | |
| | |
Frontier Group Holdings, Inc. * | | |
FTAI Infrastructure, Inc. | | |
Genco Shipping & Trading Ltd. | | |
| | |
Hawaiian Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
61
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
PAM Transportation Services, Inc. * | | |
Pangaea Logistics Solutions Ltd. | | |
Radiant Logistics, Inc. * | | |
| | |
| | |
| | |
Spirit Airlines, Inc. (a) | | |
Sun Country Airlines Holdings, Inc. * | | |
Universal Logistics Holdings, Inc. | | |
| | |
| | |
|
|
| | |
Altus Power, Inc., Class A * | | |
American States Water Co. | | |
Artesian Resources Corp., Class A | | |
| | |
| | |
Brookfield Infrastructure Corp., Class A | | |
| | |
California Water Service Group | | |
Chesapeake Utilities Corp. | | |
Consolidated Water Co. Ltd. | | |
Genie Energy Ltd., Class B | | |
Global Water Resources, Inc. | | |
| | |
| | |
Montauk Renewables, Inc. * | | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
Northwestern Energy Group, Inc. | | |
| | |
| | |
| | |
| | |
Portland General Electric Co. | | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
Sunnova Energy International, Inc. *(a) | | |
| | |
| | |
| | |
Total Common Stocks
(Cost $4,180,444,745) | |
| | |
RIGHTS 0.0% OF NET ASSETS |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Aduro Biotech, Inc. CVR *(c) | | |
Cartesian Therapeutics, Inc. CVR *(c) | | |
| | |
Jounce Therapeutics, Inc. CVR *(c) | | |
Tobira Therapeutics, Inc. CVR *(c) | | |
| | |
Total Rights
(Cost $44,006) | |
| | |
SHORT-TERM INVESTMENTS 1.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (d)(e) | | |
Total Short-Term Investments
(Cost $68,498,560) | |
Total Investments in Securities
(Cost $4,248,987,311) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $62,833,036. |
| Issuer is an affiliated company, as the investment adviser owns at least 5% of the voting securities of such company. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
Schwab Equity Index Funds | Semiannual Report
62
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
Below is a summary of the fund’s transactions with affiliated issuers and affiliated companies which are or were affiliates during the period April 30, 2024. An affiliated company is a company in which the investment adviser has or had an ownership of at least 5% of the voting securities of a security issue during the report period. A dash in the Value at October 31, 2023, and/or Value at April 30, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.0% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.0% |
Diversified Healthcare Trust | | | | | | | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Emergent BioSolutions, Inc. | | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Equity Real Estate Investment Trusts (REITs) | | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
63
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $8,913,894) | | |
Investments in securities, at value - unaffiliated issuers (cost $4,240,073,417) including securities on loan of $62,833,036 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report
64
Schwab Small-Cap Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $75,115) | | |
| | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
65
Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
66
Schwab Total Stock Market Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| |
67
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Cooper-Standard Holdings, Inc. * | | |
| | |
| | |
Envirotech Vehicles, Inc. * | | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
| | |
| | |
Goodyear Tire & Rubber Co. * | | |
| | |
| | |
| | |
| | |
| | |
Luminar Technologies, Inc., Class A *(a) | | |
Mobileye Global, Inc., Class A *(a) | | |
Modine Manufacturing Co. * | | |
Motorcar Parts of America, Inc. * | | |
| | |
| | |
QuantumScape Corp., Class A * | | |
Rivian Automotive, Inc., Class A * | | |
Standard Motor Products, Inc. | | |
| | |
Strattec Security Corp. * | | |
Superior Industries International, Inc. * | | |
| | |
| | |
| | |
Winnebago Industries, Inc. | | |
| | |
| | |
| | |
| | |
|
|
1895 Bancorp of Wisconsin, Inc. * | | |
| | |
| | |
Affinity Bancshares, Inc. * | | |
Amalgamated Financial Corp. | | |
| | |
| | |
| | |
AmeriServ Financial, Inc. | | |
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
Auburn National BanCorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bank of the James Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Bankwell Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
| | |
| | |
Bridgewater Bancshares, Inc. * | | |
Broadway Financial Corp. * | | |
| | |
Burke & Herbert Financial Services Corp. | | |
Business First Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Capital City Bank Group, Inc. | | |
Capitol Federal Financial, Inc. | | |
Carter Bankshares, Inc. * | | |
| | |
| | |
CB Financial Services, Inc. | | |
Central Pacific Financial Corp. | | |
| | |
| | |
ChoiceOne Financial Services, Inc. | | |
| | |
Citizens & Northern Corp. | | |
Citizens Community Bancorp, Inc. | | |
Citizens Financial Group, Inc. | | |
Schwab Equity Index Funds | Semiannual Report
68
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Citizens Financial Services, Inc. | | |
| | |
| | |
| | |
Coastal Financial Corp. * | | |
Codorus Valley Bancorp, Inc. | | |
| | |
Columbia Banking System, Inc. | | |
Columbia Financial, Inc. * | | |
| | |
Commerce Bancshares, Inc. | | |
Community Bank System, Inc. | | |
Community Trust Bancorp, Inc. | | |
Community West Bancshares | | |
| | |
CrossFirst Bankshares, Inc. * | | |
Cullen/Frost Bankers, Inc. | | |
| | |
Customers Bancorp, Inc. * | | |
| | |
Dime Community Bancshares, Inc. | | |
Eagle Bancorp Montana, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
Equity Bancshares, Inc., Class A | | |
Esquire Financial Holdings, Inc. | | |
| | |
| | |
Farmers & Merchants Bancorp, Inc. | | |
Farmers National Banc Corp. | | |
| | |
Fidelity D&D Bancorp, Inc. | | |
| | |
Financial Institutions, Inc. | | |
| | |
| | |
| | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
| | |
| | |
First Business Financial Services, Inc. | | |
| | |
First Citizens BancShares, Inc., Class A | | |
First Commonwealth Financial Corp. | | |
First Community Bankshares, Inc. | | |
| | |
| | |
First Financial Bankshares, Inc. | | |
| | |
First Financial Northwest, Inc. | | |
| | |
First Guaranty Bancshares, Inc. | | |
| | |
| | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
First Mid Bancshares, Inc. | | |
| | |
| | |
| | |
First of Long Island Corp. | | |
First Savings Financial Group, Inc. | | |
First Seacoast Bancorp, Inc. * | | |
First U.S. Bancshares, Inc. | | |
| | |
First Western Financial, Inc. * | | |
| | |
| | |
| | |
| | |
Franklin Financial Services Corp. | | |
| | |
| | |
| | |
German American Bancorp, Inc. | | |
| | |
Great Southern Bancorp, Inc. | | |
Greene County Bancorp, Inc. | | |
Guaranty Bancshares, Inc. | | |
| | |
| | |
| | |
Hawthorn Bancshares, Inc. | | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
Hingham Institution For Savings (a) | | |
| | |
| | |
| | |
| | |
HomeTrust Bancshares, Inc. | | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
John Marshall Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Live Oak Bancshares, Inc. | | |
| | |
| | |
| | |
MainStreet Bancshares, Inc. | | |
| | |
| | |
Metrocity Bankshares, Inc. | | |
Metropolitan Bank Holding Corp. * | | |
| | |
| | |
Midland States Bancorp, Inc. | | |
MidWestOne Financial Group, Inc. | | |
| | |
National Bank Holdings Corp., Class A | | |
69
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
National Bankshares, Inc. | | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
| | |
Northeast Community Bancorp, Inc. | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
| | |
| | |
| | |
OceanFirst Financial Corp. | | |
| | |
| | |
| | |
Old Point Financial Corp. | | |
| | |
| | |
Orange County Bancorp, Inc. | | |
| | |
Orrstown Financial Services, Inc. | | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Peapack-Gladstone Financial Corp. | | |
Penns Woods Bancorp, Inc. | | |
Peoples Bancorp of North Carolina, Inc. | | |
| | |
Peoples Financial Services Corp. | | |
Pinnacle Financial Partners, Inc. | | |
| | |
| | |
PNC Financial Services Group, Inc. | | |
Ponce Financial Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Prosperity Bancshares, Inc. | | |
Provident Bancorp, Inc. * | | |
Provident Financial Holdings, Inc. | | |
Provident Financial Services, Inc. | | |
| | |
| | |
Red River Bancshares, Inc. | | |
| | |
| | |
Republic Bancorp, Inc., Class A | | |
Richmond Mutual BanCorp, Inc. | | |
| | |
| | |
Sandy Spring Bancorp, Inc. | | |
| | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
| | |
| | |
Simmons First National Corp., Class A | | |
| | |
| | |
Sound Financial Bancorp, Inc. | | |
South Plains Financial, Inc. | | |
Southern California Bancorp * | | |
Southern First Bancshares, Inc. * | | |
Southern Missouri Bancorp, Inc. | | |
Southern States Bancshares, Inc. | | |
Southside Bancshares, Inc. | | |
| | |
| | |
| | |
Stock Yards Bancorp, Inc. | | |
Summit Financial Group, Inc. | | |
| | |
| | |
| | |
Territorial Bancorp, Inc. | | |
Texas Capital Bancshares, Inc. * | | |
| | |
Third Coast Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
Triumph Financial, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
United Security Bancshares | | |
| | |
| | |
USCB Financial Holdings, Inc. | | |
| | |
| | |
Virginia National Bankshares Corp. | | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Western New England Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
70
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Albany International Corp., Class A | | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
Alta Equipment Group, Inc. | | |
Ameresco, Inc., Class A * | | |
American Superconductor Corp. * | | |
American Woodmark Corp. * | | |
| | |
Amprius Technologies, Inc. *(a) | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Archer Aviation, Inc., Class A *(a) | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
Atmus Filtration Technologies, Inc. * | | |
| | |
AZEK Co., Inc., Class A * | | |
| | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
Bloom Energy Corp., Class A * | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
| | |
Bowman Consulting Group Ltd., Class A * | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
Byrna Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
ChargePoint Holdings, Inc. *(a) | | |
| | |
ClearSign Technologies Corp. * | | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Commercial Vehicle Group, Inc. * | | |
Concrete Pumping Holdings, Inc. * | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
CPI Aerostructures, Inc. * | | |
| | |
| | |
| | |
| | |
Custom Truck One Source, Inc. * | | |
| | |
Desktop Metal, Inc., Class A *(a) | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Energy Vault Holdings, Inc. *(a) | | |
Enerpac Tool Group Corp., Class A | | |
| | |
| | |
| | |
Eos Energy Enterprises, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Flux Power Holdings, Inc. * | | |
| | |
Fortune Brands Innovations, Inc. | | |
Franklin Electric Co., Inc. | | |
FreightCar America, Inc. * | | |
| | |
FuelCell Energy, Inc. *(a) | | |
Gates Industrial Corp. PLC * | | |
| | |
| | |
Gencor Industries, Inc. * | | |
| | |
| | |
| | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
| | |
| | |
GrafTech International Ltd. | | |
| | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
| | |
| | |
H&E Equipment Services, Inc. | | |
| | |
| | |
Helios Technologies, Inc. | | |
| | |
| | |
| | |
Hillman Solutions Corp. * | | |
Honeywell International, Inc. | | |
| | |
| | |
Hudson Technologies, Inc. * | | |
Huntington Ingalls Industries, Inc. | | |
| | |
Hydrofarm Holdings Group, Inc. * | | |
71
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Hyster-Yale Materials Handling, Inc. | | |
| | |
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Innovative Solutions & Support, Inc. * | | |
| | |
Intuitive Machines, Inc. * | | |
| | |
Janus International Group, Inc. * | | |
| | |
John Bean Technologies Corp. | | |
Johnson Controls International PLC | | |
| | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
L B Foster Co., Class A * | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
LS Starrett Co., Class A * | | |
| | |
| | |
Manitex International, Inc. * | | |
| | |
| | |
Masonite International Corp. * | | |
| | |
| | |
| | |
Mayville Engineering Co., Inc. * | | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
Microvast Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
| | |
| | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ocean Power Technologies, Inc. * | | |
| | |
| | |
Optex Systems Holdings, Inc. * | | |
Orion Energy Systems, Inc. * | | |
Orion Group Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Perma-Pipe International Holdings, Inc. * | | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
| | |
| | |
| | |
Resideo Technologies, Inc. * | | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Rush Enterprises, Inc., Class A | | |
Rush Enterprises, Inc., Class B | | |
Sensata Technologies Holding PLC | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
| | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
SKYX Platforms Corp. *(a) | | |
| | |
Southland Holdings, Inc. * | | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
Standex International Corp. | | |
Stanley Black & Decker, Inc. | | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
| | |
Titan International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
72
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
Virgin Galactic Holdings, Inc. * | | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
Westwater Resources, Inc. * | | |
Willis Lease Finance Corp. * | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 1.6% |
| | |
| | |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
ARC Document Solutions, Inc. | | |
Aris Water Solutions, Inc., Class A | | |
| | |
| | |
Automatic Data Processing, Inc. | | |
Barrett Business Services, Inc. | | |
| | |
Blacksky Technology, Inc. * | | |
Booz Allen Hamilton Holding Corp., Class A | | |
| | |
BrightView Holdings, Inc. * | | |
| | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
Casella Waste Systems, Inc., Class A * | | |
| | |
CECO Environmental Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
FiscalNote Holdings, Inc. * | | |
Forrester Research, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
HireRight Holdings Corp. * | | |
| | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Liquidity Services, Inc. * | | |
| | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
Odyssey Marine Exploration, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
Performant Financial Corp. * | | |
Perma-Fix Environmental Services, Inc. * | | |
| | |
| | |
| | |
Quest Resource Holding Corp. * | | |
| | |
| | |
Republic Services, Inc., Class A | | |
Resources Connection, Inc. | | |
| | |
| | |
73
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Science Applications International Corp. | | |
| | |
| | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Verisk Analytics, Inc., Class A | | |
Verra Mobility Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Where Food Comes From, Inc. * | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.5% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
| | |
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
| | |
| | |
| | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
Barnes & Noble Education, Inc. * | | |
| | |
| | |
| | |
Big 5 Sporting Goods Corp. | | |
| | |
Boot Barn Holdings, Inc. * | | |
| | |
Build-A-Bear Workshop, Inc. | | |
Burlington Stores, Inc. * | | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Children's Place, Inc. *(a) | | |
| | |
ContextLogic, Inc., Class A * | | |
| | |
Designer Brands, Inc., Class A | | |
Destination XL Group, Inc. * | | |
Dick's Sporting Goods, Inc. | | |
| | |
Duluth Holdings, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
| | |
Groupon, Inc., Class A *(a) | | |
Grove Collaborative Holdings *(a) | | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lazydays Holdings, Inc. * | | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
LL Flooring Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
OneWater Marine, Inc., Class A * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
RumbleON, Inc., Class B * | | |
Sally Beauty Holdings, Inc. * | | |
Savers Value Village, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
Tandy Leather Factory, Inc. * | | |
| | |
Tile Shop Holdings, Inc. * | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
74
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.1% |
| | |
American Outdoor Brands, Inc. * | | |
| | |
| | |
Bassett Furniture Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dream Finders Homes, Inc., Class A * | | |
| | |
Ethan Allen Interiors, Inc. | | |
| | |
Flexsteel Industries, Inc. | | |
| | |
| | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
Hamilton Beach Brands Holding Co., Class A | | |
| | |
| | |
| | |
| | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
| | |
Johnson Outdoors, Inc., Class A | | |
| | |
| | |
Lakeland Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Levi Strauss & Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
MasterCraft Boat Holdings, Inc. * | | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
| | |
Purple Innovation, Inc., Class A * | | |
| | |
Ralph Lauren Corp., Class A | | |
| | |
Skechers USA, Inc., Class A * | | |
| | |
Smith & Wesson Brands, Inc. | | |
Smith Douglas Homes Corp. * | | |
Snap One Holdings Corp. * | | |
Solo Brands, Inc., Class A * | | |
| | |
| | |
| | |
Superior Group of Cos., Inc. | | |
| | |
Taylor Morrison Home Corp., Class A * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
Tupperware Brands Corp. *(a)(b) | | |
Under Armour, Inc., Class A * | | |
| | |
United Homes Group, Inc. * | | |
Universal Electronics, Inc. * | | |
| | |
| | |
| | |
Vizio Holding Corp., Class A * | | |
VOXX International Corp., Class A * | | |
| | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
| | |
| | |
|
|
| | |
Accel Entertainment, Inc., Class A * | | |
| | |
Adtalem Global Education, Inc. * | | |
| | |
American Public Education, Inc. * | | |
| | |
| | |
| | |
75
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Biglari Holdings, Inc., Class B * | | |
| | |
| | |
| | |
Bowlero Corp., Class A (a) | | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
Caesars Entertainment, Inc. * | | |
Canterbury Park Holding Corp. | | |
| | |
Carriage Services, Inc., Class A | | |
Carrols Restaurant Group, Inc. | | |
| | |
| | |
| | |
| | |
Chipotle Mexican Grill, Inc., Class A * | | |
Choice Hotels International, Inc. (a) | | |
| | |
| | |
| | |
Cracker Barrel Old Country Store, Inc. (a) | | |
| | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Dutch Bros, Inc., Class A * | | |
El Pollo Loco Holdings, Inc. * | | |
European Wax Center, Inc., Class A * | | |
| | |
| | |
First Watch Restaurant Group, Inc. * | | |
| | |
Full House Resorts, Inc. * | | |
| | |
Global Business Travel Group I * | | |
Golden Entertainment, Inc. | | |
Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
| | |
Hall of Fame Resort & Entertainment Co. *(a) | | |
Hilton Grand Vacations, Inc. * | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
Inspired Entertainment, Inc. * | | |
| | |
| | |
Kura Sushi USA, Inc., Class A * | | |
| | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
Lincoln Educational Services Corp. * | | |
Lindblad Expeditions Holdings, Inc. * | | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International * | | |
| | |
| | |
Monarch Casino & Resort, Inc. | | |
Mondee Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
ONE Group Hospitality, Inc. * | | |
OneSpaWorld Holdings Ltd. * | | |
Papa John's International, Inc. | | |
Penn Entertainment, Inc. * | | |
| | |
Planet Fitness, Inc., Class A * | | |
Playa Hotels & Resorts NV * | | |
| | |
Portillo's, Inc., Class A * | | |
| | |
Rave Restaurant Group, Inc. * | | |
RCI Hospitality Holdings, Inc. | | |
Red Robin Gourmet Burgers, Inc. * | | |
Red Rock Resorts, Inc., Class A | | |
| | |
Royal Caribbean Cruises Ltd. * | | |
Rush Street Interactive, Inc. * | | |
| | |
Service Corp. International | | |
Shake Shack, Inc., Class A * | | |
Six Flags Entertainment Corp. * | | |
| | |
| | |
Strategic Education, Inc. | | |
| | |
Sweetgreen, Inc., Class A * | | |
Target Hospitality Corp. * | | |
Texas Roadhouse, Inc., Class A | | |
| | |
| | |
United Parks & Resorts, Inc. * | | |
Universal Technical Institute, Inc. * | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
Xponential Fitness, Inc., Class A * | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.8% |
Albertsons Cos., Inc., Class A | | |
| | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
| | |
Natural Grocers by Vitamin Cottage, Inc. | | |
Performance Food Group Co. * | | |
| | |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
Schwab Equity Index Funds | Semiannual Report
76
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
U.S. Foods Holding Corp. * | | |
United Natural Foods, Inc. * | | |
Village Super Market, Inc., Class A | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
| | |
|
|
Adams Resources & Energy, Inc. | | |
| | |
American Resources Corp. *(a) | | |
| | |
| | |
| | |
| | |
| | |
Atlas Energy Solutions, Inc., Class A | | |
Baker Hughes Co., Class A | | |
| | |
| | |
| | |
California Resources Corp. | | |
Centrus Energy Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Clean Energy Fuels Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
Delek U.S. Holdings, Inc. | | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Empire Petroleum Corp. *(a) | | |
| | |
| | |
| | |
Equitrans Midstream Corp. | | |
Evolution Petroleum Corp. | | |
Excelerate Energy, Inc., Class A | | |
Expro Group Holdings NV * | | |
| | |
Forum Energy Technologies, Inc. * | | |
| | |
Geospace Technologies Corp. * | | |
Granite Ridge Resources, Inc. | | |
| | |
Gulf Island Fabrication, Inc. * | | |
| | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
| | |
| | |
HighPeak Energy, Inc. (a) | | |
Houston American Energy Corp. * | | |
Independence Contract Drilling, Inc. *(a) | | |
International Seaways, Inc. | | |
| | |
Kinetik Holdings, Inc., Class A | | |
KLX Energy Services Holdings, Inc. *(a) | | |
Kodiak Gas Services, Inc. | | |
| | |
Liberty Energy, Inc., Class A | | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
Mammoth Energy Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
NACCO Industries, Inc., Class A | | |
Natural Gas Services Group, Inc. * | | |
New Fortress Energy, Inc. | | |
Newpark Resources, Inc. * | | |
| | |
Nine Energy Service, Inc. *(a) | | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
| | |
OPAL Fuels, Inc., Class A * | | |
Overseas Shipholding Group, Inc., Class A | | |
| | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
Permian Resources Corp., Class A | | |
| | |
| | |
Pioneer Natural Resources Co. | | |
PrimeEnergy Resources Corp. * | | |
| | |
ProFrac Holding Corp., Class A * | | |
| | |
| | |
Ranger Energy Services, Inc. | | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
| | |
| | |
SEACOR Marine Holdings, Inc. * | | |
Select Water Solutions, Inc. | | |
SilverBow Resources, Inc. * | | |
Sitio Royalties Corp., Class A | | |
| | |
| | |
77
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Solaris Oilfield Infrastructure, Inc., Class A | | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
TETRA Technologies, Inc. * | | |
| | |
| | |
| | |
U.S. Silica Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC * | | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.4% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
| | |
Alexandria Real Estate Equities, Inc. | | |
Alpine Income Property Trust, Inc. | | |
American Assets Trust, Inc. | | |
American Healthcare REIT, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
Apartment Investment & Management Co., Class A * | | |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
Ashford Hospitality Trust, Inc. *(b) | | |
AvalonBay Communities, Inc. | | |
Bluerock Homes Trust, Inc. | | |
| | |
Braemar Hotels & Resorts, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
Broadstone Net Lease, Inc. | | |
| | |
| | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
| | |
Community Healthcare Trust, Inc. | | |
| | |
| | |
Creative Media & Community Trust Corp. | | |
| | |
| | |
| | |
| | |
DiamondRock Hospitality Co. | | |
Digital Realty Trust, Inc. | | |
Diversified Healthcare Trust (b) | | |
| | |
Easterly Government Properties, Inc., Class A | | |
EastGroup Properties, Inc. | | |
| | |
Empire State Realty Trust, Inc., Class A | | |
| | |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essential Properties Realty Trust, Inc. | | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
| | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
Franklin Street Properties Corp., Class C | | |
Gaming & Leisure Properties, Inc. | | |
Generation Income Properties, Inc. | | |
| | |
Gladstone Commercial Corp. | | |
| | |
Global Medical REIT, Inc. | | |
| | |
Global Self Storage, Inc. | | |
Healthcare Realty Trust, Inc., Class A | | |
Healthpeak Properties, Inc. | | |
Highwoods Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
| | |
| | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
Modiv Industrial, Inc., Class C | | |
National Health Investors, Inc. | | |
National Storage Affiliates Trust | | |
NET Lease Office Properties | | |
| | |
New Century Financial Corp. *(c) | | |
NexPoint Diversified Real Estate Trust | | |
NexPoint Residential Trust, Inc. | | |
| | |
Office Properties Income Trust | | |
Omega Healthcare Investors, Inc. | | |
One Liberty Properties, Inc. | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
78
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
Phillips Edison & Co., Inc. | | |
Piedmont Office Realty Trust, Inc., Class A | | |
Plymouth Industrial REIT, Inc. | | |
Postal Realty Trust, Inc., Class A | | |
| | |
Presidio Property Trust, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
Rexford Industrial Realty, Inc. | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
SBA Communications Corp., Class A | | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
Summit Hotel Properties, Inc. | | |
| | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Universal Health Realty Income Trust | | |
| | |
| | |
| | |
VICI Properties, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
| | |
ACRES Commercial Realty Corp. | | |
| | |
Affiliated Managers Group, Inc. | | |
| | |
AG Mortgage Investment Trust, Inc. | | |
| | |
| | |
| | |
| | |
A-Mark Precious Metals, Inc. | | |
| | |
Ameriprise Financial, Inc. | | |
Angel Oak Mortgage REIT, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Commercial Real Estate Finance, Inc. | | |
| | |
Apollo Global Management, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
Ares Commercial Real Estate Corp. | | |
ARES Management Corp., Class A | | |
ARMOUR Residential REIT, Inc. | | |
Artisan Partners Asset Management, Inc., Class A | | |
AssetMark Financial Holdings, Inc. * | | |
Associated Capital Group, Inc., Class A | | |
Atlanticus Holdings Corp. * | | |
AvidXchange Holdings, Inc. * | | |
B Riley Financial, Inc. (a) | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
Better Home & Finance Holding Co. * | | |
| | |
| | |
Blackstone Mortgage Trust, Inc., Class A (a) | | |
| | |
| | |
Blue Owl Capital, Inc., Class A | | |
| | |
Bread Financial Holdings, Inc. | | |
Bridge Investment Group Holdings, Inc., Class A | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc., Class A | | |
| | |
| | |
Capital One Financial Corp. | | |
| | |
Cass Information Systems, Inc. | | |
Cboe Global Markets, Inc. | | |
| | |
Cherry Hill Mortgage Investment Corp. | | |
Chicago Atlantic Real Estate Finance, Inc. | | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
Consumer Portfolio Services, Inc. * | | |
Corebridge Financial, Inc. (a) | | |
| | |
Credit Acceptance Corp. * | | |
Diamond Hill Investment Group, Inc. | | |
Discover Financial Services | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
| | |
Ellington Financial, Inc. | | |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
| | |
| | |
FactSet Research Systems, Inc. | | |
Federal Agricultural Mortgage Corp., Class C | | |
79
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Fidelity National Information Services, Inc. | | |
Finance of America Cos., Inc., Class A * | | |
| | |
| | |
| | |
Forge Global Holdings, Inc. * | | |
Franklin BSP Realty Trust, Inc. | | |
| | |
GCM Grosvenor, Inc., Class A | | |
| | |
Goldman Sachs Group, Inc. | | |
Granite Point Mortgage Trust, Inc. | | |
| | |
Green Dot Corp., Class A * | | |
Guild Holdings Co., Class A | | |
Hamilton Lane, Inc., Class A | | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | |
| | |
Houlihan Lokey, Inc., Class A | | |
I3 Verticals, Inc., Class A * | | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
International Money Express, Inc. * | | |
| | |
Invesco Mortgage Capital, Inc. | | |
Jack Henry & Associates, Inc. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
Katapult Holdings, Inc. * | | |
| | |
KKR Real Estate Finance Trust, Inc. | | |
Ladder Capital Corp., Class A | | |
| | |
| | |
| | |
loanDepot, Inc., Class A * | | |
LPL Financial Holdings, Inc. | | |
Lument Finance Trust, Inc. | | |
Manhattan Bridge Capital, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
Mastercard, Inc., Class A | | |
Medallion Financial Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NerdWallet, Inc., Class A * | | |
New York Mortgage Trust, Inc. | | |
| | |
Nexpoint Real Estate Finance, Inc. | | |
Nicholas Financial, Inc. * | | |
| | |
NMI Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Open Lending Corp., Class A * | | |
Oportun Financial Corp. * | | |
Oppenheimer Holdings, Inc., Class A | | |
| | |
Orchid Island Capital, Inc. (a) | | |
| | |
Paymentus Holdings, Inc., Class A * | | |
| | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
Perella Weinberg Partners, Class A | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
Priority Technology Holdings, Inc. * | | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
Regional Management Corp. | | |
| | |
Repay Holdings Corp., Class A * | | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A * | | |
| | |
| | |
| | |
Security National Financial Corp., Class A * | | |
| | |
| | |
| | |
Shift4 Payments, Inc., Class A * | | |
Silvercrest Asset Management Group, Inc., Class A | | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
StepStone Group, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
TPG RE Finance Trust, Inc. | | |
| | |
Tradeweb Markets, Inc., Class A | | |
Two Harbors Investment Corp. | | |
U.S. Global Investors, Inc., Class A | | |
| | |
| | |
| | |
Velocity Financial, Inc. * | | |
Victory Capital Holdings, Inc., Class A | | |
Virtu Financial, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
80
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Waterstone Financial, Inc. | | |
| | |
Westwood Holdings Group, Inc. | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.6% |
| | |
| | |
Archer-Daniels-Midland Co. | | |
| | |
| | |
Boston Beer Co., Inc., Class A * | | |
| | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
Duckhorn Portfolio, Inc. * | | |
| | |
| | |
Fresh Del Monte Produce, Inc. | | |
| | |
| | |
Hain Celestial Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
| | |
| | |
| | |
McCormick & Co., Inc. - Non Voting Shares | | |
| | |
| | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
National Beverage Corp. * | | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
Splash Beverage Group, Inc. * | | |
Tootsie Roll Industries, Inc. | | |
| | |
| | |
Turning Point Brands, Inc. | | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
| | |
Vintage Wine Estates, Inc. * | | |
| | |
| | |
| | |
Whole Earth Brands, Inc. * | | |
| | |
| | |
| | |
|
Health Care Equipment & Services 5.0% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
AdaptHealth Corp., Class A * | | |
| | |
| | |
| | |
AirSculpt Technologies, Inc. *(a) | | |
| | |
| | |
Alignment Healthcare, Inc. * | | |
Alphatec Holdings, Inc. * | | |
| | |
American Well Corp., Class A * | | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Aveanna Healthcare Holdings, Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
| | |
| | |
Bioventus, Inc., Class A * | | |
Boston Scientific Corp. * | | |
BrightSpring Health Services, Inc. * | | |
Brookdale Senior Living, Inc. * | | |
Butterfly Network, Inc. *(a) | | |
| | |
Castle Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Clover Health Investments Corp., Class A * | | |
Community Health Systems, Inc. * | | |
| | |
| | |
81
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
Definitive Healthcare Corp., Class A * | | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
GeneDx Holdings Corp. *(a) | | |
| | |
Globus Medical, Inc., Class A * | | |
GoodRx Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
InfuSystem Holdings, Inc. * | | |
| | |
| | |
Inspire Medical Systems, Inc. * | | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Intuitive Surgical, Inc. * | | |
| | |
iRhythm Technologies, Inc. * | | |
| | |
| | |
KORU Medical Systems, Inc. * | | |
Laboratory Corp. of America Holdings | | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
| | |
LifeStance Health Group, Inc. * | | |
| | |
| | |
Lucid Diagnostics, Inc. * | | |
| | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
Milestone Scientific, Inc. * | | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
National HealthCare Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
OmniAb, Inc., Class A *(c) | | |
OmniAb, Inc., Class B *(c) | | |
| | |
| | |
| | |
Option Care Health, Inc. * | | |
OraSure Technologies, Inc. * | | |
Orchestra BioMed Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
P3 Health Partners, Inc. *(a) | | |
| | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
| | |
Pulse Biosciences, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Semler Scientific, Inc. * | | |
Senseonics Holdings, Inc. *(a) | | |
Sensus Healthcare, Inc. * | | |
| | |
Shockwave Medical, Inc. * | | |
| | |
| | |
Silk Road Medical, Inc. * | | |
| | |
| | |
Sonida Senior Living, Inc. * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
82
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Streamline Health Solutions, Inc. * | | |
| | |
| | |
| | |
Tactile Systems Technology, Inc. * | | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
| | |
| | |
TransMedics Group, Inc. * | | |
Treace Medical Concepts, Inc. * | | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Utah Medical Products, Inc. | | |
| | |
Veeva Systems, Inc., Class A * | | |
Viemed Healthcare, Inc. * | | |
| | |
| | |
Zimmer Biomet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 1.3% |
| | |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
Edgewell Personal Care Co. | | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Natural Alternatives International, Inc. * | | |
Natural Health Trends Corp. | | |
Nature's Sunshine Products, Inc. * | | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
| | |
Spectrum Brands Holdings, Inc. | | |
| | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
| | |
|
|
| | |
| | |
Ambac Financial Group, Inc. * | | |
American Coastal Insurance Corp., Class C * | | |
American Equity Investment Life Holding Co. | | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Brighthouse Financial, Inc. * | | |
| | |
BRP Group, Inc., Class A * | | |
| | |
Cincinnati Financial Corp. | | |
Citizens, Inc., Class A *(a) | | |
| | |
CNO Financial Group, Inc. | | |
| | |
Donegal Group, Inc., Class A | | |
| | |
| | |
| | |
Erie Indemnity Co., Class A | | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
| | |
GoHealth, Inc., Class A * | | |
Goosehead Insurance, Inc., Class A * | | |
Greenlight Capital Re Ltd., Class A * | | |
| | |
Hanover Insurance Group, Inc. | | |
Hartford Financial Services Group, Inc. | | |
| | |
Heritage Insurance Holdings, Inc. * | | |
| | |
Horace Mann Educators Corp. | | |
| | |
| | |
James River Group Holdings Ltd. | | |
| | |
Kingsway Financial Services, Inc. * | | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
| | |
| | |
83
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
National Western Life Group, Inc., Class A | | |
| | |
Old Republic International Corp. | | |
Oscar Health, Inc., Class A * | | |
| | |
| | |
Principal Financial Group, Inc. | | |
| | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
| | |
Ryan Specialty Holdings, Inc., Class A | | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
| | |
| | |
Skyward Specialty Insurance Group, Inc. * | | |
Stewart Information Services Corp. | | |
| | |
| | |
| | |
| | |
Universal Insurance Holdings, Inc. | | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
| | |
Air Products & Chemicals, Inc. | | |
| | |
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
American Battery Technology Co. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
Core Molding Technologies, Inc. * | | |
| | |
| | |
| | |
Danimer Scientific, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Flotek Industries, Inc. * | | |
| | |
| | |
Friedman Industries, Inc. | | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
Hycroft Mining Holding Corp. *(a) | | |
Idaho Strategic Resources, Inc. * | | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Northern Technologies International Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
Schwab Equity Index Funds | Semiannual Report
84
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
PureCycle Technologies, Inc. *(a) | | |
| | |
Radius Recycling, Inc., Class A | | |
Ramaco Resources, Inc., Class A | | |
Ramaco Resources, Inc., Class B | | |
Ranpak Holdings Corp., Class A * | | |
Rayonier Advanced Materials, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
Solitario Resources Corp. * | | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
U.S. Lime & Minerals, Inc. | | |
| | |
Universal Stainless & Alloy Products, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 7.6% |
Advantage Solutions, Inc. * | | |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Altice USA, Inc., Class A * | | |
AMC Entertainment Holdings, Inc., Class A *(a) | | |
AMC Networks, Inc., Class A * | | |
| | |
Atlanta Braves Holdings, Inc., Class C * | | |
Boston Omaha Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Charter Communications, Inc., Class A * | | |
Cinemark Holdings, Inc. * | | |
| | |
Clear Channel Outdoor Holdings, Inc. * | | |
| | |
| | |
Cumulus Media, Inc., Class A * | | |
| | |
| | |
EchoStar Corp., Class A * | | |
| | |
| | |
Endeavor Group Holdings, Inc., Class A | | |
Entravision Communications Corp., Class A | | |
Eventbrite, Inc., Class A * | | |
EverQuote, Inc., Class A * | | |
EW Scripps Co., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Getty Images Holdings, Inc. * | | |
Golden Matrix Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Integral Ad Science Holding Corp. * | | |
Interpublic Group of Cos., Inc. | | |
| | |
John Wiley & Sons, Inc., Class A | | |
| | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty Live, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Live Nation Entertainment, Inc. * | | |
| | |
Madison Square Garden Entertainment Corp., Class A * | | |
Madison Square Garden Sports Corp. * | | |
| | |
| | |
| | |
| | |
MediaAlpha, Inc., Class A * | | |
Meta Platforms, Inc., Class A | | |
National CineMedia, Inc. * | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc., Class A | | |
Nextdoor Holdings, Inc. * | | |
| | |
| | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
85
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
PubMatic, Inc., Class A * | | |
| | |
Reading International, Inc., Class B * | | |
| | |
| | |
| | |
| | |
Saga Communications, Inc., Class A | | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
| | |
Sphere Entertainment Co. * | | |
Stagwell, Inc., Class A * | | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
| | |
| | |
Townsquare Media, Inc., Class A | | |
Trade Desk, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Urban One, Inc., Class A * | | |
| | |
Vivid Seats, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
Warner Music Group Corp., Class A | | |
| | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.1% |
10X Genomics, Inc., Class A * | | |
180 Life Sciences Corp. *(a) | | |
| | |
4D Molecular Therapeutics, Inc. * | | |
| | |
| | |
Abeona Therapeutics, Inc. * | | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
| | |
Achieve Life Sciences, Inc. * | | |
Acrivon Therapeutics, Inc. * | | |
Actinium Pharmaceuticals, Inc. * | | |
Acumen Pharmaceuticals, Inc. * | | |
Adaptive Biotechnologies Corp. * | | |
| | |
| | |
Adverum Biotechnologies, Inc. * | | |
| | |
Aerovate Therapeutics, Inc. * | | |
Agilent Technologies, Inc. | | |
Agios Pharmaceuticals, Inc. * | | |
Akebia Therapeutics, Inc. * | | |
| | |
Akero Therapeutics, Inc. * | | |
Akoya Biosciences, Inc. * | | |
Alaunos Therapeutics, Inc. *(a) | | |
Aldeyra Therapeutics, Inc. * | | |
| | |
Aligos Therapeutics, Inc. * | | |
| | |
| | |
Allogene Therapeutics, Inc. * | | |
| | |
Alnylam Pharmaceuticals, Inc. * | | |
Alpine Immune Sciences, Inc. * | | |
| | |
ALX Oncology Holdings, Inc. *(a) | | |
| | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
Amylyx Pharmaceuticals, Inc. * | | |
| | |
Anavex Life Sciences Corp. *(a) | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
Anixa Biosciences, Inc. * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
Apogee Therapeutics, Inc. * | | |
Applied Therapeutics, Inc. * | | |
Aquestive Therapeutics, Inc. * | | |
Arbutus Biopharma Corp. * | | |
ARCA biopharma, Inc. *(a) | | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
| | |
ArriVent Biopharma, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
ARS Pharmaceuticals, Inc. * | | |
| | |
Assembly Biosciences, Inc. * | | |
Assertio Holdings, Inc. * | | |
Astria Therapeutics, Inc. * | | |
Atara Biotherapeutics, Inc. * | | |
Atea Pharmaceuticals, Inc. * | | |
Atossa Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Avidity Biosciences, Inc. * | | |
| | |
| | |
Axsome Therapeutics, Inc. * | | |
| | |
Beam Therapeutics, Inc. * | | |
| | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
| | |
BioLife Solutions, Inc. * | | |
BioMarin Pharmaceutical, Inc. * | | |
| | |
| | |
Biora Therapeutics, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
86
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Bioxcel Therapeutics, Inc. * | | |
Black Diamond Therapeutics, Inc. * | | |
| | |
Blueprint Medicines Corp. * | | |
Bolt Biotherapeutics, Inc. * | | |
| | |
| | |
| | |
C4 Therapeutics, Inc. *(a) | | |
| | |
Capricor Therapeutics, Inc. * | | |
| | |
| | |
Cargo Therapeutics, Inc. * | | |
Caribou Biosciences, Inc. * | | |
Cartesian Therapeutics, Inc. *(a) | | |
Cassava Sciences, Inc. *(a) | | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
| | |
Celldex Therapeutics, Inc. * | | |
| | |
Cerevel Therapeutics Holdings, Inc. * | | |
| | |
Champions Oncology, Inc. * | | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
Cidara Therapeutics, Inc. * | | |
Citius Pharmaceuticals, Inc. * | | |
Clearside Biomedical, Inc. * | | |
| | |
| | |
Cogent Biosciences, Inc. * | | |
Cognition Therapeutics, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Compass Therapeutics, Inc. * | | |
Corbus Pharmaceuticals Holdings, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
| | |
Corvus Pharmaceuticals, Inc. * | | |
Crinetics Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Cullinan Therapeutics, Inc. * | | |
| | |
Cyteir Therapeutics, Inc. *(c) | | |
Cytek Biosciences, Inc. * | | |
| | |
CytomX Therapeutics, Inc. * | | |
| | |
| | |
Day One Biopharmaceuticals, Inc. * | | |
Deciphera Pharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
| | |
DiaMedica Therapeutics, Inc. * | | |
Dianthus Therapeutics, Inc. * | | |
| | |
Dyadic International, Inc. * | | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Edgewise Therapeutics, Inc. * | | |
| | |
| | |
Elanco Animal Health, Inc. * | | |
Eledon Pharmaceuticals, Inc. * | | |
| | |
Elicio Operating Co., Inc. * | | |
Emergent BioSolutions, Inc. *(b) | | |
Enanta Pharmaceuticals, Inc. * | | |
Enliven Therapeutics, Inc. *(a) | | |
Entrada Therapeutics, Inc. * | | |
| | |
Esperion Therapeutics, Inc. * | | |
Eton Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
EyePoint Pharmaceuticals, Inc. * | | |
Fate Therapeutics, Inc. * | | |
| | |
Foghorn Therapeutics, Inc. * | | |
| | |
Fulcrum Therapeutics, Inc. * | | |
| | |
Gain Therapeutics, Inc. * | | |
Galectin Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Greenwich Lifesciences, Inc. * | | |
| | |
Gyre Therapeutics, Inc. *(a) | | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Harvard Bioscience, Inc. * | | |
Heron Therapeutics, Inc. * | | |
| | |
Homology Medicines, Inc. *(c) | | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
Immuneering Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Inovio Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
Iovance Biotherapeutics, Inc. * | | |
| | |
87
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
iTeos Therapeutics, Inc. * | | |
Janux Therapeutics, Inc. *(a) | | |
Jasper Therapeutics, Inc. * | | |
Jazz Pharmaceuticals PLC * | | |
| | |
KalVista Pharmaceuticals, Inc. * | | |
Karyopharm Therapeutics, Inc. * | | |
Keros Therapeutics, Inc. * | | |
Kezar Life Sciences, Inc. * | | |
| | |
Kiniksa Pharmaceuticals Ltd., Class A * | | |
| | |
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Kyverna Therapeutics, Inc. *(a) | | |
| | |
Larimar Therapeutics, Inc. * | | |
| | |
Lexeo Therapeutics, Inc. * | | |
Lexicon Pharmaceuticals, Inc. * | | |
Lifecore Biomedical, Inc. * | | |
Ligand Pharmaceuticals, Inc. * | | |
Lineage Cell Therapeutics, Inc. * | | |
| | |
| | |
Longboard Pharmaceuticals, Inc. * | | |
Lyell Immunopharma, Inc. * | | |
Lyra Therapeutics, Inc. * | | |
| | |
Madrigal Pharmaceuticals, Inc. * | | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
Marinus Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
Merrimack Pharmaceuticals, Inc. * | | |
Mersana Therapeutics, Inc. * | | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Mind Medicine MindMed, Inc. * | | |
Mineralys Therapeutics, Inc. * | | |
MiNK Therapeutics, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
| | |
Moleculin Biotech, Inc. * | | |
Monte Rosa Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Nautilus Biotechnology, Inc. * | | |
Nektar Therapeutics, Class A * | | |
Neumora Therapeutics, Inc. *(a) | | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
NRX Pharmaceuticals, Inc. *(a) | | |
| | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
Nuvectis Pharma, Inc. *(a) | | |
| | |
| | |
Ocular Therapeutix, Inc. * | | |
| | |
Olema Pharmaceuticals, Inc. * | | |
Omega Therapeutics, Inc. * | | |
| | |
| | |
Oncternal Therapeutics, Inc. * | | |
| | |
Organogenesis Holdings, Inc., Class A * | | |
| | |
ORIC Pharmaceuticals, Inc. * | | |
Ovid therapeutics, Inc. * | | |
Pacific Biosciences of California, Inc. * | | |
Pacira BioSciences, Inc. * | | |
Palatin Technologies, Inc. *(a) | | |
| | |
PDS Biotechnology Corp. *(a) | | |
| | |
| | |
| | |
Perspective Therapeutics, Inc. * | | |
| | |
PharmaCyte Biotech, Inc. * | | |
Phathom Pharmaceuticals, Inc. * | | |
Phibro Animal Health Corp., Class A | | |
Pliant Therapeutics, Inc. * | | |
Poseida Therapeutics, Inc., Class A * | | |
Praxis Precision Medicines, Inc. * | | |
| | |
Prelude Therapeutics, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
Prime Medicine, Inc. *(a) | | |
| | |
| | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
Puma Biotechnology, Inc. * | | |
| | |
| | |
| | |
| | |
Quince Therapeutics, Inc. * | | |
| | |
Rapid Micro Biosystems, Inc., Class A * | | |
RAPT Therapeutics, Inc. * | | |
Recursion Pharmaceuticals, Inc., Class A * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Regulus Therapeutics, Inc. *(a) | | |
Relay Therapeutics, Inc. * | | |
Relmada Therapeutics, Inc. * | | |
Reneo Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Revance Therapeutics, Inc. * | | |
Reviva Pharmaceuticals Holdings, Inc. * | | |
Schwab Equity Index Funds | Semiannual Report
88
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
REVOLUTION Medicines, Inc. * | | |
| | |
| | |
Rhythm Pharmaceuticals, Inc. * | | |
Rigel Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
| | |
Royalty Pharma PLC, Class A | | |
SAB Biotherapeutics, Inc. * | | |
Sage Therapeutics, Inc. * | | |
Sana Biotechnology, Inc. * | | |
Sangamo Therapeutics, Inc. * | | |
Sarepta Therapeutics, Inc. * | | |
| | |
Scholar Rock Holding Corp. * | | |
| | |
scPharmaceuticals, Inc. * | | |
| | |
SELLAS Life Sciences Group, Inc. *(a) | | |
Sera Prognostics, Inc., Class A * | | |
| | |
| | |
Soleno Therapeutics, Inc. * | | |
Solid Biosciences, Inc. * | | |
| | |
Spero Therapeutics, Inc. * | | |
SpringWorks Therapeutics, Inc. * | | |
Spruce Biosciences, Inc. * | | |
Spyre Therapeutics, Inc. * | | |
Standard BioTools, Inc. * | | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
Syndax Pharmaceuticals, Inc. * | | |
Syros Pharmaceuticals, Inc. * | | |
| | |
Tango Therapeutics, Inc. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
Taysha Gene Therapies, Inc. * | | |
Tenaya Therapeutics, Inc. * | | |
Terns Pharmaceuticals, Inc. * | | |
| | |
| | |
Theravance Biopharma, Inc. * | | |
Theriva Biologics, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
Third Harmonic Bio, Inc. * | | |
| | |
Travere Therapeutics, Inc. * | | |
Trevi Therapeutics, Inc. * | | |
TScan Therapeutics, Inc. * | | |
| | |
Tyra Biosciences, Inc. *(a) | | |
Ultragenyx Pharmaceutical, Inc. * | | |
| | |
United Therapeutics Corp. * | | |
UNITY Biotechnology, Inc. * | | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
| | |
Vaxxinity, Inc., Class A * | | |
Ventyx Biosciences, Inc. * | | |
Vera Therapeutics, Inc., Class A * | | |
| | |
| | |
| | |
Verrica Pharmaceuticals, Inc. *(a) | | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
Verve Therapeutics, Inc. * | | |
| | |
Vigil Neuroscience, Inc. * | | |
Viking Therapeutics, Inc. * | | |
Vir Biotechnology, Inc. * | | |
Viridian Therapeutics, Inc. * | | |
Vistagen Therapeutics, Inc. * | | |
| | |
Voyager Therapeutics, Inc. * | | |
| | |
WaVe Life Sciences Ltd. * | | |
Werewolf Therapeutics, Inc. * | | |
West Pharmaceutical Services, Inc. | | |
X4 Pharmaceuticals, Inc. * | | |
| | |
| | |
Xeris Biopharma Holdings, Inc. * | | |
Xilio Therapeutics, Inc. * | | |
| | |
Y-mAbs Therapeutics, Inc. * | | |
Zentalis Pharmaceuticals, Inc. * | | |
Zevra Therapeutics, Inc. * | | |
| | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
Altisource Portfolio Solutions SA * | | |
| | |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
| | |
| | |
Cushman & Wakefield PLC * | | |
DigitalBridge Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Howard Hughes Holdings, Inc. * | | |
| | |
Jones Lang LaSalle, Inc. * | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Maui Land & Pineapple Co., Inc. * | | |
Newmark Group, Inc., Class A | | |
Offerpad Solutions, Inc. * | | |
Opendoor Technologies, Inc. * | | |
Rafael Holdings, Inc., Class B * | | |
RE/MAX Holdings, Inc., Class A | | |
| | |
| | |
Seritage Growth Properties, Class A * | | |
| | |
| | |
Stratus Properties, Inc. * | | |
| | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 9.2% |
ACM Research, Inc., Class A * | | |
Advanced Micro Devices, Inc. * | | |
89
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
| | |
Everspin Technologies, Inc. * | | |
| | |
| | |
GSI Technology, Inc. *(a) | | |
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
Navitas Semiconductor Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rigetti Computing, Inc. * | | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
| | |
SMART Global Holdings, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Trio-Tech International * | | |
Ultra Clean Holdings, Inc. * | | |
| | |
Veeco Instruments, Inc. * | | |
| | |
| | |
|
Software & Services 11.4% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Airship AI Holdings, Inc. * | | |
Akamai Technologies, Inc. * | | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
American Software, Inc., Class A | | |
Amplitude, Inc., Class A * | | |
| | |
Appfolio, Inc., Class A * | | |
| | |
Applied Digital Corp. *(a) | | |
AppLovin Corp., Class A * | | |
| | |
| | |
| | |
Atlassian Corp., Class A * | | |
| | |
Aurora Innovation, Inc. * | | |
| | |
| | |
Backblaze, Inc., Class A * | | |
Bentley Systems, Inc., Class B | | |
BigBear.ai Holdings, Inc. * | | |
BigCommerce Holdings, Inc. * | | |
| | |
| | |
| | |
Blend Labs, Inc., Class A * | | |
| | |
| | |
| | |
C3.ai, Inc., Class A *(a) | | |
Cadence Design Systems, Inc. * | | |
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
| | |
| | |
| | |
Clear Secure, Inc., Class A | | |
Clearwater Analytics Holdings, Inc., Class A * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
CommVault Systems, Inc. * | | |
Confluent, Inc., Class A * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
90
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
DecisionPoint Systems, Inc. * | | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
DocuSign, Inc., Class A * | | |
Dolby Laboratories, Inc., Class A | | |
| | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
E2open Parent Holdings, Inc. * | | |
| | |
| | |
| | |
Enfusion, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Freshworks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Grid Dynamics Holdings, Inc. * | | |
Guidewire Software, Inc. * | | |
| | |
HashiCorp, Inc., Class A * | | |
| | |
Informatica, Inc., Class A * | | |
Information Services Group, Inc. | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
Marathon Digital Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
PowerSchool Holdings, Inc., Class A * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Quantum Computing, Inc. * | | |
Rackspace Technology, Inc. * | | |
| | |
| | |
| | |
| | |
Research Solutions, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
| | |
| | |
| | |
| | |
SecureWorks Corp., Class A * | | |
SEMrush Holdings, Inc., Class A * | | |
SentinelOne, Inc., Class A * | | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
SoundHound AI, Inc., Class A *(a) | | |
| | |
Sprinklr, Inc., Class A * | | |
Sprout Social, Inc., Class A * | | |
| | |
Squarespace, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Varonis Systems, Inc., Class B * | | |
| | |
| | |
| | |
Viant Technology, Inc., Class A * | | |
Weave Communications, Inc. * | | |
91
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 7.0% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
| | |
| | |
| | |
Applied Optoelectronics, Inc. * | | |
| | |
Arlo Technologies, Inc. * | | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Climb Global Solutions, Inc. | | |
Coda Octopus Group, Inc. * | | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
| | |
Comtech Telecommunications Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
Digi International, Inc. * | | |
| | |
| | |
Evolv Technologies Holdings, Inc. * | | |
| | |
| | |
| | |
FARO Technologies, Inc. * | | |
Frequency Electronics, Inc. * | | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
Kimball Electronics, Inc. * | | |
| | |
| | |
| | |
LightPath Technologies, Inc., Class A * | | |
| | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
Methode Electronics, Inc. | | |
| | |
Mirion Technologies, Inc., Class A * | | |
| | |
M-Tron Industries, Inc. *(a) | | |
Napco Security Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
Research Frontiers, Inc. * | | |
| | |
Ribbon Communications, Inc. * | | |
Richardson Electronics Ltd. | | |
| | |
| | |
| | |
Seagate Technology Holdings PLC | | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
TransAct Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
Vishay Precision Group, Inc. * | | |
| | |
| | |
Wrap Technologies, Inc. *(a) | | |
Schwab Equity Index Funds | Semiannual Report
92
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.8% |
| | |
AST SpaceMobile, Inc., Class A *(a) | | |
| | |
| | |
Bandwidth, Inc., Class A * | | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
Frontier Communications Parent, Inc. * | | |
| | |
| | |
| | |
| | |
Iridium Communications, Inc. | | |
Liberty Global Ltd., Class C * | | |
Liberty Latin America Ltd., Class C * | | |
Lumen Technologies, Inc. * | | |
NII Holdings, Inc. Escrow *(c) | | |
| | |
Shenandoah Telecommunications Co. | | |
| | |
| | |
Telephone & Data Systems, Inc. | | |
| | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
| | |
American Airlines Group, Inc. * | | |
| | |
| | |
Blade Air Mobility, Inc. * | | |
CH Robinson Worldwide, Inc. | | |
Covenant Logistics Group, Inc., Class A | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Frontier Group Holdings, Inc. * | | |
FTAI Infrastructure, Inc. | | |
Genco Shipping & Trading Ltd. | | |
| | |
Hawaiian Holdings, Inc. * | | |
| | |
Hertz Global Holdings, Inc. * | | |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
PAM Transportation Services, Inc. * | | |
Pangaea Logistics Solutions Ltd. | | |
Radiant Logistics, Inc. * | | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
Spirit Airlines, Inc. (a) | | |
Sun Country Airlines Holdings, Inc. * | | |
Surf Air Mobility, Inc. * | | |
Uber Technologies, Inc. * | | |
| | |
U-Haul Holding Co. - Non Voting | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
Universal Logistics Holdings, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Altus Power, Inc., Class A * | | |
| | |
American Electric Power Co., Inc. | | |
American States Water Co. | | |
American Water Works Co., Inc. | | |
Artesian Resources Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
California Water Service Group | | |
| | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class C | | |
| | |
Consolidated Edison, Inc. | | |
Consolidated Water Co. Ltd. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
Genie Energy Ltd., Class B | | |
Global Water Resources, Inc. | | |
93
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
| | |
Montauk Renewables, Inc. * | | |
| | |
New Jersey Resources Corp. | | |
| | |
| | |
Northwest Natural Holding Co. | | |
Northwestern Energy Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
Spruce Power Holding Corp. * | | |
Sunnova Energy International, Inc. * | | |
| | |
| | |
Via Renewables, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $10,711,489,238) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Aduro Biotech, Inc. CVR *(c) | | |
Cartesian Therapeutics, Inc. CVR *(c) | | |
Frequency Therapeutics, Inc. CVR *(c) | | |
F-star Therapeutics, Inc. Agonist CVR *(c) | | |
F-star Therapeutics, Inc. Antagonist CVR *(c) | | |
| | |
Magenta Therapeutics, Inc. CVR *(c) | | |
| | |
Miromatrix Medical, Inc. CVR *(c) | | |
Pardes Biosciences, Inc. CVR *(c) | | |
Satsuma Pharmaceuticals, Inc. CVR *(c) | | |
| | |
Surface Oncology, Inc. CVR *(c) | | |
Zynerba Pharmaceuticals, Inc. CVR *(c) | | |
| | |
Total Rights
(Cost $33,224) | |
| | |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (e)(f) | | |
Total Short-Term Investments
(Cost $27,953,654) | |
Total Investments in Securities
(Cost $10,739,476,116) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 06/21/24 | | | |
S&P 500 Index, e-mini, expires 06/21/24 | | | |
| | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $25,777,722. |
| Issuer is an affiliated company, as the investment adviser owns at least 5% of the voting securities of such company. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
Schwab Equity Index Funds | Semiannual Report
94
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
Below is a summary of the fund’s transactions with affiliated issuers and affiliated companies which are or were affiliates during the period April 30, 2024. An affiliated company is a company in which the investment adviser has or had an ownership of at least 5% of the voting securities of a security issue during the report period. A dash in the Value at October 31, 2023, and/or Value at April 30, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.0% |
Ashford Hospitality Trust, Inc. | | | | | | | | |
Diversified Healthcare Trust | | | | | | | | |
| | | | | | | | |
|
|
| | | | | | | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Emergent BioSolutions, Inc. | | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
95
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Equity Real Estate Investment Trusts (REITs) | | | | |
Health Care Equipment & Services | | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Equity Index Funds | Semiannual Report
96
Schwab Total Stock Market Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $26,695,864) including securities on loan of $19,928 | | |
Investments in securities, at value - unaffiliated issuers (cost $10,712,780,252) including securities on loan of $25,757,794 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
97
Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $52,731) | | |
| | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Equity Index Funds | Semiannual Report
98
Schwab Total Stock Market Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
99
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.0005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended October 31, 2019, is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report
100
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
Automobiles & Components 2.0% |
| | |
|
|
First Citizens BancShares, Inc., Class A | | |
NU Holdings Ltd., Class A * | | |
| | |
|
|
| | |
Advanced Drainage Systems, Inc. | | |
| | |
Allison Transmission Holdings, Inc. | | |
Armstrong World Industries, Inc. | | |
| | |
| | |
| | |
| | |
ChargePoint Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Illinois Tool Works, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
|
| | |
Commercial & Professional Services 1.7% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
| | |
Verisk Analytics, Inc., Class A | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 9.5% |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
|
101
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Consumer Durables & Apparel 0.5% |
Birkenstock Holding PLC * | | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
Skechers USA, Inc., Class A * | | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc., Class A * | | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
| | |
Texas Roadhouse, Inc., Class A | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
Performance Food Group Co. * | | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 0.7% |
| | |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Lamar Advertising Co., Class A | | |
| | |
SBA Communications Corp., Class A | | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
|
|
| | |
Ameriprise Financial, Inc. | | |
Apollo Global Management, Inc. | | |
ARES Management Corp., Class A | | |
| | |
| | |
Blue Owl Capital, Inc., Class A | | |
| | |
| | |
Euronet Worldwide, Inc. * | | |
FactSet Research Systems, Inc. | | |
| | |
Houlihan Lokey, Inc., Class A | | |
Jack Henry & Associates, Inc. | | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
Rocket Cos., Inc., Class A * | | |
| | |
Shift4 Payments, Inc., Class A * | | |
| | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Schwab Equity Index Funds | Semiannual Report
102
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Food, Beverage & Tobacco 1.5% |
Boston Beer Co., Inc., Class A * | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
| | |
| | |
|
Health Care Equipment & Services 3.9% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Inspire Medical Systems, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
Shockwave Medical, Inc. * | | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
|
Household & Personal Products 0.7% |
Church & Dwight Co., Inc. | | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
|
|
Arch Capital Group Ltd. * | | |
| | |
Brighthouse Financial, Inc. * | | |
| | |
| | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
| | |
RenaissanceRe Holdings Ltd. | | |
| | |
Ryan Specialty Holdings, Inc., Class A | | |
| | |
| | |
|
|
Ardagh Metal Packaging SA | | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 12.4% |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
| | |
Charter Communications, Inc., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Live Nation Entertainment, Inc. * | | |
| | |
Meta Platforms, Inc., Class A | | |
| | |
Nexstar Media Group, Inc., Class A | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Trade Desk, Inc., Class A * | | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.7% |
10X Genomics, Inc., Class A * | | |
| | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
BioMarin Pharmaceutical, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
103
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Neurocrine Biosciences, Inc. * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
Sarepta Therapeutics, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
Ultragenyx Pharmaceutical, Inc. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.1% |
| | |
|
Semiconductors & Semiconductor Equipment 13.6% |
Advanced Micro Devices, Inc. * | | |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
Microchip Technology, Inc. | | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 19.1% |
| | |
| | |
| | |
AppLovin Corp., Class A * | | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
Cadence Design Systems, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Confluent, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
DocuSign, Inc., Class A * | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
HashiCorp, Inc., Class A * | | |
| | |
Informatica, Inc., Class A * | | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
Procore Technologies, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
| | |
SentinelOne, Inc., Class A * | | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 10.7% |
| | |
| | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.0% |
Iridium Communications, Inc. | | |
|
|
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
Schwab Equity Index Funds | Semiannual Report
104
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
Uber Technologies, Inc. * | | |
| | |
U-Haul Holding Co. - Non Voting | | |
| | |
United Parcel Service, Inc., Class B | | |
| | |
|
|
| | |
| | |
| | |
Total Common Stocks
(Cost $1,562,313,471) | |
|
INVESTMENT COMPANIES 0.1% OF NET ASSETS |
|
|
iShares Russell 1000 Growth ETF | | |
Total Investment Companies
(Cost $2,608,528) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (b) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (b)(c) | | |
| | |
Total Short-Term Investments
(Cost $8,937,492) | |
Total Investments in Securities
(Cost $1,573,859,491) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $43,581. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| |
105
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Equity Index Funds | Semiannual Report
106
Schwab U.S. Large-Cap Growth Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $1,573,859,491) including securities on loan of $43,581 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
107
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $1,134) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Equity Index Funds | Semiannual Report
108
Schwab U.S. Large-Cap Growth Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
109
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.0005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended October 31, 2019, is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report
110
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.4% OF NET ASSETS |
|
Automobiles & Components 0.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
QuantumScape Corp., Class A * | | |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
NU Holdings Ltd., Class A * | | |
Pinnacle Financial Partners, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
Armstrong World Industries, Inc. | | |
AZEK Co., Inc., Class A * | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Gates Industrial Corp. PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
111
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sensata Technologies Holding PLC | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.2% |
Automatic Data Processing, Inc. | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Republic Services, Inc., Class A | | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 1.1% |
| | |
| | |
| | |
| | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc., Class A * | | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.5% |
Birkenstock Holding PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ralph Lauren Corp., Class A | | |
Skechers USA, Inc., Class A * | | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Under Armour, Inc., Class A * | | |
| | |
Schwab Equity Index Funds | Semiannual Report
112
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International * | | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
Penn Entertainment, Inc. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.8% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
Grocery Outlet Holding Corp. * | | |
| | |
| | |
Performance Food Group Co. * | | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
Baker Hughes Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 4.1% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc., Class A | | |
Healthpeak Properties, Inc. | | |
Highwoods Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
National Storage Affiliates Trust | | |
NET Lease Office Properties | | |
| | |
Omega Healthcare Investors, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
SBA Communications Corp., Class A | | |
Simon Property Group, Inc. | | |
113
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
VICI Properties, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
| | |
Annaly Capital Management, Inc. | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
Blue Owl Capital, Inc., Class A | | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
Corebridge Financial, Inc. (a) | | |
| | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
Euronet Worldwide, Inc. * | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Houlihan Lokey, Inc., Class A | | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A * | | |
| | |
| | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 4.1% |
| | |
Archer-Daniels-Midland Co. | | |
Boston Beer Co., Inc., Class A * | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
|
Health Care Equipment & Services 6.4% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
| | |
Schwab Equity Index Funds | Semiannual Report
114
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 2.1% |
Church & Dwight Co., Inc. | | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
| | |
|
|
| | |
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Brighthouse Financial, Inc. * | | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
Hanover Insurance Group, Inc. | | |
Hartford Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
| | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
Ardagh Metal Packaging SA | | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
115
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 2.7% |
AMC Entertainment Holdings, Inc., Class A *(a) | | |
| | |
| | |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty Live, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
Madison Square Garden Sports Corp. * | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class B | | |
| | |
Sirius XM Holdings, Inc. (a) | | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
Warner Bros Discovery, Inc. * | | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.6% |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
| | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
|
Real Estate Management & Development 0.3% |
CBRE Group, Inc., Class A * | | |
| | |
Howard Hughes Holdings, Inc. * | | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 3.8% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Akamai Technologies, Inc. * | | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
Schwab Equity Index Funds | Semiannual Report
116
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
Dolby Laboratories, Inc., Class A | | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
HashiCorp, Inc., Class A * | | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SentinelOne, Inc., Class A * | | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
|
Technology Hardware & Equipment 2.3% |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
| | |
Telecommunication Services 1.8% |
| | |
Frontier Communications Parent, Inc. * | | |
| | |
Iridium Communications, Inc. | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
U-Haul Holding Co. - Non Voting | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
Brookfield Renewable Corp., Class A | | |
| | |
Clearway Energy, Inc., Class C | | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. | | |
| | |
117
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $519,316,714) | |
|
INVESTMENT COMPANIES 0.1% OF NET ASSETS |
|
|
iShares Russell 1000 Value ETF | | |
Total Investment Companies
(Cost $920,996) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $2,584,182) | |
Total Investments in Securities
(Cost $522,821,892) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $577,988. |
| Issuer is affiliated with the fund’s investment adviser. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2024:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.5% OF NET ASSETS |
|
|
| | | | | | | | |
Schwab Equity Index Funds | Semiannual Report
118
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
119
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $2,356,685) | | |
Investments in securities, at value - unaffiliated issuers (cost $520,465,207) including securities on loan of $577,988 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report
120
Schwab U.S. Large-Cap Value Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $900) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
121
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
122
Schwab U.S. Mid-Cap Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended October 31, 2019, is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
123
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 0.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
QuantumScape Corp., Class A * | | |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
|
|
| | |
| | |
Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
New York Community Bancorp, Inc. | | |
NU Holdings Ltd., Class A * | | |
Pinnacle Financial Partners, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
| | |
AZEK Co., Inc., Class A * | | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
ChargePoint Holdings, Inc. *(a) | | |
| | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Gates Industrial Corp. PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
| | |
| | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
Sensata Technologies Holding PLC | | |
SiteOne Landscape Supply, Inc. * | | |
Schwab Equity Index Funds | Semiannual Report
124
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
| | |
|
Commercial & Professional Services 4.5% |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
Republic Services, Inc., Class A | | |
| | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
Verisk Analytics, Inc., Class A | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 3.3% |
| | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 2.8% |
Birkenstock Holding PLC *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
| | |
Ralph Lauren Corp., Class A | | |
Skechers USA, Inc., Class A * | | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Under Armour, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
125
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
|
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
| | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
Marriott Vacations Worldwide Corp. | | |
MGM Resorts International * | | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
Penn Entertainment, Inc. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
Texas Roadhouse, Inc., Class A | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.2% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
Grocery Outlet Holding Corp. * | | |
| | |
| | |
Performance Food Group Co. * | | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
|
|
| | |
| | |
| | |
Baker Hughes Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 6.6% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc., Class A | | |
Healthpeak Properties, Inc. | | |
Highwoods Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
National Storage Affiliates Trust | | |
NET Lease Office Properties | | |
| | |
Omega Healthcare Investors, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
SBA Communications Corp., Class A | | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
VICI Properties, Inc., Class A | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
126
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
ARES Management Corp., Class A | | |
Bank of New York Mellon Corp. | | |
| | |
Blue Owl Capital, Inc., Class A | | |
| | |
Cboe Global Markets, Inc. | | |
Coinbase Global, Inc., Class A * | | |
Corebridge Financial, Inc. (a) | | |
| | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
Houlihan Lokey, Inc., Class A | | |
Interactive Brokers Group, Inc., Class A | | |
| | |
Jack Henry & Associates, Inc. | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A * | | |
| | |
Shift4 Payments, Inc., Class A * | | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 1.7% |
Boston Beer Co., Inc., Class A * | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
| | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
|
Health Care Equipment & Services 5.0% |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
Baxter International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
| | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Inspire Medical Systems, Inc. * | | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Laboratory Corp. of America Holdings | | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Shockwave Medical, Inc. * | | |
127
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 0.5% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
| | |
|
|
| | |
| | |
American Financial Group, Inc. | | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Brighthouse Financial, Inc. * | | |
| | |
Cincinnati Financial Corp. | | |
| | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
Hanover Insurance Group, Inc. | | |
Hartford Financial Services Group, Inc. | | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
Ryan Specialty Holdings, Inc., Class A | | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Ardagh Metal Packaging SA | | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 3.2% |
AMC Entertainment Holdings, Inc., Class A *(a) | | |
| | |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Liberty Media Corp.-Liberty Live, Class C * | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
Madison Square Garden Sports Corp. * | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class B | | |
Schwab Equity Index Funds | Semiannual Report
128
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
Trade Desk, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 4.7% |
10X Genomics, Inc., Class A * | | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
Apellis Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
Sarepta Therapeutics, Inc. * | | |
| | |
Ultragenyx Pharmaceutical, Inc. * | | |
United Therapeutics Corp. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
|
Real Estate Management & Development 0.8% |
CBRE Group, Inc., Class A * | | |
| | |
Howard Hughes Holdings, Inc. * | | |
Jones Lang LaSalle, Inc. * | | |
| | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.8% |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Akamai Technologies, Inc. * | | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
Confluent, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
DocuSign, Inc., Class A * | | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
HashiCorp, Inc., Class A * | | |
| | |
Informatica, Inc., Class A * | | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
| | |
129
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Procore Technologies, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
SentinelOne, Inc., Class A * | | |
Smartsheet, Inc., Class A * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 3.7% |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.1% |
Frontier Communications Parent, Inc. * | | |
| | |
Iridium Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
U-Haul Holding Co. - Non Voting | | |
United Airlines Holdings, Inc. * | | |
| | |
| | |
|
|
| | |
| | |
| | |
American Water Works Co., Inc. | | |
| | |
| | |
Brookfield Renewable Corp., Class A | | |
| | |
Clearway Energy, Inc., Class C | | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,127,024,666) | |
|
INVESTMENT COMPANIES 0.1% OF NET ASSETS |
|
|
iShares Russell Mid-Cap ETF | | |
Total Investment Companies
(Cost $1,810,650) | |
Schwab Equity Index Funds | Semiannual Report
130
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
SHORT-TERM INVESTMENTS 0.8% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $10,620,798) | |
Total Investments in Securities
(Cost $1,139,456,114) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 400 Mid-Cap Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $2,204,365. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| |
| Real Estate Investment Trust |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
131
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $1,139,456,114) including securities on loan of $2,204,365 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report
132
Schwab U.S. Mid-Cap Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $5,220) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
133
Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
134
Schwab International Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
135
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 98.6% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
James Hardie Industries PLC * | | |
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Seven Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
Washington H Soul Pattinson & Co. Ltd. | | |
| | |
| | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Groupe Bruxelles Lambert NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
AP Moller - Maersk AS, Class A | | |
AP Moller - Maersk AS, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Novonesis (Novozymes) B, Class B | | |
| | |
| | |
| | |
| | |
| | |
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|
|
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| | |
Schwab Equity Index Funds | Semiannual Report
136
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
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|
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| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
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| | |
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| | |
| | |
| | |
La Francaise des Jeux SAEM | | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
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| | |
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| | |
| | |
Unibail-Rodamco-Westfield * | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
Carl Zeiss Meditec AG, Bearer Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fresenius Medical Care AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | |
| | |
| | |
| | |
| | |
| | |
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| | |
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| | |
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|
137
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
|
| | |
BOC Hong Kong Holdings Ltd. | | |
| | |
CK Hutchison Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
| | |
| | |
Futu Holdings Ltd., ADR * | | |
Galaxy Entertainment Group Ltd. | | |
Hang Lung Properties Ltd. | | |
| | |
Henderson Land Development Co. Ltd. | | |
| | |
Hong Kong & China Gas Co. Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Hongkong Land Holdings Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
Power Assets Holdings Ltd. | | |
| | |
| | |
SITC International Holdings Co. Ltd. | | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., A Shares | | |
| | |
Techtronic Industries Co. Ltd. | | |
| | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
| | |
|
|
| | |
Bank of Ireland Group PLC | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Check Point Software Technologies Ltd. * | | |
| | |
| | |
| | |
| | |
Israel Discount Bank Ltd., A Shares | | |
Mizrahi Tefahot Bank Ltd. | | |
| | |
| | |
Teva Pharmaceutical Industries Ltd., ADR * | | |
| | |
| | |
|
|
| | |
Assicurazioni Generali SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
FinecoBank Banca Fineco SpA | | |
Infrastrutture Wireless Italiane SpA | | |
| | |
| | |
Mediobanca Banca di Credito Finanziario SpA | | |
| | |
| | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica SpA | | |
| | |
| | |
| | |
| | |
Terna - Rete Elettrica Nazionale | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
Bandai Namco Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Central Japan Railway Co. | | |
| | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co. Ltd. | | |
Concordia Financial Group Ltd. | | |
Dai Nippon Printing Co. Ltd. | | |
| | |
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
Daito Trust Construction Co. Ltd. | | |
Daiwa House Industry Co. Ltd. | | |
Daiwa Securities Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report
138
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Hankyu Hanshin Holdings, Inc. | | |
| | |
| | |
Hitachi Construction Machinery Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Iida Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Japan Exchange Group, Inc. | | |
Japan Metropolitan Fund Invest | | |
| | |
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
Japan Real Estate Investment Corp. | | |
| | |
| | |
| | |
Kansai Electric Power Co., Inc. | | |
| | |
Kawasaki Kisen Kaisha Ltd. | | |
| | |
KDX Realty Investment Corp. | | |
Keisei Electric Railway Co. Ltd. | | |
| | |
| | |
Kintetsu Group Holdings Co. Ltd. | | |
| | |
| | |
Koito Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
McDonald's Holdings Co. Japan Ltd. | | |
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
Mitsubishi Electric Corp. | | |
Mitsubishi Estate Co. Ltd. | | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Heavy Industries Ltd. | | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Mizuho Financial Group, Inc. | | |
| | |
| | |
MS&AD Insurance Group Holdings, Inc. | | |
Murata Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
Nippon Building Fund, Inc. | | |
NIPPON EXPRESS HOLDINGS, Inc. | | |
Nippon Paint Holdings Co. Ltd. | | |
Nippon Prologis REIT, Inc. | | |
Nippon Sanso Holdings Corp. | | |
| | |
Nippon Telegraph & Telephone Corp. | | |
| | |
| | |
| | |
Nissin Foods Holdings Co. Ltd. | | |
| | |
| | |
| | |
Nomura Real Estate Holdings, Inc. | | |
Nomura Real Estate Master Fund, Inc. | | |
Nomura Research Institute Ltd. | | |
| | |
| | |
| | |
Odakyu Electric Railway Co. Ltd. | | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pan Pacific International Holdings Corp. | | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
Renesas Electronics Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sekisui Chemical Co. Ltd. | | |
| | |
Seven & i Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Shin-Etsu Chemical Co. Ltd. | | |
| | |
| | |
Shizuoka Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
139
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Square Enix Holdings Co. Ltd. | | |
| | |
| | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Metal Mining Co. Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Holdings, Inc. | | |
Sumitomo Realty & Development Co. Ltd. | | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Tokio Marine Holdings, Inc. | | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
BE Semiconductor Industries NV | | |
Coca-Cola Europacific Partners PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Auckland International Airport Ltd. | | |
| | |
Fisher & Paykel Healthcare Corp. Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Gjensidige Forsikring ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
EDP - Energias de Portugal SA * | | |
| | |
| | |
| | |
| | |
|
|
| | |
CapitaLand Integrated Commercial Trust | | |
CapitaLand Investment Ltd. * | | |
| | |
| | |
| | |
Grab Holdings Ltd., Class A * | | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Singapore Telecommunications Ltd. | | |
United Overseas Bank Ltd. | | |
Schwab Equity Index Funds | Semiannual Report
140
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Wilmar International Ltd. | | |
| | |
|
|
| | |
ACS Actividades de Construccion y Servicios SA | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil SA | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, B Shares * | | |
| | |
H & M Hennes & Mauritz AB, B Shares (a) | | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
Investment AB Latour, B Shares | | |
| | |
L E Lundbergforetagen AB, B Shares | | |
| | |
Nibe Industrier AB, B Shares (a) | | |
| | |
| | |
| | |
Securitas AB, B Shares (a) | | |
Skandinaviska Enskilda Banken AB, A Shares | | |
| | |
| | |
Svenska Cellulosa AB SCA, B Shares | | |
Svenska Handelsbanken AB, A Shares | | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont SA, Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kuehne & Nagel International AG (a) | | |
Logitech International SA | | |
| | |
| | |
| | |
Partners Group Holding AG | | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
| | |
| | |
Swatch Group AG, Bearer Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Associated British Foods PLC | | |
| | |
141
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings PLC | | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Flutter Entertainment PLC * | | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
| | |
| | |
| | |
| | |
Land Securities Group PLC | | |
Legal & General Group PLC | | |
| | |
London Stock Exchange Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings PLC | | |
| | |
Reckitt Benckiser Group PLC | | |
| | |
| | |
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Spirax-Sarco Engineering PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group PLC | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $6,284,107,538) | |
|
PREFERRED STOCKS 0.4% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
Porsche Automobil Holding SE | | |
| | |
| | |
| | |
Total Preferred Stocks
(Cost $40,568,855) | |
| | |
SHORT-TERM INVESTMENTS 0.7% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c)(d) | | |
Total Short-Term Investments
(Cost $62,071,528) | |
Total Investments in Securities
(Cost $6,386,747,921) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $56,674,881. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| |
| Global Depositary Receipt |
| Real Estate Investment Trust |
Schwab Equity Index Funds | Semiannual Report
142
Schwab International Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
143
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $6,386,747,921) including securities on loan of $56,674,881 | | |
| | |
Foreign currency, at value (cost $14,605,668) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report
144
Schwab International Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $15,221,312) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of foreign withholding tax claims in the European Union are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
145
Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Equity Index Funds | Semiannual Report
146
Schwab Equity Index Funds
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust, except Schwab 1000 Index Fund, which is a series of Schwab Investments. Both Schwab Capital Trust and Schwab Investments (the trusts) are no-load, open-end management investment companies. Each trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trusts as of the end of the period, including the funds discussed in this report, which are highlighted:
|
Schwab S&P 500 Index Fund | |
Schwab Small-Cap Index Fund | |
Schwab Total Stock Market Index Fund | |
Schwab U.S. Large-Cap Growth Index Fund | |
Schwab U.S. Large-Cap Value Index Fund | |
Schwab U.S. Mid-Cap Index Fund | Schwab 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 |
Schwab International Opportunities Fund | Schwab Target 2010 Index Fund |
| Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity 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 Monthly Income Fund – Target Payout |
| Schwab Monthly Income Fund – Flexible Payout |
| Schwab Monthly Income Fund – Income Payout |
| |
|
| Schwab Tax-Free Bond Fund |
Schwab Treasury Inflation Protected Securities Index Fund | Schwab California Tax-Free Bond Fund |
Schwab U.S. Aggregate Bond Index Fund | Schwab Opportunistic Municipal Bond Fund |
Schwab Short-Term Bond Index Fund | Schwab Global Real Estate Fund |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab S&P 500 Index Fund’s goal is to track the total return of the S&P 500 Index.
The Schwab 1000 Index Fund’s goal is to match the total return of the Schwab 1000 Index.
The Schwab Small-Cap Index Fund’s goal is to track the performance of a benchmark index that measures the total return of small capitalization U.S. Stocks.
The Schwab Total Stock Market Index Fund’s goal is to track the total return of the entire U.S. stock market, as measured by the Dow Jones U.S. Total Stock Market IndexSM.
147
Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
Financial Notes, unaudited (continued)
1. Business Structure of the Funds (continued):
The Schwab U.S. Large-Cap Growth Index Fund’s goal is to track the performance of a benchmark index that measures the total return of large capitalization U.S. growth stocks.
The Schwab U.S. Large-Cap Value Index Fund’s goal is to track the performance of a benchmark index that measures the total return of large capitalization U.S. value stocks.
The Schwab U.S. Mid-Cap Index Fund’s goal is to track the performance of a benchmark index that measures the total return of mid capitalization U.S. stocks.
The Schwab International Index Fund’s goal is to track the performance of a benchmark index that measures the total return of large, publicly traded non-U.S. companies from countries with developed equity markets outside of the United States.
2. Significant Accounting Policies:The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
● Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of a fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of a fund’s shares and seeks to help ensure that the prices at which a fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark.
● Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including
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2. Significant Accounting Policies (continued):
unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2, or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts, U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the valuation of a fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of April 30, 2024, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
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2. Significant Accounting Policies (continued):
Securities Lending: Under the trusts’ Securities Lending Program, a fund (lender), may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
As of April 30, 2024, Schwab 1000 Index Fund, Schwab Small-Cap Index Fund, Schwab Total Stock Market Index Fund, Schwab U.S. Large-Cap Growth Index Fund, Schwab U.S. Large-Cap Value Index Fund, Schwab U.S. Mid-Cap Index Fund and Schwab International Index Fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2024, if any, are disclosed within each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Cash Investments: The funds may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code, as amended, definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The Schwab International Index Fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included within net realized gains (losses) on sales of securities within the Schwab International Index Fund’s Statement of Operations.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are
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2. Significant Accounting Policies (continued):
reported in foreign currency transactions or translations in each fund’s Statement of Operations, if any. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.
Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab International Index Fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees related to European Union foreign withholding tax claims are non-contingent and non-routine fees which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the Schwab International Index Fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2024, the Schwab International Index Fund did not incur any compliance fees.
Pursuant to an Amended and Restated Investment Advisory and Administration Agreement (Advisory Agreement) between the investment adviser and each trust, the investment adviser pays the operating expenses of each fund, excluding acquired fund fees and expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund. Acquired fund fees and expenses are indirect expenses incurred by a fund through its investments in underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
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2. Significant Accounting Policies (continued):
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed within each fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2024, if any, are reflected within each fund’s Statement of Assets and Liabilities.
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Investing in the funds may involve certain risks, as discussed in the funds’ prospectuses, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Investment Style Risk. The funds are index funds. Therefore, each fund follows the securities included in its respective index during upturns as well as downturns. Because of its indexing strategy, a fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, a fund’s performance may be below that of the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in an index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for a fund.
Tracking Error Risk. As index funds, each fund seeks to track the performance of its respective index, although it may not be successful in doing so. The divergence between the performance of a fund and the index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.
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3. Risk Factors (continued):
Sampling Index Tracking Risk. To the extent a fund uses sampling techniques, a fund will not fully replicate its index and may hold securities not included in the index. As a result, a fund will be subject to the risk that the investment adviser’s investment strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. If a fund utilizes a sampling approach, it may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Concentration Risk. To the extent that a fund’s or its respective index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, the fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Growth Investing Risk. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
Value Investing Risk. Certain funds emphasize a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities also include American Depositary Receipts, Global Depositary Receipts (GDRs) and European Depositary Receipts, which may be less liquid than the underlying shares in their primary trading market, and GDRs, in particular, many of which are issued by companies in emerging markets, may be more volatile. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Derivatives Risk. A fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are futures and options on futures. An option is the right to buy or sell an instrument at a specific price before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to lack of availability risk, credit risk, leverage risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a
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3. Risk Factors (continued):
disproportionately large impact on a fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility and cause the fund to lose more than the initial amount invested. A fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Non-Diversification Risk. To the extent that a fund becomes non-diversified as necessary to approximate the composition of its respective index, it may invest in the securities of relatively few issuers. As a result, a single adverse economic or regulatory occurrence may have a more significant effect on the fund’s investments, and the fund may experience increased volatility.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Advisory Agreement between the investment adviser and each trust.
For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
| | SCHWAB SMALL-CAP INDEX FUND | SCHWAB TOTAL STOCK MARKET INDEX FUND | SCHWAB U.S. LARGE-CAP GROWTH INDEX FUND | SCHWAB U.S. LARGE-CAP VALUE INDEX FUND | SCHWAB U.S. MID-CAP INDEX FUND | SCHWAB INTERNATIONAL INDEX FUND |
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4. Affiliates and Affiliated Transactions (continued):
Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of April 30, 2024, as applicable:
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| | SCHWAB SMALL-CAP INDEX FUND | SCHWAB U.S. LARGE-CAP GROWTH INDEX FUND | SCHWAB U.S. MID-CAP INDEX FUND | SCHWAB INTERNATIONAL INDEX FUND |
Schwab MarketTrack All Equity Portfolio | | | | | |
Schwab MarketTrack Balanced Portfolio | | | | | |
Schwab MarketTrack Conservative Portfolio | | | | | |
Schwab MarketTrack Growth Portfolio | | | | | |
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Other Affiliated Transactions
The professional fees related to European Union foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine expenses. The investment adviser agreed to pay these professional fees, on behalf of the Schwab International Index Fund, subject to reimbursement by the fund to the investment adviser to the extent the fund is able to successfully recover tax claims withheld in the future.
For the period ended April 30, 2024, the professional fees incurred by the Schwab International Index Fund and paid by the investment adviser were $19,118, as shown as Professional fees in the fund’s Statement of Operations.
During the period ended April 30, 2024, Schwab International Index Fund did not recover any previously withheld foreign taxes and made no reimbursements to the investment adviser.
As of April 30, 2024, the balance of professional fees related to foreign withholding tax claims subject to future reimbursement by the Schwab International Index Fund to the investment adviser was $35,910.
No other amounts for additional foreign withholding tax claims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
The funds may engage in direct transactions with certain other funds in the Fund Complex in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser, trustees and/or
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4. Affiliates and Affiliated Transactions (continued):
officers The net realized gains or losses on sales of interfund transactions are recorded in Net realized gains (losses) on sales of securities — unaffiliated issuers in the Statement of Operations. For the period ended April 30, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any realized gains (losses) were as follows:
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Schwab S&P 500 Index Fund | | | |
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Schwab Small-Cap Index Fund | | | |
Schwab Total Stock Market Index Fund | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | |
Schwab U.S. Large-Cap Value Index Fund | | | |
Schwab U.S. Mid-Cap Index Fund | | | |
Schwab International Index Fund | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trusts were in compliance with these limitations throughout the report period. The funds did not pay any interested persons or non-interested persons (independent trustees). The independent trustees are paid by the investment adviser. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by a fund, the investment adviser paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is paid by the investment adviser. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Certain funds entered into futures contracts during the report period to equitize available cash. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts.
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
As of April 30, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | |
| | |
Schwab Small-Cap Index Fund | | |
| | |
Schwab U.S. Large-Cap Growth Index Fund | | |
| | |
| |
| Includes cumulative unrealized appreciation of futures contracts as reported in the fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
| | |
Schwab S&P 500 Index Fund | | |
| | |
| | |
| | |
Schwab Total Stock Market Index Fund | | |
| | |
Schwab U.S. Large-Cap Value Index Fund | | |
| | |
Schwab U.S. Mid-Cap Index Fund | | |
| | |
Schwab International Index Fund | | |
| | |
| |
| Includes cumulative unrealized depreciation of futures contracts as reported in each fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
The effects of the derivative contracts in the Statement of Operations for the period ended April 30, 2024, were:
| | |
Net Realized Gains (Losses) | | |
Schwab S&P 500 Index Fund | | |
| | |
| | |
| | |
Schwab Small-Cap Index Fund | | |
| | |
Schwab Total Stock Market Index Fund | | |
| | |
Schwab U.S. Large-Cap Growth Index Fund | | |
| | |
Schwab U.S. Large-Cap Value Index Fund | | |
| | |
Schwab U.S. Mid-Cap Index Fund | | |
| | |
Schwab International Index Fund | | |
| | |
| |
| Statement of Operations location: Net realized gains (losses) on futures contracts. |
Net Change in Unrealized Appreciation (Depreciation) | | |
Schwab S&P 500 Index Fund | | |
| | |
| | |
| | |
Schwab Small-Cap Index Fund | | |
| | |
Schwab Total Stock Market Index Fund | | |
| | |
Schwab U.S. Large-Cap Growth Index Fund | | |
| | |
Schwab U.S. Large-Cap Value Index Fund | | |
| | |
Schwab U.S. Mid-Cap Index Fund | | |
| | |
Schwab International Index Fund | | |
| | |
| |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
During the period ended April 30, 2024, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:
| | |
Schwab S&P 500 Index Fund | | |
| | |
Schwab Small-Cap Index Fund | | |
Schwab Total Stock Market Index Fund | | |
Schwab U.S. Large-Cap Growth Index Fund | | |
Schwab U.S. Large-Cap Value Index Fund | | |
Schwab U.S. Mid-Cap Index Fund | | |
Schwab International Index Fund | | |
8. Purchases and Sales of Investment Securities:For the period ended April 30, 2024, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:
| | |
Schwab S&P 500 Index Fund | | |
| | |
Schwab Small-Cap Index Fund | | |
Schwab Total Stock Market Index Fund | | |
Schwab U.S. Large-Cap Growth Index Fund | | |
Schwab U.S. Large-Cap Value Index Fund | | |
Schwab U.S. Mid-Cap Index Fund | | |
Schwab International Index Fund | | |
During the period ended April 30, 2024, the following funds had transactions in connection with in-kind transactions:
| IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
| | |
Schwab Small-Cap Index Fund | | |
The funds may realize net capital gains or losses resulting from in-kind redemptions. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized gains or losses on sales of in-kind redemptions for the period ended April 30, 2024, are disclosed in the funds’ Statements of Operations, if any.
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Financial Notes, unaudited (continued)
As of April 30, 2024, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
Schwab S&P 500 Index Fund | | | | |
| | | | |
Schwab Small-Cap Index Fund | | | | |
Schwab Total Stock Market Index Fund | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | |
Schwab U.S. Large-Cap Value Index Fund | | | | |
Schwab U.S. Mid-Cap Index Fund | | | | |
Schwab International Index Fund | | | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2023, the funds had capital loss carryforwards available as follows:
| |
Schwab S&P 500 Index Fund | |
| |
Schwab Small-Cap Index Fund | |
Schwab Total Stock Market Index Fund | |
Schwab U.S. Large-Cap Growth Index Fund | |
Schwab U.S. Large-Cap Value Index Fund | |
Schwab U.S. Mid-Cap Index Fund | |
Schwab International Index Fund | |
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2024. The tax basis components of distributions paid during the fiscal year ended October 31, 2023 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
Schwab S&P 500 Index Fund | | |
| | |
Schwab Small-Cap Index Fund | | |
Schwab Total Stock Market Index Fund | | |
Schwab U.S. Large-Cap Growth Index Fund | | |
Schwab U.S. Large-Cap Value Index Fund | | |
Schwab U.S. Mid-Cap Index Fund | | |
Schwab International Index Fund | | |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
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Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
As of October 31, 2023, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in each fund’s Statement of Operations. During the fiscal year ended October 31, 2023, the funds did not incur any interest or penalties.
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust and Schwab Investments, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), 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). | | |
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Independent Trustees (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | |
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). | | |
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). | | |
|
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 | |
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) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – 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.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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|
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, 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) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 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 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 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) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust 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. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (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) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee 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.
3
The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
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asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Dow Jones U.S. Total Stock Market Index An index which includes all U.S. equity issues with readily available prices. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (the 1933 Act), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Growth Index An index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 1000 Value Index An index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell Midcap Index An index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
Schwab 1000 Index A float-adjusted market capitalization weighted index developed by Charles Schwab & Co., Inc. that represents the performance of the largest 1,000 publicly traded companies in the United States. As a result of corporate actions, the index may be comprised of more or less than 1,000 securities.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
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Schwab Asset Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab International Opportunities Fund
Schwab Select Large Cap Growth Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab Opportunistic Municipal Bond Fund
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Charles Schwab Investment Management, Inc., dba Schwab Asset Management
211 Main Street, San Francisco, CA 94105
Schwab Funds
1-877-824-5615
© 2024 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s Board determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.
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Semiannual Report | April 30, 2024
Schwab Active Equity Funds
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab International Core Equity Fund
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess and monitor their fund investments. Other information, including financial statements, will not appear in the streamlined shareholder reports but will available online and delivered free of charge upon request. |
• If you already receive the full shareholder reports, you will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
Schwab Active Equity Funds
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
1
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2024 |
Schwab Core Equity Fund (Ticker Symbol: SWANX) | |
| |
Fund Category: Morningstar Large Blend1 | |
| |
| |
Schwab Dividend Equity Fund2 (Ticker Symbol: SWDSX) | |
| |
Russell 1000® Value Index | |
Fund Category: Morningstar Large Value1 | |
| |
| |
Schwab Large-Cap Growth Fund (Ticker Symbol: SWLSX) | |
| |
Russell 1000® Growth Index | |
Fund Category: Morningstar Large Growth1 | |
| |
| |
Schwab Small-Cap Equity Fund (Ticker Symbol: SWSCX) | |
| |
| |
Fund Category: Morningstar Small Blend1 | |
| |
| |
Schwab Health Care Fund2 (Ticker Symbol: SWHFX) | |
| |
Dow Jones Global Health Care Index | |
Fund Category: Morningstar Health1 | |
| |
| |
Schwab International Core Equity Fund2 (Ticker Symbol: SICNX) | |
| |
Fund Category: Morningstar Foreign Large Blend1 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
In anticipation of new regulatory requirements, the fund’s regulatory index has changed to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The second index listed is the fund’s additional index and is more representative of the fund’s investment universe than the regulatory index.
4
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Schwab Active Equity Funds | Semiannual Report
2
Schwab Active Equity Funds
| Bill McMahon, CFA, Managing Director and Chief Investment Officer of Active Equity Strategies for Schwab Asset Management, is responsible for investment management, research, and portfolio construction for Schwab Asset Management’s active equity strategies and solutions. He is responsible for the day-to-day co-management of the Schwab Large-Cap Growth Fund, Schwab Core Equity Fund, and Schwab Dividend Equity Fund. Mr. McMahon has more than 20 years of experience in the financial services industry. Prior to his current role, Mr. McMahon was an SVP in Charles Schwab Investment Advisory, Inc. (CSIA), serving as CIO and as a member of the portfolio management team for the ThomasPartners Strategies. Mr. McMahon co-founded ThomasPartners, Inc. in 2001 and served as partner of the firm until its acquisition by the Charles Schwab Corporation in 2012 and subsequent merger with CSIA in 2018. Mr. McMahon began his career at State Street Corporation, with the latter half of his tenure with State Street Global Advisors. |
| Iain Clayton, CFA, FRM, Senior Portfolio Manager and Head of Quantitative Equity Portfolio Management for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Core Equity Fund, Schwab International Core Equity Fund, Schwab Small-Cap Equity Fund, and Schwab Health Care Fund. Mr. Clayton also leads Schwab Asset Management’s quantitative investment management team. Prior to joining Schwab in 2013, Mr. Clayton spent more than five years at SSI Investment Management where he was a portfolio manager and the director of quantitative research. In these roles, Mr. Clayton co-managed multiple investment strategies and developed quantitative models and valuation approaches. From 2004 to 2008, he worked as a portfolio manager and director at RCM Capital Management (now known as Allianz Global Investors) and helped manage various equity portfolios and developed fundamental-based stock selection models. Prior to that, he was a vice president at Eureka Investment Advisors for almost three years and also served as a senior quantitative analyst and assistant portfolio manager. He has also worked as a quantitative research analyst at RCM Capital Management. |
| Brian Hillburn, CFA, Senior Portfolio Manager and Director of Fundamental Equity Research for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Core Equity Fund. Mr. Hillburn also provides fundamental equity research coverage for the ThomasPartners Strategies and the Schwab Active Equity Funds. Previously, Mr. Hillburn was a senior equity research analyst for the ThomasPartners Strategies at Schwab Asset Management. Prior to joining the ThomasPartners Strategies, Mr. Hillburn was an equity analyst at Rockland Trust, and earlier positions include equity research analysis roles on mutual fund teams at Wells Capital and Morgan Stanley Investment Management. |
| Wei Li, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab International Core Equity Fund, Schwab Dividend Equity Fund, Schwab Small-Cap Equity Fund, and Schwab Health Care Fund. Prior to joining Schwab in 2012, Ms. Li spent more than 10 years at Barclays Global Investors (now known as BlackRock) where she held a number of positions. From 2001 to 2009, she worked in various roles in the global advanced active group, including portfolio management and quantitative research for both U.S. and international equity markets. After 2009, she worked in the defined contribution research and product development area for almost two years. |
| Gretchen Novak, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Large-Cap Growth Fund. Ms. Novak also provides fundamental equity research coverage of certain industry sectors for the ThomasPartners Strategies and the Schwab Active Equity Funds. Previously, Ms. Novak was a director and senior equity research analyst for the ThomasPartners Strategies at Schwab Asset Management. Prior to joining the ThomasPartners Strategies, Ms. Novak was a senior portfolio manager at Mazama Capital Management, Inc., where she oversaw the equity research and portfolio management of the firm’s consumer discretionary and staples sectors. Prior to Mazama Capital, Ms. Novak was an equity analyst at Cramer Rosenthal McGlynn, LLC. |
| Jim Serhant, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Dividend Equity Fund and the ThomasPartners Balanced Strategies. Mr. Serhant also provides fundamental equity research coverage of certain industry sectors for the ThomasPartners Strategies and the Schwab Active Equity Funds. Prior to joining Schwab in 2016, Mr. Serhant was an executive vice president at Hartford Investment Management where he was the head of high yield and a senior portfolio manager, overseeing the credit research and portfolio management of the firm’s high yield strategies. Previously, he was a fixed income analyst at Delaware Investments and JP Morgan. |
3
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Fund Management (continued)
| Holly Emerson, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Large-Cap Growth Fund and Schwab Small-Cap Equity Fund. Prior to joining Schwab in 2014, Ms. Emerson spent nearly 10 years at Algert Coldiron Investors LLC (now known as Algert Global), a quantitative market-neutral hedge fund manager. She held a number of positions at Algert, including assistant portfolio manager and director of operations. In her various roles, she acted as the lead portfolio manager for the Canadian fund, conducted macroeconomic research, and managed relationships with prime brokerage investment banks. |
Schwab Active Equity Funds | Semiannual Report
4
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Core Equity Fund (7/1/96) | | | | |
| | | | |
Fund Category: Morningstar Large Blend 2 | | | | |
Fund Expense Ratio3: 0.73% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
5
Schwab Active Equity Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments2
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
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
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report
6
Schwab Dividend Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Dividend Equity Fund (9/2/03) | | | | |
| | | | |
Russell 1000® Value Index | | | | |
Dividend Equity Spliced Index | | | | |
Fund Category: Morningstar Large Value 4 | | | | |
Fund Expense Ratio5: 0.88% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell 1000® Value Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The Russell 1000® Value Index is the fund’s additional index and is more representative of the fund’s investment universe than the regulatory index.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
7
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments2
Top Equity Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report
8
Schwab Large-Cap Growth Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Large-Cap Growth Fund (10/3/05) | | | | |
| | | | |
Russell 1000® Growth Index | | | | |
Fund Category: Morningstar Large Growth 3 | | | | |
Fund Expense Ratios4: Net 0.99%; Gross 1.01% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell 1000® Growth Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The Russell 1000® Growth Index is the fund’s additional index and is more representative of the fund’s investment universe than the regulatory index.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
9
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report
10
Schwab Small-Cap Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Small-Cap Equity Fund (7/1/03) | | | | |
| | | | |
| | | | |
Fund Category: Morningstar Small Blend 3 | | | | |
Fund Expense Ratio4: 1.09% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell 2000® Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The Russell 2000® Index is the fund’s additional index and is more representative of the fund’s investment universe than the regulatory index.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
11
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets6
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
6
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report
12
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Health Care Fund (7/3/00) | | | | |
| | | | |
Dow Jones Global Health Care Index | | | | |
Fund Category: Morningstar Health 4 | | | | |
Fund Expense Ratio5: 0.79% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Since the Schwab Health Care Fund focuses its investments on companies involved in a specific sector, this fund may involve a greater degree of risk than an investment in mutual funds that do not concentrate their investments.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones Global Health Care Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The Dow Jones Global Health Care Index is the fund’s additional index and is more representative of the fund’s investment universe than the regulatory index.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
13
Schwab Active Equity Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Industry Weightings % of Investments
Top Equity Holdings % of Net Assets2
Top Country Weightings % of Investments3
Portfolio holdings may have changed since the report date.
Source of Industry Classification: S&P and MSCI.
2
This list is not a recommendation of any security by the investment adviser.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Active Equity Funds | Semiannual Report
14
Schwab International Core Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab International Core Equity Fund (5/30/08) | | | | |
| | | | |
Fund Category: Morningstar Foreign Large Blend 4 | | | | |
Fund Expense Ratios5: Net 0.86%; Gross 0.87% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
15
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets3
Top Country Weightings % of Investments4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
3
This list is not a recommendation of any security by the investment adviser.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Active Equity Funds | Semiannual Report
16
Schwab Active Equity Funds
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2023 and held through April 30, 2024.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/23 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/24 | EXPENSES PAID
DURING PERIOD
|
| | | | |
| | | | |
| | | | |
Schwab Dividend Equity Fund | | | | |
| | | | |
| | | | |
Schwab Large-Cap Growth Fund | | | | |
| | | | |
| | | | |
Schwab Small-Cap Equity Fund | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Schwab International Core Equity Fund | | | | |
| | | | |
| | | | |
| Based on the most recent six-month expense ratio. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in the period, and divided by 366 days in the fiscal year. |
17
Schwab Active Equity Funds | Semiannual Report
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report
18
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.9% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
|
Commercial & Professional Services 2.3% |
Republic Services, Inc., Class A | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 8.0% |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.3% |
| | |
|
|
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 0.9% |
| | |
|
|
Berkshire Hathaway, Inc., Class B * | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
| | |
|
| | |
Food, Beverage & Tobacco 2.2% |
Brown-Forman Corp., Class B | | |
Constellation Brands, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 6.0% |
| | |
Boston Scientific Corp. * | | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
|
Household & Personal Products 2.1% |
| | |
L'Oreal SA, Sponsored ADR | | |
| | |
|
|
| | |
|
|
| | |
|
Media & Entertainment 10.6% |
Alphabet, Inc., Class A * | | |
Meta Platforms, Inc., Class A | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.3% |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 11.2% |
ASML Holding NV NY Registry Shares | | |
| | |
| | |
| | |
| | |
|
Software & Services 13.1% |
| | |
| | |
| | |
| | |
19
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Palo Alto Networks, Inc. * | | |
| | |
|
Technology Hardware & Equipment 5.0% |
| | |
|
|
| | |
Total Common Stocks
(Cost $821,262,314) | |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (a) | | |
Total Short-Term Investments
(Cost $1,955,183) | |
Total Investments in Securities
(Cost $823,217,497) | |
| Non-income producing security. |
| The rate shown is the annualized 7-day yield. |
| American Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report
20
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $823,217,497) | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
| | |
| | |
Investment adviser and administrator fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
21
Schwab Active Equity Funds | Semiannual Report
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $46,289) | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Active Equity Funds | Semiannual Report
22
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
23
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report
24
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.3% |
| | |
| | |
| | |
| | |
|
|
| | |
|
Consumer Staples Distribution & Retail 2.5% |
| | |
|
|
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.8% |
Alexandria Real Estate Equities, Inc. | | |
| | |
Lamar Advertising Co., Class A | | |
| | |
| | |
|
|
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
|
| | |
Food, Beverage & Tobacco 7.2% |
| | |
| | |
Constellation Brands, Inc., Class A | | |
Philip Morris International, Inc. | | |
| | |
|
Health Care Equipment & Services 6.9% |
| | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 4.1% |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
|
Media & Entertainment 2.6% |
| | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.5% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 3.7% |
| | |
|
|
| | |
International Business Machines Corp. | | |
| | |
| | |
|
25
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Technology Hardware & Equipment 3.6% |
| | |
| | |
| | |
|
Telecommunication Services 2.0% |
Verizon Communications, Inc. | | |
|
|
United Parcel Service, Inc., Class B | | |
|
| | |
|
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $388,002,949) | |
Total Investments in Securities
(Cost $388,002,949) | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report
26
Schwab Dividend Equity Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $388,002,949) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
27
Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $39,522) | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Active Equity Funds | Semiannual Report
28
Schwab Dividend Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
29
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| Per-share amount was less than $0.005. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report
30
Schwab Large-Cap Growth Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 95.4% OF NET ASSETS |
|
Automobiles & Components 1.8% |
Mobileye Global, Inc., Class A *(a) | | |
| | |
| | |
|
|
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.4% |
| | |
Republic Services, Inc., Class A | | |
| | |
|
Consumer Discretionary Distribution & Retail 8.1% |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
|
Consumer Durables & Apparel 1.1% |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.4% |
| | |
|
|
| | |
|
|
| | |
Fidelity National Information Services, Inc. | | |
Interactive Brokers Group, Inc., Class A | | |
| | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 3.2% |
| | |
Constellation Brands, Inc., Class A | | |
Philip Morris International, Inc. | | |
| | |
|
Health Care Equipment & Services 3.7% |
Edwards Lifesciences Corp. * | | |
IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
Media & Entertainment 10.7% |
Alphabet, Inc., Class A * | | |
Meta Platforms, Inc., Class A | | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.6% |
| | |
Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 12.9% |
Advanced Micro Devices, Inc. * | | |
ASML Holding NV NY Registry Shares | | |
| | |
| | |
| | |
|
Software & Services 19.7% |
| | |
| | |
| | |
| | |
| | |
| | |
Palo Alto Networks, Inc. * | | |
31
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 8.4% |
| | |
|
|
Uber Technologies, Inc. * | | |
Total Common Stocks
(Cost $173,043,088) | |
|
INVESTMENT COMPANIES 1.4% OF NET ASSETS |
|
|
Invesco S&P 500 Equal Weight ETF (a) | | |
Total Investment Companies
(Cost $4,945,908) | |
| | |
SHORT-TERM INVESTMENTS 1.6% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (b)(c) | | |
Total Short-Term Investments
(Cost $6,056,678) | |
Total Investments in Securities
(Cost $184,045,674) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $5,833,965. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Active Equity Funds | Semiannual Report
32
Schwab Large-Cap Growth Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $184,045,674) including securities on loan of $5,833,965 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
Investment adviser and administrator fees | | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
33
Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $4,353) | | |
| | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Active Equity Funds | Semiannual Report
34
Schwab Large-Cap Growth Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
Net investment income (loss) | | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
35
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of fund transactions in relation to fluctuating market values. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report
36
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 95.8% OF NET ASSETS |
|
Automobiles & Components 0.6% |
| | |
Goodyear Tire & Rubber Co. * | | |
Modine Manufacturing Co. * | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Customers Bancorp, Inc. * | | |
| | |
| | |
| | |
Great Southern Bancorp, Inc. | | |
| | |
| | |
HomeTrust Bancshares, Inc. | | |
| | |
International Bancshares Corp. | | |
| | |
OceanFirst Financial Corp. | | |
| | |
Peapack-Gladstone Financial Corp. | | |
| | |
Provident Financial Services, Inc. | | |
| | |
Republic Bancorp, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
H&E Equipment Services, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NEXTracker, Inc., Class A * | | |
Preformed Line Products Co. | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
Simpson Manufacturing Co., Inc. | | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
|
Commercial & Professional Services 2.8% |
| | |
| | |
| | |
ExlService Holdings, Inc. * | | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 3.7% |
Abercrombie & Fitch Co., Class A * | | |
American Eagle Outfitters, Inc. | | |
Build-A-Bear Workshop, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 2.1% |
| | |
| | |
Dream Finders Homes, Inc., Class A * | | |
Green Brick Partners, Inc. * | | |
Hovnanian Enterprises, Inc., Class A * | | |
| | |
| | |
37
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Solo Brands, Inc., Class A * | | |
| | |
Taylor Morrison Home Corp., Class A * | | |
| | |
|
|
| | |
Brinker International, Inc. * | | |
| | |
| | |
| | |
Inspired Entertainment, Inc. * | | |
International Game Technology PLC | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 0.7% |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Liberty Energy, Inc., Class A | | |
| | |
| | |
| | |
Par Pacific Holdings, Inc. * | | |
PBF Energy, Inc., Class A | | |
| | |
Select Water Solutions, Inc. | | |
| | |
| | |
Teekay Tankers Ltd., Class A | | |
U.S. Silica Holdings, Inc. * | | |
| | |
| | |
Weatherford International PLC * | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 6.3% |
American Assets Trust, Inc. | | |
Armada Hoffler Properties, Inc. | | |
Broadstone Net Lease, Inc. | | |
| | |
EastGroup Properties, Inc. | | |
Empire State Realty Trust, Inc., Class A | | |
Innovative Industrial Properties, Inc. | | |
| | |
Plymouth Industrial REIT, Inc. | | |
Ryman Hospitality Properties, Inc. | | |
| | |
| | |
|
|
AssetMark Financial Holdings, Inc. * | | |
| | |
Enova International, Inc. * | | |
| | |
| | |
Federal Agricultural Mortgage Corp., Class C | | |
Jackson Financial, Inc., Class A | | |
| | |
| | |
NMI Holdings, Inc., Class A * | | |
| | |
Regional Management Corp. | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
| | |
Victory Capital Holdings, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
|
Food, Beverage & Tobacco 2.3% |
| | |
Coca-Cola Consolidated, Inc. | | |
National Beverage Corp. * | | |
| | |
| | |
|
Health Care Equipment & Services 2.9% |
AirSculpt Technologies, Inc. *(a) | | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
Lantheus Holdings, Inc. * | | |
Merit Medical Systems, Inc. * | | |
OmniAb, Inc., Class A *(b) | | |
OmniAb, Inc., Class B *(b) | | |
Option Care Health, Inc. * | | |
OraSure Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 0.1% |
Nature's Sunshine Products, Inc. * | | |
|
|
CNO Financial Group, Inc. | | |
Genworth Financial, Inc., Class A * | | |
| | |
| | |
|
|
Alpha Metallurgical Resources, Inc. | | |
| | |
Carpenter Technology Corp. | | |
Constellium SE, Class A * | | |
| | |
| | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
Schwab Active Equity Funds | Semiannual Report
38
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
Media & Entertainment 1.7% |
AMC Networks, Inc., Class A * | | |
| | |
Entravision Communications Corp., Class A | | |
EW Scripps Co., Class A * | | |
| | |
| | |
Lions Gate Entertainment Corp., Class A * | | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 12.2% |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
| | |
| | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
Amylyx Pharmaceuticals, Inc. * | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
| | |
Arcus Biosciences, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
| | |
Aurinia Pharmaceuticals, Inc. * | | |
Beam Therapeutics, Inc. * | | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
Caribou Biosciences, Inc. * | | |
Catalyst Pharmaceuticals, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Deciphera Pharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
| | |
Fate Therapeutics, Inc. * | | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
Harvard Bioscience, Inc. * | | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
Kymera Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Nurix Therapeutics, Inc. * | | |
Organogenesis Holdings, Inc., Class A * | | |
Phibro Animal Health Corp., Class A | | |
Prestige Consumer Healthcare, Inc. * | | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
Relay Therapeutics, Inc. * | | |
Rigel Pharmaceuticals, Inc. * | | |
| | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
| | |
WaVe Life Sciences Ltd. * | | |
| | |
| | |
| | |
|
Real Estate Management & Development 0.3% |
Cushman & Wakefield PLC * | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 2.6% |
| | |
| | |
Axcelis Technologies, Inc. * | | |
Lattice Semiconductor Corp. * | | |
| | |
SMART Global Holdings, Inc. * | | |
| | |
|
|
| | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Appfolio, Inc., Class A * | | |
| | |
| | |
CommVault Systems, Inc. * | | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Squarespace, Inc., Class A * | | |
| | |
| | |
Weave Communications, Inc. * | | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 6.5% |
Arlo Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
|
39
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Telecommunication Services 0.5% |
Iridium Communications, Inc. | | |
Liberty Latin America Ltd., Class A * | | |
| | |
|
|
| | |
| | |
Radiant Logistics, Inc. * | | |
| | |
| | |
|
|
| | |
| | |
| | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class A | | |
| | |
Via Renewables, Inc., Class A * | | |
| | |
Total Common Stocks
(Cost $472,996,467) | |
| | |
SHORT-TERM INVESTMENTS 0.0% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c)(d) | | |
Total Short-Term Investments
(Cost $147,630) | |
Total Investments in Securities
(Cost $473,144,097) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $142,709. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers and companies which are or were affiliates during the period April 30, 2024. An affiliated company is a company in which the investment adviser has or had an ownership of at least 5% of the voting securities of a security issue during the report period. A dash in the Value at October 31, 2023, and/or Value at April 30, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.0% OF NET ASSETS |
|
|
| | | | | | | | |
Schwab Active Equity Funds | Semiannual Report
40
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Health Care Equipment & Services | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
41
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $473,144,097) including securities on loan of $142,709 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
Variation margin on futures contracts | | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Semiannual Report
42
Schwab Small-Cap Equity Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $8,143) | | |
| | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
43
Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
44
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
45
Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
Carl Zeiss Meditec AG, Bearer Shares | | |
|
|
| | |
|
|
Recordati Industria Chimica e Farmaceutica SpA | | |
|
|
Chugai Pharmaceutical Co. Ltd. | | |
| | |
| | |
Santen Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Samsung Biologics Co. Ltd. * | | |
| | |
|
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Agilent Technologies, Inc. | | |
| | |
| | |
ANI Pharmaceuticals, Inc. * | | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Blueprint Medicines Corp. * | | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
Collegium Pharmaceutical, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
Mettler-Toledo International, Inc. * | | |
Neurocrine Biosciences, Inc. * | | |
Schwab Active Equity Funds | Semiannual Report
46
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Option Care Health, Inc. * | | |
| | |
Prestige Consumer Healthcare, Inc. * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
United Therapeutics Corp. * | | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
| | |
Total Common Stocks
(Cost $502,927,710) | |
Total Investments in Securities
(Cost $502,927,710) | |
| Non-income producing security. |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
47
Schwab Active Equity Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $502,927,710) | | |
Foreign currency, at value (cost $481,725) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Semiannual Report
48
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $285,190) | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
49
Schwab Active Equity Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Active Equity Funds | Semiannual Report
50
Schwab International Core Equity Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
51
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 98.0% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
James Hardie Industries PLC * | | |
| | |
| | |
National Australia Bank Ltd. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
|
|
| | |
|
|
| | |
| | |
Constellation Software, Inc. | | |
| | |
| | |
| | |
| | |
|
|
COSCO SHIPPING Holdings Co. Ltd., H Shares | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
China Medical System Holdings Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
| | |
PetroChina Co. Ltd., H Shares | | |
| | |
|
|
Check Point Software Technologies Ltd. * | | |
|
|
| | |
Assicurazioni Generali SpA | | |
| | |
| | |
| | |
| | |
| | |
|
Schwab Active Equity Funds | Semiannual Report
52
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
|
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Japan Exchange Group, Inc. | | |
Japan Post Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Nippon Building Fund, Inc. | | |
| | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
Renesas Electronics Corp. | | |
| | |
Sega Sammy Holdings, Inc. | | |
| | |
| | |
| | |
Sumitomo Mitsui Financial Group, Inc. | | |
Tokio Marine Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
|
|
Jardine Cycle & Carriage Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
|
| | |
|
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
Industria de Diseno Textil SA (a) | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Logitech International SA | | |
| | |
| | |
Partners Group Holding AG | | |
| | |
| | |
| | |
|
|
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
| | |
Legal & General Group PLC | | |
| | |
Marks & Spencer Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $454,034,040) | |
53
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
SHORT-TERM INVESTMENTS 2.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (b) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (b)(c) | | |
| | |
Total Short-Term Investments
(Cost $12,565,103) | |
Total Investments in Securities
(Cost $466,599,143) | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $5,369,971. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Global Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report
54
Schwab International Core Equity Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $466,599,143) including securities on loan of $5,369,971 | | |
Foreign currency, at value (cost $1,893,580) | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
IRS compliance fee for foreign withholding tax claims | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
55
Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $946,312) | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Includes professional fees of $17,272 associated with the filing of foreign withholding tax claims in the European Union are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
Schwab Active Equity Funds | Semiannual Report
56
Schwab International Core Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
57
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
|
| |
Schwab Dividend Equity Fund | |
Schwab Large-Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
| |
Schwab International Core Equity Fund | Schwab Fundamental US Large Company Index Fund |
Schwab S&P 500 Index Fund | Schwab Fundamental US Small Company Index Fund |
Schwab Small-Cap Index Fund® | Schwab Fundamental International Large Company Index Fund |
Schwab Total Stock Market Index Fund® | Schwab Fundamental International Small Company Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental Global Real Estate Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Target 2010 Index Fund |
Schwab International Index Fund® | Schwab Target 2015 Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2020 Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2025 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2030 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2035 Index Fund |
Schwab International Opportunities 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 Monthly Income Fund - Target Payout |
| Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab Core Equity Fund seeks long-term capital growth.
The Schwab Dividend Equity Fund seeks current income and capital appreciation.
The Schwab Large-Cap Growth Fund seeks long-term capital growth.
The Schwab Small-Cap Equity Fund seeks long-term capital growth.
The Schwab Health Care Fund seeks long-term capital growth.
The Schwab International Core Equity Fund seeks long-term capital growth.
Schwab Active Equity Funds | Semiannual Report
58
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
● Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of a fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of a fund’s shares and seeks to help ensure that the prices at which a fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark.
● Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the
59
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts, U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the valuation of a fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of April 30, 2024, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities
Schwab Active Equity Funds | Semiannual Report
60
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
As of April 30, 2024, Schwab Large-Cap Growth Fund, Schwab Small-Cap Equity Fund and Schwab International Core Equity Fund had securities on loan, all of which were classified as common stocks and ETFs. The value of the securities on loan and the related collateral as of April 30, 2024, are disclosed in the fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Cash Investments: The funds, except for Schwab Core Equity Fund and Schwab International Core Equity Fund, may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code, as amended, definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The Schwab Dividend Equity Fund, Schwab Health Care Fund and Schwab International Core Equity Fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities in each fund’s Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations, if any, in each fund’s Statement of Operations. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.
Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
61
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(d) Investment Income:
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab International Core Equity Fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees related to European Union foreign withholding tax claims are non-contingent and non-routine fees which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the Schwab International Core Equity Fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2024, the Schwab International Core Equity Fund filed a closing agreement with the IRS and its status for acceptance is under review with the IRS.
The Schwab International Core Equity Fund will pay a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. The Schwab International Core Equity Fund recorded contra income in the October 31, 2023, annual report for the estimated IRS compliance fee for foreign withholding tax claims and a corresponding liability to be paid to the IRS, which is disclosed in the fund’s Statement of Assets and Liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material. Professional fees related to the preparation of the closing agreement filed with the IRS were expensed in the prior period and paid in the current period, those fees are non-routine expenses and were paid by the Schwab International Core Equity Fund and not the adviser.
Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.
(f) Distributions to Shareholders:
The funds make distributions from net investment income, if any, once a year, with the exception of the Schwab Dividend Equity Fund which typically pays quarterly distributions. The funds make distributions from net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
Schwab Active Equity Funds | Semiannual Report
62
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in each fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2024, if any, are reflected in each fund’s Statement of Assets and Liabilities.
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Management Risk. The investment techniques, risk analyses and portfolio optimization process the investment adviser may use in constructing the fund’s portfolio do not assure successful investment outcomes. Securities selected with the assistance of the investment process may be negatively impacted by factors or events not foreseen in developing the process. The portfolio optimization process and Schwab Equity Ratings and Schwab Equity International Ratings may not adequately take into account certain factors or may rely on inaccurate data inputs, may contain design flaws or faulty assumptions, and may rely on incomplete or inaccurate data inputs. The fund’s investment adviser may make investment decisions using historical information that may not produce the desired results in the future. As a result, a fund may have a lower return than if it were managed using another process or strategy.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, a fund’s performance could be impacted.
63
Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Growth Investing Risk. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
Dividend Paying Stock Risk. To the extent that a fund invests in dividend paying stocks, the fund’s performance will correlate with the performance of the dividend paying stock segment of the stock market, and the fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, the fund’s ability to generate income may be affected.
Derivatives Risk. The principal type of derivative used by a fund is a futures contract. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC), could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk, market risk and management risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to lack of availability risk, counterparty risk, leverage risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Counterparty risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations either because the financial condition of the counterparty declines, or because the counterparty is otherwise unable or unwilling to perform under the contract. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on a fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and could cause the fund to lose more than the initial amount invested. The fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Exchange-Traded Fund (ETF) Risk. When a fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
REITs Risk. A fund’s investments in real estate investment trusts (REITs) will be subject to the risks associated with the direct ownership of real estate, including fluctuations in the value of underlying properties, defaults by borrowers or tenants, changes in interest rates and risks related to general or local economic conditions. REITs are also subject to certain additional risks; for example, REITs are dependent upon specialized management skills and cash flows, and may have their investments in relatively few properties, a small geographic area or a single property type. Failure of a company to qualify as a REIT under federal tax law may have adverse consequences on a fund. In addition, REITs have their own expenses, and a fund will bear a proportionate share of those expenses.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting,
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities may also include American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), which may be less liquid than the underlying shares in their primary trading market, and GDRs in particular, many of which are issued by companies in emerging markets, may be more volatile. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Concentration Risk. The investments of certain funds are concentrated in issuers doing business in the same sector, and therefore, the companies in which a fund invests will be affected by many of the same factors, such as legislative or regulatory changes, intense competition for market share and other competitive challenges. In addition, a fund is subject to the risks that stocks of these companies may underperform other segments of the equity market or stock market as a whole and are likely to have above-average volatility.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Portfolio Turnover Risk. The funds buy and sell portfolio securities actively. This may cause a fund’s portfolio turnover rate and transaction costs to rise, which may lower a fund’s performance and may increase the likelihood of capital gains distributions.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to the Investment Advisory and Administration Agreement between the investment adviser and the trust.
For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
% OF AVERAGE DAILY NET ASSETS | | SCHWAB DIVIDEND EQUITY FUND | SCHWAB LARGE-CAP GROWTH FUND | SCHWAB SMALL-CAP EQUITY FUND | SCHWAB INTERNATIONAL CORE EQUITY FUND |
| | | | | |
% OF AVERAGE DAILY NET ASSETS | |
| |
$500 million to $1 billion | |
| |
For the period ended April 30, 2024, the aggregate advisory fee paid to the investment adviser by the Schwab Health Care Fund was 0.53%, as a percentage of the fund’s average daily net assets.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Shareholder Servicing
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of the investment adviser (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds.
Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to 0.25%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds). Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.
The investment adviser and its affiliates have made an additional agreement with the funds, for so long as the investment adviser serves as the investment adviser to the funds, in which the agreement may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses (expense limitation). The below expense limitation also excludes paying acquired fund fees and expenses, which are indirect expenses incurred by the funds through their investments in underlying funds. The expense limitation as a percentage of average daily net assets is as follows:
| SCHWAB DIVIDEND EQUITY FUND | SCHWAB LARGE-CAP GROWTH FUND | SCHWAB SMALL-CAP EQUITY FUND | | SCHWAB INTERNATIONAL CORE EQUITY FUND |
| | | | | |
Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of April 30, 2024, as applicable:
| |
| | SCHWAB SMALL-CAP EQUITY FUND | SCHWAB INTERNATIONAL CORE EQUITY FUND |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Other Affiliated Transactions
The professional fees related to European Union foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine expenses. The investment adviser agreed to pay these professional fees, on behalf of the Schwab International Core Equity Fund, subject to reimbursement by the fund to the investment adviser to the extent the fund is able to successfully recover tax claims in the future.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
For the period ended April 30, 2024, the professional fees incurred by the Schwab International Core Equity Fund and paid by the investment adviser were $17,272, as shown as Professional fees in the fund’s Statement of Operations.
During the period ended April 30, 2024, the Schwab International Core Equity Fund did not recover any previously withheld foreign taxes and made no reimbursement to the investment adviser.
As of April 30, 2024, the balance of professional fees related to foreign withholding tax claims subject to future reimbursement by the Schwab International Core Equity Fund to the investment adviser was $19,547.
No other amounts for additional foreign withholding tax claims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
The funds may engage in direct transactions with certain other funds in the Fund Complex in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser, trustees and/or officers The net realized gains or losses on sales of interfund transactions are recorded in Net realized gains (losses) on sales of securities — unaffiliated issuers in the Statement of Operations. For the period ended April 30, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any realized gains (losses) were as follows:
| | | |
| | | |
Schwab Dividend Equity Fund | | | |
Schwab Large-Cap Growth Fund | | | |
Schwab Small-Cap Equity Fund | | | |
| | | |
Schwab International Core Equity Fund | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The funds did not pay any of these interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, on September 26, 2024. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.
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Financial Notes, unaudited (continued)
6. Borrowing from Banks (continued):
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed in each fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Certain funds entered into futures contracts during the report period to equitize available cash. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts.
As of April 30, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | |
| | |
Schwab Large-Cap Growth Fund | | |
| | |
Schwab Small-Cap Equity Fund | | |
| | |
| |
| Includes cumulative unrealized appreciation of futures contracts as reported in the fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
The effects of the derivative contracts in the Statement of Operations for the period ended April 30, 2024, were:
| | |
Net Realized Gains (Losses) | | |
Schwab Large-Cap Growth Fund | | |
| | |
Schwab Small-Cap Equity Fund | | |
| | |
| |
| Statement of Operations location: Net realized gains (losses) on futures contracts. |
Net Change in Unrealized Appreciation (Depreciation) | | |
Schwab Large-Cap Growth Fund | | |
| | |
Schwab Small-Cap Equity Fund | | |
| | |
| |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
During the period ended April 30, 2024, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:
| | |
| | |
Schwab Dividend Equity Fund | | |
Schwab Large-Cap Growth Fund | | |
Schwab Small-Cap Equity Fund | | |
| | |
Schwab International Core Equity Fund | | |
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Financial Notes, unaudited (continued)
8. Purchases and Sales of Investment Securities:
For the period ended April 30, 2024, purchases and sales of securities (excluding short-term obligations) were as follows:
| | |
| | |
Schwab Dividend Equity Fund | | |
Schwab Large-Cap Growth Fund | | |
Schwab Small-Cap Equity Fund | | |
| | |
Schwab International Core Equity Fund | | |
As of April 30, 2024, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
| | | | |
Schwab Dividend Equity Fund | | | | |
Schwab Large-Cap Growth Fund | | | | |
Schwab Small-Cap Equity Fund | | | | |
| | | | |
Schwab International Core Equity Fund | | | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2023, the funds had capital loss carryforwards available as follows:
| |
| |
Schwab Dividend Equity Fund | |
Schwab Large-Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
| |
Schwab International Core Equity Fund | |
For tax purposes, late-year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended October 31, 2023, the Schwab Large-Cap Growth Fund had late-year ordinary losses deferred of $67,945.
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2024. The tax basis components of distributions paid during the fiscal year ended October 31, 2023 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
| | |
Schwab Dividend Equity Fund | | |
Schwab Large-Cap Growth Fund | | |
Schwab Small-Cap Equity Fund | | |
| | |
Schwab International Core Equity Fund | | |
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Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of October 31, 2023, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in each fund’s Statement of Operations. During the fiscal year ended October 31, 2023, the funds did not incur any interest or penalties.
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), 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). | | |
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Independent Trustees (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | |
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). | | |
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). | | |
|
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 | |
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) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – 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.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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|
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, 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) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 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 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 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) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust 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. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (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) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee 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.
3
The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
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asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Dividend Equity Spliced Index An internally calculated index, comprised of the S&P 500 Index from inception of the Schwab Dividend Equity Fund until the close of business on February 27, 2015, and the Russell 1000 Value Index thereafter.
Dow Jones Global Health Care Index An index that measures the performance of healthcare providers, researchers, and supplies producers around the world. The index is quoted in U.S. dollars.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Growth Index An index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 1000 Value Index An index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
Schwab Active Equity Funds | Semiannual Report
74
Schwab Active Equity Funds
Schwab Asset Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab International Opportunities Fund
Schwab Select Large Cap Growth Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab Opportunistic Municipal Bond Fund
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Charles Schwab Investment Management, Inc., dba Schwab Asset Management
211 Main Street, San Francisco, CA 94105
Schwab Funds
1-877-824-5615
© 2024 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s Board determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.
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Semiannual Report | April 30, 2024
Schwab Fundamental Index* Funds
Schwab Fundamental
US Large Company Index Fund**
Schwab Fundamental
US Small Company Index Fund**
Schwab Fundamental International
Large Company Index Fund**
Schwab Fundamental International
Small Company Index Fund**
Schwab Fundamental Emerging Markets
Large Company Index Fund**
*
SCHWAB is a registered trademark of Charles Schwab & Co., Inc.
FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.
**Effective June 21, 2024, the name of the fund changed. For more information, please refer to the prospectus.
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess and monitor their fund investments. Other information, including financial statements, will not appear in the streamlined shareholder reports but will available online and delivered free of charge upon request. |
• If you already receive the full shareholder reports, you will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
Schwab Fundamental Index Funds
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
1
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2024 |
Schwab Fundamental US Large Company Index Fund1 (Ticker Symbol: SFLNX) | |
| |
Russell RAFITM US Large Company Index3 | |
Fund Category: Morningstar Large Value4 | |
| |
| |
Schwab Fundamental US Small Company Index Fund1 (Ticker Symbol: SFSNX) | |
| |
Russell RAFITM US Small Company Index3 | |
Fund Category: Morningstar Small Blend4 | |
| |
| |
Schwab Fundamental International Large Company Index Fund1,6 (Ticker Symbol: SFNNX) | |
MSCI EAFE® Index (Net)7,8 | |
Russell RAFITM Developed ex US Large Company Index | |
Fund Category: Morningstar Foreign Large Value4 | |
| |
Total Return for the 6 Months Ended April 30, 2024 |
| |
Schwab Fundamental International Small Company Index Fund1,6 (Ticker Symbol: SFILX) | |
MSCI EAFE® Index (Net)7,8 | |
Russell RAFITM Developed ex US Small Company Index | |
Fund Category: Morningstar Foreign Small/Mid Value4 | |
| |
| |
Schwab Fundamental Emerging Markets Large Company Index Fund1,6 (Ticker Symbol: SFENX) | |
MSCI Emerging Markets Index (Net)7,9 | |
Russell RAFITM Emerging Markets Large Company Index | |
Fund Category: Morningstar Diversified Emerging Markets4 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
Index ownership — The funds are not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Index Series (the Indices) or otherwise. The Indices are compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Indices and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Indices. For full disclaimer please see the funds’ statement of additional information.
1
Effective June 21, 2024, the name of the fund changed. For more information, please refer to the prospectus.
2
In anticipation of new regulatory requirements, the fund’s regulatory index has changed to the Russell 1000® Index. The Russell 1000® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the second index listed. The fund does not seek to track the regulatory index.
3
Effective June 21, 2024, the fund’s comparative index changed from a Russell RAFI Index to a RAFI Fundamental High Liquidity Index. For more information, please refer to the prospectus.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
In anticipation of new regulatory requirements, the fund’s regulatory index has changed to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the second index listed. The fund does not seek to track the regulatory index.
6
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
7
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
8
In anticipation of new regulatory requirements, the fund’s regulatory index has changed to the MSCI EAFE® Index (Net). The MSCI EAFE® Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the second index listed. The fund does not seek to track the regulatory index.
9
In anticipation of new regulatory requirements, the fund’s regulatory index has changed to the MSCI Emerging Markets Index (Net). The MSCI Emerging Markets Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the second index listed. The fund does not seek to track the regulatory index.
Schwab Fundamental Index Funds | Semiannual Report
2
Schwab Fundamental Index Funds
| Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs, and Schwab Personalized Indexing™ separately managed accounts. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
| Jeremy Brown, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund. Prior to joining Schwab in 2017, Mr. Brown spent six years with ALPS Advisors, Inc. in Denver, most recently as a senior analyst on the ETF portfolio management and research team where he performed portfolio management, trading, and analytics/research functions for ALPS ETFs and passive funds. Additionally, Mr. Brown led a number of investment research, commentary, industry trend analysis, and sales and marketing support initiatives. |
| Joselle Duncan, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund, and Schwab Fundamental Emerging Markets Large Company Index Fund. Prior to joining Schwab in 2022, Ms. Duncan worked at BlackRock, Inc. for over 20 years as a vice president and portfolio manager focused on international ETFs. Before that, she held several positions at BlackRock (formerly Barclays Global Investors) including portfolio manager for institutional and mutual funds, securities lending trader, and securities lending product specialist. |
| Jiwei Gu, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund, and Schwab Fundamental Emerging Markets Large Company Index Fund. Ms. Gu joined the portfolio management team as an associate portfolio manager in 2018. Prior to joining Schwab, she spent four years at CoBank, most recently as an enterprise risk analyst performing bank-level loan portfolio credit risk analysis, data analytics, and risk management methodology research. Before that, Ms. Gu worked in commercial credit underwriting and capital markets supporting lending activities. |
| Ferian Juwono, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the oversight and day-to-day co-management of the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund. Prior to joining Schwab in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors) where he spent more than three years as a portfolio manager, managing equity index funds for institutional clients, and two years as a senior business analyst. Prior to that, Mr. Juwono worked for more than four years as a senior financial analyst with Union Bank of California. |
| David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund, and Schwab Fundamental Emerging Markets Large Company Index Fund. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
3
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
Fund Management (continued)
| Agnes Zau, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund. Prior to joining Schwab in 2018, Ms. Zau was at BlackRock for three years, most recently as a multi-asset portfolio investment consultant where she advised institutional clients on asset allocation and strategy, constructed risk decomposition and portfolio optimization, and conducted scenario analyses for the core multi-asset target risk strategies. She spent the preceding three years as a derivatives specialist at Mellon Capital. |
Schwab Fundamental Index Funds | Semiannual Report
4
Schwab Fundamental US Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Fundamental US Large Company Index Fund (4/2/07)2 | | | | |
| | | | |
Russell RAFITM US Large Company Index 4 | | | | |
Fund Category: Morningstar Large Value 5 | | | | |
Fund Expense Ratio6: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental US Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM US Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Effective June 21, 2024, the name of the fund changed. For more information, please refer to the prospectus.
3
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell RAFI™ US Large Company Index to the Russell 1000® Index. The Russell 1000® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell RAFI™ US Large Company Index. The fund does not seek to track the regulatory index.
4
Effective June 21, 2024, the fund’s comparative index changed from a Russell RAFI Index to a RAFI Fundamental High Liquidity Index. For more information, please refer to the prospectus.
5
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
6
As stated in the prospectus.
5
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments4
Top Equity Holdings % of Net Assets6
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
Portfolio turnover rate excludes in-kind transactions.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
6
This list is not a recommendation of any security by the investment adviser.
Schwab Fundamental Index Funds | Semiannual Report
6
Schwab Fundamental US Small Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Fundamental US Small Company Index Fund (4/2/07)2 | | | | |
| | | | |
Russell RAFITM US Small Company Index 4 | | | | |
| | | | |
Fund Category: Morningstar Small Blend 5 | | | | |
Fund Expense Ratio6: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental US Small Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM US Small Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Effective June 21, 2024, the name of the fund changed. For more information, please refer to the prospectus.
3
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell RAFI™ US Small Company Index to the S&P 500® Index. The S&P 500® Index provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell RAFI™ US Small Company Index. The fund does not seek to track the regulatory index.
4
Effective June 21, 2024, the fund’s comparative index changed from a Russell RAFI Index to a RAFI Fundamental High Liquidity Index. For more information, please refer to the prospectus.
5
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
6
As stated in the prospectus.
7
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments4
Top Equity Holdings % of Net Assets6
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
3
Portfolio turnover rate excludes in-kind transactions.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
6
This list is not a recommendation of any security by the investment adviser.
Schwab Fundamental Index Funds | Semiannual Report
8
Schwab Fundamental International Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Fundamental International Large Company Index Fund (4/2/07)3 | | | | |
MSCI EAFE® Index (Net) 4,5 | | | | |
Russell RAFITM Developed ex US Large Company Index (Net) 4,6 | | | | |
Fund Category: Morningstar Foreign Large Value 7 | | | | |
Fund Expense Ratio8: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental International Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Developed ex US Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
Effective June 21, 2024, the name of the fund changed. For more information, please refer to the prospectus.
4
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
5
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell RAFI™ Developed ex US Large Company Index (Net) to the MSCI EAFE® Index (Net). The MSCI EAFE® Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell RAFI™ Developed ex US Large Company Index (Net). The fund does not seek to track the regulatory index.
6
Effective June 21, 2024, the fund’s comparative index changed from a Russell RAFI Index to a RAFI Fundamental High Liquidity Index. For more information, please refer to the prospectus.
7
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
8
As stated in the prospectus.
9
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets4
Top Country Weightings % of Investments5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
3
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
4
This list is not a recommendation of any security by the investment adviser.
5
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Fundamental Index Funds | Semiannual Report
10
Schwab Fundamental International Small Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Fundamental International Small Company Index Fund (1/31/08)3 | | | | |
MSCI EAFE® Index (Net) 4,5 | | | | |
Russell RAFITM Developed ex US Small Company Index (Net) 4,6 | | | | |
S&P Developed ex-U.S. Small Cap Index (Net) 4 | | | | |
Fund Category: Morningstar Foreign Small/Mid Value 7 | | | | |
Fund Expense Ratio8: 0.39% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental International Small Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Developed ex US Small Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
Effective June 21, 2024, the name of the fund changed. For more information, please refer to the prospectus.
4
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
5
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell RAFI™ Developed ex US Small Company Index (Net) to the MSCI EAFE® Index (Net). The MSCI EAFE® Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell RAFI™ Developed ex US Small Company Index (Net). The fund does not seek to track the regulatory index.
6
Effective June 21, 2024, the fund’s comparative index changed from a Russell RAFI Index to a RAFI Fundamental High Liquidity Index. For more information, please refer to the prospectus.
7
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
8
As stated in the prospectus.
11
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets4
Top Country Weightings % of Investments5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
3
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
4
This list is not a recommendation of any security by the investment adviser.
5
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Fundamental Index Funds | Semiannual Report
12
Schwab Fundamental Emerging Markets Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Fundamental Emerging Markets Large Company Index Fund (1/31/08)3 | | | | |
MSCI Emerging Markets Index (Net) 4,5 | | | | |
Russell RAFITM Emerging Markets Large Company Index (Net) 4,6 | | | | |
Fund Category: Morningstar Diversified Emerging Markets 7 | | | | |
Fund Expense Ratio8: 0.39% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental Emerging Markets Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Emerging Markets Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
Effective June 21, 2024, the name of the fund changed. For more information, please refer to the prospectus.
4
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
5
In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Russell RAFI™ Emerging Markets Large Company Index (Net) to the MSCI EAFE® Index (Net). The MSCI EAFE® Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the Russell RAFI™ Emerging Markets Large Company Index (Net). The fund does not seek to track the regulatory index.
6
Effective June 21, 2024, the fund’s comparative index changed from a Russell RAFI Index to a RAFI Fundamental High Liquidity Index. For more information, please refer to the prospectus.
7
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
8
As stated in the prospectus.
13
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets3
Top Country Weightings % of Investments4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
2
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
3
This list is not a recommendation of any security by the investment adviser.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Fundamental Index Funds | Semiannual Report
14
Schwab Fundamental Index Funds
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2023 and held through April 30, 2024.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/23 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/24 | EXPENSES PAID
DURING PERIOD
|
Schwab Fundamental US Large Company Index Fund | | | | |
| | | | |
| | | | |
Schwab Fundamental US Small Company Index Fund | | | | |
| | | | |
| | | | |
Schwab Fundamental International Large Company Index Fund | | | | |
| | | | |
| | | | |
Schwab Fundamental International Small Company Index Fund | | | | |
| | | | |
| | | | |
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | |
| | | | |
| | | | |
| Based on the most recent six-month expense ratio. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in the period, and divided by 366 days in the fiscal year. |
15
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Fundamental Index Funds | Semiannual Report
16
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.7% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Goodyear Tire & Rubber Co. * | | |
| | |
| | |
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|
|
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
| | |
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|
|
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| | |
Allison Transmission Holdings, Inc. | | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
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| | |
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Fortune Brands Innovations, Inc. | | |
| | |
| | |
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| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
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| | |
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| | |
Resideo Technologies, Inc. * | | |
Rockwell Automation, Inc. | | |
| | |
Rush Enterprises, Inc., Class A | | |
17
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Sensata Technologies Holding PLC | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.1% |
| | |
| | |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Republic Services, Inc., Class A | | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
Verisk Analytics, Inc., Class A | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.5% |
Academy Sports & Outdoors, Inc. | | |
| | |
| | |
American Eagle Outfitters, Inc. | | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
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| | |
| | |
| | |
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| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
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| | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
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| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.6% |
| | |
| | |
| | |
| | |
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| | |
Lululemon Athletica, Inc. * | | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ralph Lauren Corp., Class A | | |
Skechers USA, Inc., Class A * | | |
| | |
Taylor Morrison Home Corp., Class A * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
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|
|
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| | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
18
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
MGM Resorts International * | | |
Penn Entertainment, Inc. * | | |
Service Corp. International | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 3.5% |
Albertsons Cos., Inc., Class A | | |
| | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Performance Food Group Co. * | | |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
United Natural Foods, Inc. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
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|
|
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Baker Hughes Co., Class A | | |
| | |
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Delek U.S. Holdings, Inc. | | |
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Equitrans Midstream Corp. | | |
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Occidental Petroleum Corp. | | |
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PBF Energy, Inc., Class A | | |
| | |
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Pioneer Natural Resources Co. | | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
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| | |
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|
Equity Real Estate Investment Trusts (REITs) 1.6% |
Alexandria Real Estate Equities, Inc. | | |
| | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
Digital Realty Trust, Inc. | | |
| | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
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SBA Communications Corp., Class A | | |
Simon Property Group, Inc. | | |
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VICI Properties, Inc., Class A | | |
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|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class A * | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
| | |
Bread Financial Holdings, Inc. | | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Corebridge Financial, Inc. (a) | | |
| | |
19
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Discover Financial Services | | |
| | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
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Raymond James Financial, Inc. | | |
| | |
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| | |
Starwood Property Trust, Inc. | | |
| | |
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|
Food, Beverage & Tobacco 3.4% |
| | |
Archer-Daniels-Midland Co. | | |
| | |
| | |
| | |
Coca-Cola Europacific Partners PLC | | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 5.8% |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Community Health Systems, Inc. * | | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.3% |
Church & Dwight Co., Inc. | | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
|
|
| | |
| | |
American Equity Investment Life Holding Co. | | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
20
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
| | |
Cincinnati Financial Corp. | | |
CNO Financial Group, Inc. | | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
| | |
Hanover Insurance Group, Inc. | | |
Hartford Financial Services Group, Inc. | | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 6.5% |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Media Corp.-Liberty SiriusXM, Class C * | | |
Meta Platforms, Inc., Class A | | |
| | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class B | | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
Warner Bros Discovery, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 5.4% |
| | |
Agilent Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
21
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
Jones Lang LaSalle, Inc. * | | |
| | |
|
Semiconductors & Semiconductor Equipment 4.5% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
| | |
| | |
Cadence Design Systems, Inc. * | | |
Check Point Software Technologies Ltd. * | | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Technology Hardware & Equipment 6.2% |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
| | |
Seagate Technology Holdings PLC | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 3.0% |
| | |
Frontier Communications Parent, Inc. * | | |
Liberty Global Ltd., Class C * | | |
Liberty Latin America Ltd., Class C * | | |
Lumen Technologies, Inc. * | | |
Telephone & Data Systems, Inc. | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
| | |
JB Hunt Transport Services, Inc. | | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
Uber Technologies, Inc. * | | |
| | |
U-Haul Holding Co. - Non Voting | | |
| | |
United Parcel Service, Inc., Class B | | |
Schwab Fundamental Index Funds | Semiannual Report
22
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
ZIM Integrated Shipping Services Ltd. *(a) | | |
| | |
|
|
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $4,957,217,631) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $34,996,436) | |
Total Investments in Securities
(Cost $4,992,214,067) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $6,682,168. |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
Below is a summary of the fund’s transactions with affiliated issuers and companies which are or were affiliates during the period April 30, 2024. An affiliated company is a company in which the investment adviser has or had an ownership of at least 5% of the voting securities of a security issue during the report period. A dash in the Value at October 31, 2023, and/or Value at April 30, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.1% OF NET ASSETS |
|
|
| | | | | | | | |
|
23
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
|
| | | | | | | | |
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Semiannual Report
24
Schwab Fundamental US Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $6,598,357) | | |
Investments in securities, at value - unaffiliated issuers (cost $4,985,615,710) including securities on loan of $6,682,168 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
25
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $16,206) | | |
| | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Fundamental Index Funds | Semiannual Report
26
Schwab Fundamental US Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
27
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Fundamental Index Funds | Semiannual Report
28
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.7% OF NET ASSETS |
|
Automobiles & Components 1.4% |
American Axle & Manufacturing Holdings, Inc. * | | |
Cooper-Standard Holdings, Inc. * | | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
Modine Manufacturing Co. * | | |
| | |
| | |
Standard Motor Products, Inc. | | |
| | |
| | |
Winnebago Industries, Inc. | | |
| | |
|
|
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
| | |
| | |
| | |
| | |
Bank of NT Butterfield & Son Ltd. | | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
| | |
| | |
Capitol Federal Financial, Inc. | | |
| | |
Central Pacific Financial Corp. | | |
| | |
Columbia Banking System, Inc. | | |
Commerce Bancshares, Inc. | | |
Community Bank System, Inc. | | |
| | |
Cullen/Frost Bankers, Inc. | | |
Customers Bancorp, Inc. * | | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
| | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
First Commonwealth Financial Corp. | | |
| | |
| | |
First Financial Bankshares, Inc. | | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
| | |
| | |
Midland States Bancorp, Inc. | | |
National Bank Holdings Corp., Class A | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
NU Holdings Ltd., Class A * | | |
OceanFirst Financial Corp. | | |
| | |
| | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
| | |
Pinnacle Financial Partners, Inc. | | |
| | |
| | |
Prosperity Bancshares, Inc. | | |
Provident Financial Services, Inc. | | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
Texas Capital Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
29
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
Albany International Corp., Class A | | |
Ameresco, Inc., Class A * | | |
American Woodmark Corp. * | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
| | |
| | |
AZEK Co., Inc., Class A * | | |
| | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Enerpac Tool Group Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Franklin Electric Co., Inc. | | |
| | |
Gates Industrial Corp. PLC * | | |
| | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
GrafTech International Ltd. | | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
| | |
| | |
H&E Equipment Services, Inc. | | |
| | |
| | |
Helios Technologies, Inc. | | |
| | |
| | |
| | |
Hillman Solutions Corp. * | | |
| | |
Hyster-Yale Materials Handling, Inc. | | |
| | |
| | |
John Bean Technologies Corp. | | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
| | |
| | |
| | |
Masonite International Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
| | |
Quanex Building Products Corp. | | |
| | |
| | |
| | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
Standex International Corp. | | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
Titan International, Inc. * | | |
| | |
TPI Composites, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
Watts Water Technologies, Inc., Class A | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 6.1% |
| | |
| | |
Barrett Business Services, Inc. | | |
BrightView Holdings, Inc. * | | |
| | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
30
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
CSG Systems International, Inc. | | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Verra Mobility Corp., Class A * | | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.5% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
America's Car-Mart, Inc. * | | |
| | |
| | |
Boot Barn Holdings, Inc. * | | |
| | |
| | |
Camping World Holdings, Inc., Class A | | |
Children's Place, Inc. *(a) | | |
| | |
ContextLogic, Inc., Class A * | | |
| | |
Designer Brands, Inc., Class A | | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
OneWater Marine, Inc., Class A * | | |
Petco Health & Wellness Co., Inc., Class A * | | |
| | |
| | |
Sally Beauty Holdings, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.8% |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
Ethan Allen Interiors, Inc. | | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
| | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
Smith & Wesson Brands, Inc. | | |
| | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
Tupperware Brands Corp. *(a)(b) | | |
Under Armour, Inc., Class A * | | |
| | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
31
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
Adtalem Global Education, Inc. * | | |
| | |
Arcos Dorados Holdings, Inc., Class A | | |
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
Carriage Services, Inc., Class A | | |
| | |
| | |
Choice Hotels International, Inc. | | |
| | |
Cracker Barrel Old Country Store, Inc. | | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
DoorDash, Inc., Class A * | | |
| | |
| | |
Golden Entertainment, Inc. | | |
Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
Hilton Grand Vacations, Inc. * | | |
Hyatt Hotels Corp., Class A | | |
International Game Technology PLC | | |
| | |
| | |
| | |
| | |
Papa John's International, Inc. | | |
| | |
Planet Fitness, Inc., Class A * | | |
Red Rock Resorts, Inc., Class A | | |
Royal Caribbean Cruises Ltd. * | | |
| | |
Six Flags Entertainment Corp. * | | |
Strategic Education, Inc. | | |
| | |
Texas Roadhouse, Inc., Class A | | |
United Parks & Resorts, Inc. * | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 0.6% |
| | |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
Expro Group Holdings NV * | | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
International Seaways, Inc. | | |
| | |
Liberty Energy, Inc., Class A | | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
Newpark Resources, Inc. * | | |
| | |
| | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
Permian Resources Corp., Class A | | |
| | |
| | |
REX American Resources Corp. * | | |
| | |
| | |
Select Water Solutions, Inc. | | |
| | |
SilverBow Resources, Inc. * | | |
| | |
| | |
Teekay Tankers Ltd., Class A | | |
| | |
| | |
Tsakos Energy Navigation Ltd. | | |
U.S. Silica Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC * | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 8.0% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
Apple Hospitality REIT, Inc. | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
32
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Broadstone Net Lease, Inc. | | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
DiamondRock Hospitality Co. | | |
Diversified Healthcare Trust (b) | | |
| | |
Easterly Government Properties, Inc., Class A | | |
EastGroup Properties, Inc. | | |
| | |
Empire State Realty Trust, Inc., Class A | | |
| | |
Equity LifeStyle Properties, Inc. | | |
Essential Properties Realty Trust, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
| | |
| | |
Healthcare Realty Trust, Inc., Class A | | |
Highwoods Properties, Inc. | | |
| | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
National Health Investors, Inc. | | |
National Storage Affiliates Trust | | |
| | |
Office Properties Income Trust | | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
Peakstone Realty Trust (a) | | |
| | |
Phillips Edison & Co., Inc. | | |
Piedmont Office Realty Trust, Inc., Class A | | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
Rexford Industrial Realty, Inc. | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
| | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
| | |
A-Mark Precious Metals, Inc. | | |
Apollo Commercial Real Estate Finance, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
ARES Management Corp., Class A | | |
Artisan Partners Asset Management, Inc., Class A | | |
B Riley Financial, Inc. (a) | | |
| | |
Blackstone Mortgage Trust, Inc., Class A | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc., Class A | | |
| | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
Coinbase Global, Inc., Class A * | | |
Compass Diversified Holdings | | |
Credit Acceptance Corp. * | | |
Diamond Hill Investment Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
FactSet Research Systems, Inc. | | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
Franklin BSP Realty Trust, Inc. | | |
Granite Point Mortgage Trust, Inc. | | |
Green Dot Corp., Class A * | | |
Hamilton Lane, Inc., Class A | | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | |
Houlihan Lokey, Inc., Class A | | |
Interactive Brokers Group, Inc., Class A | | |
KKR Real Estate Finance Trust, Inc. | | |
Ladder Capital Corp., Class A | | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
New York Mortgage Trust, Inc. | | |
NMI Holdings, Inc., Class A * | | |
Pagseguro Digital Ltd., Class A * | | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Rocket Cos., Inc., Class A * | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
33
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
TPG RE Finance Trust, Inc. | | |
| | |
Tradeweb Markets, Inc., Class A | | |
Two Harbors Investment Corp. | | |
Victory Capital Holdings, Inc., Class A | | |
Virtu Financial, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.4% |
| | |
| | |
Boston Beer Co., Inc., Class A * | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Fresh Del Monte Produce, Inc. | | |
Hain Celestial Group, Inc. * | | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
| | |
National Beverage Corp. * | | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 4.2% |
Acadia Healthcare Co., Inc. * | | |
AdaptHealth Corp., Class A * | | |
| | |
| | |
| | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
Brookdale Senior Living, Inc. * | | |
Clover Health Investments Corp., Class A * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
National HealthCare Corp. | | |
| | |
OmniAb, Inc., Class A *(c) | | |
OmniAb, Inc., Class B *(c) | | |
| | |
| | |
Option Care Health, Inc. * | | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
Privia Health Group, Inc. * | | |
| | |
| | |
Select Medical Holdings Corp. | | |
| | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
| | |
|
Household & Personal Products 1.2% |
| | |
Central Garden & Pet Co., Class A * | | |
| | |
Edgewell Personal Care Co. | | |
| | |
| | |
| | |
| | |
Nu Skin Enterprises, Inc., Class A | | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
|
|
Ambac Financial Group, Inc. * | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
| | |
| | |
| | |
Horace Mann Educators Corp. | | |
James River Group Holdings Ltd. | | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
RenaissanceRe Holdings Ltd. | | |
Schwab Fundamental Index Funds | Semiannual Report
34
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
Stewart Information Services Corp. | | |
| | |
Universal Insurance Holdings, Inc. | | |
White Mountains Insurance Group Ltd. | | |
| | |
|
|
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
Ardagh Metal Packaging SA | | |
| | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
Compass Minerals International, Inc. | | |
Constellium SE, Class A * | | |
| | |
| | |
| | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Radius Recycling, Inc., Class A | | |
Rayonier Advanced Materials, Inc. * | | |
| | |
| | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 3.6% |
AMC Entertainment Holdings, Inc., Class A *(a) | | |
AMC Networks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
EchoStar Corp., Class A * | | |
EW Scripps Co., Class A * | | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
John Wiley & Sons, Inc., Class A | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Live Nation Entertainment, Inc. * | | |
| | |
New York Times Co., Class A | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
| | |
| | |
| | |
Trade Desk, Inc., Class A * | | |
| | |
| | |
| | |
| | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 2.2% |
| | |
Amphastar Pharmaceuticals, Inc. * | | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Corcept Therapeutics, Inc. * | | |
Elanco Animal Health, Inc. * | | |
Emergent BioSolutions, Inc. *(b) | | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
Ligand Pharmaceuticals, Inc. * | | |
| | |
35
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
Pacira BioSciences, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
| | |
Royalty Pharma PLC, Class A | | |
Supernus Pharmaceuticals, Inc. * | | |
United Therapeutics Corp. * | | |
Vir Biotechnology, Inc. * | | |
| | |
|
Real Estate Management & Development 1.1% |
| | |
| | |
Cushman & Wakefield PLC * | | |
DigitalBridge Group, Inc. | | |
| | |
Howard Hughes Holdings, Inc. * | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.4% |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
Lattice Semiconductor Corp. * | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
SMART Global Holdings, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
Ultra Clean Holdings, Inc. * | | |
| | |
| | |
| | |
|
|
| | |
Alarm.com Holdings, Inc. * | | |
AppLovin Corp., Class A * | | |
Bentley Systems, Inc., Class B | | |
| | |
| | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
Dolby Laboratories, Inc., Class A | | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
LiveRamp Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
RingCentral, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
|
Technology Hardware & Equipment 3.7% |
| | |
Advanced Energy Industries, Inc. | | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
Comtech Telecommunications Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kimball Electronics, Inc. * | | |
| | |
| | |
Lumentum Holdings, Inc. * | | |
Methode Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
|
Schwab Fundamental Index Funds | Semiannual Report
36
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Telecommunication Services 0.3% |
| | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
| | |
Iridium Communications, Inc. | | |
Shenandoah Telecommunications Co. | | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
American Airlines Group, Inc. * | | |
| | |
| | |
Covenant Logistics Group, Inc., Class A | | |
| | |
| | |
Genco Shipping & Trading Ltd. | | |
Global Ship Lease, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
United Airlines Holdings, Inc. * | | |
| | |
| | |
|
|
| | |
American States Water Co. | | |
Atlantica Sustainable Infrastructure PLC | | |
| | |
| | |
| | |
California Water Service Group | | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class C | | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
| | |
Northwestern Energy Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,504,322,269) | |
| | |
SHORT-TERM INVESTMENTS 0.9% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $16,060,496) | |
Total Investments in Securities
(Cost $1,520,382,765) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $9,821,311. |
| Issuer is an affiliated company, as the investment adviser owns at least 5% of the voting securities of such company. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
37
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
Below is a summary of the fund’s transactions with affiliated issuers and companies which are or were affiliates during the period April 30, 2024. An affiliated company is a company in which the investment adviser has or had an ownership of at least 5% of the voting securities of a security issue during the report period. A dash in the Value at October 31, 2023, and/or Value at April 30, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
COMMON STOCKS 0.3% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.2% |
Ashford Hospitality Trust, Inc. | | | | | | | | |
Diversified Healthcare Trust | | | | | | | | |
| | | | | | | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.1% |
Emergent BioSolutions, Inc. | | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Equity Real Estate Investment Trusts (REITs) | | | | |
Health Care Equipment & Services | | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Semiannual Report
38
Schwab Fundamental US Small Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $8,529,571) including securities on loan of $877,177 | | |
Investments in securities, at value - unaffiliated issuers (cost $1,511,853,194) including securities on loan of $8,944,134 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
39
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $5,136) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
Net realized gains on sales of in-kind redemptions - affiliated issuers | | |
Net realized gains on sales of in-kind redemptions - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Fundamental Index Funds | Semiannual Report
40
Schwab Fundamental US Small Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
41
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Fundamental Index Funds | Semiannual Report
42
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 98.1% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
James Hardie Industries PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
| | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
Raiffeisen Bank International AG | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Groupe Bruxelles Lambert NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Algonquin Power & Utilities Corp. (a) | | |
Alimentation Couche-Tard, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bausch Health Cos., Inc. * | | |
| | |
Brookfield Asset Management Ltd., Class A | | |
| | |
Brookfield Infrastructure Corp., Class A | | |
Canadian Imperial Bank of Commerce | | |
Canadian National Railway Co. | | |
Canadian Natural Resources Ltd. | | |
Canadian Pacific Kansas City Ltd. | | |
Canadian Tire Corp. Ltd., Class A | | |
| | |
| | |
| | |
Constellation Software, Inc. | | |
Crescent Point Energy Corp. | | |
| | |
| | |
| | |
Fairfax Financial Holdings Ltd. | | |
Finning International, Inc. | | |
First Quantum Minerals Ltd. | | |
| | |
43
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magna International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Restaurant Brands International, Inc. | | |
RioCan Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Teck Resources Ltd., Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
West Fraser Timber Co. Ltd. | | |
Wheaton Precious Metals Corp. | | |
| | |
| | |
|
|
AP Moller - Maersk AS, Class A | | |
AP Moller - Maersk AS, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
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|
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| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
44
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Unibail-Rodamco-Westfield * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fresenius Medical Care AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
BOC Hong Kong Holdings Ltd. | | |
| | |
CK Hutchison Holdings Ltd. | | |
| | |
Galaxy Entertainment Group Ltd. | | |
| | |
Hong Kong & China Gas Co. Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Hongkong Land Holdings Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
| | |
New World Development Co. Ltd. | | |
Orient Overseas International Ltd. | | |
Pacific Basin Shipping Ltd. | | |
| | |
SITC International Holdings Co. Ltd. | | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., A Shares | | |
Techtronic Industries Co. Ltd. | | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
|
Bank of Ireland Group PLC | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Israel Discount Bank Ltd., A Shares | | |
| | |
Teva Pharmaceutical Industries Ltd. * | | |
| | |
|
|
| | |
Assicurazioni Generali SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mediobanca Banca di Credito Finanziario SpA | | |
| | |
| | |
45
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Terna - Rete Elettrica Nazionale | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
| | |
Bandai Namco Holdings, Inc. | | |
| | |
| | |
| | |
Central Japan Railway Co. | | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co. Ltd. | | |
Chugoku Electric Power Co., Inc. | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | |
| | |
Cosmo Energy Holdings Co. Ltd. | | |
Dai Nippon Printing Co. Ltd. | | |
| | |
| | |
| | |
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
Daito Trust Construction Co. Ltd. | | |
Daiwa House Industry Co. Ltd. | | |
Daiwa Securities Group, Inc. | | |
Daiwabo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Electric Power Development Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Furukawa Electric Co. Ltd. | | |
Hakuhodo DY Holdings, Inc. | | |
| | |
Hankyu Hanshin Holdings, Inc. | | |
| | |
| | |
| | |
Hitachi Construction Machinery Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Iida Group Holdings Co. Ltd. | | |
| | |
| | |
Isetan Mitsukoshi Holdings Ltd. | | |
| | |
| | |
| | |
Japan Exchange Group, Inc. | | |
| | |
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kansai Electric Power Co., Inc. | | |
| | |
Kawasaki Heavy Industries Ltd. | | |
Kawasaki Kisen Kaisha Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Kintetsu Group Holdings Co. Ltd. | | |
| | |
| | |
Koito Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Kurita Water Industries Ltd. | | |
| | |
Kyushu Electric Power Co., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
Mitsubishi Electric Corp. | | |
Mitsubishi Estate Co. Ltd. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi Heavy Industries Ltd. | | |
Mitsubishi Materials Corp. | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
46
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
| | |
Mitsui Mining & Smelting Co. Ltd. | | |
| | |
Mizuho Financial Group, Inc. | | |
Morinaga Milk Industry Co. Ltd. | | |
MS&AD Insurance Group Holdings, Inc. | | |
Murata Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NIPPON EXPRESS HOLDINGS, Inc. | | |
Nippon Paint Holdings Co. Ltd. | | |
Nippon Paper Industries Co. Ltd. | | |
Nippon Sanso Holdings Corp. | | |
| | |
Nippon Telegraph & Telephone Corp. | | |
| | |
| | |
| | |
Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Nomura Research Institute Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Pan Pacific International Holdings Corp. | | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
Renesas Electronics Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sekisui Chemical Co. Ltd. | | |
| | |
| | |
Seven & i Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Shin-Etsu Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Stanley Electric Co. Ltd. | | |
| | |
| | |
Sumitomo Chemical Co. Ltd. | | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Forestry Co. Ltd. | | |
Sumitomo Heavy Industries Ltd. | | |
Sumitomo Metal Mining Co. Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Holdings, Inc. | | |
Sumitomo Realty & Development Co. Ltd. | | |
Sumitomo Rubber Industries Ltd. | | |
| | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tohoku Electric Power Co., Inc. | | |
Tokio Marine Holdings, Inc. | | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
Tokyu Fudosan Holdings Corp. | | |
| | |
| | |
| | |
| | |
Toyo Seikan Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
47
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
PGE Polska Grupa Energetyczna SA * | | |
Powszechna Kasa Oszczednosci Bank Polski SA | | |
Powszechny Zaklad Ubezpieczen SA | | |
| | |
|
| | |
|
EDP - Energias de Portugal SA * | | |
| | |
| | |
| | |
|
|
BNK Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Doosan Enerbility Co. Ltd. * | | |
| | |
GS Engineering & Construction Corp. * | | |
| | |
Hana Financial Group, Inc. | | |
Hankook Tire & Technology Co. Ltd. | | |
| | |
| | |
| | |
| | |
Hyundai Engineering & Construction Co. Ltd. | | |
| | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Korea Electric Power Corp. | | |
| | |
| | |
Korean Air Lines Co. Ltd. | | |
| | |
Kumho Petrochemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samsung Electro-Mechanics Co. Ltd. | | |
Samsung Electronics Co. Ltd. | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
Samsung Life Insurance Co. Ltd. | | |
| | |
| | |
Shinhan Financial Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
48
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Woori Financial Group, Inc. | | |
| | |
|
|
| | |
| | |
Golden Agri-Resources Ltd. | | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
Singapore Telecommunications Ltd. | | |
United Overseas Bank Ltd. | | |
| | |
Wilmar International Ltd. | | |
| | |
|
|
| | |
| | |
ACS Actividades de Construccion y Servicios SA | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Electrolux AB, B Shares *(a) | | |
| | |
| | |
| | |
H & M Hennes & Mauritz AB, B Shares (a) | | |
| | |
| | |
| | |
| | |
Securitas AB, B Shares (a) | | |
Skandinaviska Enskilda Banken AB, A Shares | | |
| | |
| | |
| | |
| | |
| | |
Svenska Cellulosa AB SCA, B Shares | | |
Svenska Handelsbanken AB, A Shares | | |
| | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont SA, Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kuehne & Nagel International AG (a) | | |
Logitech International SA | | |
| | |
| | |
| | |
Partners Group Holding AG | | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
Swatch Group AG, Bearer Shares | | |
| | |
| | |
| | |
| | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Associated British Foods PLC | | |
| | |
| | |
49
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
B&M European Value Retail SA | | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings PLC | | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Direct Line Insurance Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Flutter Entertainment PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
International Distributions Services PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Legal & General Group PLC | | |
| | |
London Stock Exchange Group PLC | | |
| | |
| | |
Marks & Spencer Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings PLC | | |
| | |
Reckitt Benckiser Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group PLC | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,999,528,051) | |
|
PREFERRED STOCKS 1.2% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
Samsung Electronics Co. Ltd. | | |
| | |
|
|
| | |
Total Preferred Stocks
(Cost $28,031,095) | |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
Constellation Software, Inc. |
| | |
| |
Schwab Fundamental Index Funds | Semiannual Report
50
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
SHORT-TERM INVESTMENTS 1.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c)(d) | | |
Total Short-Term Investments
(Cost $29,138,682) | |
Total Investments in Securities
(Cost $2,056,697,828) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/21/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $26,328,208. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Global Depositary Receipt |
| Real Estate Investment Trust |
51
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Semiannual Report
52
Schwab Fundamental International Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $2,056,697,828) including securities on loan of $26,328,208 | | |
| | |
Foreign currency, at value (cost $4,876,920) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
53
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $5,388,094) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of foreign withholding tax claims in the European Union are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
Schwab Fundamental Index Funds | Semiannual Report
54
Schwab Fundamental International Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
55
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Fundamental Index Funds | Semiannual Report
56
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
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COMMON STOCKS 99.1% OF NET ASSETS |
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Bendigo & Adelaide Bank Ltd. | | |
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Cleanaway Waste Management Ltd. | | |
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Coronado Global Resources, Inc. | | |
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Domino's Pizza Enterprises Ltd. | | |
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FleetPartners Group Ltd. * | | |
Flight Centre Travel Group Ltd. | | |
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Harvey Norman Holdings Ltd. | | |
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Link Administration Holdings Ltd. | | |
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Magellan Financial Group Ltd. | | |
McMillan Shakespeare Ltd. | | |
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Nine Entertainment Co. Holdings Ltd. | | |
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Platinum Asset Management Ltd. | | |
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Reliance Worldwide Corp. Ltd. | | |
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Sandfire Resources Ltd. * | | |
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Seven Group Holdings Ltd. | | |
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Silver Lake Resources Ltd. * | | |
Star Entertainment Group Ltd. * | | |
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Ventia Services Group Pty. Ltd. | | |
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Virgin Australia Holdings Pty. Ltd. *(a) | | |
Washington H Soul Pattinson & Co. Ltd. | | |
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West African Resources Ltd. * | | |
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AT&S Austria Technologie & Systemtechnik AG | | |
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57
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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Schoeller-Bleckmann Oilfield Equipment AG | | |
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Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
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Ackermans & van Haaren NV | | |
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Ag Growth International, Inc. | | |
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Alamos Gold, Inc., Class A | | |
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Allied Properties Real Estate Investment Trust | | |
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Artis Real Estate Investment Trust | | |
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Badger Infrastructure Solution | | |
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Boardwalk Real Estate Investment Trust | | |
Bombardier, Inc., Class B * | | |
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Boyd Group Services, Inc. | | |
Brookfield Renewable Corp., Class A | | |
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Canaccord Genuity Group, Inc. | | |
Canada Goose Holdings, Inc. * | | |
Canadian Apartment Properties REIT | | |
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CES Energy Solutions Corp. | | |
Chartwell Retirement Residences | | |
Chemtrade Logistics Income Fund | | |
Choice Properties Real Estate Investment Trust | | |
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Cogeco Communications, Inc. | | |
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Colliers International Group, Inc. | | |
Crombie Real Estate Investment Trust | | |
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Descartes Systems Group, Inc. * | | |
Doman Building Materials Group Ltd. | | |
Dream Industrial Real Estate Investment Trust | | |
Dundee Precious Metals, Inc. | | |
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Element Fleet Management Corp. | | |
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Ensign Energy Services, Inc. * | | |
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Fiera Capital Corp., Class A | | |
First Capital Real Estate Investment Trust | | |
First Majestic Silver Corp. | | |
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Fortuna Silver Mines, Inc. * | | |
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Granite Real Estate Investment Trust | | |
H&R Real Estate Investment Trust | | |
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Innergex Renewable Energy, Inc. | | |
International Petroleum Corp. * | | |
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Killam Apartment Real Estate Investment Trust | | |
Labrador Iron Ore Royalty Corp. | | |
Laurentian Bank of Canada | | |
Major Drilling Group International, Inc. * | | |
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Martinrea International, Inc. | | |
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North American Construction Group Ltd. | | |
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NorthWest Healthcare Properties Real Estate Investment Trust | | |
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Pan American Silver Corp. | | |
Paramount Resources Ltd., Class A | | |
Schwab Fundamental Index Funds | Semiannual Report
58
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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Peyto Exploration & Development Corp. | | |
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Precision Drilling Corp. * | | |
Premium Brands Holdings Corp., Class A | | |
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Secure Energy Services, Inc. | | |
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Sienna Senior Living, Inc. | | |
Sleep Country Canada Holdings, Inc. | | |
SmartCentres Real Estate Investment Trust | | |
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Tamarack Valley Energy Ltd. | | |
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Torex Gold Resources, Inc. * | | |
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Transcontinental, Inc., Class A | | |
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Westshore Terminals Investment Corp. | | |
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Novonesis (Novozymes) B, Class B | | |
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Ringkjoebing Landbobank AS | | |
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Scandinavian Tobacco Group AS, A Shares | | |
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Metsa Board OYJ, B Shares | | |
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Eutelsat Communications SACA *(b) | | |
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Gaztransport Et Technigaz SA | | |
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ID Logistics Group SACA * | | |
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La Francaise des Jeux SAEM | | |
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Television Francaise 1 SA | | |
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Ubisoft Entertainment SA * | | |
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59
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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Carl Zeiss Meditec AG, Bearer Shares | | |
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CompuGroup Medical SE & Co. KGaA | | |
CTS Eventim AG & Co. KGaA | | |
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Deutsche Pfandbriefbank AG (b) | | |
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DWS Group GmbH & Co. KGaA | | |
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Fraport AG Frankfurt Airport Services Worldwide * | | |
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Grand City Properties SA * | | |
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Heidelberger Druckmaschinen AG * | | |
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Hornbach Holding AG & Co. KGaA | | |
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Vitesco Technologies Group AG, Class A | | |
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AAC Technologies Holdings, Inc. | | |
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Brightoil Petroleum Holdings Ltd. *(a) | | |
Budweiser Brewing Co. APAC Ltd. | | |
Cafe de Coral Holdings Ltd. | | |
Cathay Pacific Airways Ltd. | | |
Chow Tai Fook Jewellery Group Ltd. | | |
CITIC Telecom International Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
Cowell e Holdings, Inc. * | | |
| | |
Fortune Real Estate Investment Trust | | |
Giordano International Ltd. | | |
Hang Lung Properties Ltd. | | |
Henderson Land Development Co. Ltd. | | |
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Hong Kong Resources Holdings Co. Ltd. * | | |
Hysan Development Co. Ltd. | | |
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Jinchuan Group International Resources Co. Ltd. | | |
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L'Occitane International SA | | |
Luk Fook Holdings International Ltd. | | |
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Melco International Development Ltd. * | | |
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Nexteer Automotive Group Ltd. | | |
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Powerlong Real Estate Holdings Ltd. *(b) | | |
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Samsonite International SA * | | |
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Texhong International Group Ltd. * | | |
Theme International Holdings Ltd. | | |
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United Laboratories International Holdings Ltd. | | |
Vitasoy International Holdings Ltd. | | |
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Glenveagh Properties PLC * | | |
Irish Continental Group PLC | | |
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Alony Hetz Properties & Investments Ltd. | | |
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Bezeq The Israeli Telecommunication Corp. Ltd. | | |
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Schwab Fundamental Index Funds | Semiannual Report
60
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Clal Insurance Enterprises Holdings Ltd. * | | |
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Delek Automotive Systems Ltd. | | |
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Fattal Holdings 1998 Ltd. * | | |
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First International Bank Of Israel Ltd. | | |
Formula Systems 1985 Ltd. | | |
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Harel Insurance Investments & Financial Services Ltd. | | |
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Migdal Insurance & Financial Holdings Ltd. | | |
Mivne Real Estate KD Ltd. | | |
Mizrahi Tefahot Bank Ltd. | | |
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Partner Communications Co. Ltd. * | | |
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Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | | |
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Tower Semiconductor Ltd. * | | |
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Alitalia - Linee Aeree Italiane SpA *(a) | | |
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Banca Monte dei Paschi di Siena SpA * | | |
Banca Popolare di Sondrio SpA | | |
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Danieli & C Officine Meccaniche SpA | | |
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FinecoBank Banca Fineco SpA | | |
Infrastrutture Wireless Italiane SpA | | |
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MFE-MediaForEurope NV, Class A | | |
MFE-MediaForEurope NV, Class B | | |
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Recordati Industria Chimica e Farmaceutica SpA | | |
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UnipolSai Assicurazioni SpA | | |
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Advance Residence Investment Corp. | | |
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AEON Financial Service Co. Ltd. | | |
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AEON REIT Investment Corp. | | |
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Bando Chemical Industries Ltd. | | |
BayCurrent Consulting, Inc. | | |
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Bell System24 Holdings, Inc. | | |
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61
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
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Canon Marketing Japan, Inc. | | |
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Chugin Financial Group, Inc. | | |
Chugoku Marine Paints Ltd. | | |
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Comforia Residential REIT, Inc. | | |
Concordia Financial Group Ltd. | | |
Cosmos Pharmaceutical Corp. | | |
Create SD Holdings Co. Ltd. | | |
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Daiki Aluminium Industry Co. Ltd. | | |
Daikokutenbussan Co. Ltd. | | |
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Daishi Hokuetsu Financial Group, Inc. | | |
Daiwa House REIT Investment Corp. | | |
Daiwa Office Investment Corp. | | |
Daiwa Securities Living Investments Corp. | | |
| | |
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Doutor Nichires Holdings Co. Ltd. | | |
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DyDo Group Holdings, Inc. | | |
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Frontier Real Estate Investment Corp. | | |
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Fuji Media Holdings, Inc. | | |
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Fuji Seal International, Inc. | | |
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Fukuoka Financial Group, Inc. | | |
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Fukushima Galilei Co. Ltd. | | |
Fukuyama Transporting Co. Ltd. | | |
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Futaba Industrial Co. Ltd. | | |
Fuyo General Lease Co. Ltd. | | |
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GungHo Online Entertainment, Inc. | | |
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H.U. Group Holdings, Inc. | | |
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Hagiwara Electric Holdings Co. Ltd. | | |
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Harmonic Drive Systems, Inc. | | |
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Heiwa Real Estate Co. Ltd. | | |
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Hisamitsu Pharmaceutical Co., Inc. | | |
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Hokkaido Electric Power Co., Inc. | | |
Hokkoku Financial Holdings, Inc. | | |
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Hokuhoku Financial Group, Inc. | | |
Hokuriku Electric Power Co. | | |
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Schwab Fundamental Index Funds | Semiannual Report
62
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
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| | |
Inaba Denki Sangyo Co. Ltd. | | |
| | |
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Industrial & Infrastructure Fund Investment Corp. | | |
Integrated Design & Engineering Holdings Co. Ltd. | | |
Internet Initiative Japan, Inc. | | |
Invincible Investment Corp. | | |
Iriso Electronics Co. Ltd. | | |
Ishihara Sangyo Kaisha Ltd. | | |
| | |
| | |
Itoham Yonekyu Holdings, Inc. | | |
| | |
| | |
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J Front Retailing Co. Ltd. | | |
| | |
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Japan Airport Terminal Co. Ltd. | | |
Japan Aviation Electronics Industry Ltd. | | |
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Japan Hotel REIT Investment Corp. | | |
| | |
Japan Logistics Fund, Inc. | | |
Japan Metropolitan Fund Invest | | |
Japan Petroleum Exploration Co. Ltd. | | |
Japan Prime Realty Investment Corp. | | |
Japan Real Estate Investment Corp. | | |
| | |
Japan Wool Textile Co. Ltd. | | |
| | |
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| | |
Juroku Financial Group, Inc. | | |
| | |
| | |
Kaga Electronics Co. Ltd. | | |
| | |
| | |
Kaken Pharmaceutical Co. Ltd. | | |
| | |
| | |
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Kanto Denka Kogyo Co. Ltd. | | |
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Kawada Technologies, Inc. | | |
KDX Realty Investment Corp. | | |
| | |
| | |
| | |
Keisei Electric Railway Co. Ltd. | | |
| | |
| | |
Kissei Pharmaceutical Co. Ltd. | | |
| | |
| | |
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| | |
Kobayashi Pharmaceutical Co. Ltd. | | |
| | |
Koei Tecmo Holdings Co. Ltd. | | |
| | |
| | |
| | |
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| | |
Konoike Transport Co. Ltd. | | |
| | |
KPP Group Holdings Co. Ltd. | | |
| | |
Kumiai Chemical Industry Co. Ltd. | | |
| | |
| | |
Kusuri No. Aoki Holdings Co. Ltd. | | |
| | |
| | |
Kyokuto Kaihatsu Kogyo Co. Ltd. | | |
Kyorin Pharmaceutical Co. Ltd. | | |
Kyoritsu Maintenance Co. Ltd. | | |
Kyoto Financial Group, Inc. | | |
| | |
| | |
Kyushu Financial Group, Inc. | | |
| | |
| | |
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| | |
Makino Milling Machine Co. Ltd. | | |
| | |
| | |
| | |
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| | |
| | |
| | |
McDonald's Holdings Co. Japan Ltd. | | |
| | |
Mebuki Financial Group, Inc. | | |
| | |
Megmilk Snow Brand Co. Ltd. | | |
| | |
Meiko Electronics Co. Ltd. | | |
Meisei Industrial Co. Ltd. | | |
MEITEC Group Holdings, Inc. | | |
| | |
| | |
Mimasu Semiconductor Industry Co. Ltd. | | |
| | |
| | |
| | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Logisnext Co. Ltd. | | |
Mitsubishi Logistics Corp. | | |
63
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Mitsubishi Paper Mills Ltd. | | |
Mitsubishi Pencil Co. Ltd. | | |
Mitsubishi Shokuhin Co. Ltd. | | |
| | |
Mitsui DM Sugar Holdings Co. Ltd. | | |
| | |
| | |
Mitsui Matsushima Holdings Co. Ltd. | | |
Mitsui-Soko Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Mochida Pharmaceutical Co. Ltd. | | |
| | |
| | |
Mori Hills REIT Investment Corp. | | |
| | |
| | |
Musashi Seimitsu Industry Co. Ltd. | | |
| | |
| | |
| | |
| | |
Nankai Electric Railway Co. Ltd. | | |
| | |
NEC Networks & System Integration Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nihon M&A Center Holdings, Inc. | | |
Nihon Parkerizing Co. Ltd. | | |
| | |
| | |
| | |
Nippon Accommodations Fund, Inc. | | |
Nippon Building Fund, Inc. | | |
| | |
| | |
| | |
Nippon Densetsu Kogyo Co. Ltd. | | |
Nippon Electric Glass Co. Ltd. | | |
| | |
Nippon Kanzai Holdings Co. Ltd. | | |
| | |
Nippon Light Metal Holdings Co. Ltd. | | |
Nippon Prologis REIT, Inc. | | |
NIPPON REIT Investment Corp. | | |
| | |
| | |
Nippon Sheet Glass Co. Ltd. * | | |
| | |
| | |
| | |
| | |
Nippon Yakin Kogyo Co. Ltd. | | |
| | |
Nishimatsu Construction Co. Ltd. | | |
Nishimatsuya Chain Co. Ltd. | | |
Nishi-Nippon Financial Holdings, Inc. | | |
Nishi-Nippon Railroad Co. Ltd. | | |
| | |
| | |
| | |
Nisshin Oillio Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nomura Real Estate Holdings, Inc. | | |
Nomura Real Estate Master Fund, Inc. | | |
| | |
| | |
| | |
| | |
| | |
NS United Kaiun Kaisha Ltd. | | |
| | |
| | |
NTT UD REIT Investment Corp. | | |
| | |
Odakyu Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
Oki Electric Industry Co. Ltd. | | |
Okinawa Cellular Telephone Co. | | |
Okinawa Electric Power Co., Inc. | | |
| | |
| | |
| | |
| | |
Open House Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pacific Industrial Co. Ltd. | | |
| | |
PAL GROUP Holdings Co. Ltd. | | |
Paramount Bed Holdings Co. Ltd. | | |
| | |
| | |
Penta-Ocean Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
Pola Orbis Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
64
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Rohto Pharmaceutical Co. Ltd. | | |
| | |
| | |
Ryoyo Ryosan Holdings, Inc. | | |
| | |
Saibu Gas Holdings Co. Ltd. | | |
| | |
Sakai Chemical Industry Co. Ltd. | | |
Sakai Moving Service Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sanki Engineering Co. Ltd. | | |
| | |
Sanoh Industrial Co. Ltd. | | |
Santen Pharmaceutical Co. Ltd. | | |
Sanyo Chemical Industries Ltd. | | |
| | |
Sanyo Special Steel Co. Ltd. | | |
| | |
| | |
Sawai Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Sega Sammy Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Senko Group Holdings Co. Ltd. | | |
Senshu Ikeda Holdings, Inc. | | |
| | |
| | |
| | |
Shibaura Machine Co. Ltd. | | |
| | |
Shikoku Electric Power Co., Inc. | | |
Shinagawa Refractories Co. Ltd. | | |
Shindengen Electric Manufacturing Co. Ltd. | | |
Shin-Etsu Polymer Co. Ltd. | | |
Shinko Electric Industries Co. Ltd. | | |
Shinmaywa Industries Ltd. | | |
| | |
| | |
Ship Healthcare Holdings, Inc. | | |
Shizuoka Financial Group, Inc. | | |
| | |
SHO-BOND Holdings Co. Ltd. | | |
| | |
| | |
| | |
Sinfonia Technology Co. Ltd. | | |
| | |
SKY Perfect JSAT Holdings, Inc. | | |
Skylark Holdings Co. Ltd. | | |
| | |
| | |
Sohgo Security Services Co. Ltd. | | |
| | |
| | |
Square Enix Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Sumitomo Bakelite Co. Ltd. | | |
Sumitomo Densetsu Co. Ltd. | | |
Sumitomo Mitsui Construction Co. Ltd. | | |
Sumitomo Osaka Cement Co. Ltd. | | |
Sumitomo Pharma Co. Ltd. * | | |
| | |
Sumitomo Seika Chemicals Co. Ltd. | | |
Sumitomo Warehouse Co. Ltd. | | |
Sun Frontier Fudousan Co. Ltd. | | |
| | |
| | |
| | |
Tachibana Eletech Co. Ltd. | | |
| | |
| | |
| | |
| | |
Takamatsu Construction Group Co. Ltd. | | |
| | |
| | |
Takasago Thermal Engineering Co. Ltd. | | |
| | |
Takeuchi Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tokai Tokyo Financial Holdings, Inc. | | |
| | |
| | |
| | |
Tokyo Kiraboshi Financial Group, Inc. | | |
Tokyo Ohka Kogyo Co. Ltd. | | |
| | |
Tokyo Steel Manufacturing Co. Ltd. | | |
| | |
| | |
Tokyu Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
65
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Towa Pharmaceutical Co. Ltd. | | |
Toyo Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tsubaki Nakashima Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Super Markets Holdings, Inc. | | |
United Urban Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Warabeya Nichiyo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Yamaguchi Financial Group, Inc. | | |
Yamaichi Electronics Co. Ltd. | | |
| | |
| | |
| | |
| | |
Yodogawa Steel Works Ltd. | | |
Yokogawa Bridge Holdings Corp. | | |
| | |
| | |
Yoshinoya Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
ZERIA Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
|
|
Espirito Santo Financial Group SA *(a) | | |
|
| | |
|
| | |
| | |
AMG Critical Materials NV | | |
| | |
| | |
BE Semiconductor Industries NV | | |
| | |
| | |
Eurocommercial Properties NV | | |
| | |
| | |
| | |
Just Eat Takeaway.com NV * | | |
| | |
Koninklijke Heijmans NV * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Auckland International Airport Ltd. | | |
| | |
| | |
Fisher & Paykel Healthcare Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gjensidige Forsikring ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nordic Semiconductor ASA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
66
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Bank Handlowy w Warszawie SA | | |
Bank Polska Kasa Opieki SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jastrzebska Spolka Weglowa SA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tauron Polska Energia SA * | | |
| | |
|
|
Banco Comercial Portugues SA, Class R * | | |
| | |
| | |
| | |
REN - Redes Energeticas Nacionais SGPS SA | | |
| | |
| | |
|
|
| | |
| | |
Asia Paper Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Chong Kun Dang Pharmaceutical Corp. | | |
| | |
| | |
| | |
| | |
Daeduck Electronics Co. Ltd. | | |
| | |
| | |
Daesang Holdings Co. Ltd. | | |
Daewoo Engineering & Construction Co. Ltd. * | | |
| | |
| | |
| | |
DGB Financial Group, Inc. | | |
| | |
Dongjin Semichem Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Green Cross Holdings Corp. | | |
| | |
| | |
| | |
Hanjin Transportation Co. Ltd. | | |
| | |
| | |
| | |
Hanwha Aerospace Co. Ltd. | | |
Hanwha General Insurance Co. Ltd. | | |
Hanwha Life Insurance Co. Ltd. | | |
| | |
| | |
HD Hyundai Construction Equipment Co. Ltd. | | |
HD Hyundai Heavy Industries Co. Ltd. * | | |
HD Hyundai Infracore Co. Ltd. | | |
| | |
HD Korea Shipbuilding & Offshore Engineering Co. Ltd. * | | |
HDC Hyundai Development Co-Engineering & Construction, Class E | | |
| | |
| | |
| | |
| | |
Hyosung Advanced Materials Corp. | | |
| | |
Hyosung Heavy Industries Corp. | | |
| | |
| | |
Hyundai Department Store Co. Ltd. | | |
Hyundai Elevator Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
JB Financial Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
KEPCO Plant Service & Engineering Co. Ltd. | | |
| | |
| | |
67
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
KIWOOM Securities Co. Ltd. | | |
| | |
| | |
Korea Aerospace Industries Ltd. | | |
Korea Electric Terminal Co. Ltd. | | |
Korea Investment Holdings Co. Ltd. | | |
| | |
Korea Petrochemical Ind Co. Ltd. | | |
| | |
| | |
| | |
| | |
Kwang Dong Pharmaceutical Co. Ltd. | | |
| | |
LG Energy Solution Ltd. * | | |
| | |
Lotte Chilsung Beverage Co. Ltd. | | |
| | |
LOTTE Fine Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Meritz Financial Group, Inc. | | |
Mirae Asset Securities Co. Ltd. | | |
Namyang Dairy Products Co. Ltd. | | |
| | |
| | |
| | |
NH Investment & Securities Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Posco International Corp. | | |
| | |
| | |
Samsung Biologics Co. Ltd. * | | |
| | |
| | |
Samsung Heavy Industries Co. Ltd. * | | |
Samsung Securities Co. Ltd. | | |
| | |
| | |
| | |
SeAH Besteel Holdings Corp. | | |
| | |
Sebang Global Battery Co. Ltd. | | |
| | |
Seohee Construction Co. Ltd. | | |
Seoul Semiconductor Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Songwon Industrial Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Youngone Holdings Co. Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
CapitaLand Integrated Commercial Trust | | |
CapitaLand Investment Ltd. * | | |
| | |
| | |
| | |
Frasers Logistics & Commercial Trust | | |
| | |
Geo Energy Resources Ltd. | | |
| | |
Keppel Infrastructure Trust | | |
| | |
Manulife U.S. Real Estate Investment Trust * | | |
Mapletree Industrial Trust | | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Suntec Real Estate Investment Trust | | |
| | |
| | |
| | |
|
|
Abengoa SA, B Shares *(a) | | |
| | |
| | |
Atresmedia Corp. de Medios de Comunicacion SA | | |
| | |
Caja de Ahorros del Mediterraneo *(a) | | |
Cia de Distribucion Integral Logista Holdings SA | | |
| | |
Construcciones y Auxiliar de Ferrocarriles SA | | |
Corp. ACCIONA Energias Renovables SA | | |
Ence Energia y Celulosa SA | | |
Schwab Fundamental Index Funds | Semiannual Report
68
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
Inmobiliaria Colonial Socimi SA | | |
Melia Hotels International SA * | | |
Merlin Properties Socimi SA | | |
Obrascon Huarte Lain SA * | | |
Prosegur Compania de Seguridad SA | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Coor Service Management Holding AB | | |
Corem Property Group AB, B Shares | | |
| | |
| | |
Electrolux Professional AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, B Shares * | | |
| | |
| | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
| | |
| | |
Investment AB Latour, B Shares | | |
| | |
| | |
| | |
| | |
L E Lundbergforetagen AB, B Shares | | |
Lagercrantz Group AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Wave Group AB, B Shares | | |
Nibe Industrier AB, B Shares (b) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samhallsbyggnadsbolaget i Norden AB | | |
Samhallsbyggnadsbolaget i Norden AB, D Shares * | | |
Scandic Hotels Group AB *(b) | | |
| | |
| | |
Storskogen Group AB, B Shares | | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
| | |
Burckhardt Compression Holding AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schweiter Technologies AG | | |
| | |
| | |
| | |
| | |
St. Galler Kantonalbank AG | | |
69
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Babcock International Group PLC | | |
Bank of Georgia Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Crest Nicholson Holdings PLC | | |
Deliveroo PLC, Class A *(b) | | |
| | |
| | |
| | |
Diversified Energy Co. PLC (b) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gulf Keystone Petroleum Ltd. * | | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Intermediate Capital Group PLC | | |
International Consolidated Airlines Group SA * | | |
| | |
| | |
| | |
| | |
Jupiter Fund Management PLC | | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group PLC | | |
Liontrust Asset Management PLC | | |
LondonMetric Property PLC | | |
| | |
| | |
| | |
Mitchells & Butlers PLC * | | |
| | |
| | |
Moneysupermarket.com Group PLC | | |
Morgan Advanced Materials PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Paragon Banking Group PLC | | |
| | |
| | |
| | |
| | |
Pinewood Technologies Group PLC | | |
| | |
| | |
| | |
Primary Health Properties PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
70
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Spirax-Sarco Engineering PLC | | |
Spire Healthcare Group PLC | | |
Spirent Communications PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vanquis Banking Group PLC | | |
| | |
| | |
| | |
| | |
Watches of Switzerland Group PLC * | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $470,675,711) | |
|
PREFERRED STOCKS 0.1% OF NET ASSETS |
|
|
| | |
|
|
Danieli & C Officine Meccaniche SpA | | |
Total Preferred Stocks
(Cost $282,859) | |
| | |
WARRANTS 0.0% OF NET ASSETS |
|
|
|
| | |
| |
| | |
SHORT-TERM INVESTMENTS 1.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c)(d) | | |
Total Short-Term Investments
(Cost $5,900,613) | |
Total Investments in Securities
(Cost $476,859,183) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/21/24 | | | |
| Non-income producing security. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| All or a portion of this security is on loan. Securities on loan were valued at $5,385,051. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
71
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Semiannual Report
72
Schwab Fundamental International Small Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $476,859,183) including securities on loan of $5,385,051 | | |
Foreign currency, at value (cost $804,726) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
73
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $1,268,987) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers | | |
Net realized gains on futures contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of foreign withholding tax claims in the European Union are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
Schwab Fundamental Index Funds | Semiannual Report
74
Schwab Fundamental International Small Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
75
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Fundamental Index Funds | Semiannual Report
76
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 95.8% OF NET ASSETS |
|
|
| | |
B3 SA - Brasil Bolsa Balcao | | |
| | |
| | |
Banco Santander Brasil SA | | |
Centrais Eletricas Brasileiras SA | | |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP | | |
Cia Energetica de Minas Gerais | | |
Cia Siderurgica Nacional SA | | |
Companhia Paranaense de Energia | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ultrapar Participacoes SA | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Agile Group Holdings Ltd. *(a) | | |
Agricultural Bank of China Ltd., A Shares | | |
Agricultural Bank of China Ltd., H Shares | | |
Alibaba Group Holding Ltd. | | |
Aluminum Corp. of China Ltd., A Shares | | |
Aluminum Corp. of China Ltd., H Shares | | |
Anhui Conch Cement Co. Ltd., A Shares | | |
Anhui Conch Cement Co. Ltd., H Shares | | |
ANTA Sports Products Ltd. | | |
BAIC Motor Corp. Ltd., H Shares | | |
| | |
Bank of China Ltd., A Shares | | |
Bank of China Ltd., H Shares | | |
Bank of Communications Co. Ltd., A Shares | | |
Bank of Communications Co. Ltd., H Shares | | |
Beijing Enterprises Holdings Ltd. | | |
| | |
| | |
| | |
China CITIC Bank Corp. Ltd., A Shares | | |
China CITIC Bank Corp. Ltd., H Shares | | |
China Coal Energy Co. Ltd., A Shares | | |
China Coal Energy Co. Ltd., H Shares | | |
China Communications Services Corp. Ltd., H Shares | | |
China Construction Bank Corp., A Shares | | |
China Construction Bank Corp., H Shares | | |
China Everbright Bank Co. Ltd., A Shares | | |
China Everbright Bank Co. Ltd., H Shares | | |
China Everbright Environment Group Ltd. | | |
| | |
China Hongqiao Group Ltd. | | |
China Jinmao Holdings Group Ltd. | | |
China Life Insurance Co. Ltd., H Shares | | |
China Mengniu Dairy Co. Ltd. | | |
China Merchants Bank Co. Ltd., A Shares | | |
China Merchants Bank Co. Ltd., H Shares | | |
China Minsheng Banking Corp. Ltd., A Shares | | |
China Minsheng Banking Corp. Ltd., H Shares | | |
China National Building Material Co. Ltd., H Shares | | |
China Overseas Land & Investment Ltd. | | |
China Pacific Insurance Group Co. Ltd., A Shares | | |
China Pacific Insurance Group Co. Ltd., H Shares | | |
China Petroleum & Chemical Corp., A Shares | | |
China Petroleum & Chemical Corp., H Shares | | |
China Railway Group Ltd., A Shares | | |
China Railway Group Ltd., H Shares | | |
China Resources Building Materials Technology Holdings Ltd. | | |
China Resources Gas Group Ltd. | | |
China Resources Land Ltd. | | |
China Resources Power Holdings Co. Ltd. | | |
China Shenhua Energy Co. Ltd., A Shares | | |
China Shenhua Energy Co. Ltd., H Shares | | |
China State Construction Engineering Corp. Ltd., A Shares | | |
China Taiping Insurance Holdings Co. Ltd. | | |
China Tower Corp. Ltd., H Shares | | |
China United Network Communications Ltd., A Shares | | |
China Vanke Co. Ltd., A Shares | | |
China Vanke Co. Ltd., H Shares | | |
China Yongda Automobiles Services Holdings Ltd. | | |
| | |
COSCO SHIPPING Holdings Co. Ltd., A Shares | | |
COSCO SHIPPING Holdings Co. Ltd., H Shares | | |
77
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Country Garden Holdings Co. Ltd. *(a)(b) | | |
CRRC Corp. Ltd., A Shares | | |
CRRC Corp. Ltd., H Shares | | |
CSPC Pharmaceutical Group Ltd. | | |
Dongfeng Motor Group Co. Ltd., H Shares | | |
| | |
| | |
GCL Technology Holdings Ltd. | | |
Geely Automobile Holdings Ltd. | | |
Guangzhou R&F Properties Co. Ltd., H Shares * | | |
Haier Smart Home Co. Ltd., A Shares | | |
Haier Smart Home Co. Ltd., H Shares | | |
Hengan International Group Co. Ltd. | | |
Huaneng Power International, Inc., A Shares * | | |
Huaneng Power International, Inc., H Shares * | | |
Industrial & Commercial Bank of China Ltd., A Shares | | |
Industrial & Commercial Bank of China Ltd., H Shares | | |
Industrial Bank Co. Ltd., A Shares | | |
| | |
Jiangxi Copper Co. Ltd., A Shares | | |
Jiangxi Copper Co. Ltd., H Shares | | |
| | |
| | |
Kweichow Moutai Co. Ltd., A Shares | | |
| | |
Longfor Group Holdings Ltd. | | |
| | |
| | |
| | |
Nine Dragons Paper Holdings Ltd. * | | |
People's Insurance Co. Group of China Ltd., A Shares | | |
People's Insurance Co. Group of China Ltd., H Shares | | |
PetroChina Co. Ltd., A Shares | | |
PetroChina Co. Ltd., H Shares | | |
PICC Property & Casualty Co. Ltd., H Shares | | |
Ping An Bank Co. Ltd., A Shares | | |
Ping An Insurance Group Co. of China Ltd., A Shares | | |
Ping An Insurance Group Co. of China Ltd., H Shares | | |
Postal Savings Bank of China Co. Ltd., A Shares | | |
Postal Savings Bank of China Co. Ltd., H Shares | | |
| | |
Shanghai Pharmaceuticals Holding Co. Ltd., A Shares | | |
Shanghai Pudong Development Bank Co. Ltd., A Shares | | |
Shenzhou International Group Holdings Ltd. | | |
Sino Biopharmaceutical Ltd. | | |
Sinopharm Group Co. Ltd., H Shares | | |
Sunny Optical Technology Group Co. Ltd. | | |
| | |
Tingyi Cayman Islands Holding Corp. | | |
Vipshop Holdings Ltd., ADR | | |
Weichai Power Co. Ltd., A Shares | | |
Weichai Power Co. Ltd., H Shares | | |
| | |
| | |
Yankuang Energy Group Co. Ltd., A Shares | | |
Yankuang Energy Group Co. Ltd., H Shares | | |
| | |
Zhongsheng Group Holdings Ltd. | | |
Zijin Mining Group Co. Ltd., A Shares | | |
Zijin Mining Group Co. Ltd., H Shares | | |
| | |
|
|
| | |
|
|
| | |
|
|
Alpha Services & Holdings SA * | | |
Eurobank Ergasias Services & Holdings SA, Class H * | | |
National Bank of Greece SA * | | |
| | |
|
|
MOL Hungarian Oil & Gas PLC | | |
| | |
| | |
|
|
| | |
Bharat Petroleum Corp. Ltd. | | |
| | |
Bharti Airtel Ltd. - Partly Paid Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hindustan Petroleum Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Oil & Natural Gas Corp. Ltd. | | |
| | |
| | |
Power Grid Corp. of India Ltd. | | |
| | |
| | |
| | |
| | |
Steel Authority of India Ltd. | | |
Sun Pharmaceutical Industries Ltd. | | |
Tata Consultancy Services Ltd. | | |
Schwab Fundamental Index Funds | Semiannual Report
78
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Tata Motors Ltd., A Shares, DVR | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Adaro Energy Indonesia Tbk. PT | | |
Astra International Tbk. PT | | |
Bank Central Asia Tbk. PT | | |
Bank Mandiri Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
Telkom Indonesia Persero Tbk. PT | | |
| | |
| | |
|
|
Kuwait Finance House KSCP | | |
Mobile Telecommunications Co. KSCP | | |
National Bank of Kuwait SAKP | | |
| | |
|
|
| | |
| | |
| | |
| | |
Petronas Chemicals Group Bhd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
America Movil SAB de CV, Series B | | |
Cemex SAB de CV, Series CPO * | | |
Fomento Economico Mexicano SAB de CV | | |
Grupo Bimbo SAB de CV, Series A | | |
Grupo Financiero Banorte SAB de CV, O Shares | | |
Grupo Mexico SAB de CV, Series B | | |
Grupo Televisa SAB, Series CPO | | |
| | |
Orbia Advance Corp. SAB de CV | | |
Wal-Mart de Mexico SAB de CV | | |
| | |
|
|
| | |
| | |
| | |
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| | |
|
|
| | |
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| | |
| | |
Saudi Arabian Mining Co. * | | |
| | |
| | |
Saudi Basic Industries Corp. | | |
| | |
| | |
| | |
| | |
|
|
| | |
Anglo American Platinum Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Impala Platinum Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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| | |
| | |
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|
|
| | |
ASE Technology Holding Co. Ltd. | | |
| | |
| | |
| | |
Catcher Technology Co. Ltd. | | |
Cathay Financial Holding Co. Ltd. | | |
Chailease Holding Co. Ltd. | | |
China Development Financial Holding Corp. * | | |
| | |
Chunghwa Telecom Co. Ltd. | | |
| | |
CTBC Financial Holding Co. Ltd. | | |
| | |
E.Sun Financial Holding Co. Ltd. | | |
Evergreen Marine Corp. Taiwan Ltd. | | |
Far Eastern New Century Corp. | | |
First Financial Holding Co. Ltd. | | |
Formosa Chemicals & Fibre Corp. | | |
Formosa Petrochemical Corp. | | |
| | |
Fubon Financial Holding Co. Ltd. | | |
Hon Hai Precision Industry Co. Ltd. | | |
| | |
| | |
Largan Precision Co. Ltd. | | |
Lite-On Technology Corp., ADR | | |
| | |
Mega Financial Holding Co. Ltd. | | |
Micro-Star International Co. Ltd. | | |
| | |
79
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Novatek Microelectronics Corp. | | |
| | |
| | |
Powertech Technology, Inc. | | |
President Chain Store Corp. | | |
| | |
Realtek Semiconductor Corp. | | |
Shin Kong Financial Holding Co. Ltd. * | | |
Synnex Technology International Corp. | | |
| | |
Taiwan Cooperative Financial Holding Co. Ltd. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
Unimicron Technology Corp. | | |
Uni-President Enterprises Corp. | | |
United Microelectronics Corp. | | |
| | |
| | |
| | |
| | |
| | |
Yang Ming Marine Transport Corp. | | |
Yuanta Financial Holding Co. Ltd. | | |
Zhen Ding Technology Holding Ltd. | | |
| | |
|
|
Advanced Info Service PCL NVDR | | |
Bangkok Dusit Medical Services PCL NVDR | | |
| | |
Charoen Pokphand Foods PCL NVDR | | |
| | |
| | |
| | |
PTT Exploration & Production PCL NVDR | | |
PTT Global Chemical PCL NVDR | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
BIM Birlesik Magazalar AS | | |
Eregli Demir ve Celik Fabrikalari TAS | | |
Haci Omer Sabanci Holding AS * | | |
| | |
| | |
Turkcell Iletisim Hizmetleri AS | | |
Turkiye Is Bankasi AS, Class C | | |
Turkiye Petrol Rafinerileri AS | | |
| | |
| | |
|
United Arab Emirates 1.1% |
Abu Dhabi Commercial Bank PJSC | | |
| | |
| | |
| | |
| | |
Emirates Telecommunications Group Co. PJSC | | |
First Abu Dhabi Bank PJSC | | |
| | |
Total Common Stocks
(Cost $633,652,920) | |
|
PREFERRED STOCKS 4.5% OF NET ASSETS |
|
|
| | |
Centrais Eletricas Brasileiras SA, B Shares | | |
Cia Energetica de Minas Gerais | | |
Companhia Paranaense de Energia, B Shares | | |
| | |
| | |
| | |
| | |
| | |
|
|
Sociedad Quimica y Minera de Chile SA, Class B | | |
|
|
| | |
Total Preferred Stocks
(Cost $23,411,673) | |
| | |
SHORT-TERM INVESTMENTS 0.7% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (c)(d) | | |
Total Short-Term Investments
(Cost $5,436,845) | |
Total Investments in Securities
(Cost $662,501,438) | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $4,089,789. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| Differential Voting Rights |
| Non-Voting Depositary Receipt |
Schwab Fundamental Index Funds | Semiannual Report
80
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
81
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - unaffiliated issuers (cost $662,501,438) including securities on loan of $4,089,789 | | |
| | |
Foreign currency, at value (cost $1,255,944) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
Foreign capital gains tax | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report
82
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $1,109,811) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers (net of foreign capital gains tax paid of $1,212,915) | | |
Net realized gains on futures contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers (net of change in foreign capital gains tax of ($2,818,754)) | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
83
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report
84
Schwab Fundamental Index Funds
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
|
Schwab Fundamental US Large Company Index Fund | |
Schwab Fundamental US Small Company Index Fund | |
Schwab Fundamental International Large Company Index Fund | |
Schwab Fundamental International Small Company Index Fund | |
Schwab Fundamental Emerging Markets Large Company Index Fund | |
Schwab Fundamental Global Real Estate Index Fund | |
Schwab S&P 500 Index Fund | |
Schwab Small-Cap Index Fund® | |
Schwab U.S. Large-Cap Growth Index Fund | |
Schwab U.S. Large-Cap Value Index Fund | |
Schwab U.S. Mid-Cap Index Fund | |
Schwab Total Stock Market Index Fund® | Schwab Target 2010 Index Fund |
Schwab International Index Fund® | Schwab Target 2015 Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2020 Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2025 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2030 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2035 Index Fund |
Schwab International Opportunities Fund | Schwab Target 2040 Index Fund |
| Schwab Target 2045 Index Fund |
| Schwab Target 2050 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2055 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2060 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2065 Index Fund |
| Schwab Monthly Income Fund - Target Payout |
Schwab International Core Equity Fund | Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab Fundamental US Large Company Index Fund seeks investment results that correspond generally (before fees and expenses) to the total return of the Russell RAFITM US Large Company Index.
The Schwab Fundamental US Small Company Index Fund seeks investment results that correspond generally (before fees and expenses) to the total return of the Russell RAFITM US Small Company Index.
The Schwab Fundamental International Large Company Index Fund seeks investment results that correspond generally (before fees and expenses) to the total return of the Russell RAFITM Developed ex US Large Company Index.
The Schwab Fundamental International Small Company Index Fund seeks investment results that correspond generally (before fees and expenses) to the total return of the Russell RAFITM Developed ex US Small Company Index.
The Schwab Fundamental Emerging Markets Large Company Index Fund seeks investment results that correspond generally (before fees and expenses) to the total return of the Russell RAFITM Emerging Markets Large Company Index.
85
Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The funds may invest in mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
● Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of a fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of a fund’s shares and seeks to help ensure that the prices at which a fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark.
● Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the
Schwab Fundamental Index Funds | Semiannual Report
86
Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts. U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the valuation of a fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of April 30, 2024, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender), may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
As of April 30, 2024, Schwab Fundamental US Large Company Index Fund, Schwab Fundamental US Small Company Index Fund, Schwab Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund and Schwab Fundamental Emerging Markets Large Company Index Fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2024, are disclosed in each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Cash Investments: The funds, except for the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund, may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code, as amended, definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The Schwab Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund and Schwab Fundamental Emerging Markets Large Company Index Fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in the net realized gains (losses) on sales of securities in each fund’s Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in each fund’s Statement of Operations, if any. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.
Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(d) Investment Income:
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the date the ex-dividend is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees related to European Union foreign withholding tax claims are non-contingent and non-routine expenses which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2024, the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund did not incur any compliance fees.
Pursuant to the Amended and Restated Advisory Agreement (Advisory Agreement) between the investment adviser and the trust, the investment adviser will pay the operating expenses of each fund, excluding taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund. The Advisory Agreement excludes paying acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in underlying funds. Acquired fund fees and expenses are indirect expenses incurred by a fund through its investments in underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(i) Foreign Taxes:
The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in each fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2024, if any, are reflected in each fund’s Statement of Assets and Liabilities.
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Investment Style Risk. The funds are index funds. Therefore, each fund follows the securities included in its respective index during upturns as well as downturns. Because of its indexing strategy, a fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, a fund’s performance may be below that of the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in an index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for a fund.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, a fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Tracking Error Risk. As index funds, each fund seeks to track the performance of its respective index, although it may not be successful in doing so. The divergence between the performance of a fund and the index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.
Concentration Risk. To the extent that a fund’s or its respective index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities may also include American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), which may be less liquid than the underlying shares in their primary trading market, and GDRs, in particular, many of which are issued by companies in emerging markets, may be more volatile. Foreign securities may also include investments in variable interest entities (VIEs) structures, which are created by China-based operating companies in jurisdictions outside of China to obtain indirect financing due to Chinese regulations that prohibit non-Chinese ownership of those companies. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Derivatives Risk. Each fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right to buy or sell an instrument at a specific price before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A fund’s use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to lack of availability risk, credit risk, leverage risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on the fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause the fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase the fund’s volatility, and could cause the fund to lose more than the initial amount invested. A fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Sampling Index Tracking Risk. To the extent a fund uses a sampling method, the fund may not fully replicate its respective index and may hold securities not included in the index. As a result, the fund is subject to the risk that the investment adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. If a fund utilizes a sampling approach, it may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Exchange Traded Funds (ETFs) Risk. Certain funds may purchase shares of ETFs to gain exposure to a particular portion of the market while awaiting an opportunity to purchase securities directly. When a fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a proportionate share of the ETF’s expenses. Therefore, it may be more costly to own an ETF than to own the underlying securities directly. In addition, while the risks of owning shares of an ETF generally reflect the risks of owning the underlying securities the ETF holds, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio securities.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to the Advisory Agreement between the investment adviser and the trust.
For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
SCHWAB FUNDAMENTAL US LARGE COMPANY INDEX FUND | SCHWAB FUNDAMENTAL US SMALL COMPANY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL LARGE COMPANY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL SMALL COMPANY INDEX FUND | SCHWAB FUNDAMENTAL EMERGING MARKETS LARGE COMPANY INDEX FUND |
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of April 30, 2024, as applicable:
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| SCHWAB FUNDAMENTAL US LARGE COMPANY INDEX FUND | SCHWAB FUNDAMENTAL US SMALL COMPANY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL LARGE COMPANY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL SMALL COMPANY INDEX FUND | SCHWAB FUNDAMENTAL EMERGING MARKETS LARGE COMPANY INDEX FUND |
Schwab MarketTrack All Equity Portfolio | | | | | |
Schwab MarketTrack Balanced Portfolio | | | | | |
Schwab MarketTrack Conservative Portfolio | | | | | |
Schwab MarketTrack Growth Portfolio | | | | | |
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Other Affiliated Transactions
The professional fees related to European Union foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine expenses. The investment adviser agreed to pay these professional fees, on behalf of the funds, subject to reimbursement by the funds to the investment adviser to the extent the funds are able to successfully recover tax claims in the future.
For the period ended April 30, 2024, the professional fees incurred by the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund and paid by the investment adviser were $35,066 and $6,591, respectively, as shown as Professional fees in each fund’s Statement of Operations.
During the period ended April 30, 2024, the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund did not recover any previously withheld foreign withholding tax claims and made no reimbursements to the investment adviser.
As of April 30, 2024, the balance of professional fees related to foreign withholding tax claims subject to future reimbursement by the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund to the investment adviser were $138,949 and $8,655, respectively.
No other amounts for additional foreign withholding tax claims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
The funds may engage in direct transactions with certain other funds in the Fund Complex in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
transaction at the current market price. This practice is limited to funds that share the same investment adviser, trustees and/or officers The net realized gains or losses on sales of interfund transactions are recorded in Net realized gains (losses) on sales of securities — unaffiliated issuers in the Statement of Operations. For the period ended April 30, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any realized gains (losses) were as follows:
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Schwab Fundamental US Large Company Index Fund | | | |
Schwab Fundamental US Small Company Index Fund | | | |
Schwab Fundamental International Large Company Index Fund | | | |
Schwab Fundamental International Small Company Index Fund | | | |
Schwab Fundamental Emerging Markets Large Company Index Fund | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The funds did not pay any interested persons or non-interested persons (independent trustees). The independent trustees are paid by the investment adviser. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by a fund, the investment adviser paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is paid by the investment adviser, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
Certain funds entered into futures contracts during the report period to equitize available cash. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts.
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
As of April 30, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
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Schwab Fundamental US Large Company Index Fund | | |
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Schwab Fundamental US Small Company Index Fund | | |
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| Includes cumulative unrealized appreciation of futures contracts as reported in the fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
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Schwab Fundamental International Large Company Index Fund | | |
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Schwab Fundamental International Small Company Index Fund | | |
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| Includes cumulative unrealized depreciation of futures contracts as reported in each fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
The effects of the derivative contracts in the Statement of Operations for the period ended April 30, 2024, were:
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Net Realized Gains (Losses) | | |
Schwab Fundamental US Large Company Index Fund | | |
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Schwab Fundamental US Small Company Index Fund | | |
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Schwab Fundamental International Large Company Index Fund | | |
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Schwab Fundamental International Small Company Index Fund | | |
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Schwab Fundamental Emerging Markets Large Company Index Fund | | |
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| Statement of Operations location: Net realized gains (losses) on futures contracts. |
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
Net Change in Unrealized Appreciation (Depreciation) | | |
Schwab Fundamental US Large Company Index Fund | | |
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Schwab Fundamental US Small Company Index Fund | | |
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Schwab Fundamental International Large Company Index Fund | | |
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Schwab Fundamental International Small Company Index Fund | | |
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Schwab Fundamental Emerging Markets Large Company Index Fund | | |
| | |
| |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
During the period ended April 30, 2024, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:
| | |
Schwab Fundamental US Large Company Index Fund | | |
Schwab Fundamental US Small Company Index Fund | | |
Schwab Fundamental International Large Company Index Fund | | |
Schwab Fundamental International Small Company Index Fund | | |
Schwab Fundamental Emerging Markets Large Company Index Fund | | |
8. Purchases and Sales of Investment Securities:For the period ended April 30, 2024, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:
| | |
Schwab Fundamental US Large Company Index Fund | | |
Schwab Fundamental US Small Company Index Fund | | |
Schwab Fundamental International Large Company Index Fund | | |
Schwab Fundamental International Small Company Index Fund | | |
Schwab Fundamental Emerging Markets Large Company Index Fund | | |
During the period ended April 30, 2024, the following funds had transactions in connection with in-kind transactions:
| IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
Schwab Fundamental US Large Company Index Fund | | |
Schwab Fundamental US Small Company Index Fund | | |
The funds may realize net capital gains or losses resulting from in-kind redemptions. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses on sales of in-kind redemptions for the period ended April 30, 2024, are disclosed in the funds’ Statements of Operations, if any.
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Financial Notes, unaudited (continued)
As of April 30, 2024, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
Schwab Fundamental US Large Company Index Fund | | | | |
Schwab Fundamental US Small Company Index Fund | | | | |
Schwab Fundamental International Large Company Index Fund | | | | |
Schwab Fundamental International Small Company Index Fund | | | | |
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2023, the funds had capital loss carryforwards available as follows:
| |
Schwab Fundamental US Large Company Index Fund | |
Schwab Fundamental US Small Company Index Fund | |
Schwab Fundamental International Large Company Index Fund | |
Schwab Fundamental International Small Company Index Fund | |
Schwab Fundamental Emerging Markets Large Company Index Fund | |
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2024. The tax basis components of distributions paid during the fiscal year ended October 31, 2023 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
Schwab Fundamental US Large Company Index Fund | | |
Schwab Fundamental US Small Company Index Fund | | |
Schwab Fundamental International Large Company Index Fund | | |
Schwab Fundamental International Small Company Index Fund | | |
Schwab Fundamental Emerging Markets Large Company Index Fund | | |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of October 31, 2023, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in each fund’s Statement of Operations. During the fiscal year ended October 31, 2023, the funds did not incur any interest or penalties.
At a meeting held on February 28, 2024, the Board approved changes to each fund’s comparative index from a Russell RAFI Index to a RAFI Fundamental High Liquidity Index as well as changes to each fund’s investment objective, which is nonfundamental, and each fund’s name. These changes are scheduled to be effective on June 21, 2024. For more information, please visit schwabassetmanagement.com/schwabfunds_prospectus.
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Financial Notes, unaudited (continued)
10. Subsequent Events (continued):
Other than the planned changes discussed above, management has determined there are no other subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), 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). | | |
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Independent Trustees (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | |
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). | | |
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). | | |
|
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 | |
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) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – 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.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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|
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, 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) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 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 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 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) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust 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. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (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) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee 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.
3
The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
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asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (the 1933 Act), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell RAFI Developed ex US Large Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Developed ex US Small Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores rank below the 87.5% threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the smallest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Emerging Markets Large Company Index (Net) An index that ranks emerging market companies in the FTSE Global Total Cap Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the
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index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the emerging companies in the FTSE Global Total Cap Index measures the performance of the investable securities in emerging markets globally.
Russell RAFI US Large Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Large Company Index includes only those securities that are members of the U.S. portion whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
Russell RAFI US Small Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Small Company Index includes only those securities that are members of the U.S. portion and rank below the 87.5% fundamental score threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
S&P Developed ex-U.S. Small Cap Index (Net) An index composed of the stocks representing the lowest 15% of float-adjusted market cap in each developed market country, excluding the U.S. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
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Schwab Asset Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab International Opportunities Fund
Schwab Select Large Cap Growth Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab Opportunistic Municipal Bond Fund
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Charles Schwab Investment Management, Inc., dba Schwab Asset Management
211 Main Street, San Francisco, CA 94105
Schwab Funds
1-877-824-5615
© 2024 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s Board determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.
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Semiannual Report | April 30, 2024
Schwab International Opportunities Fund
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess and monitor their fund investments. Other information, including financial statements, will not appear in the streamlined shareholder reports but will available online and delivered free of charge upon request. |
• If you already receive the full shareholder reports, you will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
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Schwab International Opportunities Fund
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by, and is the exclusive property of, MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab.
Schwab International Opportunities Fund | Semiannual Report
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Schwab International Opportunities Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2024 |
Schwab International Opportunities Fund1 (Ticker Symbol: SWMIX) | |
| |
Fund Category: Morningstar Foreign Large Growth3 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets.
1
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
2
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
| John Greves, CFA, Managing Director and Head of Multi-Asset Strategies for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2016, Mr. Greves worked at Russell Investment Management Company (Russell Investments) for 13 years, most recently as a portfolio manager for multi-asset solutions where he managed multiple target date funds, chaired the multi-asset advisory team, and co-authored papers on glide path methodology and benchmarking. Prior to that, he served in several roles for Russell Investments including associate portfolio manager for multi-asset solutions and senior portfolio analyst for multi-asset solutions. |
| Tony Creasy, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to his current role, he was a portfolio manager on the Multi-Asset Strategies Team, responsible for the daily management of several multi-asset portfolios. He also spent eight years as lead analyst on the Schwab Asset Management Investment Manager Research Team. Mr. Creasy started his tenure at Schwab in 2005 as an institutional investment analyst for the firm’s retirement investment services group, providing mutual fund analysis. |
| David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day management of the portion of the fund that is invested in accordance with a particular index. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
Schwab International Opportunities Fund | Semiannual Report
3
Schwab International Opportunities Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab International Opportunities Fund (4/2/04)3 | | | | |
| | | | |
Fund Category: Morningstar Foreign Large Growth 5 | | | | |
Fund Expense Ratio6: 0.85% |
INVESTMENT MANAGERS AND ALLOCATIONS7
| | |
Charles Schwab Investment Management, Inc., dba Schwab Asset Management8 | International Large-Cap Developed | |
American Century Investment Management, Inc. | International Small-Cap Growth | |
| International Large-Cap Value | |
Columbia Management Investment Advisers, LLC | International All-Cap Blend | |
Baillie Gifford Overseas Limited | | |
| | |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
The fund commenced operations on October 16, 1996 which became the Schwab International Opportunities Fund (formerly Laudus International MarketMasters Fund) Investor Shares. The Investor Shares were consolidated into Select Shares on February 26, 2019. The performance presented is that of the former Select Shares which commenced operations on April 2, 2004.
4
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
5
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
6
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
7
For more information about each of the investment manager’s investment styles, refer to the fund’s prospectus.
8
Schwab Asset Management manages a portion of the fund by primarily investing in stocks that are included in the FTSE Developed ex US Quality Factor Index. The Schwab International Opportunities Fund has been developed solely by Schwab Asset Management. Index Ownership – The fund is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the LSE Group). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Developed ex US Quality Factor Index (the Index) vest in the relevant LSE Group company which owns the Index. “FTSE®” is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license.
9
Schwab Asset Management can allocate a portion of the fund to particular market sectors, such as emerging markets, utilizing securities, exchange-traded funds (ETFs) and/or other registered investment companies and may also directly manage additional portions of the fund during transitions between investment managers. Schwab Asset Management also manages the cash portion of the fund.
4
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Performance and Fund Facts as of April 30, 2024
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets4
Top Country Weightings % of Investments5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
3
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
4
This list is not a recommendation of any security by the investment adviser.
5
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab International Opportunities Fund | Semiannual Report
5
Schwab International Opportunities Fund
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2023 and held through April 30, 2024.
The Actual Return line in the table below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for the fund under the heading entitled “Expenses Paid During Period.”
The Hypothetical Return line in the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/23 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/24 | EXPENSES PAID
DURING PERIOD
|
Schwab International Opportunities Fund | | | | |
| | | | |
| | | | |
| Based on the most recent six-month expense ratio. |
| Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. Acquired fund fees and expenses were less than 0.01% during the period November 1, 2023 through April 30, 2024 (see financial note 4, Expense Limitation, for additional information). |
| Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in the period, and divided by 366 days in the fiscal year. |
6
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Effective February 26, 2019, the Investor Share class, and the Select Share class were consolidated into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Select Shares. |
| Calculated based on the average shares outstanding during the period. |
| Per-share amount was less than $0.005. |
| |
| |
| Ratio excludes less than 0.01% of acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds and are subject to a contractual expense limitation (see financial note 4, Expense Limitation, for additional information). |
| Effective February 25, 2022, the net operating expense limitation was lowered from 1.25% to 0.86%. The ratio presented for the period ended October 31, 2022, is a blended ratio. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| |
Schwab International Opportunities Fund | Semiannual Report
7
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
| | |
COMMON STOCKS 94.9% OF NET ASSETS |
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Cleanaway Waste Management Ltd. | | |
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Flight Centre Travel Group Ltd. | | |
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Harvey Norman Holdings Ltd. | | |
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Insurance Australia Group Ltd. | | |
James Hardie Industries PLC * | | |
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Magellan Financial Group Ltd. | | |
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Northern Star Resources Ltd. | | |
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Seven Group Holdings Ltd. | | |
Star Entertainment Group Ltd. * | | |
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Alamos Gold, Inc., Class A | | |
Alimentation Couche-Tard, Inc. | | |
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Boyd Group Services, Inc. | | |
Brookfield Asset Management Ltd., Class A | | |
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Canadian National Railway Co. | | |
Canadian Natural Resources Ltd. | | |
Canadian Pacific Kansas City Ltd. | | |
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Constellation Software, Inc. | | |
8
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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Descartes Systems Group, Inc. * | | |
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Magna International, Inc. | | |
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Pan American Silver Corp. | | |
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Wheaton Precious Metals Corp. | | |
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Alibaba Group Holding Ltd. | | |
Bosideng International Holdings Ltd. | | |
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PDD Holdings, Inc., ADR * | | |
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Tongcheng Travel Holdings Ltd. * | | |
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AP Moller - Maersk AS, Class A | | |
AP Moller - Maersk AS, Class B | | |
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Novonesis (Novozymes) B, Class B | | |
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Cie Generale des Etablissements Michelin SCA | | |
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Gaztransport Et Technigaz SA | | |
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La Francaise des Jeux SAEM | | |
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LVMH Moet Hennessy Louis Vuitton SE | | |
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Bayerische Motoren Werke AG | | |
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Schwab International Opportunities Fund | Semiannual Report
9
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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Carl Zeiss Meditec AG, Bearer Shares | | |
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CTS Eventim AG & Co. KGaA | | |
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DWS Group GmbH & Co. KGaA | | |
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Fresenius Medical Care AG | | |
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National Bank of Greece SA * | | |
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AAC Technologies Holdings, Inc. | | |
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Budweiser Brewing Co. APAC Ltd. | | |
Cathay Pacific Airways Ltd. | | |
Chow Tai Fook Jewellery Group Ltd. | | |
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CK Infrastructure Holdings Ltd. | | |
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Hong Kong & China Gas Co. Ltd. | | |
Johnson Electric Holdings Ltd. | | |
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L'Occitane International SA | | |
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Nexteer Automotive Group Ltd. | | |
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Orient Overseas International Ltd. | | |
Power Assets Holdings Ltd. | | |
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Samsonite International SA * | | |
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SITC International Holdings Co. Ltd. | | |
Sun Hung Kai Properties Ltd. | | |
Techtronic Industries Co. Ltd. | | |
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Vitasoy International Holdings Ltd. | | |
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Xinyi Glass Holdings Ltd. | | |
Yue Yuen Industrial Holdings Ltd. | | |
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Kalyan Jewellers India Ltd. | | |
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Max Financial Services Ltd. * | | |
Max Healthcare Institute Ltd. | | |
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Prestige Estates Projects Ltd. | | |
Rainbow Children's Medicare Ltd. | | |
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Ace Hardware Indonesia Tbk. PT | | |
Bank Mandiri Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
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Bank of Ireland Group PLC | | |
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Ryanair Holdings PLC, ADR | | |
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Bezeq The Israeli Telecommunication Corp. Ltd. | | |
Big Shopping Centers Ltd. * | | |
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Check Point Software Technologies Ltd. * | | |
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Fattal Holdings 1998 Ltd. * | | |
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Mivne Real Estate KD Ltd. | | |
10
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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SolarEdge Technologies, Inc. * | | |
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Teva Pharmaceutical Industries Ltd. * | | |
Tower Semiconductor Ltd. * | | |
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Terna - Rete Elettrica Nazionale | | |
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Bandai Namco Holdings, Inc. | | |
BayCurrent Consulting, Inc. | | |
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Canon Marketing Japan, Inc. | | |
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Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co. Ltd. | | |
Chugoku Electric Power Co., Inc. | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | |
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Cosmo Energy Holdings Co. Ltd. | | |
Cosmos Pharmaceutical Corp. | | |
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Dai Nippon Printing Co. Ltd. | | |
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Daito Trust Construction Co. Ltd. | | |
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Electric Power Development Co. Ltd. | | |
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GMO Payment Gateway, Inc. | | |
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Hakuhodo DY Holdings, Inc. | | |
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Harmonic Drive Systems, Inc. | | |
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Internet Initiative Japan, Inc. | | |
Isetan Mitsukoshi Holdings Ltd. | | |
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Japan Airport Terminal Co. Ltd. | | |
Japan Aviation Electronics Industry Ltd. | | |
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Kansai Electric Power Co., Inc. | | |
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Kawasaki Kisen Kaisha Ltd. | | |
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Kintetsu Group Holdings Co. Ltd. | | |
Kobayashi Pharmaceutical Co. Ltd. | | |
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Koei Tecmo Holdings Co. Ltd. | | |
Koito Manufacturing Co. Ltd. | | |
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Kotobuki Spirits Co. Ltd. | | |
Kurita Water Industries Ltd. | | |
Kyoritsu Maintenance Co. Ltd. | | |
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Kyushu Electric Power Co., Inc. | | |
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Schwab International Opportunities Fund | Semiannual Report
11
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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McDonald's Holdings Co. Japan Ltd. | | |
Mebuki Financial Group, Inc. | | |
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Mitsubishi Chemical Group Corp. | | |
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Mitsubishi Electric Corp. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi Logistics Corp. | | |
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Mitsubishi UFJ Financial Group, Inc. | | |
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Mitsui Mining & Smelting Co. Ltd. | | |
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Murata Manufacturing Co. Ltd. | | |
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Nihon M&A Center Holdings, Inc. | | |
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Nippon Sanso Holdings Corp. | | |
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Nippon Telegraph & Telephone Corp. | | |
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Nishi-Nippon Railroad Co. Ltd. | | |
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Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co. Ltd. | | |
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OBIC Business Consultants Co. Ltd. | | |
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Ono Pharmaceutical Co. Ltd. | | |
Open House Group Co. Ltd. | | |
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PAL GROUP Holdings Co. Ltd. | | |
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Pola Orbis Holdings, Inc. | | |
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Recruit Holdings Co. Ltd. | | |
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Rohto Pharmaceutical Co. Ltd. | | |
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Santen Pharmaceutical Co. Ltd. | | |
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Sega Sammy Holdings, Inc. | | |
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Sekisui Chemical Co. Ltd. | | |
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Shikoku Electric Power Co., Inc. | | |
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Shin-Etsu Chemical Co. Ltd. | | |
Shinko Electric Industries Co. Ltd. | | |
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Ship Healthcare Holdings, Inc. | | |
SHO-BOND Holdings Co. Ltd. | | |
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Sohgo Security Services Co. Ltd. | | |
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Square Enix Holdings Co. Ltd. | | |
Stanley Electric Co. Ltd. | | |
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Sumitomo Bakelite Co. Ltd. | | |
Sumitomo Chemical Co. Ltd. | | |
Sumitomo Electric Industries Ltd. | | |
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Suntory Beverage & Food Ltd. | | |
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Takeda Pharmaceutical Co. Ltd. | | |
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12
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
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Tohoku Electric Power Co., Inc. | | |
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Tokyo Electric Power Co. Holdings, Inc. * | | |
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Tokyo Ohka Kogyo Co. Ltd. | | |
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BBB Foods, Inc., Class A * | | |
Corp. Inmobiliaria Vesta SAB de CV, ADR | | |
Vista Energy SAB de CV, ADR * | | |
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BE Semiconductor Industries NV | | |
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Koninklijke Ahold Delhaize NV | | |
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Fisher & Paykel Healthcare Corp. Ltd. | | |
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| | |
| | |
SKYCITY Entertainment Group Ltd. | | |
| | |
| | |
|
|
| | |
AutoStore Holdings Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
EDP - Energias de Portugal SA * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Eugene Technology Co. Ltd. | | |
| | |
| | |
| | |
Hankook Tire & Technology Co. Ltd. | | |
| | |
Hanwha Aerospace Co. Ltd. | | |
HD Hyundai Infracore Co. Ltd. | | |
| | |
| | |
| | |
Schwab International Opportunities Fund | Semiannual Report
13
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
| | |
Hyundai Engineering & Construction Co. Ltd. | | |
| | |
| | |
| | |
| | |
KEPCO Plant Service & Engineering Co. Ltd. | | |
| | |
Korea Aerospace Industries Ltd. | | |
Korean Air Lines Co. Ltd. | | |
| | |
| | |
Kumho Petrochemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
LOTTE Fine Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samsung Electronics Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
DFI Retail Group Holdings Ltd. | | |
Frasers Logistics & Commercial Trust | | |
| | |
Hutchison Port Holdings Trust, Class U | | |
Jardine Cycle & Carriage Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
Mapletree Industrial Trust | | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
| | |
| | |
| | |
| | |
| | |
Singapore Telecommunications Ltd. | | |
Suntec Real Estate Investment Trust | | |
| | |
Wilmar International Ltd. | | |
| | |
|
| | |
|
Aspen Pharmacare Holdings Ltd. | | |
Impala Platinum Holdings Ltd. | | |
| | |
|
|
ACS Actividades de Construccion y Servicios SA | | |
| | |
| | |
Corp. ACCIONA Energias Renovables SA | | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil SA (b) | | |
International Consolidated Airlines Group SA * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
H & M Hennes & Mauritz AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
14
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont SA, Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kuehne & Nagel International AG | | |
| | |
Logitech International SA | | |
| | |
| | |
| | |
Partners Group Holding AG | | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
| | |
Swatch Group AG, Bearer Shares | | |
| | |
Swissquote Group Holding SA | | |
| | |
| | |
| | |
| | |
|
|
Airtac International Group | | |
| | |
Elan Microelectronics Corp. | | |
Gold Circuit Electronics Ltd. * | | |
| | |
Nien Made Enterprise Co. Ltd. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
B&M European Value Retail SA | | |
| | |
Berkeley Group Holdings PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Flutter Entertainment PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
Intermediate Capital Group PLC | | |
| | |
| | |
| | |
| | |
| | |
Liberty Global Ltd., Class A * | | |
Liberty Global Ltd., Class C * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Reckitt Benckiser Group PLC | | |
| | |
| | |
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group PLC | | |
| | |
| | |
| | |
| | |
| | |
|
|
ACADIA Pharmaceuticals, Inc. * | | |
| | |
Schwab International Opportunities Fund | Semiannual Report
15
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | |
Ginkgo Bioworks Holdings, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
| | |
| | |
Sage Therapeutics, Inc. * | | |
| | |
| | |
Total Common Stocks
(Cost $834,839,104) | |
|
PREFERRED STOCKS 0.5% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
|
|
| | |
| | |
Samsung Electronics Co. Ltd. | | |
| | |
Total Preferred Stocks
(Cost $5,361,230) | |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
Constellation Software, Inc. |
| | |
| |
| | |
INVESTMENT COMPANIES 1.8% OF NET ASSETS |
|
|
| | |
Schwab Emerging Markets Equity ETF (d) | | |
| | |
Total Investment Companies
(Cost $20,050,972) | |
| | |
SHORT-TERM INVESTMENTS 2.3% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (e) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.25% (e)(f) | | |
| | |
Total Short-Term Investments
(Cost $23,177,177) | |
Total Investments in Securities
(Cost $883,428,483) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/21/24 | | | |
16
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | AMOUNT OF CURRENCY TO BE RECEIVED | | AMOUNT OF CURRENCY TO BE DELIVERED | UNREALIZED
APPRECIATION
(DEPRECIATION)
($) |
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | |
| Non-income producing security. |
| Security is traded on separate exchanges for the same issuer. |
| All or a portion of this security is on loan. Securities on loan were valued at $1,138,274. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
Schwab International Opportunities Fund | Semiannual Report
17
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| American Depositary Receipt |
| |
| |
| Real Estate Investment Trust |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2024:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
INVESTMENT COMPANIES 1.7% OF NET ASSETS |
|
|
Schwab Emerging Markets Equity ETF | | | | | | | | |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying fund. |
18
Schwab International Opportunities Fund���| Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2024 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
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| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
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| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Forward Foreign Currency Exchange Contracts2 | | | | |
| | | | |
Forward Foreign Currency Exchange Contracts2 | | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts and forward foreign currency exchange contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab International Opportunities Fund | Semiannual Report
19
Schwab International Opportunities Fund
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $19,426,891) | | |
Investments in securities, at value - unaffiliated issuers (cost $864,001,592) including securities on loan of $1,138,274 | | |
Foreign currency, at value (cost $487,145) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
Unrealized appreciation on forward foreign currency exchange contracts | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
Foreign capital gains tax | | |
Investment adviser and administrator fees | | |
IRS compliance fee for foreign withholding tax claims | | |
Variation margin on futures contracts | | |
| | |
| | |
Independent trustees’ fees | | |
Unrealized depreciation on forward foreign currency exchange contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
20
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $1,077,090) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers (net of foreign capital gains tax paid of $712,052) | | |
Net realized gains on futures contracts | | |
Net realized gains on forward foreign currency exchange contracts | | |
Net realized losses on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers (net of change in foreign capital gains tax of ($356,666)) | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Includes professional fees of $1,500 associated with the filing of foreign withholding tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
Schwab International Opportunities Fund | Semiannual Report
21
Schwab International Opportunities Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
22
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Financial Notes, unaudited
1. Business Structure of the Fund:
Schwab International Opportunities Fund is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:
|
Schwab International Opportunities Fund | |
Schwab S&P 500 Index Fund | |
Schwab Small-Cap Index Fund® | |
Schwab Total Stock Market Index Fund® | |
Schwab U.S. Large-Cap Growth Index Fund | |
Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental US Large Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental US Small Company Index Fund |
Schwab International Index Fund® | Schwab Fundamental International Large Company Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Company Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2010 Index Fund |
| Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity 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 Monthly Income Fund – Target Payout |
| Schwab Monthly Income Fund – Flexible Payout |
| Schwab Monthly Income Fund – Income Payout |
The fund offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of the fund. Each share has a par value of 1/1,000 of a cent, and the fund’s Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab International Opportunities Fund seeks long-term capital appreciation.
2. Significant Accounting Policies:The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The fund may invest in mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab International Opportunities Fund | Semiannual Report
23
Schwab International Opportunities Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the fund’s investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund’s portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
● Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of the fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of the fund’s portfolio holdings and the NAV of the fund’s shares and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of the fund and that of its comparative index or benchmark.
● Futures contracts and forward foreign currency exchange contracts (forwards): Futures contracts are valued at their settlement prices as of the close of their exchanges. Forwards are valued based on that day’s forward exchange rates or by using an interpolated forward exchange rate for contracts with interim settlement dates.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
24
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held, which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts, U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the valuation of the fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the fund’s investments as of April 30, 2024, are disclosed in the fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. The fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by the fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Forward Foreign Currency Exchange Contracts (forwards): Forwards are contracts to buy and sell a currency at a set price on a future date. The value of the forwards is accounted for as unrealized appreciation or depreciation until the contracts settle, at which time the gains or losses are realized.
Securities Lending: Under the trust’s Securities Lending Program, the fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides the fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. The fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the fund or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in the fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between the fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of the fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
As of April 30, 2024, the fund had a security on loan, which was classified as common stock. The value of the security on loan and the related collateral as of April 30, 2024, if any, is disclosed in the fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Passive Foreign Investment Companies: The fund may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The fund may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to- market gains (as well as any gains realized on sale).
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities in the fund’s Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in the fund’s Statement of Operations, if any. The fund does not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments ,if any.
Gains realized by the fund on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When the fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the fund records certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees related to European Union foreign withholding tax claims are non-contingent and non-routine fees which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2024, the fund filed a closing agreement with the IRS and its status for acceptance is under review with the IRS.
The fund will pay a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. The fund recorded contra income in the October 31, 2023 annual report for the estimated IRS compliance fee for foreign withholding tax claims and a corresponding liability to be paid to the IRS, which is disclosed in the fund’s Statement of Assets and Liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material. Professional fees related to the preparation of the closing agreement filed with the IRS were expensed in the prior period and paid in the current period, those fees are non-routine expenses and were paid by the fund and not the adviser.
Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.
(f) Distributions to Shareholders:
The fund makes distributions from net investment income and net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.
The fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the fund invests. These foreign taxes, if any, are paid by the fund and are disclosed in the fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2024, if any, are reflected in the fund’s Statement of Assets and Liabilities.
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Schwab International Opportunities Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(j) Indemnification:
Under the fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.
Investment Style Risk. Schwab Asset Management may attempt to reduce the impact of the performance of any given investment style by allocating to investment managers who invest in both value and growth style stocks. But whenever value stocks fall out of favor with investors, they may underperform growth stocks, and vice versa.
The portion of the fund that is invested in accordance with a particular index follows the securities included in that index during upturns as well as downturns. The fund does not take steps to reduce market exposure or to lessen the effects of a declining market with respect to this portion. In addition, because of the fund’s expenses, the fund’s performance with respect to this portion may be below that of the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in the index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for the fund.
Multi-Manager Risk. Schwab Asset Management and each investment manager makes investment decisions independently, and it is possible that the investment styles of Schwab Asset Management and the investment managers may not complement one another. As a result, the fund’s exposure to a given stock, industry or investment style could unintentionally be smaller or larger than if the fund had a single manager.
Management Risk. The portion of the fund that is actively managed is subject to the risk that its investment adviser and investment managers will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective. Poor stock selection or a focus on securities in a particular sector may cause the fund to underperform its benchmark or other funds with a similar investment objective.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, the fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Foreign Investment Risk. The fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of the fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged, resulting in the dollar value of the fund’s investment being adversely affected. Foreign securities may also include investments in variable interest entities (VIEs) structures, which are created by China-based operating companies in jurisdictions outside of China to obtain indirect financing due to Chinese regulations that prohibit non-Chinese ownership of those companies. To the extent the fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with the fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Currency Risk. As a result of the fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the fund will be subject to currency risk. This is the risk that those currencies will decline in value relative to the U.S. dollar. If such an event occurs, the dollar value of an investment in the fund would be adversely affected.
Sampling Index Tracking Risk. The portion of the fund that is invested in accordance with a particular index may not fully replicate the index and may hold securities not included in the index. As a result, the fund is subject to the risk that Schwab Asset Management’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because Schwab Asset Management utilizes a sampling approach the portion of the fund it manages may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Derivatives Risk. The fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures, forward contracts and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A forward contract is an over-the-counter derivative transaction between two parties to buy or sell a specified amount of an underlying reference at a specified price (or rate) on a specified date in the future. A forward foreign currency contract is a derivative (forward contract) in which the underlying reference is a country’s or region’s currency. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
The fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk, market risk and management risk are discussed elsewhere in this section. The fund’s use of derivatives is also subject to credit risk, leverage risk, counterparty risk, lack of availability risk, valuation risk, correlation risk and tax risk. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on the fund. Counterparty risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations either because the financial condition of the counterparty declines, or because the counterparty is otherwise unable or unwilling to perform under the contract. Lack of availability risk is the risk that suitable derivative transactions
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause the fund to realize higher amounts of short-term capital gains. The fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and could cause the fund to lose more than the initial amount invested. The use of derivatives, that are subject to regulation by the Commodity Futures Trading Commission (CFTC), could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.The fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. The fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between the investment adviser and the trust. The fund’s subadvisers also provide day-to-day portfolio management service to the fund, subject to the supervision of the investment adviser.
For its advisory and administrative services to the fund, the investment adviser is entitled to receive an annual fee, payable monthly, equal to 0.63% of the fund’s average daily net assets. The investment adviser (not the fund) pays a portion of the advisory fees it receives to the subadvisers in return for their portfolio management services.
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of the investment adviser, (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund.
Pursuant to the Plan, the fund’s shares are subject to an annual shareholder servicing fee up to 0.20%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the fund (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the fund). Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.
Although these agreements specify certain fees for these services, the investment adviser and its affiliates have made an additional agreement with the fund, for so long as the investment adviser serves as the investment adviser to the fund, in which the agreement may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged (including acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds), excluding interest, taxes and certain non-routine expenses to 0.86%.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentage of shares of the fund in this report that are owned by other funds in the Fund Complex as of April 30, 2024, as applicable:
Investments in Affiliates
The fund may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the fund may invest in other related funds. As of April 30, 2024, the fund’s ownership percentage of other related fund’s shares is as follows:
Schwab Emerging Markets Equity ETF | |
Other Affiliated Transactions
The professional fees related to European Union foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine expenses. The investment adviser agreed to pay these professional fees, on behalf of the fund, subject to reimbursement by the fund to the investment adviser to the extent the fund is able to successfully recover taxes withheld in the future.
For the period ended April 30, 2024, the professional fees incurred by the fund and paid by the investment adviser were $1,500, as shown as Professional fees within the fund’s Statement of Operations.
During the period ended April 30, 2024, the fund did not recover any previously withheld foreign taxes and made no reimbursement to the investment adviser.
As of April 30, 2024, the balance of professional fees related to foreign withholding tax claims subject to future reimbursement by the fund to the investment adviser was $3,179.
No other amounts for additional foreign withholding tax claims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
The fund’s investment adviser or subadvisers may engage in direct transactions with certain other funds they manage in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When a fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser, subadviser, trustees and/or officers. The net realized gains or losses on sales of interfund transactions are recorded within Net realized gains (losses) on sales of securities — unaffiliated issuers in the Statement of Operations. For the period ended April 30, 2024, the fund’s purchases and sales of securities with other funds managed by the investment adviser or subadvisers was $1,205,984 and $313,863 respectively, and includes realized losses of $168,583.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The fund did not pay any of these interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in the fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
During the period, the fund was a participant with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund paid a commitment fee of 0.15% per annum on the fund’s proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the fund was a participant with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility) with State Street Bank and Trust Company, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount the fund borrows. There were no borrowings by the fund from either line of credit during the period.
The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed in the fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Purchases and Sales of Investment Securities:For the period ended April 30, 2024, purchases and sales of securities (excluding short-term obligations) were as follows:
The fund entered into futures contracts during the report period to equitize available cash. The fund also invested in forwards in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates and to hedge exposure to certain currencies. Refer to financial note 2(b) for the fund’s accounting policies with respect to futures contracts and forwards and financial note 3 for disclosures concerning the risks of investing in futures contracts and forwards.
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Financial Notes, unaudited (continued)
8. Derivatives (continued):
As of April 30, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | | |
| | | |
Forward Foreign Currency Exchange Contracts1 | | | |
| | | |
| | | |
Forward Foreign Currency Exchange Contracts1 | | | |
| |
| Statement of Assets and Liabilities location: Unrealized appreciation on forward foreign currency exchange contracts and Unrealized depreciation on forward foreign currency exchange contracts. |
| Includes cumulative unrealized depreciation of futures contracts as reported in the fund’s Portfolio Holdings. Only current day’s variation margin on futures contracts is reported in the Statement of Assets and Liabilities. |
The effects of the derivative contracts in the Statement of Operations for the period ended April 30, 2024, were:
| | | |
Net Realized Gains (Losses) | | | |
| | | |
Forward Foreign Currency Exchange Contracts1 | | | |
Net Change in Unrealized Appreciation (Depreciation) | | | |
| | | |
Forward Foreign Currency Exchange Contracts2 | | | |
| |
| Statement of Operations location: Net realized gains on futures contracts and net realized gains on forward foreign currency exchange contracts. |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts and net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts. |
During the period ended April 30, 2024, the month-end average notional amounts of futures contracts held by the fund and the month-end average number of contracts held were as follows:
During the period ended April 30, 2024, the month-end average notional amounts of forwards held by the fund and the month-end average unrealized appreciation (depreciation) were as follows:
| UNREALIZED APPRECIATION (DEPRECIATION) |
| |
| |
The fund’s forwards are entered into pursuant to International Swaps and Derivatives Association, Inc. (ISDA) agreements which govern certain terms of derivative transactions. ISDA agreements typically contain, among other things, master netting provisions in the event of a default or other termination event. Master netting provisions allow the fund and the counterparty, in the event of a default or other termination event, to offset payable and receivable amounts for each party related to derivative contracts to one net amount payable by either the fund or the counterparty. The fund’s forwards, which are reported gross in the Statement of Assets
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Financial Notes, unaudited (continued)
8. Derivatives (continued):
and Liabilities, are presented in the table below. The following table presents the fund’s forwards, net of amounts available for offset under a master netting agreement and net of any related collateral received by the fund for assets and pledged by the fund for liabilities as of April 30, 2024.
| GROSS AMOUNTS OF ASSETS PRESENTED IN THE STATEMENT OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS AVAILABLE FOR OFFSET | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| GROSS AMOUNTS OF LIABILITIES PRESENTED IN THE STATEMENT OF ASSETS AND LIABILITIES | FINANCIAL INSTRUMENTS AVAILABLE FOR OFFSET | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Represents the net amount due from/due to the counterparty in the event of default. |
As of April 30, 2024, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
| | | | |
| | | | |
| | | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2023, the fund had capital loss carryforwards of $75,359,635.
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2024. The tax basis components of distributions paid during the fiscal year ended October 31, 2023 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
| | |
34
Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of October 31, 2023, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the fund’s Statement of Operations. During the fiscal year ended October 31, 2023, the fund did not incur any interest or penalties.
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab International Opportunities Fund | Semiannual Report
35
Schwab International Opportunities Fund
Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the fund covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the fund’s Statement of Additional Information, which is available free by calling 1-877-824-5615.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), 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). | | |
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Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
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 | |
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). | | |
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). | | |
|
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 | |
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) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – 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.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
Schwab International Opportunities Fund | Semiannual Report
37
Schwab International Opportunities Fund
|
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, 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) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 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 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 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) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust 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. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (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) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee 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.
3
The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
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Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (the 1933 Act), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
Schwab International Opportunities Fund | Semiannual Report
39
Schwab International Opportunities Fund
Schwab Asset Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab International Opportunities Fund
Schwab Select Large Cap Growth Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab Opportunistic Municipal Bond Fund
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Charles Schwab Investment Management, Inc., dba Schwab Asset Management
211 Main Street, San Francisco, CA 94105
Schwab Funds
1-877-824-5615
© 2024 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s Board determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.
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Semiannual Report | April 30, 2024
Schwab Target Funds
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess and monitor their fund investments. Other information, including financial statements, will not appear in the streamlined shareholder reports but will available online and delivered free of charge upon request. |
• If you already receive the full shareholder reports, you will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
1
Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2024 |
Schwab Target 2010 Fund (Ticker Symbol: SWBRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2010 Composite Index | |
Fund Category: Morningstar Target-Date 2000-20101 | |
| |
| |
Schwab Target 2015 Fund (Ticker Symbol: SWGRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2015 Composite Index | |
Fund Category: Morningstar Target-Date 20151 | |
| |
| |
Schwab Target 2020 Fund (Ticker Symbol: SWCRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2020 Composite Index | |
Fund Category: Morningstar Target-Date 20201 | |
| |
| |
Schwab Target 2025 Fund (Ticker Symbol: SWHRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2025 Composite Index | |
Fund Category: Morningstar Target-Date 20251 | |
| |
| |
Schwab Target 2030 Fund (Ticker Symbol: SWDRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2030 Composite Index | |
Fund Category: Morningstar Target-Date 20301 | |
| |
| |
Schwab Target 2035 Fund (Ticker Symbol: SWIRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2035 Composite Index | |
Fund Category: Morningstar Target-Date 20351 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
Schwab Target Funds | Semiannual Report
2
Performance at a Glance (continued)
Total Return for the 6 Months Ended April 30, 2024 |
Schwab Target 2040 Fund (Ticker Symbol: SWERX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2040 Composite Index | |
Fund Category: Morningstar Target-Date 20401 | |
| |
| |
Schwab Target 2045 Fund (Ticker Symbol: SWMRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2045 Composite Index | |
Fund Category: Morningstar Target-Date 20451 | |
| |
| |
Schwab Target 2050 Fund (Ticker Symbol: SWNRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2050 Composite Index | |
Fund Category: Morningstar Target-Date 20501 | |
| |
| |
Schwab Target 2055 Fund (Ticker Symbol: SWORX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2055 Composite Index | |
Fund Category: Morningstar Target-Date 20551 | |
| |
| |
Schwab Target 2060 Fund (Ticker Symbol: SWPRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2060 Composite Index | |
Fund Category: Morningstar Target-Date 20601 | |
| |
| |
Schwab Target 2065 Fund (Ticker Symbol: SWQRX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Target 2065 Composite Index | |
Fund Category: Morningstar Target-Date 2065+1 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
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Schwab Target Funds | Semiannual Report
| Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
| Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
| Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day 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. |
Schwab Target Funds | Semiannual Report
4
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2010 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2010 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2000-2010 2 | | | | |
Fund Expense Ratios3: Net 0.26%; Gross 0.40% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.26% 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 Schwab Asset Management 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.
5
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
6
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2015 Fund (3/12/08) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2015 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2015 2 | | | | |
Fund Expense Ratios3: Net 0.28%; Gross 0.40% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.28% 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 Schwab Asset Management 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.
7
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
8
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2020 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2020 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2020 2 | | | | |
Fund Expense Ratios3: Net 0.29%; Gross 0.32% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.29% 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 Schwab Asset Management 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.
9
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
10
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2025 Fund (3/12/08) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2025 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2025 2 | | | | |
Fund Expense Ratios3: Net 0.34%; Gross 0.36% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.34% 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 Schwab Asset Management 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.
11
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
12
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2030 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2030 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2030 2 | | | | |
Fund Expense Ratios3: Net 0.41%; Gross 0.42% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.41% 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 Schwab Asset Management 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.
13
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
14
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2035 Fund (3/12/08) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2035 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2035 2 | | | | |
Fund Expense Ratios3: Net 0.46%; Gross 0.48% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.46% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management 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.
15
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
16
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2040 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2040 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2040 2 | | | | |
Fund Expense Ratios3: Net 0.50%; Gross 0.51% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.50% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management 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.
17
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
18
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2045 Fund (1/23/13) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2045 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2045 2 | | | | |
Fund Expense Ratios3: Net 0.53%; Gross 0.57% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.53% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management 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.
19
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
20
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2050 Fund (1/23/13) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2050 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2050 2 | | | | |
Fund Expense Ratios3: Net 0.56%; Gross 0.60% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.56% 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 Schwab Asset Management 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.
21
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
22
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2055 Fund (1/23/13) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2055 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2055 2 | | | | |
Fund Expense Ratios3: Net 0.57%; Gross 0.62% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.57% 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 Schwab Asset Management 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.
23
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
24
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2060 Fund (8/25/16) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2060 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2060 2 | | | | |
Fund Expense Ratios3: Net 0.58%; Gross 0.73% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.58% 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 Schwab Asset Management 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.
25
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
26
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2065 Fund (2/25/21) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2065 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2065+ 2 | | | | |
Fund Expense Ratios3: Net 0.59%; Gross 1.29% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.59% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management 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.
27
Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report
28
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including transfer agent fees and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2023 and held through April 30, 2024.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | BEGINNING
ACCOUNT VALUE
AT 11/1/23 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
| EXPENSES PAID
DURING PERIOD
| EFFECTIVE
EXPENSES PAID
DURING PERIOD
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| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
29
Schwab Target Funds | Semiannual Report
Fund Expenses (Unaudited) (continued)
| EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 11/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 4/30/242 | EXPENSES PAID DURING PERIOD 11/1/23-4/30/242,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 11/1/23-4/30/244,5 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Based on the most recent six-month expense ratio. |
| Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 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 ratio in the prospectus. |
| Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in the period, and divided by 366 days in the fiscal year. |
Schwab Target Funds | Semiannual Report
30
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
31
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 74.5% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 7.6% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 6.7% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 26.9% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $28,511,914) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
32
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 24.9% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
|
Intermediate-Term Bond 17.2% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $10,888,307) | | | | | | | | |
Total Investments in Securities
(Cost $39,400,221) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
33
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $28,511,914) | | |
Investments in securities, at value - unaffiliated issuers (cost $10,888,307) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
34
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
35
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
36
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
37
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 74.7% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 8.8% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 6.5% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 24.9% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $32,020,970) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
38
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 24.8% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
|
Intermediate-Term Bond 16.6% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $12,477,330) | | | | | | | | |
Total Investments in Securities
(Cost $44,498,300) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
39
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $32,020,970) | | |
Investments in securities, at value - unaffiliated issuers (cost $12,477,330) | | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
40
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
41
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
42
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
43
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 74.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 9.9% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 6.1% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 23.6% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $204,049,378) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
44
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 24.7% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
|
Intermediate-Term Bond 16.3% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $80,934,563) | | | | | | | | |
Total Investments in Securities
(Cost $284,983,941) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
45
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $204,049,378) | | |
Investments in securities, at value - unaffiliated issuers (cost $80,934,563) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
46
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
47
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
48
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
49
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 74.2% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 11.9% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 5.0% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 20.9% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $282,250,876) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
50
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 25.4% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 0.1% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 15.7% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $115,671,206) | | | | | | | | |
Total Investments in Securities
(Cost $397,922,082) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
51
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $282,250,876) | | |
Investments in securities, at value - unaffiliated issuers (cost $115,671,206) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
52
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
53
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
54
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
55
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 72.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 16.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 1.8% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 14.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $528,307,905) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
56
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 26.7% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 1.0% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 12.8% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $251,115,298) | | | | | | | | |
Total Investments in Securities
(Cost $779,423,203) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
57
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $528,307,905) | | |
Investments in securities, at value - unaffiliated issuers (cost $251,115,298) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
58
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
59
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
60
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
61
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 72.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 18.9% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 9.7% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $322,597,236) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
62
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 26.6% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 1.9% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 10.3% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $147,042,749) | | | | | | | | |
Total Investments in Securities
(Cost $469,639,985) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
63
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $322,597,236) | | |
Investments in securities, at value - unaffiliated issuers (cost $147,042,749) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
64
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
65
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
66
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
67
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 74.1% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 21.4% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 6.3% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $586,900,712) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
68
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 25.4% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 2.8% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 7.9% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $266,679,700) | | | | | | | | |
Total Investments in Securities
(Cost $853,580,412) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
69
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $586,900,712) | | |
Investments in securities, at value - unaffiliated issuers (cost $266,679,700) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
70
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized gains on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
71
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
72
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
73
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 76.3% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 22.8% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 3.9% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $175,684,278) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
74
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 23.2% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 3.8% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 5.6% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $60,155,585) | | | | | | | | |
Total Investments in Securities
(Cost $235,839,863) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
75
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $175,684,278) | | |
Investments in securities, at value - unaffiliated issuers (cost $60,155,585) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
76
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
77
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
78
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
79
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 78.3% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 24.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 2.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $186,929,702) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
80
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 21.2% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 4.6% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 3.9% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $55,660,253) | | | | | | | | |
Total Investments in Securities
(Cost $242,589,955) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
81
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $186,929,702) | | |
Investments in securities, at value - unaffiliated issuers (cost $55,660,253) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
82
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
83
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
84
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
85
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 79.6% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 24.9% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 1.6% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $136,227,253) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
86
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 19.8% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.2% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 2.7% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $36,598,681) | | | | | | | | |
Total Investments in Securities
(Cost $172,825,934) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
87
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $136,227,253) | | |
Investments in securities, at value - unaffiliated issuers (cost $36,598,681) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
88
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
89
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
90
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
91
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 80.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 25.4% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 1.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $51,542,311) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
92
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 18.6% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.7% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 1.4% |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $12,333,712) | | | | | | | | |
Total Investments in Securities
(Cost $63,876,023) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
93
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $51,542,311) | | |
Investments in securities, at value - unaffiliated issuers (cost $12,333,712) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
94
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized losses on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
95
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
96
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses4 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Commencement of operations. |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
97
Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 81.6% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 25.9% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 0.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $14,523,398) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report
98
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
UNAFFILIATED UNDERLYING FUNDS 17.9% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 6.0% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 0.9% |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $3,273,323) | | | | | | | | |
Total Investments in Securities
(Cost $17,796,721) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
99
Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $14,523,398) | | |
Investments in securities, at value - unaffiliated issuers (cost $3,273,323) | | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report
100
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Realized capital gain distributions received from underlying funds - unaffiliated issuers | | |
Net realized losses on sales of securities - affiliated issuers | | |
Net realized gains on sales of securities - unaffiliated issuers | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
101
Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report
102
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
|
| Schwab Dividend Equity Fund |
| Schwab Large-Cap Growth Fund |
| Schwab Small-Cap Equity Fund |
| |
| Schwab International Core Equity Fund |
| Schwab Fundamental US Large Company Index Fund |
| Schwab Fundamental US Small Company Index Fund |
| Schwab Fundamental International Large Company Index Fund |
| Schwab Fundamental International Small Company Index Fund |
| Schwab Fundamental Emerging Markets Large Company Index Fund |
| Schwab Fundamental Global Real Estate Index Fund |
| Schwab Target 2010 Index Fund |
Schwab S&P 500 Index Fund | Schwab Target 2015 Index Fund |
Schwab Small-Cap Index Fund® | Schwab Target 2020 Index Fund |
Schwab Total Stock Market Index Fund® | Schwab Target 2025 Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2030 Index Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Target 2035 Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Target 2040 Index Fund |
Schwab International Index Fund® | Schwab Target 2045 Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2050 Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2055 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2060 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2065 Index Fund |
Schwab International Opportunities Fund | Schwab Monthly Income Fund - Target Payout |
| Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each of the Schwab Target Funds is considered a “fund of funds” because it invests in other mutual funds or exchange-traded funds (ETFs). Each of the funds seeks to achieve its investment objective by investing primarily in a combination of other affiliated Schwab mutual funds. Each fund may also invest in affiliated Schwab ETFs and unaffiliated third party mutual funds and ETFs (referred to herein as unaffiliated funds and, together with Schwab Funds and Schwab ETFs, as the underlying funds). Each fund invests in the underlying funds in accordance with its target portfolio allocation.
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
Each of the Schwab Target Funds seek to provide capital appreciation and income consistent with its current asset allocation.
2. Significant Accounting Policies:The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
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Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts, U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices
Schwab Target Funds | Semiannual Report
104
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of April 30, 2024, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Cash Investments: The funds may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets. Each fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by a fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
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Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(j) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The funds are subject to the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments may cause the funds to underperform other funds with a similar investment objective. The funds are not managed to maximize tax efficiency for taxable shareholder accounts. Investors should consider whether the funds are an appropriate investment in light of their current financial position and retirement needs.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of a fund. However, the investment adviser is a fiduciary to each fund and is legally obligated to act in each fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.
Exchange-Traded Fund (ETF) Risk. When a fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
Direct Investment Risk. The funds may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain their allocations. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Underlying Fund Investment Risk. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest, which include any combination of the risks described below.
● Investment Risk. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
● Management Risk. Generally, the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or subadviser(s)) will make poor security selections. An underlying fund’s adviser applies its own investment techniques and risk analyses in making investment decisions for the underlying fund, but there can be no guarantee that they will produce the desired results.
● Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
● Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
● Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, an underlying fund’s performance could be impacted.
● Money Market Fund Risk. The funds may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when a fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares under certain circumstances.
● ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
● Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar.
● Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recording requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
● Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures, forward contracts and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A forward contract is an over-the-counter derivative transaction between two parties to buy or sell a specified amount of an underlying reference at a specified price (or rate) on a specified date in the future. A forward foreign currency contract is a derivative (forward contract) in which the underlying reference is a country’s or region’s currency. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk, market risk, counterparty risk and management risk are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Counterparty risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations either because the financial condition of the counterparty declines, or because the counterparty is otherwise unable or unwilling to perform under the contract. Lack of
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. An underlying fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that a fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
● Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
● Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
● Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
● Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to the Investment Advisory and Administration Agreement between the investment adviser and the trust. The investment adviser does not receive a fee for the services it performs for the funds. However, the investment adviser is entitled to receive an annual management fee from each of the affiliated Schwab Funds that serve as underlying funds.
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc., a broker-dealer affiliate of the investment adviser (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. The funds are not subject to any fee under the Plan.
The investment adviser and its affiliates have agreed with the funds, for so long as the investment adviser serves as the investment adviser to the funds, in which the agreement may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses to 0.00%.
The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in the underlying funds.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments in Affiliates
The funds may engage in certain transactions involving affiliated parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other affiliated funds. As of April 30, 2024, each Schwab Target Fund’s ownership percentages of other affiliated funds’ shares are as follows:
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Schwab Fundamental International Large Company Index Fund | | | | | | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | | | | | |
Schwab Global Real Estate Fund | | | | | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | | | | | |
Schwab Select Large Cap Growth Fund | | | | | | | | | | | | |
Schwab Short-Term Bond Index Fund | | | | | | | | | | | | |
Schwab Small-Cap Equity Fund | | | | | | | | | | | | |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | | | | | |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | | | | | |
Schwab U.S. Mid Cap Index Fund | | | | | | | | | | | | |
Schwab Variable Share Price Money Fund, Ultra Shares | | | | | | | | | | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trusts were in compliance with these limitations throughout the report period. The funds did not pay any of these interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
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Financial Notes, unaudited (continued)
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed in each fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Purchases and Sales of Investment Securities:For the period ended April 30, 2024, purchases and sales of securities (excluding short-term obligations) were as follows:
As of April 30, 2024, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
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Financial Notes, unaudited (continued)
8. Federal Income Taxes (continued):
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2024. The tax basis components of distributions paid during the fiscal year ended October 31, 2023 were as follows:
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Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of October 31, 2023, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in each fund’s Statement of Operations. During the fiscal year ended October 31, 2023, the funds did not incur any interest or penalties.
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
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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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), 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). | | |
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Independent Trustees (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | |
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). | | |
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). | | |
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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 | |
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) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – 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.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, 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) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 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 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 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) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust 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. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (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) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee 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.
3
The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
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asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Bloomberg US Aggregate Bond Index An index that is a broad-based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have one or more years remaining to maturity. The index excludes certain types of securities, including tax-exempt state and local government series bonds, structured notes embedded with swaps or other special features, private placements, floating rate securities, inflation-linked bonds and Eurobonds. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Government/Credit 1–5 Year Index An index that is a broad-based benchmark measuring the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational and local authority debt) and investment grade U.S. corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have a remaining maturity greater than or equal to one year and less than five years. The index excludes certain types of securities, including, bonds with equity type features (e.g., warrants, convertibles and preferreds), tax-exempt municipal securities, inflation-linked bonds, floating rate issues, strips, private placements, U.S. dollar-denominated 25 and 50 par retail bonds, structured notes and pass-through certificates. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Treasury Bills 1–3 Month Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months but more than 1 month, are rated investment grade and have $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
Bloomberg US Treasury Inflation-Linked Bond Index (Series-L) An index which includes all publicly-issued U.S. Treasury Inflation-Protected Securities (TIPS) that have at least one year remaining to maturity, are rated investment grade and have $500 million or more of outstanding face value. The TIPS in the index must be denominated in U.S. dollars and must be fixed-rate and non-convertible. The index is market capitalization weighted and the TIPS in the index are updated on the last business day of each month. TIPS are publicly issued, dollar denominated U.S. Government securities issued by the U.S. Treasury that have principal and interest payments linked to an official inflation measure (as measured by the Consumer Price Index, or CPI) and their payments are supported by the full faith and credit of the United States.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Dow Jones U.S. Total Stock Market Index An index which includes all U.S. equity issues with readily available prices. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
FTSE EPRA Nareit Global Index (Net) An index that provides a diverse representation of publicly traded equity real estate investment trusts (REITs) and listed property companies worldwide. The index constituents are free-float adjusted, and screened on liquidity, size and revenue. The index is comprised of countries in developed and emerging markets. The Net of Tax Index is calculated based on the maximum withholding tax rates applicable to dividends received by institutional investors who are not resident in the same country as the remitting company and who do not benefit from double taxation treaties.
FTSE non-US Dollar World Government Bond Index A market capitalization index that measures the total rate of return performance for the government bonds of 22 countries, excluding the U.S., with a remaining maturity of at least 1 year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
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MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell Midcap Index An index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
Target 2010 Composite Index A custom blended index developed by Schwab Asset Management based on the 2010 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 22.5% S&P 500 Index, 1.2% Russell Midcap Index, 1.8% Russell 2000 Index, 7.6% MSCI EAFE Index (Net), 44.4% Bloomberg US Aggregate Bond Index, 2.5% FTSE EPRA Nareit Global Index (Net), 6.8% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 2.1% Bloomberg Global Aggregate ex-US Hedged Index, 8.1% Bloomberg US Government/Credit 1-5 Year Index, and 3.1% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2015 Composite Index A custom blended index developed by Schwab Asset Management based on the 2015 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 24.8% S&P 500 Index, 1.4% Russell Midcap Index, 2.0%
Russell 2000 Index, 8.8% MSCI EAFE Index (Net), 41.7% Bloomberg US Aggregate Bond Index, 2.8% FTSE EPRA Nareit Global Index (Net), 6.4% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 2.2% Bloomberg Global Aggregate ex-US Hedged Index, 7.5% Bloomberg US Government/Credit 1-5 Year Index, and 2.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2020 Composite Index A custom blended index developed by Schwab Asset Management based on the 2020 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 26.2% S&P 500 Index, 1.5% Russell Midcap Index, 2.1% Russell 2000 Index, 9.8% MSCI EAFE Index (Net), 39.9% Bloomberg US Aggregate Bond Index, 3.0% FTSE EPRA Nareit Global Index (Net), 6.1% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 2.2% Bloomberg Global Aggregate ex-US Hedged Index, 7.1% Bloomberg US Government/Credit 1-5 Year Index, and 2.2% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2025 Composite Index A custom blended index developed by Schwab Asset Management based on the 2025 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000® Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 28.3% S&P 500 Index, 1.4% Russell Midcap Index, 2.4% Russell 2000 Index, 11.8% MSCI EAFE Index (Net), 36.6% Bloomberg US Aggregate Bond Index, 3.3% FTSE EPRA Nareit Global Index (Net), 0.1% MSCI Emerging Markets Index (Net), 5.0% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 2.7% Bloomberg Global Aggregate ex-US Hedged Index, 6.3% Bloomberg US Government/Credit 1-5 Year Index, and 1.9% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2030 Composite Index A custom blended index developed by Schwab Asset Management based on the 2030 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 35.0% S&P 500 Index, 1.6% Russell Midcap Index, 3.6% Russell 2000 Index, 15.8% MSCI EAFE Index (Net), 27.2% Bloomberg US Aggregate Bond Index, 4.3% FTSE EPRA Nareit Global Index (Net), 0.9% MSCI Emerging Markets Index (Net), 1.8% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 4.0% Bloomberg
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Global Aggregate ex-US Hedged Index, 4.2% Bloomberg US Government/Credit 1-5 Year Index, and 1.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2035 Composite Index A custom blended index developed by Schwab Asset Management based on the 2035 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 39.6% S&P 500 Index, 1.7% Russell Midcap Index, 4.6% Russell 2000 Index, 18.7% MSCI EAFE Index (Net), 20.5% Bloomberg US Aggregate Bond Index, 5.0% FTSE EPRA Nareit Global Index (Net), 1.8% MSCI Emerging Markets Index (Net), 4.1% Bloomberg Global Aggregate ex-US Hedged Index, 2.9% Bloomberg US Government/Credit 1-5 Year Index, and 1.2% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2040 Composite Index A custom blended index developed by Schwab Asset Management based on the 2040 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 43.0% S&P 500 Index, 1.8% Russell Midcap Index, 5.4% Russell 2000 Index, 21.0% MSCI EAFE Index (Net), 14.7% Bloomberg US Aggregate Bond Index, 5.6% FTSE EPRA Nareit Global Index (Net), 2.7% MSCI Emerging Markets Index (Net), 3.0% Bloomberg Global Aggregate ex-US Hedged Index, 1.9% Bloomberg US Government/Credit 1-5 Year Index, and 0.9% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2045 Composite Index A custom blended index developed by Schwab Asset Management based on the 2045 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 45.7% S&P 500 Index, 1.9% Russell Midcap Index, 6.2% Russell 2000 Index, 22.9% MSCI EAFE Index (Net), 9.7% Bloomberg US Aggregate Bond Index, 6.0% FTSE EPRA Nareit Global Index (Net), 3.6% MSCI Emerging Markets Index (Net), 2.0% Bloomberg Global Aggregate ex-US Hedged Index, 1.2% Bloomberg US
Government/Credit 1-5 Year Index, and 0.7% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2050 Composite Index A custom blended index developed by Schwab Asset Management based on the 2050 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 47.0% S&P 500 Index, 1.9% Russell Midcap Index, 6.9% Russell 2000 Index, 24.1% MSCI EAFE Index (Net), 6.4% Bloomberg US Aggregate Bond Index, 6.4% FTSE EPRA Nareit Global Index (Net), 4.5% MSCI Emerging Markets Index (Net), 1.4% Bloomberg Global Aggregate ex-US Hedged Index, 0.8% Bloomberg US Government/Credit 1-5 Year Index, and 0.6% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2055 Composite Index A custom blended index developed by Schwab Asset Management based on the 2055 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 47.8% S&P 500 Index, 2.0% Russell Midcap Index, 7.3% Russell 2000 Index, 24.8% MSCI EAFE Index (Net), 4.5% Bloomberg US Aggregate Bond Index, 6.5% FTSE EPRA Nareit Global Index (Net), 5.0% MSCI Emerging Markets Index (Net), 1.0% Bloomberg Global Aggregate ex-US Hedged Index, 0.6% Bloomberg US Government/Credit 1-5 Year Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
Target 2060 Composite Index A custom blended index developed by Schwab Asset Management based on the 2060 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 48.3% S&P 500 Index, 2.0% Russell Midcap Index, 7.6% Russell 2000 Index, 25.4% MSCI EAFE Index (Net), 2.9% Bloomberg US Aggregate Bond Index, 6.7% FTSE EPRA Nareit Global Index (Net), 5.5% MSCI Emerging Markets Index (Net), 0.7% Bloomberg Global Aggregate ex-US Hedged Index, 0.5% Bloomberg US Government/Credit 1-5 Year Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
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Target 2065 Composite Index A custom blended index developed by Schwab Asset Management based on the 2065 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective February 1, 2024, the Bloomberg US Government/Credit Index has been removed. Effective February 1, 2024, the composite is derived using the following portion allocations: 48.7% S&P 500 Index, 2.1% Russell Midcap Index, 7.8% Russell 2000 Index, 25.8% MSCI EAFE Index (Net), 1.5% Bloomberg US Aggregate Bond Index, 6.8% FTSE EPRA Nareit Global Index (Net), 5.8% MSCI Emerging Markets Index (Net), 0.5% Bloomberg Global Aggregate ex-US Hedged Index, 0.5% Bloomberg US Government/Credit 1-5 Year Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2024. Percentages listed may not total to 100% due to rounding.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
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Schwab Asset Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab International Opportunities Fund
Schwab Select Large Cap Growth Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab Opportunistic Municipal Bond Fund
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Charles Schwab Investment Management, Inc., dba Schwab Asset Management
211 Main Street, San Francisco, CA 94105
Schwab Funds
1-877-824-5615
© 2024 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s Board determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.
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Semiannual Report | April 30, 2024
Schwab Balanced Fund
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess and monitor their fund investments. Other information, including financial statements, will not appear in the streamlined shareholder reports but will available online and delivered free of charge upon request. |
• If you already receive the full shareholder reports, you will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
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Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Balanced Fund | Semiannual Report
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The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2024 |
Schwab Balanced Fund (Ticker Symbol: SWOBX) | |
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Fund Category: Morningstar Moderate Allocation1 | |
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All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up the composite index may vary over time. For index definition, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
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Schwab Balanced Fund | Semiannual Report
| Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
| Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
| Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. 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. |
Schwab Balanced Fund | Semiannual Report
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The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab Balanced Fund (11/18/96) | | | | |
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Bloomberg US Aggregate Bond Index | | | | |
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Fund Category: Morningstar Moderate Allocation 2 | | | | |
Fund Expense Ratios3: Net 0.50%; Gross 0.52% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.50% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management 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.
4
Schwab Balanced Fund | Semiannual Report
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
This list is not a recommendation of any security by the investment adviser.
4
The holdings listed exclude any temporary liquidity investments.
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Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including transfer agent fees and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2023 and held through April 30, 2024.
The Actual Return line in the table below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for the fund under the heading entitled “Expenses Paid During Period.”
The Hypothetical Return line in the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | BEGINNING
ACCOUNT VALUE
AT 11/1/23 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/24 | EXPENSES PAID
DURING PERIOD
| EFFECTIVE
EXPENSES PAID
DURING PERIOD
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| Based on the most recent six-month expense ratio. |
| Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 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 ratio in the prospectus. |
| Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in the period, and divided by 366 days in the fiscal year. |
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Schwab Balanced Fund | Semiannual Report
Financial Statements
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Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
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Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
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Net asset value at end of period | | | | | | |
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Ratios to average net assets: | | | | | | |
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Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
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Net assets, end of period (x 1,000) | | | | | | |
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| Calculated based on the average shares outstanding during the period. |
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| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
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| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Balanced Fund | Semiannual Report
7
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 99.4% OF NET ASSETS |
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Schwab Select Large Cap Growth Fund * | | | | | | | | |
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Schwab Small-Cap Equity Fund | | | | | | | | |
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International Stocks 9.8% |
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Schwab International Opportunities Fund | | | | | | | | |
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Intermediate-Term Bond 36.9% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
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Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $612,539,670) | | | | | | | | |
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UNAFFILIATED UNDERLYING FUNDS 0.6% OF NET ASSETS |
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State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.25% (b) | | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $4,158,046) | | | | | | | | |
Total Investments in Securities
(Cost $616,697,716) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(c) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
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Schwab Balanced Fund | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
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Investments in securities, at value - affiliated issuers (cost $612,539,670) | | |
Investments in securities, at value - unaffiliated issuers (cost $4,158,046) | | |
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Due from investment adviser | | |
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Capital received from investors | | |
Total distributable earnings | | |
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Schwab Balanced Fund | Semiannual Report
9
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
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Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
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Portfolio accounting fees | | |
Independent trustees’ fees | | |
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REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
Net realized losses on sales of securities - affiliated issuers | | |
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Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
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Schwab Balanced Fund | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
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Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
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DISTRIBUTIONS TO SHAREHOLDERS |
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TRANSACTIONS IN FUND SHARES |
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Net transactions in fund shares | | | | | |
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SHARES OUTSTANDING AND NET ASSETS |
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Total increase (decrease) | | | | | |
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Schwab Balanced Fund | Semiannual Report
11
Financial Notes, unaudited
1. Business Structure of the Fund:
Schwab Balanced Fund is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:
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Schwab S&P 500 Index Fund | |
Schwab Small-Cap Index Fund® | |
Schwab Total Stock Market Index Fund® | |
Schwab U.S. Large-Cap Growth Index Fund | |
Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental US Large Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental US Small Company Index Fund |
Schwab International Index Fund® | Schwab Fundamental International Large Company Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Company Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2010 Index Fund |
Schwab International Opportunities Fund | Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity 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 Monthly Income Fund – Target Payout |
| Schwab Monthly Income Fund – Flexible Payout |
| Schwab Monthly Income Fund – Income Payout |
The Schwab Balanced Fund is a “fund of funds” because it invests in other mutual funds or exchange-traded funds (ETFs). The fund seeks to achieve its investment objective by generally investing in a diversified group of other affiliated Schwab Funds but may also invest in other unaffiliated mutual funds or ETFs (referred to herein, together with Schwab Funds, as the underlying funds). The fund invests in accordance with its target portfolio allocation.
The fund offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of the fund. Each share has a par value of 1/1,000 of a cent, and the fund’s Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab Balanced Fund seeks capital growth and income.
2. Significant Accounting Policies:The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
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Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The financial statements of the fund should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the fund’s investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund’s portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments —Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts. U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash
Schwab Balanced Fund | Semiannual Report
13
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the fund’s investments as of April 30, 2024, are disclosed in the fund’s Portfolio Holdings.
(b) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets. The fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by the fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(e) Distributions to Shareholders:
The fund makes distributions from net investment income and net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(f) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(g) Federal Income Taxes:
The fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its respective shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.
Under the fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a
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Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The fund is subject to the risk that the selection of the underlying funds and the allocation of the fund’s assets among the various asset classes and market segments may cause the fund to underperform other funds with a similar investment objective. The fund is not managed to maximize tax efficiency for taxable shareholder accounts. Investors should consider whether the fund is an appropriate investment in light of their current financial position and retirement needs.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of the fund. However, the investment adviser is a fiduciary to the fund and is legally obligated to act in the fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.
Direct Investment Risk. The fund may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain its allocations. The fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Underlying Fund Investment Risk. Before investing in the fund, investors should assess the risks associated with the underlying funds in which the fund may invest, which include any combination of the risks described below.
● Investment Risk. The fund may experience losses with respect to its investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
● Management Risk. Generally, the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or subadviser(s)) will select or allocate assets that could cause the fund to underperform or otherwise not meet its objective. An underlying fund’s adviser applies its own investment techniques and risk analyses in making investment decisions for the underlying fund, but there can be no guarantee that they will produce the desired results.
● Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
● Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, an underlying fund’s performance could be impacted.
● Growth Investing Risk. An underlying fund’s investments in growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
Schwab Balanced Fund | Semiannual Report
15
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
● Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
● ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
● Money Market Fund Risk. The fund may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when the fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares under certain circumstances.
● Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar.
● Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
● Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures, forward contracts and swaps. An option is the right, but not the obligation,to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A forward contract is an over-the-counter derivative transaction between two parties to buy or sell a specified amount of an underlying reference at a specified price (or rate) on a specified date in the future. A forward foreign currency contract is a derivative (forward contract) in which the underlying reference is a country’s or region’s currency. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate,index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk, market risk and management risk are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to counterparty risk, lack of availability risk, valuation risk, correlation risk and tax risk. Counterparty risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations either because the financial condition of the counterparty declines, or because the counterparty is otherwise unable or unwilling to perform under the contract. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management
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Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. An underlying fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
● Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
● Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
● Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
● Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
● Mortgage-Backed and Mortgage Pass-Through Securities Risk. Mortgage-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar or greater risk of decline in market value during periods of rising interest rates. Certain of the mortgage-backed securities in which an underlying fund may invest are issued or guaranteed by agencies or instrumentalities of the U.S. government but are not backed by the full faith and credit of the U.S. government. There can be no assurance that the U.S. government would provide financial support to its agencies or instrumentalities where it was not obligated to do so which can cause an underlying fund to lose money or underperform. The risks of investing in mortgage-backed securities include, among others, interest rate risk, credit risk, prepayment risk and extension risk. Transactions in mortgage pass-through securities often occur through to-be-announced (TBA) transactions. An underlying fund could lose money or underperform if a TBA counterparty defaults or goes bankrupt.
● Mortgage Dollar Rolls Risk. Mortgage dollar rolls are transactions in which an underlying fund sells mortgage-backed securities to a dealer and simultaneously agrees to repurchase similar securities in the future at a predetermined price. An underlying fund’s mortgage dollar rolls could lose money if the price of the mortgage-backed securities sold falls below the agreed upon repurchase price, or if the counterparty is unable to honor the agreement.
Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.
4. Affiliates and Affiliated Transactions:Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between the investment adviser and the trust. The investment adviser does not receive a fee for the services it performs for the fund. However, the investment adviser is entitled to receive an annual management fee from each of the affiliated Schwab Funds that serve as underlying funds.
Schwab Balanced Fund | Semiannual Report
17
Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Shareholder Servicing
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc., a broker-dealer affiliate of the investment adviser (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund. The fund is not subject to any fee under the Plan.
The investment adviser and its affiliates have agreed with the fund, for so long as the investment adviser serves as the investment adviser to the fund, in which the agreement may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses to 0.00%.
The agreement to limit the fund’s total expenses charged is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in the underlying funds.
Investments in Affiliates
The fund may engage in certain transactions involving affiliated parties. Pursuant to an exemptive order issued by the SEC, the fund may invest in other affiliated funds. As of April 30, 2024, the fund’s ownership percentages of other affiliated funds’ shares are as follows:
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Schwab International Opportunities Fund | |
Schwab Select Large Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
Schwab U.S. Aggregate Bond Index Fund | |
Schwab Variable Share Price Money Fund, Ultra Shares | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.
The Board may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The fund did not pay any of these interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in the fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
During the period, the fund was a participant with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund paid a commitment fee of 0.15% per annum on the fund’s proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the fund was a participant with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount it borrows. There were no borrowings by the fund from either line of credit during the period.
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Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
6. Borrowing from Banks (continued):
The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed in the fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Purchases and Sales of Investment Securities:For the period ended April 30, 2024, purchases and sales of securities (excluding short-term obligations) were as follows:
As of April 30, 2024, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
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| | | | |
| | | | |
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2024. The tax basis components of distributions paid during the fiscal year ended October 31, 2023 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
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Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of October 31, 2023, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the fund’s Statement of Operations. During the fiscal year ended October 31, 2023, the fund did not incur any interest or penalties.
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab Balanced Fund | Semiannual Report
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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the fund covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the fund’s Statement of Additional Information, which is available free by calling 1-877-824-5615.
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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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), 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). | | |
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Schwab Balanced Fund | Semiannual Report
Independent Trustees (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | |
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). | | |
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). | | |
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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 | |
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) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – 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.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
Schwab Balanced Fund | Semiannual Report
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|
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, 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) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 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 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 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) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust 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. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (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) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee 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.
3
The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
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Schwab Balanced Fund | Semiannual Report
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Balanced Blended Index A custom blended index developed by Schwab Asset Management that, effective February 1, 2022, is composed of 41.5% S&P 500 Index, 8.5% Russell 2000 Index, 10.0% MSCI EAFE Index (Net), 37.0% Bloomberg US Aggregate Bond Index, and 3.0% Bloomberg US Treasury Bills 1-3 Month Index. From January 29, 2019 through January 31, 2022, the composite was composed of 50% S&P 500 Index, 10% Russell 2000 Index, 37% Bloomberg US Aggregate Bond Index, and 3% Bloomberg US Treasury Bills 1-3 Month Index. From August 1, 2013 through January 28, 2019, the composite was composed of 50% S&P 500 Index, 10% Russell 2000 Index, 25% Bloomberg US Aggregate Bond Index, 12% Bloomberg US Intermediate Aggregate Bond Index and 3% Bloomberg US Treasury Bills 1-3 Month Index. Prior to August 1, 2013 the Balanced Blended Index was composed of 60% S&P 500 Index and 40% Bloomberg US Aggregate Bond Index. Percentages listed may not total to 100% due to rounding.
Bloomberg US Aggregate Bond Index An index that is a broad-based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have one or more years remaining to maturity. The index excludes certain types of securities, including tax-exempt state and local government series bonds, structured notes embedded with swaps or other special features, private placements, floating rate securities, inflation-linked bonds and Eurobonds. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Intermediate Aggregate Bond Index An index that represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
Bloomberg US Treasury Bills 1–3 Month Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months but more than 1 month, are rated investment grade and have $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
Schwab Balanced Fund | Semiannual Report
23
Schwab Asset Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab International Opportunities Fund
Schwab Select Large Cap Growth Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab Opportunistic Municipal Bond Fund
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Charles Schwab Investment Management, Inc., dba Schwab Asset Management
211 Main Street, San Francisco, CA 94105
Schwab Funds
1-877-824-5615
© 2024 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s Board determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.
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Semiannual Report | April 30, 2024
Schwab MarketTrack Portfolios®
Schwab MarketTrack
All Equity Portfolio™
Schwab MarketTrack
Growth Portfolio™
Schwab MarketTrack
Balanced Portfolio™
Schwab MarketTrack
Conservative Portfolio™
No Action Required – Notice Regarding Shareholder Report Delivery |
Beginning on July 24, 2024, fund shareholder reports will be streamlined to highlight key information deemed important for investors to assess and monitor their fund investments. Other information, including financial statements, will not appear in the streamlined shareholder reports but will available online and delivered free of charge upon request. |
• If you already receive the full shareholder reports, you will receive the streamlined shareholder reports in the same way that you currently receive the full shareholder reports (either in paper or electronically). |
• If you currently receive a notification when a shareholder report is available on a fund’s website, beginning July 24, 2024, you will begin to receive the streamlined shareholder report (in paper). |
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Schwab MarketTrack Portfolios
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab MarketTrack Portfolios | Semiannual Report
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Schwab MarketTrack Portfolios
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2024 |
Schwab MarketTrack All Equity Portfolio (Ticker Symbol: SWEGX) | |
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All Equity Composite Index | |
Fund Category: Morningstar Aggressive Allocation1 | |
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Schwab MarketTrack Growth Portfolio (Ticker Symbol: SWHGX) | |
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Fund Category: Morningstar Moderately Aggressive Allocation1 | |
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Schwab MarketTrack Balanced Portfolio (Ticker Symbol: SWBGX) | |
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Fund Category: Morningstar Moderate Allocation1 | |
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Schwab MarketTrack Conservative Portfolio (Ticker Symbol: SWCGX) | |
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Conservative Composite Index | |
Fund Category: Morningstar Moderately Conservative Allocation1 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
| Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
| Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
| Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day 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. |
Schwab MarketTrack Portfolios | Semiannual Report
3
Schwab MarketTrack All Equity Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab MarketTrack All Equity Portfolio (5/19/98) | | | | |
| | | | |
All Equity Composite Index | | | | |
Fund Category: Morningstar Aggressive Allocation 2 | | | | |
Fund Expense Ratio3: 0.51% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.12% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
4
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report
5
Schwab MarketTrack Growth Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab MarketTrack Growth Portfolio (11/20/95) | | | | |
| | | | |
Bloomberg US Aggregate Bond Index | | | | |
| | | | |
Fund Category: Morningstar Moderately Aggressive Allocation 2 | | | | |
Fund Expense Ratio3: 0.50% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.11% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
6
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report
7
Schwab MarketTrack Balanced Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab MarketTrack Balanced Portfolio (11/20/95) | | | | |
| | | | |
Bloomberg US Aggregate Bond Index | | | | |
| | | | |
Fund Category: Morningstar Moderate Allocation 2 | | | | |
Fund Expense Ratio3: 0.48% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.09% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
8
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report
9
Schwab MarketTrack Conservative Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab MarketTrack Conservative Portfolio (11/20/95) | | | | |
| | | | |
Bloomberg US Aggregate Bond Index | | | | |
Conservative Composite Index | | | | |
Fund Category: Morningstar Moderately Conservative Allocation 2 | | | | |
Fund Expense Ratio3: 0.50% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser 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 and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.08% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
10
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Performance and Fund Facts as of April 30, 2024
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report
11
Schwab MarketTrack Portfolios
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2023 and held through April 30, 2024.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | BEGINNING
ACCOUNT VALUE
AT 11/1/23 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/24 | EXPENSES PAID
DURING PERIOD
| EFFECTIVE
EXPENSES PAID
DURING PERIOD
|
Schwab MarketTrack All Equity Portfolio | | | | | | |
| | | | | | |
| | | | | | |
Schwab MarketTrack Growth Portfolio | | | | | | |
| | | | | | |
| | | | | | |
Schwab MarketTrack Balanced Portfolio | | | | | | |
| | | | | | |
| | | | | | |
Schwab MarketTrack Conservative Portfolio | | | | | | |
| | | | | | |
| | | | | | |
| Based on the most recent six-month expense ratio. |
| Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| 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 ratio in the prospectus. |
| Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days in the period, and divided by 366 days in the fiscal year. |
12
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab MarketTrack Portfolios | Semiannual Report
13
Schwab MarketTrack All Equity Portfolio
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 99.7% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 33.4% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $478,810,484) | | | | | | | | |
Total Investments in Securities
(Cost $478,810,484) | | | | | | | | |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| |
| Real Estate Investment Trust |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
14
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $478,810,484) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Semiannual Report
15
Schwab MarketTrack All Equity Portfolio
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
16
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab MarketTrack Portfolios | Semiannual Report
17
Schwab MarketTrack Growth Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
18
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 99.5% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 24.1% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 16.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab MarketTrack Portfolios | Semiannual Report
19
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $568,414,515) | | | | | | | | |
Total Investments in Securities
(Cost $568,414,515) | | | | | | | | |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
| |
| Real Estate Investment Trust |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
20
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $568,414,515) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Semiannual Report
21
Schwab MarketTrack Growth Portfolio
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
22
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab MarketTrack Portfolios | Semiannual Report
23
Schwab MarketTrack Balanced Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
24
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 99.4% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 18.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 35.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab MarketTrack Portfolios | Semiannual Report
25
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $417,612,736) | | | | | | | | |
Total Investments in Securities
(Cost $417,612,736) | | | | | | | | |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
| |
| Real Estate Investment Trust |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
26
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $417,612,736) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Semiannual Report
27
Schwab MarketTrack Balanced Portfolio
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
28
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab MarketTrack Portfolios | Semiannual Report
29
Schwab MarketTrack Conservative Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
30
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of April 30, 2024 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
AFFILIATED UNDERLYING FUNDS 99.6% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 12.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 55.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab MarketTrack Portfolios | Semiannual Report
31
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of April 30, 2024 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/24 | |
|
Schwab Variable Share Price Money Fund, Ultra Shares, 5.27% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $168,011,325) | | | | | | | | |
Total Investments in Securities
(Cost $168,011,325) | | | | | | | | |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
| |
| Real Estate Investment Trust |
At April 30, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional information).
32
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Statement of Assets and Liabilities
As of April 30, 2024; unaudited
|
Investments in securities, at value - affiliated issuers (cost $168,011,325) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Semiannual Report
33
Schwab MarketTrack Conservative Portfolio
Statement of Operations
For the period November 1, 2023 through April 30, 2024; unaudited |
|
Dividends received from securities - affiliated issuers | | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - affiliated issuers | | |
Net change in unrealized appreciation (depreciation) on securities - affiliated issuers | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
34
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab MarketTrack Portfolios | Semiannual Report
35
Schwab MarketTrack Portfolios
Financial Notes, unaudited
1. Business Structure of the Funds:
Schwab MarketTrack All Equity Portfolio, Schwab MarketTrack Growth Portfolio, Schwab MarketTrack Balanced Portfolio, and Schwab MarketTrack Conservative Portfolio (the funds) are each a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
|
Schwab MarketTrack All Equity Portfolio | |
Schwab MarketTrack Growth Portfolio | |
Schwab MarketTrack Balanced Portfolio | |
Schwab MarketTrack Conservative Portfolio | |
Schwab S&P 500 Index Fund | |
Schwab Small-Cap Index Fund® | Schwab Fundamental US Large Company Index Fund |
Schwab Total Stock Market Index Fund® | Schwab Fundamental US Small Company Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Fundamental International Large Company Index Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental International Small Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab International Index Fund® | Schwab Fundamental Global Real Estate Index Fund |
Schwab International Opportunities Fund | Schwab Target 2010 Index Fund |
| Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity 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 Monthly Income Fund - Target Payout |
| Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each of the Schwab MarketTrack Portfolios is considered a “fund of funds” because it invests in other mutual funds or exchange traded funds (ETFs). Each of the funds seeks to achieve its investment objective by investing mainly in a combination of other affiliated Schwab Funds, including Schwab index funds and ETFs (underlying funds), which use a variety of indexing strategies, in accordance with its target portfolio allocation.
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
The Schwab MarketTrack All Equity Portfolio seeks high capital growth through an all-stock portfolio.
The Schwab MarketTrack Growth Portfolio seeks high capital growth with less volatility than an all-stock portfolio.
The Schwab MarketTrack Balanced Portfolio seeks both capital growth and income.
The Schwab MarketTrack Conservative Portfolio seeks income and more growth potential than an all-bond portfolio.
36
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts, U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations.
Schwab MarketTrack Portfolios | Semiannual Report
37
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of April 30, 2024, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Cash Investments: The funds may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets. The fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by the fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year, except for the Schwab MarketTrack Conservative Portfolio, which typically makes distributions from net investment income at the end of each calendar quarter. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
38
Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(i) Indemnification:
Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The funds are subject to the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments may cause the funds to underperform other funds with a similar investment objective. The funds are not managed to maximize tax efficiency for taxable shareholder accounts. Investors should consider whether the funds are appropriate investments in light of their current financial position and retirement needs.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of a fund. However, the investment adviser is a fiduciary to each fund and is legally obligated to act in each fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.
Exchange-Traded Fund (ETF) Risk. When a fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
Direct Investment Risk. The funds may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain their allocations. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Underlying Fund Investment Risk. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest, which include any combination of the risks described below.
● Investment Risk. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
Schwab MarketTrack Portfolios | Semiannual Report
39
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
● Investment Style Risk. Certain underlying funds seek to track the performance of various segments of the stock market, as measured by their respective indices. Such underlying funds follow these stocks during upturns as well as downturns. Because of their indexing strategy, these underlying funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of an underlying fund’s expenses, the underlying fund’s performance is normally below that of the index. Errors relating to an index may occur from time to time and may not be identified by the underlying fund’s index provider for a period of time. In addition, market disruptions could cause delays in an underlying fund’s index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for an underlying fund.
● Tracking Error Risk. Each underlying index fund seeks to track the performance of its respective index, although it may not be successful in doing so. The divergence between the performance of an underlying fund and its index, positive or negative, is called "tracking error." Tracking error can be caused by many factors and it may be significant. If an underlying fund utilizes a sampling approach, it may not track the return of the index as well as it would if the underlying fund purchased all of the securities in the index.
● Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
● Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
● Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, an underlying fund’s performance could be impacted.
● Real Estate Investment Risk. An underlying fund that has a policy of concentrating its investments in real estate companies and companies related to the real estate industry is subject to risks associated with the direct ownership of real estate securities. These risks include, among others, declines in the value of (or income generated by) real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds or other limits to accessing the credit or capital markets; defaults by borrowers or tenants, particularly during an economic downturn; and changes in interest rates.
● Money Market Fund Risk. The funds may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when a fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares under certain circumstances.
● Concentration Risk. To the extent that an underlying fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the underlying fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political, or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.
● Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
structures; and higher transaction costs. These risks may negatively impact the value or liquidity of an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar.
● Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
● Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures, forward contracts and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A forward contract is an over-the-counter derivative transaction between two parties to buy or sell a specified amount of an underlying reference at a specified price (or rate) on a specified date in the future. A forward foreign currency contract is a derivative (forward contract) in which the underlying reference is a country’s or region’s currency. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk and market risk are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to counterparty risk, lack of availability risk, valuation risk, correlation risk and tax risk. Counterparty risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations either because the financial condition of the counterparty declines, or because the counterparty is otherwise unable or unwilling to perform under the contract. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. An underlying fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that a fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
● Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
● Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
● Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions:
Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between the investment adviser and the trust.
For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee of 0.13%, payable monthly, based on a percentage of each fund’s average daily net assets. The investment adviser also is entitled to receive an advisory and/or administrative services fee from each of the affiliated Schwab Funds that serve as underlying funds.
The Board has adopted a Shareholder Servicing Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of the investment adviser, (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds.
Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee of up to 0.25%. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds). Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.
The investment adviser and its affiliates have agreed with the funds, for so long as the investment adviser serves as the investment adviser to the funds, in which the agreement may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes and certain non-routine expenses as a percentage of average daily net assets as follows:
SCHWAB MARKETTRACK ALL EQUITY PORTFOLIO | SCHWAB MARKETTRACK GROWTH PORTFOLIO | SCHWAB MARKETTRACK BALANCED PORTFOLIO | SCHWAB MARKETTRACK CONSERVATIVE PORTFOLIO |
| | | |
The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by each fund through its investments in the underlying funds.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments in Affiliates
The funds may engage in certain transactions involving affiliated parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other affiliated funds. As of April 30, 2024, each Schwab MarketTrack Portfolio’s ownership percentages of other affiliated funds’ shares are as follows:
| SCHWAB MARKETTRACK ALL EQUITY PORTFOLIO | SCHWAB MARKETTRACK GROWTH PORTFOLIO | SCHWAB MARKETTRACK BALANCED PORTFOLIO | SCHWAB MARKETTRACK CONSERVATIVE PORTFOLIO |
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | |
Schwab Fundamental International Large Company Index Fund | | | | |
Schwab Fundamental International Small Company Index Fund | | | | |
Schwab Fundamental US Large Company Index Fund | | | | |
Schwab Fundamental US Small Company Index Fund | | | | |
Schwab International Index Fund | | | | |
Schwab S&P 500 Index Fund | | | | |
Schwab Short-Term Bond Index Fund | | | | |
Schwab Small-Cap Index Fund | | | | |
Schwab U.S. Aggregate Bond Index Fund | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | |
| | | | |
Schwab Variable Share Price Money Fund, Ultra Shares | | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.
The funds may engage in direct transactions with certain other funds in the Fund Complex in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser, trustees and/or officers. The net realized gains or losses on sales of interfund transactions are recorded in Net realized gains (losses) on sales of securities — affiliated issuers in the Statement of Operations. For the period ended April 30, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any realized gains (losses) were as follows:
| | | |
Schwab MarketTrack All Equity Portfolio | | | |
Schwab MarketTrack Growth Portfolio | | | |
Schwab MarketTrack Balanced Portfolio | | | |
Schwab MarketTrack Conservative Portfolio | | | |
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Financial Notes, unaudited (continued)
The Board may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The funds did not pay any of these interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 26, 2024. Under the terms of the Syndicated Credit Facility, in addition to interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), maturing on September 26, 2024. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.
The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed in each fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Purchases and Sales of Investment Securities:For the period ended April 30, 2024, purchases and sales of securities (excluding short-term obligations) were as follows:
| | |
Schwab MarketTrack All Equity Portfolio | | |
Schwab MarketTrack Growth Portfolio | | |
Schwab MarketTrack Balanced Portfolio | | |
Schwab MarketTrack Conservative Portfolio | | |
As of April 30, 2024, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
Schwab MarketTrack All Equity Portfolio | | | | |
Schwab MarketTrack Growth Portfolio | | | | |
Schwab MarketTrack Balanced Portfolio | | | | |
Schwab MarketTrack Conservative Portfolio | | | | |
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Financial Notes, unaudited (continued)
8. Federal Income Taxes (continued):
The tax basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of April 30, 2024. The tax basis components of distributions paid during the fiscal year ended October 31, 2023 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
Schwab MarketTrack All Equity Portfolio | | |
Schwab MarketTrack Growth Portfolio | | |
Schwab MarketTrack Balanced Portfolio | | |
Schwab MarketTrack Conservative Portfolio | | |
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
As of October 31, 2023, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in each fund’s Statement of Operations. During the fiscal year ended October 31, 2023, the funds did not incur any interest or penalties.
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 funds.
The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), 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). | | |
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Independent Trustees (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | |
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). | | |
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). | | |
|
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 | |
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) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – 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.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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|
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, 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) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 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 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 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) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust 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. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (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) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee 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.
3
The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.
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All Equity Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective March 1, 2024, the index is composed of 27.34% S&P 500 Index, 9.0% Russell 1000 Growth Index, 13.5% Russell RAFI US Large Company Index, 8.09% Russell 2000 Index, 3.42% Russell RAFI US Small Company Index, 16.07% MSCI EAFE Index (Net), 7.08% Russell RAFI Developed ex US Large Company Index (Net), 5.0% Russell RAFI Developed ex US Small Company Index (Net), 5.0% Russell RAFI Emerging Markets Large Company Index (Net), 5.0% Dow Jones Equity All REIT Capped Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 to February 29, 2024, the index was composed of 31.33% S&P 500 Index, 5.0% Russell 1000 Growth Index, 13.5% Russell RAFI US Large Company Index, 10.33% Russell 2000 Index, 4.5% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6.0% Russell RAFI Developed ex US Large Company Index (Net), 5.0% Russell RAFI Developed ex US Small Company Index (Net), 5.0% Russell RAFI Emerging Markets Large Company Index (Net), 5.0% Dow Jones U.S. Select REIT Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014 through February 27, 2020, the index was composed of 31.33% S&P 500 Index, 17.33% Russell 2000 Index, 13.50% Russell RAFI US Large Company Index, 7.50% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6% Russell RAFI Developed ex US Large Company Index (Net), 5% Russell RAFI Developed ex US Small Company Index (Net), 5% Russell RAFI Emerging Markets Large Company Index (Net), and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 45% S&P 500 Index, 25% Russell 2000 Index and 30% MSCI EAFE Index (Net). On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 70% Dow Jones U.S. Total Stock Market Index and 30% MSCI EAFE Index (Net). Percentages listed may not total to 100% due to rounding.
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Balanced Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective March 1, 2024, the index is composed of 18.5% S&P 500 Index, 5.5% Russell 1000 Growth Index, 9.0% Russell RAFI US Large Company Index, 4.2% Russell 2000 Index, 1.8% Russell RAFI US Small Company Index, 9.1% MSCI EAFE Index (Net), 3.9% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 3.0% Dow Jones All REIT Capped Index, 35.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 to February 29, 2024, the index was composed of 21% S&P 500 Index, 3.0% Russell 1000 Growth Index, 9.0% Russell RAFI US Large Company Index, 6.3% Russell 2000 Index, 2.7% Russell RAFI US Small Company Index, 7.0% MSCI EAFE Index (Net), 3.0% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 3.0% Dow Jones U.S. Select REIT Index, 35.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014
through February 27, 2020, the Balanced Composite Index was composed of 21% S&P 500 Index, 10.5% Russell 2000 Index, 9% Russell RAFI US Large Company Index, 4.5% Russell RAFI US Small Company Index, 7% MSCI EAFE Index (Net), 3% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 35% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 30% S&P 500 Index, 15% Russell 2000 Index, 15% MSCI EAFE Index (Net), 35% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 45% Dow Jones U.S. Total Stock Market Index, 15% MSCI EAFE Index (Net), 35% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
Bloomberg US Aggregate Bond Index An index that is a broad-based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have one or more years remaining to maturity. The index excludes certain types of securities, including tax-exempt state and local government series bonds, structured notes embedded with swaps or other special features, private placements, floating rate securities, inflation-linked bonds and Eurobonds. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Government/Credit 1–5 Year Index An index that is a broad-based benchmark measuring the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational and local authority debt) and investment grade U.S. corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have a remaining maturity greater than or equal to one year and less than five years. The index excludes certain types of securities, including, bonds with equity type features (e.g., warrants, convertibles and preferreds), tax-exempt municipal securities, inflation-linked bonds, floating rate issues, strips, private placements, U.S. dollar-denominated 25 and 50 par retail bonds, structured notes and pass-through certificates. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Treasury Bills 1–3 Month Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months but more than 1 month, are rated investment grade and have $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
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bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Conservative Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective March 1, 2024, the index is composed of 13.0% S&P 500 Index, 3.0% Russell 1000 Growth Index, 6.0% Russell RAFI US Large Company Index, 6.07% MSCI EAFE Index (Net), 2.8% Russell 2000 Index, 1.2% Russell RAFI US Small Company Index, 2.6% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.66% Russell RAFI Emerging Markets Large Company Index (Net), 2.0% Dow Jones Equity All REIT Capped Index, 55.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 to February 29, 2024, the index was composed of 14.0% S&P 500 Index, 2.0% Russell 1000 Growth Index, 6.0% Russell RAFI US Large Company Index, 4.67% MSCI EAFE Index (Net), 4.2% Russell 2000 Index, 1.8% Russell RAFI US Small Company Index, 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 2.0% Dow Jones U.S. Select REIT Index, 55.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014, through February 27, 2020, the index was composed of 14.0% S&P 500 Index, 7.0% Russell 2000 Index, 6.0% Russell RAFI US Large Company Index, 3.0% Russell RAFI US Small Company Index, 4.67% MSCI EAFE Index (Net), 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 55.0% Bloomberg US Aggregate Bond Index, and 5.0% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 20% S&P 500 Index, 10% Russell 2000 Index, 10% MSCI EAFE Index (Net), 55% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 30% Dow Jones U.S. Total Stock Market Index, 10% MSCI EAFE Index (Net), 55% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
Dow Jones Equity All REIT Capped Index A float-adjusted market cap weighted index that is designed to measure all equity real estate investment trusts (REITs) in the Dow Jones U.S. Total Stock Market Index, as defined by the S&P Dow Jones Indices REIT/RESI Industry Classification Hierarchy, that meet the minimum float market capitalization (FMC) and liquidity thresholds. The aggregate weight of all companies weighing more than 4.5% cannot exceed 22.5%, and no single company’s weight can exceed 10%. The index is reviewed daily based on each company’s capped market capitalization weight. Daily capping is only performed when the sum of companies with weights greater than 5% exceeds 25%.
Dow Jones U.S. Select REIT Index An index that is a float-adjusted market-capitalization weighted index comprised of income-producing commercial and/or residential real estate investment trusts (REITs). The index excludes mortgage REITs, net-lease REITs, real estate finance companies, mortgage brokers and bankers, commercial and residential real estate brokers and estate agents, homebuilders, large landowners and sub-dividers of unimproved land, hybrid REITs, timber REITs and companies that have more than 25% of their assets in direct mortgage investments.
Dow Jones U.S. Total Stock Market Index An index which includes all U.S. equity issues with readily available prices. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace.
expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
Growth Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective March 1, 2024, the index is composed of 24.0% S&P 500 Index, 7.3% Russell 1000 Growth Index, 12.0% Russell RAFI US Large Company Index, 6.1% Russell 2000 Index, 2.61% Russell RAFI US Small Company Index, 12.13% MSCI EAFE Index (Net), 5.2% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 4.0% Dow Jones Equity All REIT Capped Index, 16.0% Bloomberg US Aggregate Bond Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 to February 29, 2024, the index was composed of 28.0% S&P 500 Index, 3.3% Russell 1000 Growth Index, 12.0% Russell RAFI US Large Company Index, 8.9% Russell 2000 Index, 3.8% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4.0% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 4.0% Dow Jones U.S. Select REIT Index, 16.0% Bloomberg US Aggregate Bond Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014 through February 27, 2020, the Growth Composite Index was composed of 28% S&P 500 Index, 14% Russell 2000 Index, 12% Russell RAFI US Large Company Index, 6% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 15% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 40% S&P 500 Index, 20% Russell 2000 Index, 20% MSCI EAFE Index (Net), 15% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to
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March 1, 2014 the index was composed of 60% Dow Jones U.S. Total Stock Market Index, 20% MSCI EAFE Index (Net), 15% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Growth Index An index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell RAFI Developed ex US Large Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Developed ex US Small Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores rank below the 87.5% threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the smallest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Emerging Markets Large Company Index (Net) An index that ranks emerging market companies in the FTSE Global Total Cap Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the emerging companies in the FTSE Global Total Cap Index measures the performance of the investable securities in emerging markets globally.
Russell RAFI US Large Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Large Company Index includes only those securities that are members of the U.S. portion whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
Russell RAFI US Small Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Small Company Index includes only those securities that are members of the U.S. portion and rank below the 87.5% fundamental score threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
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Schwab Asset Management
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds®.
Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.
Equity Funds
Schwab Core Equity Fund
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab Health Care Fund
Schwab International Core Equity Fund
Schwab International Opportunities Fund
Schwab Select Large Cap Growth Fund
Schwab Fundamental US Large Company Index Fund
Schwab Fundamental US Small Company Index Fund
Schwab Fundamental International Large Company Index Fund
Schwab Fundamental International Small Company Index Fund
Schwab Fundamental Emerging Markets Large Company Index Fund
Schwab Fundamental Global Real Estate Index Fund
Schwab Global Real Estate Fund
Schwab S&P 500 Index Fund
Schwab 1000 Index® Fund
Schwab Small-Cap Index Fund®
Schwab Total Stock Market Index Fund®
Schwab U.S. Large-Cap Growth Index Fund
Schwab U.S. Large-Cap Value Index Fund
Schwab U.S. Mid-Cap Index Fund
Schwab International Index Fund®
Schwab Balanced Fund
Schwab MarketTrack Portfolios®
Schwab Target Funds
Schwab Target Index Funds
Schwab Monthly Income Funds
Bond Funds
Schwab Treasury Inflation Protected Securities Index Fund
Schwab U.S. Aggregate Bond Index Fund
Schwab Short-Term Bond Index Fund
Schwab Tax-Free Bond Fund1
Schwab California Tax-Free Bond Fund1
Schwab Opportunistic Municipal Bond Fund
Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.
Charles Schwab Investment Management, Inc., dba Schwab Asset Management
211 Main Street, San Francisco, CA 94105
Schwab Funds
1-877-824-5615
© 2024 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares if the Fund’s Board determines that the fee is in the best interests of the Fund. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.
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Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
The financial statements and financial highlights are included as part of the report to shareholders filed under Item 1 of this Form.
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The remuneration paid to directors, officers and others are included as part of the report to shareholders filed under Item 1 of this Form.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable.
Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: 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 Principal Executive Officer, Omar Aguilar and Registrant’s Principal Financial Officer, Dana Smith, 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 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation.
Item 19: Exhibits.
| (a) | (1) Code of ethics – not applicable to this semi-annual report. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Capital Trust
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| By: | | /s/ Omar Aguilar |
| | Omar Aguilar Principal Executive Officer |
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| Date: June 17, 2024 |
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/ Omar Aguilar |
| | Omar Aguilar Principal Executive Officer |
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| Date: June 17, 2024 |
| | |
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| By: | | /s/ Dana Smith |
| | Dana Smith Principal Financial Officer |
|
| Date: June 17, 2024 |
