0000904333 cik0000904333:Target2035CompositeIndexMember 2018-10-31 0000904333 cik0000904333:C000015023Member cik0000904333:MoneyMarketFundMember 2024-10-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number: 811-07704
(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: October 31, 2024
Item 1: Report(s) to Shareholders.
Annual Report |
October 31, 2024
Schwab International Opportunities Fund
Ticker Symbol: SWMIX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other
information
about the fund are available from y
our financial interm
ediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab International Opportunities Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month period ended October 31, 2024, the fund returned 20.75%. The MSCI EAFE
®
Index (Net) returned
22.97
%
1
. Over
the 12-month reporting period, all four of the fund’s active subadvisers posted positive returns.
Harris Associates L.P. underperformed its comparative index. As
of October 31, 2024, Harris managed 19.6% of the fund’s net
assets.
■
Detracted from total return:
●
South Korean securities, including NAVER Corp.
●
While there were no additional markets that detracted from
total return, Canadian securities were the smallest
contributors to total return
■
Contributed to total return:
●
German securities, including Fresenius SE & Co. KGaA
●
Securities from the United Kingdom
■
From an individual security perspective:
●
Bayer AG was the largest detractor from total return
●
Lloyds Banking Group PLC was the largest contributor to
total return
Columbia Management Investment Advisers, LLC
underperformed its comparative index. As of October 31, 2024,
Columbia managed 19.9% of the fund’s net assets.
■
Detracted from total return:
●
South Korean securities, including Youngone Corp.
■
Contributed to total return:
●
Japanese securities, including Sankyo Co. Ltd.
●
Securities from the Netherlands
■
From an individual security perspective:
●
Parade Technologies Ltd. was the largest detractor from
●
Primo Water Corp. was the largest contributor to total
American Century Investment Management, Inc.
underperformed its comparative index. As of October 31, 2024,
American Century managed 22.3% of the fund’s net assets.
■
Detracted from total return:
●
South Korean securities, including JYP Entertainment Corp.
(American Century’s position was sold prior to the end of
the reporting period)
■
Contributed to total return:
●
Canadian securities, including Lundin Gold, Inc.
■
From an individual security perspective:
●
Socionext, Inc. was the largest detractor form total return
(American Century’s position was sold prior to the end of
the reporting period)
●
Asics Corp. was the largest contributor to total return
Schwab International Opportunities Fund | Annual Report
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
(continued)
Baillie Gifford Overseas Limited outperformed its comparative
index. As of October 31, 2024, Baillie Gifford managed 8.6% of
the fund’s net assets.
■
Detracted from total return:
●
Securities from the United Kingdom, including Class A
holdings of Wise PLC
■
Contributed to total return:
●
Securities from the United States, including NVIDIA Corp.
●
Securities from the Netherlands
■
From an individual security perspective:
●
Kering SA was the largest detractor from total return
●
NVIDIA Corp. was the largest contributor to total return
Schwab Asset Management seeks to track the performance of the FTSE Developed ex US Quality Factor Index. The fund’s allocation
to Schwab Asset Management performed in line with this objective. As of October 31, 2024, Schwab Asset Management managed
25.9% of the fund’s net assets.
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1,2,3,4
Average Annual Total Returns
1,4
| | | |
Fund: Schwab International Opportunities Fund (04/02/2004) 2 | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
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.
returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The fund commenced operations on October 16, 1996 which became the Schwab International Opportunities 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.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Schwab International Opportunities Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
1
Top Equity Holdings % of Net Assets
Top Country Weightings % of Investments
1
Portfolio holdings may have changed since the report date.
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.
(
) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab International Opportunities Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab International Opportunities Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Core Equity Fund
Ticker Symbol: SWANX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other
information
about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 36.17%. The S&P 500
®
Index returned 38.02%.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Materials sector securities, including Linde PLC
■
Energy sector securities
Top contributors to total return:
■
Information technology sector securities, including NVIDIA, Corp.
■
Financials sector securities
From an individual security perspective:
■
Celsius Holdings, Inc. was the largest detractor from total return
■
NVIDIA, Corp. was the largest contributor to total return
Portfolio holdings may have changed since the report date.
Schwab Core Equity Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Core Equity Fund (07/01/1996) | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Core Equity Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Core Equity Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Core Equity Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Dividend Equity Fund
Ticker Symbol: SWDSX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
Y
ou can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HY
POTHE
TICAL $10,000 INVESTMENT)
| | |
Schwab Dividend Equity Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 31.34%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market per
for
mance, returned 38.02%. The Russell 1000
®
Value Index
which returned 30.98%, is the fund’s additional index, and is more representative of the fund’s investment universe than the
regulatory index.
■
Dividend paying stocks generally performed in line with the broader market, with dividend stocks and non-dividend stocks
returning over 30%
■
Modestly declining interest rates supported stocks in general and particularly dividend paying stocks while solid US economic
growth helped boost earnings
■
As of October 31, 2024, the fund’s dividend yield was 1.93%, lower than the 2.06% dividend yield of the index. As of October 31,
2024, the fund’s 30-Day SEC yield was 1.75%.
■
Top contributors to total return:
●
Financials sector securities, including JPMorgan Chase & Co.
●
Information technology sector securities
■
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return
were:
●
Materials sector securities, including PPG Industries, Inc.
●
Communication services sector securities
■
From an individual security perspective:
●
Broadcom, Inc. was the largest contributor to total return
●
CVS Health Corp. was the largest detractor from total return
Portfolio holdings may have cha
nged
since the report date.
Schwab Dividend Equity Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (Oct
obe
r 31, 2014 - October 31, 2024)
1,2
Average Annual Total
Ret
urns
1,2
| | | |
Fund: Schwab Dividend Equity Fund (09/02/2003) | | | |
| | | |
| | | |
Dividend Equity Spliced Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Due to 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.
Schwab Dividend Equity Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Sector Weightings % of In
ves
tments
Top Equity Hold
in
gs % of Net As
se
ts
Portfolio holdings may have changed since the report
date
.
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 Charles Schwab & Co., Inc.
Schwab Dividend Equity Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Dividend Equity Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Large-Cap Growth Fund
Ticker Symbol: SWLSX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Large-Cap Growth Fund* | | |
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.
MANAGEMENT’S DISCUSSION OF FUND PE
RFO
RMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 40.05%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market performance, returned 38.02%. The Russell 1000
®
Growth Index
which returned 43.77%, is the fund’s additional index, and is more representative of the fund’s investment universe than the
regulatory index.
■
Large-cap growth stocks outperformed the broader market primarily as a result of the performance of a few of the “Magnificent
Seven” stocks, fueled by the artificial intelligence trend as well as larger companies outperforming smaller companies in the face of
uncertain economic conditions and higher interest rates
■
Top detractors from total return:
●
Energy sector securities, including EOG Resources, Inc.
●
While there were no additional sectors that detracted from the return of the fund, securities in the materials sector were the
smallest contributors to total return
■
Top contributors to total return:
●
Information technology sector securities, including NVIDIA Corp.
●
Communication services sector securities
■
From an individual security perspective:
●
Class A holdings of Mobileye Global, Inc. was the largest detractor from total return
●
NVIDIA Corp. was the largest contributor to total return
Portfolio holdings may have ch
ang
ed since the report date.
Schwab Large-Cap Growth Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investm
e
nt (October 31, 2014 - October 31, 2024)
1
Average Annual Total R
et
urns
1
| | | |
Fund: Schwab Large-Cap Growth Fund (10/03/2005) | | | |
| | | |
Russell 1000 ® Growth Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Due to 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.
Schwab Large-Cap Growth Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Sector Weightings % of
Inv
estments
1
Top Equity Hold
in
gs % of
Ne
t Assets
Portfolio holdings may have changed since
the
report date.
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 Charles Schwab & Co., Inc.
Schwab Large-Cap Growth Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Large-Cap Growth Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Small-Cap Equity Fund
This
annual shareholder report
contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Small-Cap Equity Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 32.12%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market performance, returned 38.02%. The Russell 2000
®
Index which
returned 34.07%, is the fund’s additional index, and is more representative of the fund’s investment universe than the regulatory
index.
■
Small-cap stocks underperformed the broader market as broader market performance was primarily driven by the performance of
a few of the “Magnificent Seven” stocks as well as larger companies outperforming smaller companies in the face of uncertain
economic conditions and higher interest rates
■
Top detractors from total return:
●
Energy sector securities, including Weatherford International PLC
●
Communication services sector securities
■
Top contributors to total return:
●
Industrials sector securities, including EMCOR Group, Inc.
●
Health care sector securities
■
From an individual security perspective:
●
Extreme Networks, Inc. was the largest detractor from total return (which was sold prior to the end of the reporting period)
●
Super Micro Computer, Inc. was the largest contributor to total return (which was sold prior to the end of the reporting
period
)
Portfolio holdings may have changed since the report date.
Schwab Small-Cap Equity Fund | Annual Report
T
he 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Small-Cap Equity Fund (07/01/2003) | | | |
| | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
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.
Due to 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.
Schwab Small-Cap Equity Fund | Annual
Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Investments
1
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Small-Cap Equity Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Small-Cap Equity Fund | Annual Report
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 17.63%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market performance, returned 38.02%. The Dow Jones Global Health Care
Index which returned 20.01%, is the fund’s additional index, and is more representative of the fund’s investment universe than the
regulatory index.
■
Health care stocks underperformed the broader market as the health care sector is typically more defensive and has lower volatility
than the broader market and tends to underperform in periods of strong growth
■
Top detractors from total return:
●
Electronic equipment & instruments sub-industry securities, including JEOL Ltd. (which was sold prior to the end of the
reporting period)
●
While there were no additional sub-industries that detracted from the return of the fund, securities in the managed health care
sub-industry were the smallest contributors to total return
■
Top contributors to total return:
●
Pharmaceuticals sub-industry securities, including Eli Lilly & Co.
●
Biotechnology sub-industry securities
■
From an individual security perspective:
●
Humana, Inc. was the largest detractor from total return (which was sold prior to the end of the reporting period)
●
Eli Lilly & Co. was the largest contributor to total return
Portfolio holdings may have changed
since
the report date.
Schwab Health Care Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Health Care Fund (07/03/2000) | | | |
| | | |
Dow Jones Global Health Care Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Due to 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.
Schwab Health Care Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Industry Weightings % of Investments
Top Equity Holdings % of Net Assets
Top Country Weightings % of Investments
Portfolio holdings may have changed
since
the report date.
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 Charles Schwab & Co., Inc.
Schwab Health Care Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Health Care Fund | Annual Report
Schwab International Core Equity Fund
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information
about
the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab International Core Equity Fund* | | |
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 26.12%. The MSCI EAFE
®
Index (Net) returned
22.97%
1
.
Top contributors to total return:
■
Japanese securities, including Hitachi, Ltd.
■
Securities from the United Kingdom
Top detractors from total return:
■
Norwegian securities, including Equinor ASA (which was sold prior to the end of the reporting period)
From an individual security perspective:
■
Hitachi, Ltd. was the largest contributor to total return
■
Lasertec Corp. was the largest detractor from total return
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Schwab International Core Equity Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab International Core Equity Fund (05/30/2008) | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
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.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Schwab International Core Equity Fund | Annual
Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Top Country Weightings % of
Investments
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab International Core Equity Fund | Annual
Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab International Core Equity Fund | Annual Report
This
annual shareholder report
contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND
PERFORMANCE
For the 12-mont
h reporti
ng period ended October 31, 2024, the fund returned 24.80%. The S&P 500
®
Index, which provides a
broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which provides a broad measure of
bond market performance, returned 38.02% and 10.55%, respectively. The fund’s internally calculated comparative index, the
Balanced Blended Index (the composite index), returned 24.61%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab Core Equity Fund
●
Schwab Select Large Cap Growth Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab International Opportunities Fund
●
Schwab Small-Cap Equity Fund
Portfolio holdings may have changed since the report date.
Sch
wab Balanc
ed Fund | Annual
Report
The performance data quoted represents past performance.
Past performance does not guarantee future results. Investmen
t return
s
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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Balanced Fund (11/18/1996) | | | |
| | | |
Bloomberg US Aggregate Bond Index | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab
Balanced
Fund |
Annual
Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may
have
changed since the report date.
The holdings listed exclude any temporary liquidity investments.
Schwab Balanced Fund | Annual
Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Balanced Fund | Annual Report
Annual Report |
October 31, 2024
Schwab S&P 500 Index Fund
Ticker Symbol: SWPPX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab S&P 500 Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 37.95%. The S&P 500
®
Index returned 38.02%
during the same period. Differences between the return of the fund and the return of the S&P 500
®
Index may be attributable to,
among other things, the operational and transactional costs incurred by the fund and not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Schlumberger Ltd. (which detracted from the total return of the fund)
■
Materials sector securities
Top contributors to total return:
■
Information technology sector securities, including NVIDIA Corp.
■
Financials sector
securities
Portfolio holdings may have changed since the report
date
.
Schwab S&P 500 Index Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab S&P 500 Index Fund (05/19/1997) | | | |
| | | |
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 www.schwabassetmanagement.com/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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Schwab S&P 500 Index Fund | Annual
Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Investments
1
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the
report
date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab S&P 500 Index Fund | Annual Report
This
is a summary of certain changes to the fund since November 1, 2023. For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
1-866-414-6349
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective August 23, 2024, the fund revised its diversification policy under the Investment Company Act of 1940, as amended.
Under the revised policy, the fund will continue to track its benchmark index even if the fund becomes non-diversified as a result of
a change in relative market capitalization or index weighting of one or more constituents of the index. Shareholder approval will not
be sought if the fund crosses from diversified to non-diversified status under such
circumstances
.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus,
Statement
of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the SEC’s
website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab S&P 500 Index Fund | Annual Report
Schwab Small-Cap Index Fund
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Small-Cap Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 34.14%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market performance, returned 38.02%. The fund generally invests in
securities that are included in the Russell 2000
®
Index which returned 34.07% during the same period. The fund does not seek to
track the regulatory index.
Top contributors to total return:
■
Financials sector securities, including Class A holdings of Jackson Financial, Inc.
■
Industrials sector securities
Top detractors from total return:
■
Energy sector securities, including Class A holdings of PBF Energy, Inc.
■
While there were no additional sectors that detracted from the total return of the fund, utilities sector securities were the
smallest contributors to total return
Portfolio
holdings
may have changed since the report date.
Schwab Small-Cap Index Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Small-Cap Index Fund (05/19/1997) | | | |
| | | |
| | | |
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 www.schwabassetmanagement.com/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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Due to 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.
Schwab Small-Cap Index Fund | Annual
Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the
report
date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Small-Cap Index Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Small-Cap Index Fund | Annual Report
Schwab Total Stock Market Index Fund
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Total Stock Market Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 37.98%. The Dow Jones U.S. Total Stock Market
Index
SM
returned 37.99% during the same period. Differences between the return of the fund and the return of the Dow Jones
U.S. Total Stock Market Index
SM
may be attributable to, among other things, the operational and transactional costs incurred by the
fund and not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Schlumberger Ltd. (which detracted from the total return of the fund)
■
Materials sector securities
Top contributors to total return:
■
Information technology sector securities, including NVIDIA Corp.
■
Financials sector securities
Portfolio holdings may have changed since
the
report date.
Schwab Total Stock Market Index Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Total Stock Market Index Fund (06/01/1999) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
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 www.schwabassetmanagement.com/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 Index
SM
” 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Schwab Total Stock Market Index Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Portfolio
holdings
may have
changed
since the report date.
The Sector/Industry classifications in this report use the Global
Industry
Classification
(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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Total Stock Market Index Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Total Stock Market Index Fund | Annual Report
Schwab U.S. Large-Cap Growth Index Fund
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Large-Cap Growth Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 43.77%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market performance, returned 38.02%. The fund generally invests in
securities that are included in the Russell 1000
®
Growth Index which returned 43.77% during the same period. The fund does not
seek to track the regulatory index.
Top contributors to total return:
■
Information technology sector securities, including NVIDIA Corp.
■
Communication services sector securities
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including APA
Corp
. (which detracted from the total return of the fund)
■
Utilities sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Large-Cap Growth Index Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (December 20, 2017 - October 31, 2024)
| | | |
Fund: Schwab U.S. Large-Cap Growth Index Fund (12/20/2017) | | | |
| | | |
Russell 1000 ® Growth Index | | | |
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 www.schwabassetmanagement.com/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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Due to 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.
Schwab U.S. Large-Cap Growth Index Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab U.S. Large-Cap Growth Index Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Large-Cap Growth Index Fund | Annual Report
Schwab U.S. Large-Cap Value Index Fund
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED O
cto
ber 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Large-Cap Value Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PER
FOR
MANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 30.97%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of m
ar
ket performance, returned 38.02%. The fund generally invests in
securities that are included in the Russell 1000
®
Value Index which returned 30.98% during the same period. The fund does not
seek to track the regulatory index. Differences between the return of the fund and the return of the Russell 1000
®
Value Index may
be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Schlumberger Ltd. (which detracted from the total return of the fund)
■
Materials sector securities
Top contributors to total return:
■
Financials sector securities, including JPMorgan Chase & Co.
■
Industrials sector securities
Portfolio holdings may have changed s
ince
the report date.
Schwab U.S. Large-Cap Value Index Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (Dec
em
ber 20, 2017 - October 31, 2024)
| | | |
Fund: Schwab U.S. Large-Cap Value Index Fund (12/20/2017) | | | |
| | | |
| | | |
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 www.schwabassetmanagement.com/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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Due to 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.
Schwab U.S. Large-Cap Value Index Fund | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Inve
st
ments
Top Equity Hol
din
gs % of Net As
se
ts
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab U.S. Large-Cap Value Index Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Large-Cap Value Index Fund | Annual Report
Schwab U.S. Mid-Cap Index Fund
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab U.S. Mid-Cap Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 35.35%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market performance, returned 38.02%. The fund generally invests in
securities that are included in the Russell Midcap
®
Index which returned 35.39% during the same period. The fund does not seek to
track the regulatory index. Differences between the return of the fund and the return of the Russell Midcap
®
Index may be
attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Consumer staples sector securities, including Dollar General Corp. (which detracted from the total return of the fund)
■
Energy sector securities
Top contributors to total return:
■
Industrials sector securities, including Trane Technologies PLC
■
Financials sector securities
Portfolio holdings may have changed since the report date.
Schwab U.S. Mid-Cap Index Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (December 20, 2017 - October 31, 2024)
| | | |
Fund: Schwab U.S. Mid-Cap Index Fund (12/20/2017) | | | |
| | | |
| | | |
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 www.schwabassetmanagement.com/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
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Due to new regulatory requirements, the fund’s regulatory index has changed from the Russell Midcap
®
Index to 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.
Schwab U.S. Mid-Cap Index Fund | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the
report
date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab U.S. Mid-Cap Index Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab U.S. Mid-Cap Index Fund | Annual Report
Schwab International Index Fund
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab International Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 22.21%. The MSCI EAFE
®
Index (Net) returned
22.97%
1
during the same period. Fair valuation
2
of the fund’s holdings contributed to the fund’s relative performance. Differences
between the return of the fund and the return of the MSCI EAFE
®
Index (Net) may also be attributable to, among other things, the
operational and transactional costs incurred by the fund and not the index.
Over the reporting period, no markets detracted from the return of the fund. However, the smallest contributors to total return were:
■
Portuguese securities, including Jeronimo Martins SGPS SA (which detracted from the total return of the fund)
■
Securities from New Zealand
Top contributors to total return:
■
Japanese securities, including Hitachi Ltd.
■
Securities from the United Kingdom
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Fair valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees.
Schwab International Index Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab International Index Fund (05/19/1997) | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
Index ownership – “MSCI EAFE
®
” i
s 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.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Schwab International Index Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Top Country Weightings % of Investments
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab International Index Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab International Index Fund | Annual Report
Schwab Fundamental U.S. Large Company Index Fund
(formerly Schwab Fundamental US Large Company Index Fund)
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other
information
about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental U.S. Large Company Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 32.39%. The Russell 1000
®
Index, which serves as
the fund’s regulatory index and provides a broad measure of market performance, returned 38.07%. The fund does not seek to track
the regulatory index. On June 21, 2024, the fund transitioned from generally investing in securities
that
are included in the Russell
RAFI™ US Large Company Index which returned 32.72% to generally investing in securities that are included in the RAFI
Fundamental High Liquidity US Large Index. The RAFI Fundamental High Liquidity US Large Index has not been in operation for a
full year, and therefore has no performance data to present. The Fundamental US Large Spliced Index returned 32.65%.
Over the reporting period, no sectors detracted from the return of the fund. However, the smallest contributors to total return were:
■
Energy sector securities, including Schlumberger NV (which detracted from the total return of the fund)
■
Real estate sector securities
Top contributors to total return:
■
Financials sector securities, including JPMorgan Chase & Co.
■
Information technology sector securities
Portfolio holdings may have changed since the report date.
Schwab Fundamental U.S. Large Company Index Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Fundamental U.S. Large Company Index Fund (04/02/2007) | | | |
| | | |
RAFI Fundamental High Liquidity US Large Index 3 | | | |
Russell RAFI TM US Large Company Index | | | |
Fundamental US Large Spliced Index | | | |
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 www.schwabassetmanagement.com/glossary.
Index ownership – The RAFI Fundamental High Liquidity US Large Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has been
licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The Schwab
Fundamental U.S. Large Company Index Fund is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI
Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence or
otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Due to 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 does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI US Large Company Index to the RAFI Fundamental High Liquidity US Large Index in
connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the index. The inception date of the RAFI
Fundamental High Liquidity US Large Index is January 31, 2024. The fund began tracking the index on June 21, 2024.
Schwab Fundamental U.S. Large Company Index Fund | Annual Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Fundamental U.S. Large Company Index Fund | Annual Report
This is a summary of certain changes to the fund since Nove
mb
er 1, 2023. For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective June 21, 2024, the fund’s name changed from Schwab Fundamental US Large Company Index Fund to Schwab
Fundamental U.S. Large Company Index Fund.
■
Effective June 21, 2024, the fund’s comparative index changed from the Russell RAFI™ US Large Company Index to the RAFI
Fundamental High Liquidity US Large Index.
■
Effective June 21, 2024, the fund’s investment objective was updated to reflect that the fund’s goal is to track as closely as
possible, before fees and expenses, the total return of an index that measures the performance of large U.S. companies based on
their fundamental size and weight.
■
Effective June 21, 2024, in connection with the comparative index change, the fund’s investment strategy was updated to
refl
ect
that to pursue its goal, the fund will generally invest at least 90% of its net assets (including, for this purpose, any borrowings for
investment purposes) in stocks that are included in its comparative index.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Fundamental U.S. Large Company Index Fund | Annual Report
Schwab Fundamental U.S. Small Company Index Fund
(formerly Schwab Fundamental US Small Company Index Fund)
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental U.S. Small Company Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 30.22%. The S&P 500
®
Index, which serves as the
fund’s regulatory index and provides a broad measure of market performance, returned 38.02%. The fund does not seek to track the
regulatory index. On June 21, 2024, the fund transitioned from generally investing in securities that are included in the Russell
RAFI™ US Small Company Index which returned 30.43% to generally investing in securities that are included in the RAFI
Fundamental High Liquidity US Small Index. The RAFI Fundamental High Liquidity US Small Index has not been in operation for a
full year, and therefore has no performance data to present. The Fundamental US Small Spliced Index returned 30.33%.
Top detractors from total return:
■
Energy sector securities, including Patterso
n-UT
I Energy, Inc.
■
While there were no additional sectors that detracted from the total return of the fund, consumer staples sector securities were
the smallest contributors to total return
Top contributors to total return:
■
Industrials sector securities, including Tutor Perini Corp.
■
Financials sector securities
Portfolio holdings may have changed since the report date.
Schwab Fundamental U.S. Small Company Index Fund | Annual 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 in
ves
tor’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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Fundamental U.S. Small Company Index Fund (04/02/2007) | | | |
| | | |
RAFI Fundamental High Liquidity US Small Index 3 | | | |
Russell RAFI TM US Small Company Index | | | |
Fundamental US Small Spliced Index | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
Index ownership – The RAFI Fundamental High Liquidity US Small Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has been
licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The Schwab
Fundamental U.S. Small Company Index Fund is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The RAFI
Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence or
otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Due to 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 does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI US Small Company Index to the RAFI Fundamental High Liquidity US Small Index in
connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the index. The inception date of the RAFI
Fundamental High Liquidity US Small Index is January 31, 2024. The fund began tracking the index on June 21, 2024.
Schwab Fundamental U.S. Small Company Index Fund | An
nual
Report
| |
| |
(excludes in-kind transactions) | |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Dividends Received Deduction | |
Qualified Dividend Income | |
Qualified Business Income (199A) | |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets
Portfolio holdings may have changed since the
report
date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Fundamental U.S. Small Company Index Fund | Annual Report
This is a summary of certain changes to the fund since November 1, 2023. For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective June 21, 2024, the fund’s name changed from Schwab Fundamental US Small Company Index Fund to Schwab
Fundamental U.S. Small Company Index Fund.
■
Effective June 21, 2024, the fund’s comparative index changed from the Russell RAFI™ US Small
Company
Index to the RAFI
Fundamental High Liquidity US Small Index.
■
Effective June 21, 2024, the fund’s investment objective was updated to reflect that the fund’s goal is to track as closely as
possible, before fees and expenses, the total return of an index that measures the performance of small U.S. companies based on
their fundamental size and weight.
■
Effective June 21, 2024, in connection with the comparative index change, the fund’s investment strategy was updated to reflect
that to pursue its goal, the fund will generally invest at least 90% of its net assets (including, for this purpose, any borrowings for
investment purposes) in stocks that are included in its comparative index.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings,
certain
tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the SEC’s
website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Fundamental U.S. Small Company Index Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Fundamental International Equity Index Fund
(formerly Schwab Fundamental International Large Company Index Fund)
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental International Equity Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND
PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 19.74%. The MSCI EAFE
®
Index (Net), which serves
as the fund’s regulatory index and provides a broad measure of market performance, returned 22.97%
1
. The fund does not seek to
track the regulatory index. On June 21, 2024, the fund transitioned from generally investing in securities that are included in the
Russell RAFI™ Developed ex US Large Company Index (Net) which returned 20.88%
1
to generally investing in securities that are
included in the RAFI Fundamental High Liquidity Developed ex US Large Index (Net). The RAFI Fundamental High Liquidity
Developed ex US Large Index (Net) has not been in operation for a full year, and therefore has no performance data to present. The
Fundamental Developed ex US Large Spliced Index returned 20.81%.
Top detractors from total return:
■
Securities from New Zealand, including Spark New Zealand Ltd.
■
While there were no additional markets that detracted from the total return of the fund, Chinese securities were the smallest
contributors to total return
Top contributors to total return:
■
Japanese securities, including Hitachi Ltd.
■
Securities from the United Kingdom
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Schwab Fundamental International Equity Index Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1,2,3
Average Annual Total Returns
1,3
| | | |
Fund: Schwab Fundamental International Equity Index Fund (04/02/2007) | | | |
| | | |
RAFI Fundamental High Liquidity Developed ex US Large Index (Net) 2,5 | | | |
Russell RAFI TM Developed ex US Large Company Index (Net) 2 | | | |
Fundamental Developed ex US Large Spliced Index | | | |
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 www.schwabassetmanagement.com/glossary.
Index ownership – The RAFI Fundamental High Liquidity Developed ex US Large Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and
has been licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The
Schwab Fundamental International Equity Index Fund is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The
RAFI Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence
or otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Due to 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 does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI Developed ex US Large Company Index (Net) to the RAFI Fundamental High Liquidity
Developed ex US Large Index (Net) in connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the index.
The inception date of the RAFI Fundamental High Liquidity Developed ex US Large Index (Net) is January 31, 2024. The fund began tracking the index on June 21, 2024.
Schwab Fundamental International Equity Index Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
1
Top Equity Holdings % of Net Assets
Top Country Weightings % of Investments
1
Portfolio holdings may have changed since the
report
date.
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 Charles Schwab & Co.,
Inc
.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Fundamental International Equity Index Fund | Annual Report
This is a summary of certain changes to the fund since November 1, 2023. For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
1-866-414-6349
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective June 21, 2024, the fund’s name changed from Schwab Fundamental International Large Company Index Fund to Schwab
Fundamental International Equity Index Fund.
■
Effective June 21, 2024, the fund’s comparative index changed from the Russell RAFI™ Developed ex US Large Company Index
(Net) to the RAFI Fundamental High Liquidity Developed ex US Large Index (Net).
■
Effective June 21, 2024, the fund’s investment objective was updated to reflect that the fund’s goal is to track as closely as
possible, before fees and expenses, the total return of an index that measures the performance of large non-U.S. developed
market companies based on their fundamental size and weight.
■
Effective June 21, 2024, in connection with the comparative index change, the fund’s investment strategy was updated to reflect
that to pursue its goal, the fund will generally invest at least 90% of its net assets (including, for this purpose, any borrowings for
investment purposes) in stocks that are included in its comparative index.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the SEC’s
website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Fundamental International Equity Index Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Fundamental International Small Equity Index Fund
(formerly Schwab Fundamental International Small Company Index Fund)
Ticker Symbol: SFILX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental International Small Equity Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 20.31%. The MSCI EAFE
®
Index (Net), which serves
as the fund’s regulatory index and provides a broad measure of market performance, returned 22.97%
1
. The fund does not seek to
track the regulatory index. On June 21, 2024, the fund transitioned from generally investing in securities that are included in the
Russell RAFI™ Developed ex US Small Company Index (Net) which returned 21.41%
1
to generally investing in securities that are
included in the RAFI Fundamental High Liquidity Developed ex US Small Index (Net). The RAFI Fundamental High Liquidity
Developed ex US Small Index (Net) has not been in operation for a full year, and therefore has no performance data to present. The
Fundamental Developed ex US Small Spliced Index returned 21.55%.
Top detractors from total return:
■
Securities from the United States, including Class A holdings of Constellium SE
Top contributors to total return:
■
Japanese securities, including Disco Corp. (which was sold prior to the end of the reporting period)
■
Securities from the United Kingdom
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Schwab Fundamental International Small Equity Index Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1,2,3
Average Annual Total Returns
1,3
| | | |
Fund: Schwab Fundamental International Small Equity Index Fund (01/31/2008) | | | |
| | | |
RAFI Fundamental High Liquidity Developed ex US Small Index (Net) 2,5 | | | |
Russell RAFI TM Developed ex US Small Company Index (Net) 2 | | | |
Fundamental Developed ex US Small Spliced Index | | | |
S&P Developed ex-U.S. Small Cap Index (Net) 2 | | | |
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 www.schwabassetmanagement.com/glossary.
Index ownership – The RAFI Fundamental High Liquidity Developed ex US Small Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and
has been licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The
Schwab Fundamental International Small Equity Index Fund is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI
Parties). The RAFI Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in
negligence or otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Due to 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 does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI Developed ex US Small Company Index (Net) to the RAFI Fundamental High Liquidity
Developed ex US Small Index (Net) in connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the index.
The inception date of the RAFI Fundamental High Liquidity Developed ex US Small Index (Net) is January 31, 2024. The fund began tracking the index on June 21, 2024.
Schwab Fundamental International Small Equity Index Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
1
Top Equity Holdings % of Net Assets
Top Country Weightings % of Investments
1
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Fundamental International Small Equity Index Fund | Annual Report
This is a summary of certain changes to the fund since November 1, 2023. For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
1-866-414-6349
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective June 21, 2024, the fund’s name changed from Schwab Fundamental International Small Company Index Fund to Schwab
Fundamental International Small Equity Index Fund.
■
Effective June 21, 2024, the fund’s comparative index changed from the Russell RAFI™ Developed ex US Small Company Index
(Net) to the RAFI Fundamental High Liquidity Developed ex US Small Index (Net).
■
Effective June 21, 2024, the fund’s investment objective was updated to reflect that the fund’s goal is to track as closely as
possible, before fees and expenses, the total return of an index that measures the performance of small non-U.S. developed
market companies based on their fundamental size and weight.
■
Effective June 21, 2024, in connection with the comparative index change, the fund’s investment strategy was updated to reflect
that to pursue its goal, the fund will generally invest at least 90% of its net assets (including, for this purpose, any borrowings for
investment purposes) in stocks that are included in its comparative index.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the SEC’s
website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Fundamental International Small Equity Index Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Fundamental Emerging Markets Equity Index Fund
(formerly Schwab Fundamental Emerging Markets Large Company Index Fund)
Ticker Symbol: SFENX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
This report describes changes to the fund that occurred during the reporting period.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab Fundamental Emerging Markets Equity Index Fund | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 29.16%. The MSCI Emerging Markets Index (Net),
which serves as the fund’s regulatory index and provides a broad measure of market performance, returned 25.32%
1
. The fund does
not seek to track the regulatory index. On June 21, 2024, the fund transitioned from generally investing in securities that are
included in the Russell RAFI™ Emerging Markets Large Company Index (Net) which returned 31.28%
1
to generally investing in
securities that are included in the RAFI Fundamental High Liquidity Emerging Markets Index (Net). The RAFI Fundamental High
Liquidity Emerging Markets Index (Net) has not been in operation for a full year, and therefore has no performance data to present.
The Fundamental Emerging Markets Spliced Index returned 31.40%. Fair valuation
2
of the fund’s holdings detracted from the fund’s
relative performance.
Top detractors from total return:
■
Securities from the Czech Republic, including CEZ AS
■
While there were no additional markets that detracted from the total return of the fund, securities from Hong Kong were the
smallest contributors to total return
Top contributors to total return:
■
Taiwanese securities, including Taiwan Semiconductor Manufacturing Co. Ltd.
Portfolio holdings may have changed since the report date.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Fair valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees.
Schwab Fundamental Emerging Markets Equity Index Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1,2,3
Average Annual Total Returns
1,3
| | | |
Fund: Schwab Fundamental Emerging Markets Equity Index Fund (01/31/2008) | | | |
MSCI Emerging Markets Index (Net) 2,4 | | | |
RAFI Fundamental High Liquidity Emerging Markets Index (Net) 2,5 | | | |
Russell RAFI TM Emerging Markets Large Company Index (Net) 2 | | | |
Fundamental Emerging Markets Spliced Index | | | |
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 www.schwabassetmanagement.com/glossary.
Index ownership – The RAFI Fundamental High Liquidity Emerging Markets Index (the Index) is a service mark of RAFI Indices, LLC or its affiliates (collectively, RAFI) and has
been licensed for use by Charles Schwab Investment Management, Inc. The intellectual and other property rights to the Index are owned by or licensed to RAFI. The Schwab
Fundamental Emerging Markets Equity Index Fund is not sponsored, endorsed, sold or promoted by RAFI, its agents or service providers (collectively, the RAFI Parties). The
RAFI Parties: (i) make no representation or warranty as to the results to be obtained from the use of the Index or otherwise; and (ii) shall not be liable (whether in negligence
or otherwise) to any person for any error in the Index. For full disclaimer, please see the fund’s statement of additional information.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.
Due to new regulatory requirements, the fund’s regulatory index has changed from the Russell RAFI™ Emerging Markets Large Company Index (Net) to the MSCI Emerging
Markets Index (Net). The MSCI Emerging Markets Index (Net) provides a broad measure of market performance. The fund does not seek to track the regulatory index.
Effective June 21, 2024, the fund changed its comparative index from the Russell RAFI Emerging Markets Large Company Index (Net) to the RAFI Fundamental High
Liquidity Emerging Markets Index (Net) in connection with a change to the fund’s investment objective and investment strategy to invest its assets in accordance with the
index. The inception date of the RAFI Fundamental High Liquidity Emerging Markets Index (Net) is January 31, 2024. The fund began tracking the index on June 21, 2024.
Schwab Fundamental Emerging Markets Equity Index Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Qualified Dividend Income | |
Sector Weightings % of Investments
1
Top Equity Holdings % of Net Assets
Top Country Weightings % of Investments
1
Portfolio holdings may have changed since the report date.
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 Charles Schwab & Co., Inc.
Includes the fund’s position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Fundamental Emerging Markets Equity Index Fund | Annual Report
This is a summary of certain changes to the fund since November 1, 2023. For more complete information, you may review the
fund’s prospectus at
www.schwabassetmanagement.com/prospectus
or upon request by calling
1-866-414-6349
or by sending
an email request to
orders@mysummaryprospectus.com
.
■
Effective June 21, 2024, the fund’s name changed from Schwab Fundamental Emerging Markets Large Company Index Fund to
Schwab Fundamental Emerging Markets Equity Index Fund.
■
Effective June 21, 2024, the fund’s comparative index changed from the Russell RAFI™ Emerging Markets Large Company Index
(Net) to the RAFI Fundamental High Liquidity Emerging Markets Index (Net).
■
Effective June 21, 2024, the fund’s investment objective was updated to reflect that the fund’s goal is to track as closely as
possible, before fees and expenses, the total return of an index that measures the performance of large sized companies, based on
their fundamental size and weight, in emerging market countries.
■
Effective June 21, 2024, in connection with the comparative index change, the fund’s investment strategy was updated to reflect
that to pursue its goal, the fund will generally invest at least 80% of its net assets (including, for this purpose, any borrowings for
investment purposes) in stocks that are included in its comparative index.
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the SEC’s
website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Fundamental Emerging Markets Equity Index Fund | Annual Report
Annual Report |
October 31, 2024
Schwab MarketTrack All Equity Portfolio™
Ticker Symbol: SWEGX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab MarketTrack All Equity Porfolio | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 31.32%. The S&P 500
®
Index, which provides a
broad measure of equity market performance, returned 38.02%. The fund’s custom blended comparative index, the All Equity
Composite Index (the composite index), returned 32.23%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Fundamental U.S. Large Company Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Fundamental International Small Equity Index Fund
●
Schwab Fundamental International Equity Index Fund
Portfolio holdings may have changed since the report date.
Schwab MarketTrack All Equity Portfolio™ | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab MarketTrack All Equity Portfolio (05/19/1998) | | | |
| | | |
All Equity Composite Index | | | |
All total returns on this page assume dividends and distributions we
re
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 www.schwabassetmanagement.com/glossary.
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.
Schwab MarketTrack All Equity Portfolio™ | An
nual
Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the
date.
Schwab MarketTrack All Equity Portfolio™ | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab MarketTrack All Equity Portfolio™ | Annual Report
Annual Report |
October 31, 2024
Schwab MarketTrack Growth Portfolio
™
Ticker Symbol: SWHGX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab MarketTrack Growth Porfolio | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 27.11%. The S&P 500
®
Index, which provides a
broad
measure
of equity market performance, and the Bloomberg US Aggregate Bond Index, which provides a broad measure of
bond market performance, returned 38.02% and 10.55%, respectively. The fund’s custom blended comparative index, the Growth
Composite Index (the composite index), returned 27.91%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Fundamental U.S. Large Company Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Fundamental International Small Equity Index Fund
●
Schwab Fundamental International Equity Index Fund
Portfolio holdings may have changed since the report date.
Schwab MarketTrack Growth Portfolio™ | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab MarketTrack Growth Portfolio (11/20/1995) | | | |
| | | |
Bloomberg US Aggregate Bond Index | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab MarketTrack Growth Portfolio™ | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the
report
date
.
Schwab MarketTrack Growth Portfolio™ | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab MarketTrack Growth Portfolio™ | Annual Report
Annual Report |
October 31, 2024
Schwab MarketTrack Balanced Portfolio™
Ticker Symbol: SWBGX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab MarketTrack Balanced Portfolio | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the fund returned 22.60%. The S&P 500
®
Index, which provides a
broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which provides a broad measure of
bond market performance, returned
38.02
% and 10.55%, respectively. The fund’s custom blended comparative index, the Balanced
Composite Index (the composite index), returned 23.33%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab U.S. Aggregate Bond Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Short-Term Bond Index Fund
●
Schwab Fundamental International Small Equity Index Fund
Portfolio holdings may have changed since the report date.
Schwab MarketTrack Balanced Portfolio™ | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab MarketTrack Balanced Portfolio (11/20/1995) | | | |
| | | |
Bloomberg US Aggregate Bond Index | | | |
| | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab MarketTrack Balanced Portfolio™ | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction ( 163j ) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab MarketTrack Balanced Portfolio™ | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab MarketTrack Balanced Portfolio™ | Annual Report
Annual Report |
October 31, 2024
Schwab MarketTrack Conservative Portfolio™
Ticker Symbol: SWCGX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available
from
your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
| | |
Schwab MarketTrack Conservative Portfolio | | |
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-
month
reporting period ended October 31, 2024, the fund returned 18.11%. The S&P 500
®
Index, which provides a
broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which provides a broad measure of
bond market performance, returned 38.02% and 10.55%, respectively. The fund’s custom blended comparative index, the
Conservative Composite Index (the composite index), returned 18.86%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total
return
:
●
Schwab U.S. Aggregate Bond Index Fund
●
Schwab S&P 500 Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Short-Term Bond Index Fund
●
Schwab Fundamental International Small Equity Index Fund
Portfolio holdings may have changed since the report date.
Schwab MarketTrack Conservative Portfolio™ | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual
Total
Returns
1
| | | |
Fund: Schwab MarketTrack Conservative Portfolio (11/20/1995) | | | |
| | | |
Bloomberg US Aggregate Bond Index | | | |
Conservative Composite Index | | | |
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
www
.schwabassetmanagement.com/glossary.
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.
Schwab MarketTrack Conservative Portfolio™ | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction ( 163j ) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab MarketTrack Conservative Portfolio™ | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab MarketTrack Conservative Portfolio™ | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2010 Fund
Ticker Symbol: SWBRX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2010 Fund returned 17.77%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2010 Fund’s
internally calculated comparative index, the Target 2010 Composite Index (the composite index), returned 17.75%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab U.S. Aggregate Bond Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Fundamental International Equity Index Fund
●
Loomis Sayles Investment Grade Bond Fund (Class Y)
Portfolio holdings may have changed since the report date.
Schwab Target 2010 Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2010 Fund (07/01/2005) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2010 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2010 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2010 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2010 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2015 Fund
Ticker Symbol: SWGRX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2015 Fund returned 18.62%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2015 Fund’s
internally calculated comparative index, the Target 2015 Composite Index (the composite index), returned 18.66%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab U.S. Aggregate Bond Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Fundamental International Equity Index Fund
●
Loomis Sayles Investment Grade Bond Fund (Class Y)
Portfolio holdings may have changed since the report date.
Schwab Target 2015 Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2015 Fund (03/12/2008) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2015 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2015 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2015 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2015 Fund | Annual Report
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2020 Fund returned 19.39%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2020 Fund’s
internally calculated comparative index, the Target 2020 Composite Index (the composite index), returned 19.26%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab U.S. Aggregate Bond Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Fundamental International Equity Index Fund
●
ClearBridge Small Cap Growth Fund (Class IS)
Portfolio holdings may have changed since the r
epo
rt date.
Schwab Target 2020 Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Target 2020 Fund (07/01/2005) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2020 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2020 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2020 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2020 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2025 Fund
Ticker Symbol: SWHRX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2025 Fund returned 20.57%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2025 Fund’s
internally calculated comparative index, the Target 2025 Composite Index (the composite index), returned 20.56%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab U.S. Aggregate Bond Index Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Goldman Sachs Emerging Markets Equity Insights Fund (Institutional Class)
●
Schwab Fundamental International Equity Index Fund
Portfolio holdings may have changed since the report date.
Schwab Target 2025 Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Ave
ra
ge Annual Total Returns
1
| | | |
Fund: Schwab Target 2025 Fund (03/12/2008) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2025 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 20
25 Fu
nd | Annu
al R
eport
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2025 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2025 Fund | Annual Report
This
annual shareholder report
contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2030 Fund returned 23.59%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2030 Fund’s
internally calculated comparative index, the Target 2030 Composite Index (the composite index), returned 23.65%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab International Opportunities Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Treasury Inflation Protected Securities Index Fund
●
Schwab Fundamental International Equity Index Fund
Portfolio holdings may have changed since the report date.
Schwab Target 2030 Fund | Annual 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 perf
or
mance data quoted.
To obtain performance information current to the most
recent month end, please visit
www.schwabassetmanagement.com/prospectus
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
Average Annual Total Returns
| | | |
Fund: Schwab Target 2030 Fund (07/01/2005) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2030 Composite Index | | | |
All total returns on this page assume dividends and distributions were reinvested. Index figures do no
t in
clude 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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2030 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2030 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2030 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2035 Fund
Ticker Symbol: SWIRX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
.
You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2035 Fund returned 25.75%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2035 Fund’s
internally calculated comparative index, the Target 2035 Composite Index (the composite index), returned 25.92%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab International Opportunities Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total r
eturn
were:
●
Schwab Fundamental International Equity Index Fund
●
Schwab Short-Term Bond Index Fund
Portfolio holdings may have changed since
the
report
date
.
Schwab Target 2035 Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2035 Fund (03/12/2008) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2035 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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 s
har
es.
Schwab Target 2035 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have
changed
since the
report
date
.
Schwab Target 2035 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2035 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2040 Fund
Ticker Symbol: SWERX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement
to
limit
the
total annual
fund
operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2040 Fund returned 27.49%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2040 Fund’s
internally calculated comparative index, the Target 2040 Composite Index (the composite index), returned 27.73%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Select Large Cap Growth Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Short-Term Bond Index Fund
●
Schwab Fundamental International Equity Index Fund
Portfolio holdings may have changed since the report date.
Schwab Target 2040 Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2040 Fund (07/01/2005) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2040 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2040 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2040 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2040 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2045 Fund
Ticker Symbol: SWMRX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE),
which
are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2045 Fund returned 28.81%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2045 Fund’s
internally calculated comparative index, the Target 2045 Composite Index (the composite index), returned 29.22%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Select Large Cap Growth Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest
contributors
to total return
were:
●
Schwab Short-Term Bond Index Fund
●
Baird Aggregate Bond Fund (Institutional Class)
Portfolio holdings may have changed since the report date.
Schwab Target 2045 Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2045 Fund (01/23/2013) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2045 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2045 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2045 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2045 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2050 Fund
Ticker Symbol: SWNRX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses
a
nd, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying fu
n
ds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2050 Fund returned 29.76%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2050 Fund’s
internally calculated comparative index, the Target 2050 Composite Index (the composite index), returned 30.19%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Select Large Cap Growth Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Short-Term Bond Index Fund
●
Baird Aggregate Bond Fund (Institutional Cla
s
s)
Portfolio holdings may have changed since the report date.
Schwab Target 2050 Fund | Annual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment ret
u
rns
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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2050 Fund (01/23/2013) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2050 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2050 Fund | Annual
Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net
Assets
Portfolio holdings may have changed since
the
report
date
.
Schwab Target 2050 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2050 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2055 Fund
Ticker Symbol: SWORX
T
his annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2055 Fund returned 30.16%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2055 Fund’s
internally calculated comparative index, the Target 2055 Composite Index (the composite index), returned 30.73%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Select Large Cap Growth Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Baird Aggregate Bond Fund (Institutional Class)
●
Schwab Short-Term Bond Index Fund
Portfolio holdings may have changed since the report date.
Schwab Target 2055 Fund | Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (October 31, 2014 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2055 Fund (01/23/2013) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2055 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2055 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the
report
date
.
Schwab Target 2055 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2055 Fund | Annual Report
Annual Report |
October 31, 2024
Schwab Target 2060 Fund
Ticker Symbol: SWPRX
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
1-866-414-6349
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2060 Fund returned 30.55%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2060 Fund’s
internally calculated comparative index, the Target 2060 Composite Index (the composite index), returned 31.16%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Select Large Cap Growth Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Western Asset Core Plus Bond Fund (Class I)
●
Schwab Short-Term Bond Index Fund
Portfolio holdings may have changed since the report date.
Schwab Target 2060
Fund
| Annual 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/prospectus
.
Performance of Hypothetical $10,000 Investment (August 25, 2016 - October 31, 2024)
1
Average Annual Total Returns
1
| | | |
Fund: Schwab Target 2060 Fund (08/25/2016) | | | |
Dow Jones U.S. Total Stock Market Index SM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2060 Composite Index | | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2060 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
| |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2060 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/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/prospectus
or the
SEC’s website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2060 Fund | Annual Report
This annual shareholder report contains important information about the fund for the period of November 1, 2023, to October 31,
2024.
You can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request
this information by calling
or by sending an email request to
orders@mysummaryprospectus.com
.
If you purchase
or hold fund shares through a financial intermediary, the fund’s prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED October 31, 2024
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. This agreement to limit the total annual
fund operating expenses is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses (AFFE), which are indirect
expenses incurred by the fund through its investments in the underlying funds.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
For the 12-month reporting period ended October 31, 2024, the 2065 Fund returned 30.80%. The Dow Jones U.S. Total Stock
Market Index
SM
, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,
which provides a broad measure of bond market performance, returned 37.99% and 10.55%, respectively. The 2065 Fund’s
internally calculated comparative index, the Target 2065 Composite Index (the composite index), returned 31.46%.
■
Asset allocations were broadly in line with those of the composite index
■
Top contributors to total return:
●
Schwab S&P 500 Index Fund
●
Schwab Select Large Cap Growth Fund
■
Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return
were:
●
Schwab Short-Term Bond Index Fund
●
PIMCO International Bond Fund (U.S. Dollar-Hedged) (Institutional Class)
Portfolio holdings may have changed since the report date.
Schwab Target 2065 Fund | Annual 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/prospectus
Performance of Hypothetical $10,000 Investment (February 25, 2021 - October 31, 2024)
Average Annual Total Returns
| | |
Fund: Schwab Target 2065 Fund (02/25/2021) | | |
Dow Jones U.S. Total Stock Market Index SM | | |
Bloomberg US Aggregate Bond Index | | |
Target 2065 Composite Index | | |
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 www.schwabassetmanagement.com/glossary.
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.
Schwab Target 2065 Fund | Annual Report
| |
| |
| |
Advisory Fees Paid by the Fund | |
Foreign Tax Paid and Passed Through | |
Gross Income From Foreign Sources | |
Dividends Received Deduction | |
Qualified Dividend Income | |
Long Term Capital Gain Distribution | |
Qualified Business Income (199A) | |
Business Interest Deduction (163j) | |
Asset Class Weightings % of Investments
Top Holdings % of Net Assets
Portfolio holdings may have changed since the report date.
Schwab Target 2065 Fund | Annual Report
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund’s prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/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/prospectus
, the
SEC’s website at
, 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/prospectus
or the
SEC’s website at
, by calling
, or by sending an email request to
orders@mysummaryprospectus.com
.
Schwab Target 2065 Fund | Annual Report
Item 2: Code of Ethics.
| (a) | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
| (c) | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
| (d) | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
| (f)(1) | Registrant has filed this code of ethics as an exhibit pursuant to Item 19(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Kimberly S. Patmore, Michael J. Beer and J. Derek Penn, each currently serving on its audit, compliance and valuation committee, are each an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit, compliance and valuation committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Ms. Patmore, Mr. Beer and Mr. Penn as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit, compliance and valuation committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit, compliance and valuation committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of fifty-two operational series. Thirty-six series have a fiscal year-end of October 31, whose annual financial statements are reported in Item 1, three series have a fiscal year-end of December 31, twelve series have a fiscal year-end of March 31, and one series has a fiscal year-end of the last day of February. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to the fifty-two operational series during 2024/2025 and 2023/2024, based on their respective 2024/2025 and 2023/2024 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) Audit Fees1 | | | (b) Audit-Related Fees2 | | | (c) Tax Fees3 | | | (d) All Other Fees | |
Fiscal Year
2024/2025 | | Fiscal Year
2023/2024 | | | Fiscal Year
2024/2025 | | | Fiscal Year
2023/2024 | | | Fiscal Year
2024/2025 | | | Fiscal Year
2023/2024 | | | Fiscal Year
2024/2025 | | | Fiscal Year
2023/2024 | |
| $1,292,600 | | $ | 1,272,477 | | | $ | 95,400 | | | $ | 90,000 | | | $ | 170,820 | | | $ | 170,820 | | | $ | 0 | | | $ | 0 | |
| 1 | The nature of the services includes audit of the registrant’s annual financial statements and normally provided services in connection with regulatory filings for those fiscal years. |
| 2 | The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. |
| 3 | The nature of the services includes tax compliance, tax advice and tax planning. |
| (e) (1) | Registrant’s audit, compliance and valuation committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
| (2) | There were no services described in each of paragraphs (b) through (d) above that were approved by Registrant’s audit, compliance and valuation committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
| | | | |
2023/2024: $2,549,698 | | 2022/2023: $ | 3,651,860 | |
| (h) | During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit, compliance and valuation committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence. |
(i) Not applicable.
(j) Not applicable.
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 7 of this Form.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Annual Holdings and Financial Statements | October 31, 2024
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 | Annual Holdings and Financial Statements
1
Schwab International Opportunities 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. |
| 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. |
| |
2
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 94.7% OF NET ASSETS |
|
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Cleanaway Waste Management Ltd. | | |
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Domino's Pizza Enterprises 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. | | |
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Magellan Financial Group Ltd. | | |
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Northern Star Resources Ltd. | | |
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Seven Group Holdings Ltd. | | |
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Star Entertainment Group Ltd. * | | |
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Telix Pharmaceuticals Ltd. * | | |
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Washington H Soul Pattinson & Co. Ltd. | | |
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Woodside Energy Group Ltd. | | |
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Groupe Bruxelles Lambert NV | | |
Liberty Global Ltd., Class A * | | |
Liberty Global Ltd., Class C * | | |
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NU Holdings Ltd., Class A * | | |
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Alamos Gold, Inc., Class A | | |
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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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Chartwell Retirement Residences | | |
Constellation Software, Inc. | | |
Descartes Systems Group, Inc. * | | |
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Element Fleet Management Corp. | | |
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Fairfax Financial Holdings Ltd. | | |
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Hammond Power Solutions, Inc. | | |
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Magna International, Inc. | | |
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
3
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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Pan American Silver Corp. | | |
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Shopify, Inc., Class A *(a) | | |
Shopify, Inc., Class A *(a) | | |
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Wheaton Precious Metals Corp. | | |
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|
AAC Technologies Holdings, Inc. | | |
Alibaba Group Holding Ltd. | | |
Bosideng International Holdings Ltd. | | |
Budweiser Brewing Co. APAC Ltd. | | |
| | |
Chow Tai Fook Jewellery Group Ltd. | | |
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PDD Holdings, Inc., ADR * | | |
Shenzhou International Group Holdings Ltd. | | |
SITC International Holdings Co. Ltd. | | |
| | |
Tongcheng Travel Holdings Ltd. | | |
Xinyi Glass 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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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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Carl Zeiss Meditec AG, Bearer Shares | | |
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CTS Eventim AG & Co. KGaA | | |
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DWS Group GmbH & Co. KGaA | | |
4
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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Fresenius Medical Care AG | | |
Fresenius SE & Co. KGaA * | | |
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National Bank of Greece SA | | |
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Cathay Pacific Airways Ltd. | | |
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CK Infrastructure Holdings Ltd. | | |
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Galaxy Entertainment Group Ltd. | | |
Hong Kong & China Gas Co. Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
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Power Assets Holdings Ltd. | | |
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Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., A Shares | | |
Swire Pacific Ltd., B Shares | | |
Techtronic Industries Co. Ltd. | | |
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Yue Yuen Industrial Holdings Ltd. | | |
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|
Amber Enterprises India Ltd. * | | |
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Kalyan Jewellers India Ltd. | | |
Kaynes Technology India Ltd. * | | |
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Max Financial Services Ltd. * | | |
Max Healthcare Institute Ltd. | | |
Prestige Estates Projects Ltd. | | |
Rainbow Children's Medicare Ltd. | | |
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Bank Mandiri Persero Tbk. PT | | |
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Bank of Ireland Group PLC | | |
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Flutter Entertainment PLC * | | |
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James Hardie Industries PLC * | | |
Jazz Pharmaceuticals 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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Energix-Renewable Energies Ltd. | | |
Enlight Renewable Energy Ltd. * | | |
Fattal Holdings 1998 Ltd. * | | |
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Shapir Engineering & Industry Ltd. * | | |
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Teva Pharmaceutical Industries Ltd. * | | |
Tower Semiconductor Ltd. * | | |
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Infrastrutture Wireless Italiane SpA | | |
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Schwab International Opportunities Fund | Annual Holdings and Financial Statements
5
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
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Recordati Industria Chimica e Farmaceutica SpA | | |
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Bandai Namco Holdings, Inc. | | |
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Canon Marketing Japan, Inc. | | |
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Chugai Pharmaceutical Co. Ltd. | | |
Chugoku Electric Power Co., Inc. | | |
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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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Furukawa Electric Co. Ltd. | | |
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GMO Payment Gateway, Inc. | | |
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Harmonic Drive Systems, Inc. | | |
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Hisamitsu Pharmaceutical Co., Inc. | | |
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Internet Initiative Japan, Inc. | | |
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Japan Airport Terminal Co. Ltd. | | |
Japan Elevator Service Holdings Co. Ltd. | | |
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Kansai Electric Power Co., Inc. | | |
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Kawasaki Kisen Kaisha Ltd. | | |
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Keisei Electric Railway Co. Ltd. | | |
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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. | | |
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Kurita Water Industries Ltd. | | |
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Kyushu Electric Power Co., Inc. | | |
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McDonald's Holdings Co. Japan Ltd. | | |
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Mitsubishi Electric Corp. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi UFJ Financial Group, Inc. | | |
Mitsui Mining & Smelting Co. Ltd. | | |
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6
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
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Morinaga Milk Industry Co. Ltd. | | |
Murata Manufacturing Co. Ltd. | | |
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NEC Networks & System Integration Corp. | | |
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Nihon M&A Center Holdings, Inc. | | |
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Nippon Telegraph & Telephone Corp. | | |
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Nissin Foods Holdings Co. Ltd. | | |
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Nomura Research Institute Ltd. | | |
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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Penta-Ocean Construction 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. | | |
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Ship Healthcare Holdings, Inc. | | |
SHO-BOND Holdings Co. Ltd. | | |
Skylark Holdings Co. Ltd. * | | |
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Sohgo Security Services Co. Ltd. | | |
Square Enix Holdings Co. Ltd. | | |
Stanley Electric Co. Ltd. | | |
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Sumitomo Bakelite Co. Ltd. | | |
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Sumitomo Rubber Industries Ltd. | | |
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Suntory Beverage & Food Ltd. | | |
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Tokyo Ohka Kogyo Co. Ltd. | | |
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Toyo Seikan Group Holdings Ltd. | | |
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Schwab International Opportunities Fund | Annual Holdings and Financial Statements
7
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
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B&M European Value Retail SA | | |
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Samsonite International SA | | |
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BBB Foods, Inc., Class A * | | |
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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Doosan Enerbility Co. Ltd. * | | |
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GS Engineering & Construction Corp. * | | |
Hankook Tire & Technology Co. Ltd. | | |
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Hanwha Aerospace Co. Ltd. | | |
Hanwha Industrial Solutions Co. Ltd. * | | |
HD Hyundai Heavy Industries Co. Ltd. * | | |
HD Hyundai Infracore Co. Ltd. * | | |
HD Korea Shipbuilding & Offshore Engineering Co. Ltd. | | |
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Hyundai Engineering & Construction Co. Ltd. | | |
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Korean Air Lines Co. Ltd. | | |
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Kumho Petrochemical Co. Ltd. | | |
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LG Energy Solution Ltd. * | | |
8
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
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| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samsung Biologics Co. Ltd. * | | |
Samsung Electro-Mechanics Co. Ltd. | | |
Samsung Electronics Co. Ltd. | | |
| | |
| | |
Sanil Electric Co. Ltd. * | | |
| | |
| | |
| | |
| | |
|
|
CapitaLand Integrated Commercial Trust | | |
| | |
| | |
| | |
| | |
| | |
Mapletree Pan Asia Commercial Trust | | |
| | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Singapore Telecommunications Ltd. | | |
| | |
| | |
| | |
|
|
Impala Platinum Holdings Ltd. * | | |
|
|
| | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil SA | | |
International Consolidated Airlines Group SA | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
H & M Hennes & Mauritz AB, B Shares | | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
Investment AB Latour, B 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 | | |
| | |
Logitech International SA | | |
| | |
| | |
| | |
Partners Group Holding AG | | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
| | |
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
9
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
| | |
| | |
Swatch Group AG, Bearer Shares | | |
| | |
Swissquote Group Holding SA | | |
| | |
| | |
| | |
|
|
| | |
Elan Microelectronics Corp. | | |
| | |
King Yuan Electronics Co. Ltd. | | |
| | |
Lai Yih Footwear Co. Ltd. | | |
| | |
Nien Made Enterprise Co. Ltd. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
Tong Yang Industry Co. Ltd. | | |
| | |
|
|
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Associated British Foods PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings PLC | | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
CK Hutchison Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
Intermediate Capital Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Marks & Spencer Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Reckitt Benckiser Group PLC | | |
| | |
| | |
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group PLC | | |
| | |
Watches of Switzerland Group PLC * | | |
| | |
| | |
| | |
|
|
ACADIA Pharmaceuticals, Inc. * | | |
| | |
Ginkgo Bioworks Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
Total Common Stocks
(Cost $848,563,014) | |
|
10
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
PREFERRED STOCKS 0.6% OF NET ASSETS |
|
|
| | |
|
|
| | |
| | |
| | |
|
|
| | |
Samsung Electronics Co. Ltd. | | |
| | |
Total Preferred Stocks
(Cost $7,538,517) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
|
|
expires 11/28/24, strike EUR 130.96 *(c) | | |
| |
|
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 $19,426,891) | |
| | |
SHORT-TERM INVESTMENTS 2.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (e) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (e)(f) | | |
| | |
Total Short-Term Investments
(Cost $24,917,127) | |
Total Investments in Securities
(Cost $900,445,549) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 12/20/24 | | | |
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
11
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (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 $235,413. |
| 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. |
| American Depositary Receipt |
| |
| Real Estate Investment Trust |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
12
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
| |
| Includes holdings within sectors that are less than 1.0% of net assets. |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended October 31, 2024:
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 1.8% 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. |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
13
Schwab International Opportunities Fund
Portfolio Holdings as of October 31, 2024 (continued)
| QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
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. |
14
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $19,426,891) | | |
Investments in securities, at value - unaffiliated issuers (cost $881,018,658) including securities on loan of $235,413 | | |
Foreign currency, at value (cost $314,570) | | |
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 | | |
| | |
Variation margin on futures contracts | | |
| | |
Unrealized depreciation on forward foreign currency exchange contracts | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
15
Schwab International Opportunities Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $2,177,760) | | |
Dividends received from securities - affiliated issuers | | |
| | |
IRS compliance fee for foreign withholding tax claims | | |
| | |
| | |
|
|
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 $1,268,855) | | |
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 ($535,799)) | | |
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 $11,965 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). |
16
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
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 International Opportunities Fund | Annual Holdings and Financial Statements
17
Schwab International Opportunities Fund
1. Business Structure of the Fund:
The 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 U.S. Large Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental U.S. Small Company Index Fund |
Schwab International Index Fund | Schwab Fundamental International Equity Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Equity Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Equity 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 and holdings and financial statements, which are filed in Form N-CSR with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
18
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Financial Notes (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.
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
19
Schwab International Opportunities Fund
Financial Notes (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 October 31, 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
20
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Financial Notes (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 October 31, 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 October 31, 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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21
Schwab International Opportunities Fund
Financial Notes (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 October 31, 2024, the fund filed a closing agreement with the IRS and it has been accepted by the IRS. With the acceptance of the closing agreement, the fund made the final payment to the IRS. There was a difference between the original estimate and the final compliance fee due to the IRS. The difference has been recorded as IRS compliance fee for foreign withholding tax claims in the fund’s Statement of Operations.
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 October 31, 2024, if any, are reflected in the fund’s Statement of Assets and Liabilities.
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Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Financial Notes (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.
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.
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,
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Schwab International Opportunities Fund
Financial Notes (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 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 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
24
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Financial Notes (continued)
3. Risk Factors (continued):
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 fund.
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.
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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Schwab International Opportunities Fund
Financial Notes (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 October 31, 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 October 31, 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 October 31, 2024, the professional fees incurred by the fund and paid by the investment adviser were $11,965, as shown as Professional fees in the fund’s Statement of Operations.
During the period ended October 31, 2024, the fund did not recover any previously withheld foreign taxes and made no reimbursement to the investment adviser.
As of October 31, 2024, the balance of professional fees related to foreign withholding tax claims subject to future reimbursement by the fund to the investment adviser was $13,644.
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 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 October 31, 2024, the fund’s purchases and sales of securities with other funds managed by the investment adviser or subadvisers was $33,457,460 and $39,500,131 respectively, and includes net realized losses of $799,123.
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Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Financial Notes (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.
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), which matured on September 26, 2024. On September 26, 2024, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount increasing to $1.2 billion, maturing on September 25, 2025.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, which matured on September 26, 2024. On September 26, 2024, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 25, 2025. 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 October 31, 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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27
Schwab International Opportunities Fund
Financial Notes (continued)
8. Derivatives (continued):
As of October 31, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | FOREIGN
CURRENCY
EXCHANGE
CONTRACTS | |
| | | |
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 within the Statement of Assets and Liabilities. |
The effects of the derivative contracts in the Statement of Operations for the period ended October 31, 2024, were:
| | FOREIGN
CURRENCY
EXCHANGE
CONTRACTS | |
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 October 31, 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 October 31, 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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Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Financial Notes (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 October 31, 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 October 31, 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) |
| | | | |
| | | | |
| | | | |
The primary differences between book basis and tax basis unrealized appreciation or unrealized depreciation of investments are the tax deferral of losses on wash sales, the realization for tax purposes of unrealized appreciation or depreciation on futures and forward contracts, the realization for tax purposes of unrealized appreciation on investments in PFICs and partnership investments. The tax cost of the fund’s investments, disclosed above, have been adjusted from its book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of October 31, 2024, the components of distributable earnings on a tax basis were as follows:
UNDISTRIBUTED
ORDINARY
INCOME | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | NET OTHER UNREALIZED
APPRECIATION
(DEPRECIATION) | CAPITAL LOSS
CARRYFORWARDS AND OTHER LOSSES | |
| | | | |
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, 2024, the fund had capital loss carryforwards of $35,748,733.
For the fiscal year ended October 31, 2024 the fund had capital loss carryforwards utilized of $39,610,902.
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
29
Schwab International Opportunities Fund
Financial Notes (continued)
9. Federal Income Taxes (continued):
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | | |
| | | |
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.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of October 31, 2024, 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, 2024, 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.
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Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Capital Trust and Shareholders of Schwab International Opportunities Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the portfolio holdings, of Schwab International Opportunities Fund (the “Fund”), one of the Funds constituting Schwab Capital Trust, as of October 31, 2024, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
December 16, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
31
Schwab International Opportunities Fund
Investment Advisory and Sub-Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the initial approval and/or continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement between Schwab Capital Trust (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab International Opportunities Fund (the Fund), and the individual sub-advisory agreements between the investment adviser and American Century Investment Management, Inc., Baillie Gifford Overseas Limited (Baillie Gifford) and Harris Associates L.P. (Harris) relating to the Fund (each, a Sub-Adviser and collectively, the Sub-Advisers). Such investment advisory and administration agreement and sub-advisory agreements are collectively referred to herein as the Agreements. The Trustees also review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser and the Sub-Advisers, including information about their affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser and the investment adviser sends an information request letter to each of the Sub-Advisers seeking certain relevant information. The responses by the investment adviser and the Sub-Advisers are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Fund that the Board reviews during the course of each year, including information that relates to the Fund’s operations and performance, legal and compliance matters, risk management, portfolio turnover,
and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management. The Board also discusses with the investment adviser the Fund’s operations and the investment adviser’s ability, consistent with the “manager of managers” structure of the Fund, to (i) identify and recommend to the Trustees sub-advisers for the Fund, (ii) monitor and oversee the performance and investment capabilities of each Sub-Adviser, and (iii) recommend the termination and/or replacement of a Sub-Adviser when appropriate.
The Board, including a majority of the Independent Trustees, considered information relating specifically to the continuance of the Agreements with respect to the Fund at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreements with respect to the Fund for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreements with respect to the Fund was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to the Fund under the Agreements, including the resources of the investment adviser and its affiliates, and the Sub-Advisers, dedicated to the Fund;
2.
the Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.
the Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates, as well as the profitability of the Sub-Advisers; and
5.
the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreements reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided to the Fund and the resources of the investment adviser and its affiliates and the Sub-Advisers dedicated to the Fund. In this
32
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Schwab International Opportunities Fund
regard, the Trustees evaluated, among other things, the investment adviser’s and the Sub-Advisers’ experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser and the Sub-Advisers relating to the services and support provided with respect to the Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and its reputation as a full service brokerage firm as well as the wide range of products, services and account features that benefit Funds shareholders who are brokerage clients of Schwab. The Board also considered the nature, extent and quality of the sub-advisory services provided by the Sub-Advisers to the Fund and the resources each dedicates to the Fund. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser and the Sub-Advisers to the Fund and the resources of the investment adviser, its affiliates, and the Sub-Advisers dedicated to the Fund supported renewal of the Agreements with respect to the Fund.
Fund Performance. The Board considered the Fund’s performance in determining whether to renew the Agreements with respect to the Fund. Specifically, the Trustees considered the Fund’s performance relative to a peer category of other mutual funds and an applicable benchmark index, in light of total return and the market environment, as well as in consideration of the Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In addition, the Trustees considered whether irrespective of relative performance, each Sub-Adviser’s absolute performance was consistent with expectations for such Sub-Adviser’s unique investment methodology. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and adviser and Sub-Adviser profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of the Fund supported renewal of the Agreements with respect to the Fund.
Fund Expenses. With respect to the Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and the Fund’s operating expense ratio, in each
case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Fund and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of the investment adviser’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of the Fund from exceeding a specified cap. The Trustees also considered the investment adviser’s contractual commitment to limit the total annual operating expenses of the Fund for so long as the investment adviser serves as the adviser to the Fund. The Trustees also considered fees charged by the investment adviser and the Sub-Advisers to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported renewal of the Agreement with respect to the Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed the profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Fund and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Fund, such as whether, by virtue of its management of the Fund, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Fund under the Agreements and other service agreements were reasonable in light of the quality of all services rendered to the Fund by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Fund.
In addition, the Trustees also considered the compensation received by each Sub-Adviser, directly or indirectly. The Trustees also considered any other benefits derived by each Sub-Adviser from its relationship with the Fund, such as whether, by virtue of its management of the Fund, such Sub-Adviser obtains investment information or other research
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
33
Schwab International Opportunities Fund
resources that aid it in providing advisory services to other clients. With respect to each Sub-Adviser, the Trustees considered whether the compensation and profitability under the applicable Agreement were reasonable and justified in light of the quality of all services rendered to the Fund by such Sub-Adviser, and its affiliates. The Board also considered the profitability of each Sub-Adviser with respect to the sub-advisory services it provides to the Fund, although, when doing so, the Board took into account the fact that the Sub-Advisers are compensated by the investment adviser, and not by the Fund directly, and such compensation with respect to any Sub-Adviser reflects an arms-length negotiation between the Sub-Adviser and the investment adviser. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser and the Sub-Advisers is reasonable and supported renewal of the Agreements with respect to the Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Fund does not have breakpoints in its advisory fees, the Trustees considered the potential existence of any economies of scale and whether those are passed along to the Fund’s shareholders through (i) the enhancement of services provided to the Fund in return for fees paid, including through investments by the investment adviser in the investment adviser’s infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Fund and its shareholders; (ii) graduated investment advisory fee schedules
or unitary fee structures, fee waivers, or expense caps by the investment adviser and its affiliates for those funds in the Schwab fund complex with such features; and (iii) pricing the Fund to scale and keeping overall expenses down as the Fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Fund. The Trustees considered that the investment adviser and its affiliates employ contractual expense caps to protect shareholders from higher fees, including, for example, when fund assets are relatively small. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreements with respect to the Fund and concluded that the compensation under the Agreements with respect to the Fund is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
34
Schwab International Opportunities Fund | Annual Holdings and Financial Statements
Annual Holdings and Financial Statements | October 31, 2024
Schwab Active Equity Funds
Schwab Dividend Equity Fund
Schwab Large-Cap Growth Fund
Schwab Small-Cap Equity Fund
Schwab International Core Equity 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. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
Schwab Active Equity Funds | Annual Holdings and Financial Statements
1
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. |
2
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 0.9% |
Mobileye Global, Inc., Class A * | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
|
Commercial & Professional Services 2.8% |
| | |
Republic Services, Inc., Class A | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 7.5% |
| | |
| | |
| | |
| | |
|
|
| | |
|
Consumer Staples Distribution & Retail 1.2% |
| | |
|
|
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 0.6% |
| | |
|
|
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.0% |
Brown-Forman Corp., Class B | | |
| | |
Constellation Brands, Inc., Class A | | |
| | |
|
| | |
Health Care Equipment & Services 6.3% |
| | |
Boston Scientific Corp. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
|
Household & Personal Products 2.0% |
| | |
L'Oreal SA, Sponsored ADR | | |
| | |
|
|
| | |
|
|
| | |
|
Media & Entertainment 10.2% |
| | |
Meta Platforms, Inc., Class A | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 8.4% |
| | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 12.1% |
ASML Holding NV NY Registry Shares | | |
| | |
| | |
| | |
| | |
|
Software & Services 14.0% |
| | |
| | |
| | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
|
Technology Hardware & Equipment 6.0% |
| | |
|
|
| | |
Total Common Stocks
(Cost $818,713,983) | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
3
Portfolio Holdings as of October 31, 2024 (continued)
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (a) | | |
Total Short-Term Investments
(Cost $2,490,419) | |
Total Investments in Securities
(Cost $821,204,402) | |
| 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 October 31, 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. |
4
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $821,204,402) | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
5
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $52,375) | | |
| | |
| | |
|
|
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 | | |
6
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 Active Equity Funds | Annual Holdings and Financial Statements
7
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. |
8
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Dividend Equity Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.8% |
| | |
| | |
| | |
| | |
|
|
| | |
|
Consumer Staples Distribution & Retail 3.1% |
| | |
|
|
| | |
| | |
| | |
| | |
|
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 7.7% |
| | |
| | |
Constellation Brands, Inc., Class A | | |
Philip Morris International, Inc. | | |
| | |
|
| | |
Health Care Equipment & Services 7.4% |
| | |
| | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 3.9% |
| | |
| | |
| | |
|
|
| | |
Cincinnati Financial Corp. | | |
| | |
| | |
|
|
| | |
|
Media & Entertainment 2.8% |
| | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.7% |
| | |
| | |
| | |
| | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 3.2% |
| | |
|
|
| | |
International Business Machines Corp. | | |
| | |
| | |
|
Technology Hardware & Equipment 2.6% |
| | |
| | |
| | |
|
Telecommunication Services 2.1% |
Verizon Communications, Inc. | | |
|
|
United Parcel Service, Inc., Class B | | |
|
Schwab Active Equity Funds | Annual Holdings and Financial Statements
9
Schwab Dividend Equity Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
|
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $379,610,643) | |
Total Investments in Securities
(Cost $379,610,643) | |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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. |
10
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Dividend Equity Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $379,610,643) | | |
| | |
Foreign currency, at value (cost $3,204) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
11
Schwab Dividend Equity Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 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 | | |
12
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Dividend Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
13
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. |
14
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Large-Cap Growth Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 96.4% OF NET ASSETS |
|
Automobiles & Components 1.5% |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
|
Commercial & Professional Services 0.7% |
Republic Services, Inc., Class A | | |
|
Consumer Discretionary Distribution & Retail 7.9% |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
|
|
| | |
| | |
DraftKings, Inc., Class A * | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.4% |
| | |
|
|
| | |
|
|
| | |
Fidelity National Information Services, Inc. | | |
Interactive Brokers Group, Inc., Class A | | |
Mastercard, Inc., Class A | | |
| | |
| | |
|
Food, Beverage & Tobacco 2.5% |
| | |
Constellation Brands, Inc., Class A | | |
Philip Morris International, Inc. | | |
| | |
|
Health Care Equipment & Services 2.8% |
Boston Scientific Corp. * | | |
Intuitive Surgical, Inc. * | | |
| | |
|
| | |
|
| | |
| | |
| | |
|
Media & Entertainment 11.3% |
| | |
Meta Platforms, Inc., Class A | | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.3% |
| | |
Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 16.4% |
Advanced Micro Devices, Inc. * | | |
| | |
ASML Holding NV NY Registry Shares | | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 19.4% |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 9.0% |
| | |
|
|
Uber Technologies, Inc. * | | |
Total Common Stocks
(Cost $205,592,931) | |
|
INVESTMENT COMPANIES 1.4% OF NET ASSETS |
|
|
| | |
Total Investment Companies
(Cost $6,388,679) | |
Total Investments in Securities
(Cost $211,981,610) | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
15
Schwab Large-Cap Growth Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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. |
16
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Large-Cap Growth Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $211,981,610) | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Investment adviser and administrator fees | | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
17
Schwab Large-Cap Growth Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $7,378) | | |
| | |
| | |
| | |
|
|
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 | | |
18
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Large-Cap Growth Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
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 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
19
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. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
20
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Equity Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 94.8% OF NET ASSETS |
|
Automobiles & Components 1.0% |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
Modine Manufacturing Co. * | | |
| | |
|
|
| | |
| | |
| | |
Customers Bancorp, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
HomeTrust Bancshares, Inc. | | |
| | |
| | |
International Bancshares Corp. | | |
| | |
| | |
OceanFirst Financial Corp. | | |
Provident Financial Services, Inc. | | |
| | |
Republic Bancorp, Inc., Class A | | |
Southern Missouri Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Array Technologies, Inc. * | | |
| | |
Atmus Filtration Technologies, Inc. | | |
| | |
Comfort Systems USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
H&E Equipment Services, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mueller Water Products, Inc., Class A | | |
NEXTracker, Inc., Class A * | | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
Thermon Group Holdings, Inc. * | | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
|
Commercial & Professional Services 2.7% |
| | |
| | |
| | |
| | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 2.6% |
Abercrombie & Fitch Co., Class A * | | |
American Eagle Outfitters, Inc. | | |
Build-A-Bear Workshop, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
|
Consumer Durables & Apparel 2.8% |
G-III Apparel Group Ltd. * | | |
Green Brick Partners, Inc. * | | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
| | |
| | |
Taylor Morrison Home Corp., Class A * | | |
| | |
| | |
|
|
Brinker International, Inc. * | | |
| | |
| | |
International Game Technology PLC | | |
| | |
Red Rock Resorts, Inc., Class A | | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
21
Schwab Small-Cap Equity Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Rush Street Interactive, Inc. * | | |
| | |
|
Consumer Staples Distribution & Retail 0.7% |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
| | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
Solaris Energy Infrastructure, Inc. | | |
| | |
Teekay Tankers Ltd., Class A | | |
| | |
| | |
Weatherford International PLC | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 6.8% |
Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
| | |
| | |
Empire State Realty Trust, Inc., Class A | | |
Innovative Industrial Properties, Inc. | | |
| | |
National Health Investors, Inc. | | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | |
Plymouth Industrial REIT, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
|
|
Artisan Partners Asset Management, Inc., Class A | | |
Bread Financial Holdings, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
Enova International, Inc. * | | |
| | |
| | |
Federal Agricultural Mortgage Corp., Class C | | |
Jackson Financial, Inc., Class A | | |
| | |
| | |
NMI Holdings, Inc., Class A * | | |
Pagseguro Digital Ltd., Class A * | | |
Regional Management Corp. | | |
| | |
| | |
| | |
Victory Capital Holdings, Inc., Class A | | |
| | |
Virtus Investment Partners, Inc. | | |
| | |
|
Food, Beverage & Tobacco 1.1% |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
| | |
| | |
| | |
Turning Point Brands, Inc. | | |
| | |
|
Health Care Equipment & Services 3.2% |
AdaptHealth Corp., Class A * | | |
| | |
Bioventus, Inc., Class A * | | |
Castle Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
Lantheus Holdings, Inc. * | | |
| | |
Merit Medical Systems, Inc. * | | |
OmniAb, Inc., Class A *(a) | | |
OmniAb, Inc., Class B *(a) | | |
OraSure Technologies, Inc. * | | |
| | |
| | |
Select Medical Holdings Corp. | | |
Tactile Systems Technology, Inc. * | | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 0.3% |
| | |
| | |
Nature's Sunshine Products, Inc. * | | |
| | |
| | |
|
|
CNO Financial Group, Inc. | | |
Hamilton Insurance Group Ltd., Class B * | | |
| | |
|
|
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
Carpenter Technology Corp. | | |
Constellium SE, Class A * | | |
| | |
| | |
| | |
| | |
Minerals Technologies, Inc. | | |
| | |
Rayonier Advanced Materials, Inc. * | | |
22
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Equity Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Universal Stainless & Alloy Products, Inc. * | | |
| | |
| | |
|
Media & Entertainment 2.1% |
Advantage Solutions, Inc. * | | |
AMC Networks, Inc., Class A * | | |
| | |
| | |
EverQuote, Inc., Class A * | | |
EW Scripps Co., Class A * | | |
| | |
| | |
| | |
Lions Gate Entertainment Corp., Class A * | | |
MediaAlpha, Inc., Class A * | | |
PubMatic, Inc., Class A * | | |
| | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 14.2% |
ACADIA Pharmaceuticals, Inc. * | | |
| | |
| | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Aurinia Pharmaceuticals, Inc. * | | |
Avidity Biosciences, Inc. * | | |
Beam Therapeutics, Inc. * | | |
BioCryst Pharmaceuticals, Inc. * | | |
BioLife Solutions, Inc. * | | |
Blueprint Medicines Corp. * | | |
| | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
Cytek Biosciences, Inc. * | | |
Fulcrum Therapeutics, Inc. * | | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
Harvard Bioscience, Inc. * | | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
Janux Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Nurix Therapeutics, Inc. * | | |
Organogenesis Holdings, Inc., Class A * | | |
Pacira BioSciences, Inc. * | | |
Phibro Animal Health Corp., Class A | | |
Prestige Consumer Healthcare, Inc. * | | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
| | |
Relay Therapeutics, Inc. * | | |
Rigel Pharmaceuticals, Inc. * | | |
| | |
| | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
Travere Therapeutics, Inc. * | | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
| | |
WaVe Life Sciences Ltd. * | | |
| | |
| | |
|
Real Estate Management & Development 0.5% |
Cushman & Wakefield PLC * | | |
Newmark Group, Inc., Class A | | |
| | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 2.0% |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
Penguin Solutions, Inc. * | | |
| | |
| | |
| | |
|
|
| | |
| | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Appfolio, Inc., Class A * | | |
| | |
| | |
Clear Secure, Inc., Class A | | |
Clearwater Analytics Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
RingCentral, Inc., Class A * | | |
SEMrush Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Weave Communications, Inc. * | | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
| | |
|
Schwab Active Equity Funds | Annual Holdings and Financial Statements
23
Schwab Small-Cap Equity Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Technology Hardware & Equipment 4.0% |
Arlo Technologies, Inc. * | | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
| | |
| | |
| | |
FARO Technologies, Inc. * | | |
| | |
| | |
Napco Security Technologies, Inc. | | |
| | |
| | |
| | |
|
Telecommunication Services 1.0% |
Bandwidth, Inc., Class A * | | |
Liberty Latin America Ltd., Class A * | | |
Lumen Technologies, Inc. * | | |
Telephone & Data Systems, Inc. | | |
| | |
|
|
| | |
| | |
Genco Shipping & Trading Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
California Water Service Group | | |
Clearway Energy, Inc., Class A | | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
Total Common Stocks
(Cost $513,602,371) | |
| | |
SHORT-TERM INVESTMENTS 0.0% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c)(d) | | |
Total Short-Term Investments
(Cost $325,485) | |
Total Investments in Securities
(Cost $513,927,856) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 12/20/24 | | | |
| 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 $310,079. |
| 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 ended October 31, 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 October 31, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of the period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.0% OF NET ASSETS |
|
|
| | | | | | | | |
24
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Equity Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
25
Schwab Small-Cap Equity Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $513,927,856) including securities on loan of $310,079 | | |
| | |
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 | | |
| | |
26
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Equity Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $11,436) | | |
| | |
| | |
| | |
|
|
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 | | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
27
Schwab Small-Cap Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
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) | | | | | |
| | | | | |
28
Schwab Active Equity Funds | Annual Holdings and Financial Statements
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 | Annual Holdings and Financial Statements
29
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.7% OF NET ASSETS |
|
|
| | |
|
|
| | |
|
|
| | |
Hansoh Pharmaceutical Group Co. Ltd. | | |
Livzon Pharmaceutical Group, Inc., H Shares | | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
|
|
United Laboratories International Holdings Ltd. | | |
|
|
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
|
|
Recordati Industria Chimica e Farmaceutica SpA | | |
|
|
| | |
| | |
| | |
Santen Pharmaceutical Co. Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
Samsung Biologics Co. Ltd. * | | |
| | |
|
| | |
|
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
ANI Pharmaceuticals, Inc. * | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
Mettler-Toledo International, Inc. * | | |
Neurocrine Biosciences, Inc. * | | |
| | |
Prestige Consumer Healthcare, Inc. * | | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
United Therapeutics Corp. * | | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
30
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
Total Common Stocks
(Cost $516,472,804) | |
Total Investments in Securities
(Cost $516,472,804) | |
| Non-income producing security. |
| |
|
| |
| |
| |
Life Sciences Tools & Services | |
| |
| Includes holdings within industries that are less than 1.0% of net assets. |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 | Annual Holdings and Financial Statements
31
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $516,472,804) | | |
| | |
Foreign currency, at value (cost $92) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
32
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $352,096) | | |
| | |
| | |
|
|
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 | | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
33
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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) | | | | | |
| | | | | |
34
Schwab Active Equity Funds | Annual Holdings and Financial Statements
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. |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
35
Schwab International Core Equity Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 98.1% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
|
|
| | |
|
|
| | |
| | |
Constellation Software, Inc. | | |
| | |
| | |
|
|
China Hongqiao Group Ltd. | | |
| | |
PetroChina Co. Ltd., H Shares | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
La Francaise des Jeux SAEM | | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | |
| | |
| | |
| | |
|
|
Jardine Matheson Holdings Ltd. | | |
|
|
Check Point Software Technologies Ltd. * | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Japan Exchange Group, Inc. | | |
Japan Post Insurance Co. Ltd. | | |
| | |
Kansai Electric Power Co., Inc. | | |
| | |
| | |
| | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
36
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab International Core Equity Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Santen Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
Sumitomo Mitsui Financial Group, Inc. | | |
Tokio Marine Holdings, Inc. | | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
Yangzijiang Shipbuilding Holdings Ltd. | | |
|
|
| | |
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
Industria de Diseno Textil SA (a) | | |
International Consolidated Airlines Group SA | | |
| | |
|
|
| | |
| | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
|
|
| | |
| | |
Logitech International SA | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
| | |
|
|
| | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
| | |
Legal & General Group PLC | | |
Marks & Spencer Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $482,752,049) | |
| | |
SHORT-TERM INVESTMENTS 2.8% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (b) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (b)(c) | | |
| | |
Total Short-Term Investments
(Cost $16,795,632) | |
Total Investments in Securities
(Cost $499,547,681) | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $10,034,577. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Global Depositary Receipt |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
37
Schwab International Core Equity Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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. |
38
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab International Core Equity Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $499,547,681) including securities on loan of $10,034,577 | | |
Foreign currency, at value (cost $1,306,686) | | |
| | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
39
Schwab International Core Equity Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $1,723,561) | | |
IRS compliance fee for foreign withholding tax claims | | |
| | |
| | |
|
|
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 | | |
| Includes professional fees of $18,235 associated with the filing of foreign withholding tax claims in the European Union. Fees are deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
40
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab International Core Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 Active Equity Funds | Annual Holdings and Financial Statements
41
Schwab Active Equity Funds
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 U.S. Large Company Index Fund |
Schwab S&P 500 Index Fund | Schwab Fundamental U.S. Small Company Index Fund |
Schwab Small-Cap Index Fund | Schwab Fundamental International Equity Index Fund |
Schwab Total Stock Market Index Fund | Schwab Fundamental International Small Equity Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Fundamental Emerging Markets Equity 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.
42
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
Financial Notes (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 and holdings and financial statements, which are filed in Form N-CSR 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 Active Equity Funds | Annual Holdings and Financial Statements
43
Schwab Active Equity Funds
Financial Notes (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 October 31, 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
44
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
Financial Notes (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 October 31, 2024, Schwab Small-Cap Equity Fund and Schwab International Core Equity Fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of October 31, 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.
Schwab Active Equity Funds | Annual Holdings and Financial Statements
45
Schwab Active Equity Funds
Financial Notes (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 October 31, 2024, the Schwab International Core Equity Fund filed a closing agreement with the IRS and it has been accepted by the IRS. With the acceptance of the closing agreement, the Schwab International Core Equity Fund made the final payment to the IRS. There was a difference between the original estimate and the final compliance fee due to the IRS. The difference has been recorded as IRS compliance fee for foreign withholding tax claims in the fund’s Statement of Operations.
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.
(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.
46
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
Financial Notes (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 October 31, 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.
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.
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.
Schwab Active Equity Funds | Annual Holdings and Financial Statements
47
Schwab Active Equity Funds
Financial Notes (continued)
3. Risk Factors (continued):
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, 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.
48
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
Financial Notes (continued)
3. Risk Factors (continued):
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 each fund.
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 October 31, 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.
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.
Schwab Active Equity Funds | Annual Holdings and Financial Statements
49
Schwab Active Equity Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
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. Acquired fund fees and expenses are reflected in the net asset values of the 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
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 October 31, 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.
For the period ended October 31, 2024, the professional fees incurred by the Schwab International Core Equity Fund and paid by the investment adviser were $18,235, as shown as Professional fees in the fund’s Statement of Operations.
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Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
During the period ended October 31, 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 October 31, 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 $20,510.
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 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 October 31, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any net realized gains (losses) were as follows:
| | | NET REALIZED GAINS (LOSSES) |
| | | |
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.
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), which matured on September 26, 2024. On September 26, 2024, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount increasing to $1.2 billion, maturing on September 25, 2025. 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, which matured on September 26, 2024. On September 26, 2024, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 25, 2025. 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.
Schwab Active Equity Funds | Annual Holdings and Financial Statements
51
Schwab Active Equity Funds
Financial Notes (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 October 31, 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 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 October 31, 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 October 31, 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 | | |
52
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
Financial Notes (continued)
8. Purchases and Sales of Investment Securities:
For the period ended October 31, 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 October 31, 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 | | | | |
The primary differences between book basis and tax basis unrealized appreciation or unrealized depreciation of investments are the tax deferral of losses on wash sales, the realization for tax purposes of unrealized appreciation or depreciation on futures contracts, the realization for tax purposes of unrealized appreciation on investments in PFICs and partnership investments. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| UNDISTRIBUTED
ORDINARY
INCOME | UNDISTRIBUTED
LONG-TERM
CAPITAL GAINS | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | NET OTHER UNREALIZED
APPRECIATION
(DEPRECIATION) | CAPITAL LOSS
CARRYFORWARDS
AND OTHER LOSSES | |
| | | | | | |
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, 2024, 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 | |
Schwab Active Equity Funds | Annual Holdings and Financial Statements
53
Schwab Active Equity Funds
Financial Notes (continued)
9. Federal Income Taxes (continued):
For tax purposes, late-year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended October 31, 2024, the Schwab Large-Cap Growth Fund had late-year ordinary losses deferred of $824,993.
For the fiscal year ended October 31, 2024, the funds had capital loss carryforwards utilized as follows:
| |
| |
Schwab Dividend Equity Fund | |
Schwab Large-Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
| |
Schwab International Core Equity Fund | |
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | | | |
| | | | |
Schwab Dividend Equity Fund | | | | |
Schwab Large-Cap Growth Fund | | | | |
Schwab Small-Cap Equity Fund | | | | |
| | | | |
Schwab International Core Equity 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.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of October 31, 2024, 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, 2024, 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.
54
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Capital Trust and Shareholders of Schwab Core Equity Fund, Schwab Dividend Equity Fund, Schwab Large-Cap Growth Fund, Schwab Small-Cap Equity Fund, Schwab Health Care Fund, and Schwab International Core Equity Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab Core Equity Fund, Schwab Dividend Equity Fund, Schwab Large-Cap Growth Fund, Schwab Small-Cap Equity Fund, Schwab Health Care Fund, and Schwab International Core Equity Fund (the “Funds”), six of the Funds constituting Schwab Capital Trust, as of October 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds constituting Schwab Capital Trust as of October 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
December 16, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
Schwab Active Equity Funds | Annual Holdings and Financial Statements
55
Schwab Active Equity Funds
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between Schwab Capital Trust (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab Core Equity Fund, Schwab Dividend Equity Fund, Schwab Large-Cap Growth Fund, Schwab Small-Cap Equity Fund, Schwab Health Care Fund and Schwab International Core Equity Fund (each, a Fund and collectively, the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer
sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.
each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.
each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to each Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s
56
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Schwab Active Equity Funds
technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.
Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of each Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of each Fund supported renewal of the Agreement with respect to such Fund.
Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and each Fund’s operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees also considered the investment adviser’s contractual commitment to limit the total annual operating expenses of each Fund for so long as it serves as the adviser to the Fund. The Trustees also considered fees charged by the investment adviser to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts, and any differences in the market for these types of
accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of each Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed the profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services, and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser with respect to each Fund is reasonable and supported renewal of the Agreement with respect to such Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Funds do not have breakpoints in their advisory fees, the Trustees considered the potential existence of any economies of scale and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds. The Trustees considered that the investment adviser and its affiliates employ contractual expense caps to protect shareholders from higher fees, including for example, when fund assets are relatively small. Based on this evaluation, the
Schwab Active Equity Funds | Annual Holdings and Financial Statements
57
Schwab Active Equity Funds
Board concluded, within the context of its full deliberations, that each Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation
and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Funds and concluded that the compensation under the Agreement with respect to the Funds is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
58
Schwab Active Equity Funds | Annual Holdings and Financial Statements
Annual Holdings and Financial Statements | October 31, 2024
Schwab Balanced Fund
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Balanced Fund | Annual Holdings and Financial Statements
1
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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Net investment income (loss) | | | | | | |
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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. |
2
Schwab Balanced Fund | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
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 9.6% |
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Schwab International Opportunities Fund | | | | | | | | |
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Intermediate-Term Bond 36.4% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
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Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $615,283,219) | | | | | | | | |
|
UNAFFILIATED UNDERLYING FUNDS 0.6% OF NET ASSETS |
|
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State Street Institutional U.S. Government Money Market Fund, Premier Class, 4.82% (b) | | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $4,111,633) | | | | | | | | |
Total Investments in Securities
(Cost $619,394,852) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $16,615,680 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
Schwab Balanced Fund | Annual Holdings and Financial Statements
3
Statement of Assets and Liabilities
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Investments in securities, at value - affiliated issuers (cost $615,283,219) | | |
Investments in securities, at value - unaffiliated issuers (cost $4,111,633) | | |
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Due from investment adviser | | |
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Capital received from investors | | |
Total distributable earnings | | |
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4
Schwab Balanced Fund | Annual Holdings and Financial Statements
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - affiliated issuers | | |
Dividends received from securities - unaffiliated issuers | | |
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Portfolio accounting fees | | |
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Independent trustees’ fees | | |
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REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated issuers | | |
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 | | |
Schwab Balanced Fund | Annual Holdings and Financial Statements
5
Statement of Changes in Net Assets
For the current and prior report periods
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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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6
Schwab Balanced Fund | Annual Holdings and Financial Statements
1. Business Structure of the Fund:
The fund 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 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 U.S. Large Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental U.S. Small Company Index Fund |
Schwab International Index Fund | Schwab Fundamental International Equity Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Equity Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Equity 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 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, capital growth and income, by generally investing in a diversified group of other affiliated Schwab Funds but may also invest in ETFs or other unaffiliated mutual funds (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.
2. Significant Accounting Policies:The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
The financial statements of the fund should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports and holdings and financial statements, which are filed in Form N-CSR with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab Balanced Fund | Annual Holdings and Financial Statements
7
Financial Notes (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:
● 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 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.
8
Schwab Balanced Fund | Annual Holdings and Financial Statements
Financial Notes (continued)
2. Significant Accounting Policies (continued):
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 October 31, 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 NAVs 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.
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.
Schwab Balanced Fund | Annual Holdings and Financial Statements
9
Financial Notes (continued)
3. Risk Factors (continued):
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.
● 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.
10
Schwab Balanced Fund | Annual Holdings and Financial Statements
Financial Notes (continued)
3. Risk Factors (continued):
● 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 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.
Schwab Balanced Fund | Annual Holdings and Financial Statements
11
Financial Notes (continued)
3. Risk Factors (continued):
● Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
● Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
● Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
● Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
● 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 fund. 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.
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.
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Schwab Balanced Fund | Annual Holdings and Financial Statements
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
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 October 31, 2024, the fund’s ownership percentages of other affiliated funds’ shares are as follows:
| |
Schwab Government Money Fund, Ultra Shares | |
Schwab International Opportunities Fund | |
Schwab Select Large Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
Schwab U.S. Aggregate Bond Index Fund | |
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.
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), which matured on September 26, 2024. On September 26, 2024, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount increasing to $1.2 billion, maturing on September 25, 2025. 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, which matured on September 26, 2024. On September 26, 2024, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 25, 2025. 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 October 31, 2024, purchases and sales of securities (excluding short-term obligations) were as follows:
Schwab Balanced Fund | Annual Holdings and Financial Statements
13
Financial Notes (continued)
8. Federal Income Taxes:
As of October 31, 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) |
| | | | |
| | | | |
| | | | |
The primary difference between book basis and tax basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales. The tax cost of the fund’s investments, disclosed above, have been adjusted from its book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of October 31, 2024, the components of distributable earnings on a tax basis were as follows:
UNDISTRIBUTED
ORDINARY
INCOME | UNDISTRIBUTED
LONG-TERM
CAPITAL GAINS | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | |
| | | |
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | | | |
| | | | |
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.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of October 31, 2024, 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, 2024, 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.
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Schwab Balanced Fund | Annual Holdings and Financial Statements
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Capital Trust and Shareholders of Schwab Balanced Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the portfolio holdings, of Schwab Balanced Fund (the “Fund”), one of the Funds constituting Schwab Capital Trust, as of October 31, 2024, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
December 16, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
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Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between Schwab Capital Trust (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab Balanced Fund (the Fund), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Fund that the Board reviews during the course of each year, including information that relates to the Fund’s operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Fund at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Fund for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Fund was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to the Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Fund;
2.
the Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.
the Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Fund and the resources of the investment adviser and its affiliates dedicated to the Fund. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to the Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall
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Schwab Balanced Fund | Annual Holdings and Financial Statements
financial condition and reputation as a full service brokerage firm as well as the wide range of products, services and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Fund and the resources of the investment adviser and its affiliates dedicated to the Fund supported renewal of the Agreement with respect to the Fund.
Fund Performance. The Board considered the Fund’s performance in determining whether to renew the Agreement with respect to the Fund. Specifically, the Trustees considered the Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of the Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of the Fund, the Trustees considered the risk profile for the Fund and the appropriateness of the benchmark used to compare the performance of the Fund. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of the Fund supported renewal of the Agreement with respect to the Fund.
Fund Expenses. With respect to the Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and the Fund’s operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Fund and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of the investment adviser’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of the Fund from exceeding a specified cap. The Trustees also considered the investment adviser’s contractual commitment to limit the total annual operating expenses of the Fund for so long as it serves as the investment adviser to the Fund. The Trustees also considered fees charged by the investment adviser to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the
investment adviser provides to these other accounts and any differences in the market for these types of accounts. The Trustees noted that shareholders of the Fund indirectly pay their pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported renewal of the Agreement with respect to the Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed the profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Fund and other funds in the complex. The Trustees considered that the investment adviser is not charging any management fees at the Fund level; it being understood that there is a management fee at the underlying fund level. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Fund, such as whether, by virtue of its management of the Fund, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. Also, because the Fund invests a portion of its assets in other funds within the Schwab fund complex, the Trustees considered that the investment adviser indirectly benefits from the Fund’s investments in other underlying funds managed by the investment adviser. The Trustees considered whether the compensation and profitability with respect to the Fund under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Fund by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser is reasonable and supported renewal of the Agreement with respect to the Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, the Trustees considered the potential existence of any economies of scale and whether those are passed along to the Fund’s shareholders through (i) the enhancement of services provided to the Fund in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Fund and its shareholders; and (ii) pricing a fund to scale and keeping overall expenses down
Schwab Balanced Fund | Annual Holdings and Financial Statements
17
as the fund grows. The Trustees acknowledged that, the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Fund. The Trustees considered that the investment adviser and its affiliates employ contractual expense caps to protect shareholders from higher fees, including for example, when fund assets are relatively small. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Fund and concluded that the compensation under the Agreement with respect to the Fund is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
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Schwab Balanced Fund | Annual Holdings and Financial Statements
Annual Holdings and Financial Statements | October 31, 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
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.
Schwab Equity Index Funds | Annual Holdings and Financial Statements
1
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 | | | | | | |
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Net asset value at end of period | | | | | | |
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|
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. |
2
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab S&P 500 Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 1.7% |
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Citizens Financial Group, Inc. | | |
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Huntington Bancshares, Inc. | | |
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PNC Financial Services Group, Inc. | | |
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Builders FirstSource, Inc. * | | |
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Honeywell International, Inc. | | |
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Huntington Ingalls Industries, Inc. | | |
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Illinois Tool Works, Inc. | | |
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Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
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Rockwell Automation, Inc. | | |
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Stanley Black & Decker, Inc. | | |
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Westinghouse Air Brake Technologies Corp. | | |
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|
Commercial & Professional Services 1.2% |
| | |
Automatic Data Processing, Inc. | | |
Broadridge Financial Solutions, Inc. | | |
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Republic Services, Inc., Class A | | |
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Verisk Analytics, Inc., Class A | | |
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Consumer Discretionary Distribution & Retail 5.6% |
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O'Reilly Automotive, Inc. * | | |
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Consumer Durables & Apparel 0.8% |
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Lululemon Athletica, Inc. * | | |
Mohawk Industries, Inc. * | | |
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Ralph Lauren Corp., Class A | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
3
Schwab S&P 500 Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
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|
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Caesars Entertainment, Inc. * | | |
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Chipotle Mexican Grill, Inc., Class A * | | |
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Hilton Worldwide Holdings, Inc. | | |
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Marriott International, Inc., Class A | | |
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MGM Resorts International * | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Royal Caribbean Cruises Ltd. | | |
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|
Consumer Staples Distribution & Retail 1.9% |
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Walgreens Boots Alliance, Inc. | | |
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Baker Hughes Co., Class A | | |
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Occidental Petroleum Corp. | | |
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|
Equity Real Estate Investment Trusts (REITs) 2.1% |
Alexandria Real Estate Equities, Inc. | | |
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AvalonBay Communities, Inc. | | |
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Digital Realty Trust, Inc. | | |
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Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
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Mid-America Apartment Communities, 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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Ameriprise Financial, Inc. | | |
Bank of New York Mellon Corp. | | |
Berkshire Hathaway, Inc., Class B * | | |
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Capital One Financial Corp. | | |
Cboe Global Markets, Inc. | | |
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Discover Financial Services | | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
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Goldman Sachs Group, Inc. | | |
Intercontinental Exchange, Inc. | | |
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Jack Henry & Associates, Inc. | | |
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MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
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Raymond James Financial, Inc. | | |
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T. Rowe Price Group, Inc. | | |
4
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab S&P 500 Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
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Food, Beverage & Tobacco 2.6% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
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Constellation Brands, Inc., Class A | | |
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Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
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Philip Morris International, Inc. | | |
Tyson Foods, Inc., Class A | | |
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|
Health Care Equipment & Services 4.7% |
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Baxter International, Inc. | | |
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Boston Scientific Corp. * | | |
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Edwards Lifesciences Corp. * | | |
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GE HealthCare Technologies, Inc. | | |
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IDEXX Laboratories, Inc. * | | |
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Intuitive Surgical, Inc. * | | |
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Molina Healthcare, Inc. * | | |
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Universal Health Services, Inc., Class B | | |
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Zimmer Biomet Holdings, Inc. | | |
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Household & Personal Products 1.3% |
Church & Dwight Co., Inc. | | |
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Estee Lauder Cos., Inc., Class A | | |
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American International Group, Inc. | | |
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Arch Capital Group Ltd. * | | |
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Cincinnati Financial Corp. | | |
Erie Indemnity Co., Class A | | |
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Hartford Financial Services Group, Inc. | | |
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Marsh & McLennan Cos., Inc. | | |
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Principal Financial Group, Inc. | | |
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Prudential Financial, Inc. | | |
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Air Products & Chemicals, Inc. | | |
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CF Industries Holdings, Inc. | | |
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International Flavors & Fragrances, Inc. | | |
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LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
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Packaging Corp. of America | | |
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Schwab Equity Index Funds | Annual Holdings and Financial Statements
5
Schwab S&P 500 Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
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|
Media & Entertainment 8.1% |
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Charter Communications, Inc., Class A * | | |
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Interpublic Group of Cos., Inc. | | |
Live Nation Entertainment, Inc. * | | |
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Meta Platforms, Inc., Class A | | |
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Paramount Global, Class B (b) | | |
Take-Two Interactive Software, Inc. * | | |
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Warner Bros Discovery, Inc. * | | |
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|
Pharmaceuticals, Biotechnology & Life Sciences 6.5% |
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Agilent Technologies, Inc. | | |
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Charles River Laboratories International, Inc. * | | |
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Mettler-Toledo International, Inc. * | | |
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Regeneron Pharmaceuticals, Inc. * | | |
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Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
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West Pharmaceutical Services, Inc. | | |
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Real Estate Management & Development 0.1% |
CBRE Group, Inc., Class A * | | |
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Semiconductors & Semiconductor Equipment 11.4% |
Advanced Micro Devices, Inc. * | | |
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Microchip Technology, Inc. | | |
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Monolithic Power Systems, Inc. | | |
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Software & Services 11.2% |
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Akamai Technologies, Inc. * | | |
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Cadence Design Systems, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
Crowdstrike Holdings, Inc., Class A * | | |
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International Business Machines Corp. | | |
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Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
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Tyler Technologies, Inc. * | | |
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Technology Hardware & Equipment 8.9% |
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Dell Technologies, Inc., Class C | | |
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Hewlett Packard Enterprise Co. | | |
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Keysight Technologies, Inc. * | | |
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6
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab S&P 500 Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
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Seagate Technology Holdings PLC | | |
Super Micro Computer, Inc. * | | |
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Teledyne Technologies, Inc. * | | |
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Zebra Technologies Corp., Class A * | | |
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|
Telecommunication Services 0.9% |
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Verizon Communications, Inc. | | |
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|
|
CH Robinson Worldwide, Inc. | | |
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Expeditors International of Washington, Inc. | | |
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JB Hunt Transport Services, Inc. | | |
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Old Dominion Freight Line, Inc. | | |
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Uber Technologies, Inc. * | | |
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United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
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American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
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Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
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Pinnacle West Capital Corp. | | |
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Public Service Enterprise Group, Inc. | | |
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Total Common Stocks
(Cost $41,547,549,446) | |
| | |
SHORT-TERM INVESTMENTS 0.0% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c)(d) | | |
Total Short-Term Investments
(Cost $1,812,305) | |
Total Investments in Securities
(Cost $41,549,361,751) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| Issuer is affiliated with the fund’s investment adviser. |
| All or a portion of this security is on loan. Securities on loan were valued at $1,802,420. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended October 31, 2024:
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
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|
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Schwab Equity Index Funds | Annual Holdings and Financial Statements
7
Schwab S&P 500 Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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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| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
8
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab S&P 500 Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $113,824,228) | | |
Investments in securities, at value - unaffiliated issuers (cost $41,435,537,523) including securities on loan of $1,802,420 | | |
| | |
Deposit with broker for futures contracts | | |
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Income from securities on loan | | |
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Collateral held for securities on loan | | |
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Variation margin on futures contracts | | |
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|
Capital received from investors | | |
Total distributable earnings | | |
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Schwab Equity Index Funds | Annual Holdings and Financial Statements
9
Schwab S&P 500 Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $324,837) | | |
| | |
Dividends received from securities - affiliated issuers | | |
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|
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|
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 | | |
10
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab S&P 500 Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
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Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
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Schwab Equity Index Funds | Annual Holdings and Financial Statements
11
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. |
12
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.6% |
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Modine Manufacturing Co. * | | |
Rivian Automotive, Inc., Class A * | | |
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|
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Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
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Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
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First Citizens BancShares, Inc., Class A | | |
First Financial Bankshares, Inc. | | |
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Huntington Bancshares, Inc. | | |
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Pinnacle Financial Partners, Inc. | | |
PNC Financial Services Group, Inc. | | |
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Prosperity Bancshares, Inc. | | |
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Advanced Drainage Systems, Inc. | | |
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Allison Transmission Holdings, Inc. | | |
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Applied Industrial Technologies, Inc. | | |
Armstrong World Industries, Inc. | | |
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AZEK Co., Inc., Class A * | | |
Beacon Roofing Supply, Inc. * | | |
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Builders FirstSource, Inc. * | | |
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Comfort Systems USA, Inc. | | |
Core & Main, Inc., Class A * | | |
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Ferguson Enterprises, Inc. | | |
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Fortune Brands Innovations, Inc. | | |
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Honeywell International, Inc. | | |
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Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
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Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
Lincoln Electric Holdings, Inc. | | |
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Schwab Equity Index Funds | Annual Holdings and Financial Statements
13
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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MDU Resources Group, Inc. | | |
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NEXTracker, Inc., Class A * | | |
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Rockwell Automation, Inc. | | |
| | |
Sensata Technologies Holding PLC | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
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Vertiv Holdings Co., Class A | | |
| | |
Watts Water Technologies, Inc., Class A | | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Holdings Corp. * | | |
| | |
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Zurn Elkay Water Solutions Corp. | | |
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|
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 * | | |
| | |
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Dun & Bradstreet Holdings, Inc. | | |
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ExlService Holdings, Inc. * | | |
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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 5.4% |
Abercrombie & Fitch Co., Class A * | | |
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Burlington Stores, Inc. * | | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 0.9% |
| | |
| | |
| | |
| | |
14
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Installed Building Products, Inc. | | |
| | |
| | |
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. (a) | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
| | |
Flutter Entertainment PLC * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
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 1.9% |
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. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
Baker Hughes Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
Permian Resources Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
| | |
|
Schwab Equity Index Funds | Annual Holdings and Financial Statements
15
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Equity Real Estate Investment Trusts (REITs) 2.3% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
AvalonBay Communities, Inc. | | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
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. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc., Class A | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
Mid-America Apartment Communities, Inc. | | |
| | |
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. | | |
| | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
| | |
| | |
| | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Hamilton Lane, Inc., Class A | | |
Houlihan Lokey, Inc., Class A | | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
| | |
Raymond James Financial, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
| | |
Shift4 Payments, Inc., Class A * | | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
16
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.4% |
| | |
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 | | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 4.5% |
| | |
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. * | | |
| | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
Molina Healthcare, Inc. * | | |
Option Care Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.2% |
| | |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
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 | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
17
Portfolio Holdings as of October 31, 2024 (continued)
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
Hanover Insurance Group, Inc. | | |
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. | | |
| | |
| | |
| | |
Anglogold Ashanti PLC (a) | | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
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% |
| | |
| | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
Endeavor Group Holdings, Inc., Class A (a) | | |
| | |
Interpublic Group of Cos., Inc. | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, 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 * | | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
| | |
Take-Two Interactive Software, Inc. * | | |
TKO Group Holdings, Inc. * | | |
Trade Desk, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.5% |
| | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
| | |
Avidity Biosciences, Inc. * | | |
18
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
Blueprint Medicines Corp. * | | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Intra-Cellular Therapies, Inc. * | | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
| | |
Madrigal Pharmaceuticals, Inc. * | | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
REVOLUTION Medicines, Inc. * | | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
Sarepta Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
Ultragenyx Pharmaceutical, Inc. * | | |
United Therapeutics Corp. * | | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
Viking Therapeutics, 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 10.7% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 11.4% |
| | |
| | |
| | |
Akamai Technologies, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
| | |
| | |
Appfolio, Inc., Class A * | | |
AppLovin Corp., Class A * | | |
| | |
Atlassian Corp., Class A * | | |
Aurora Innovation, Inc. * | | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
| | |
Cadence Design Systems, Inc. * | | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
CommVault Systems, Inc. * | | |
Confluent, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
DocuSign, Inc., Class A * | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
19
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
HashiCorp, Inc., Class A * | | |
| | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
| | |
Manhattan Associates, Inc. * | | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
SentinelOne, Inc., Class A * | | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
Varonis Systems, Inc., Class B * | | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 8.3% |
| | |
| | |
| | |
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 0.9% |
| | |
Frontier Communications Parent, Inc. * | | |
| | |
Lumen Technologies, Inc. * | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, 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 Shares | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
| | |
20
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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 $3,451,133,892) | |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $43,393,569) | |
Total Investments in Securities
(Cost $3,494,527,461) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $8,738,336. |
| 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 October 31, 2024:
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 | | | | |
| | | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
21
Portfolio Holdings as of October 31, 2024 (continued)
| 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
22
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $4,285,580) | | |
Investments in securities, at value - unaffiliated issuers (cost $3,490,241,881) including securities on loan of $8,738,336 | | |
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 | Annual Holdings and Financial Statements
23
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $67,476) | | |
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 | | |
24
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
25
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. |
| Portfolio turnover rate excludes in-kind transactions. |
26
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.8% OF NET ASSETS |
|
Automobiles & Components 1.2% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
Canoo, Inc., Class A *(a) | | |
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. | | |
| | |
Bridgewater Bancshares, Inc. * | | |
| | |
Burke & Herbert Financial Services Corp. | | |
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. * | | |
| | |
Columbia Financial, Inc. * | | |
Community Financial 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. | | |
| | |
First Financial Bankshares, Inc. | | |
| | |
First Financial Northwest, 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. | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
27
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
Hingham Institution For Savings | | |
| | |
| | |
| | |
HomeTrust Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
John Marshall Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
Live Oak 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. | | |
Peoples Bancorp of North Carolina, Inc. | | |
| | |
Peoples Financial Services Corp. | | |
| | |
| | |
Ponce Financial Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Provident Bancorp, 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. | | |
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. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Albany International Corp., Class A | | |
| | |
Alta Equipment Group, Inc. | | |
Ameresco, Inc., Class A * | | |
American Superconductor Corp. * | | |
American Woodmark Corp. * | | |
Amprius Technologies, Inc. *(a) | | |
| | |
Applied Industrial Technologies, Inc. | | |
28
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Archer Aviation, Inc., Class A *(a) | | |
| | |
| | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
Atmus Filtration Technologies, Inc. | | |
| | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
Bloom Energy Corp., Class A * | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
Bowman Consulting Group Ltd., Class A * | | |
Brookfield Business Corp., Class A | | |
Byrna Technologies, Inc. * | | |
| | |
| | |
Centuri Holdings, Inc. *(a) | | |
ChargePoint Holdings, Inc., Class A *(a) | | |
| | |
| | |
Commercial Vehicle Group, Inc. * | | |
Concrete Pumping Holdings, Inc. * | | |
Construction Partners, Inc., Class A * | | |
| | |
Custom Truck One Source, Inc. * | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Energy Vault Holdings, Inc. *(a) | | |
Enerpac Tool Group Corp., Class 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. * | | |
| | |
| | |
| | |
| | |
Intuitive Machines, Inc., Class A *(a) | | |
Janus International Group, Inc. * | | |
| | |
John Bean Technologies Corp. | | |
| | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
L.B. Foster Co., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mayville Engineering Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
NANO Nuclear Energy, Inc. *(a) | | |
National Presto Industries, Inc. | | |
| | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Orion Group Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
Resideo Technologies, Inc. * | | |
| | |
| | |
Rush Enterprises, Inc., Class A | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
| | |
SolarMax Technology, Inc. *(a) | | |
Solidion Technology, Inc. *(a) | | |
Southland Holdings, Inc. * | | |
| | |
Standex International Corp. | | |
| | |
Sterling Infrastructure, Inc. * | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
29
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
Titan International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Virgin Galactic Holdings, Inc. *(a) | | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
Willis Lease Finance Corp. | | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 4.0% |
| | |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
Aris Water Solutions, Inc., Class A | | |
| | |
Barrett Business Services, Inc. | | |
BlackSky Technology, Inc. * | | |
Bridger Aerospace Group Holdings, Inc. * | | |
BrightView Holdings, Inc. * | | |
| | |
Casella Waste Systems, Inc., Class A * | | |
| | |
CECO Environmental Corp. * | | |
| | |
CompX International, Inc. | | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
FiscalNote Holdings, Inc. * | | |
Forrester Research, Inc. * | | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
LanzaTech Global, Inc. *(a) | | |
| | |
Liquidity Services, Inc. * | | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
Performant Financial Corp. * | | |
Perma-Fix Environmental Services, Inc. * | | |
| | |
| | |
| | |
Quest Resource Holding Corp. * | | |
Resources Connection, Inc. | | |
Spire Global, Inc., Class A *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Verra Mobility Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 2.3% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
aka Brands Holding Corp. * | | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
Boot Barn Holdings, Inc. * | | |
| | |
Build-A-Bear Workshop, Inc. | | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
Designer Brands, Inc., Class A | | |
Destination XL Group, Inc. * | | |
| | |
| | |
| | |
GigaCloud Technology, Inc., Class A *(a) | | |
| | |
Groupon, Inc., Class A *(a) | | |
| | |
30
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
| | |
OneWater Marine, Inc., Class A * | | |
Petco Health & Wellness Co., Inc., Class A * | | |
Qurate Retail, Inc., Class B * | | |
| | |
| | |
RumbleON, Inc., Class B *(a) | | |
Sally Beauty Holdings, Inc. * | | |
Savers Value Village, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Stitch Fix, Inc., Class A * | | |
| | |
Tile Shop Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.3% |
| | |
| | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
MasterCraft Boat Holdings, Inc. * | | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
Purple Innovation, Inc., Class A * | | |
| | |
Smith & Wesson Brands, Inc. | | |
Solo Brands, Inc., Class A * | | |
| | |
| | |
| | |
Superior Group of Cos., Inc. | | |
Taylor Morrison Home Corp., Class A * | | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
United Homes Group, Inc. * | | |
| | |
| | |
Vizio Holding Corp., Class A * | | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
|
|
Accel Entertainment, Inc., Class A * | | |
Adtalem Global Education, Inc. * | | |
American Public Education, Inc. * | | |
| | |
Biglari Holdings, Inc., Class B * | | |
| | |
| | |
Brinker International, Inc. * | | |
Carriage Services, Inc., Class A | | |
| | |
| | |
| | |
Cracker Barrel Old Country Store, Inc. | | |
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 *(a) | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
31
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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 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. * | | |
Vacasa, Inc., Class A *(a) | | |
Xponential Fitness, Inc., Class A * | | |
| | |
|
Consumer Staples Distribution & Retail 0.9% |
| | |
| | |
| | |
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. | | |
| | |
Diversified Energy Co. PLC | | |
| | |
| | |
Drilling Tools International Corp. * | | |
Empire Petroleum Corp. *(a) | | |
| | |
| | |
Evolution Petroleum Corp. | | |
Excelerate Energy, Inc., Class A | | |
Expro Group Holdings NV * | | |
| | |
Forum Energy Technologies, Inc. * | | |
| | |
Geospace Technologies Corp. * | | |
| | |
Granite Ridge Resources, Inc. | | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
HighPeak Energy, Inc. (a) | | |
Innovex International, Inc. * | | |
International Seaways, Inc. | | |
Kinetik Holdings, Inc., Class 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. * | | |
Newpark Resources, Inc. * | | |
| | |
| | |
Nordic American Tankers Ltd. | | |
| | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
PrimeEnergy Resources Corp. * | | |
ProFrac Holding Corp., Class A *(a) | | |
| | |
Ranger Energy Services, Inc. | | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
Sable Offshore Corp. *(a) | | |
| | |
| | |
SEACOR Marine Holdings, Inc. * | | |
| | |
Select Water Solutions, Inc. | | |
| | |
Sitio Royalties Corp., Class A | | |
| | |
Solaris Energy Infrastructure, Inc. | | |
| | |
| | |
32
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Teekay Tankers Ltd., Class A | | |
TETRA Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Verde Clean Fuels, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 5.6% |
| | |
Alexander & Baldwin, Inc. | | |
| | |
Alpine Income Property Trust, Inc. | | |
American Assets Trust, Inc. | | |
American Healthcare REIT, 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. | | |
| | |
| | |
Curbline Properties Corp. * | | |
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. | | |
Franklin Street Properties Corp., Class C | | |
| | |
Gladstone Commercial Corp. | | |
| | |
Global Medical REIT, Inc. | | |
| | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
National Health Investors, Inc. | | |
NET Lease Office Properties | | |
| | |
NexPoint Diversified Real Estate Trust | | |
NexPoint Residential Trust, Inc. | | |
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. | | |
| | |
| | |
| | |
| | |
| | |
Strawberry Fields REIT, Inc. | | |
Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
| | |
| | |
| | |
| | |
Universal Health Realty Income Trust | | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
| | |
Advanced Flower Capital, Inc. | | |
AG Mortgage Investment Trust, Inc. | | |
| | |
| | |
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 | | |
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 | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
33
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
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. | | |
DigitalBridge Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
Ellington Financial, Inc. | | |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
| | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
| | |
Forge Global Holdings, Inc. * | | |
Franklin BSP Realty Trust, Inc. | | |
GCM Grosvenor, Inc., Class A | | |
Granite Point Mortgage Trust, Inc. | | |
Green Dot Corp., Class A * | | |
HA Sustainable Infrastructure Capital, Inc. | | |
Hamilton Lane, Inc., Class A | | |
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 | | |
| | |
| | |
| | |
| | |
Medallion Financial Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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. | | |
| | |
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 * | | |
| | |
| | |
Silvercrest Asset Management Group, Inc., Class A | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
Sunrise Realty Trust, Inc. | | |
| | |
TPG RE Finance Trust, Inc. | | |
Two Harbors Investment Corp. | | |
| | |
| | |
Velocity Financial, Inc. * | | |
Victory Capital Holdings, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
Waterstone Financial, Inc. | | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 1.3% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Duckhorn Portfolio, Inc. * | | |
| | |
Fresh Del Monte Produce, Inc. | | |
Hain Celestial Group, Inc. * | | |
Ispire Technology, Inc. *(a) | | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
| | |
Turning Point Brands, Inc. | | |
| | |
| | |
| | |
| | |
| | |
34
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
|
Health Care Equipment & Services 6.2% |
| | |
| | |
AdaptHealth Corp., Class A * | | |
| | |
| | |
AirSculpt Technologies, Inc. *(a) | | |
Alignment Healthcare, Inc. * | | |
Alphatec Holdings, Inc. * | | |
AMN Healthcare Services, Inc. * | | |
| | |
Ardent Health Partners, Inc. * | | |
| | |
| | |
| | |
| | |
Aveanna Healthcare Holdings, Inc. * | | |
| | |
| | |
Bioventus, Inc., Class A * | | |
BrightSpring Health Services, Inc. * | | |
Brookdale Senior Living, Inc. * | | |
Castle Biosciences, Inc. * | | |
| | |
Community Health Systems, Inc. * | | |
Concentra Group Holdings Parent, Inc. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
Definitive Healthcare Corp., Class A * | | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
Fractyl Health, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
| | |
InfuSystem Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
| | |
iRhythm Technologies, 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. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
Pulse Biosciences, Inc. * | | |
Quipt Home Medical Corp. * | | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Semler Scientific, Inc. * | | |
| | |
| | |
| | |
Sonida Senior Living, Inc. * | | |
| | |
| | |
| | |
| | |
Tactile Systems Technology, Inc. * | | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
TransMedics Group, Inc. * | | |
Treace Medical Concepts, Inc. * | | |
U.S. Physical Therapy, Inc. | | |
| | |
Utah Medical Products, Inc. | | |
| | |
Viemed Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 0.6% |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
Edgewell Personal Care Co. | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
35
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Nature's Sunshine Products, Inc. * | | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
| | |
USANA Health Sciences, Inc. * | | |
| | |
Waldencast PLC, Class A * | | |
| | |
| | |
|
|
Ambac Financial Group, Inc. * | | |
American Coastal Insurance Corp., Class C * | | |
| | |
Baldwin Insurance Group, Inc., Class A * | | |
Bowhead Specialty Holdings, Inc. * | | |
CNO Financial Group, Inc. | | |
| | |
Donegal Group, Inc., Class A | | |
| | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelis Insurance Holdings Ltd. | | |
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 * | | |
| | |
Heritage Insurance Holdings, Inc. * | | |
| | |
Horace Mann Educators Corp. | | |
| | |
James River Group Holdings Ltd. | | |
Kingsway Financial Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
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. | | |
| | |
|
|
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
Ardagh Metal Packaging SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
Caledonia Mining Corp. PLC | | |
Carpenter Technology Corp. | | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
Constellium SE, Class A * | | |
| | |
Core Molding Technologies, Inc. * | | |
Critical Metals Corp. *(a) | | |
| | |
| | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lifezone Holdings Ltd. *(a) | | |
| | |
| | |
| | |
| | |
Metals Acquisition Ltd., Class A *(a) | | |
Minerals Technologies, Inc. | | |
| | |
Northern Technologies International Corp. | | |
Novagold Resources, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Perpetua Resources Corp. * | | |
Piedmont Lithium, Inc. *(a) | | |
PureCycle Technologies, Inc. *(a) | | |
| | |
Radius Recycling, Inc., Class A | | |
Ramaco Resources, Inc., Class A | | |
Ranpak Holdings Corp., Class A * | | |
Rayonier Advanced Materials, Inc. * | | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
36
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
U.S. Lime & Minerals, Inc. | | |
Universal Stainless & Alloy Products, Inc. * | | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 1.9% |
Advantage Solutions, Inc. * | | |
AMC Entertainment Holdings, Inc., Class A * | | |
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. * | | |
| | |
Getty Images Holdings, Inc. *(a) | | |
Golden Matrix Group, Inc. * | | |
| | |
| | |
| | |
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 * | | |
National CineMedia, Inc. * | | |
Nextdoor Holdings, Inc. * | | |
| | |
| | |
PubMatic, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Sphere Entertainment Co. * | | |
Stagwell, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Townsquare Media, Inc., Class A | | |
| | |
| | |
Vivid Seats, Inc., Class A * | | |
Webtoon Entertainment, Inc. * | | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 11.1% |
| | |
4D Molecular 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. *(a) | | |
| | |
Agios Pharmaceuticals, Inc. * | | |
Akebia Therapeutics, Inc. * | | |
Akero Therapeutics, Inc. * | | |
Akoya Biosciences, Inc. *(a) | | |
Aldeyra Therapeutics, Inc. * | | |
| | |
| | |
Allogene Therapeutics, Inc. * | | |
| | |
Alto Neuroscience, Inc. * | | |
| | |
ALX Oncology Holdings, Inc. * | | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
| | |
Anavex Life Sciences Corp. *(a) | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
| | |
Apogee Therapeutics, Inc. * | | |
Applied Therapeutics, Inc. * | | |
Aquestive Therapeutics, Inc. * | | |
Arbutus Biopharma Corp. * | | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
| | |
ArriVent Biopharma, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
ARS Pharmaceuticals, Inc. * | | |
Artiva Biotherapeutics, Inc. *(a) | | |
| | |
Astria Therapeutics, Inc. * | | |
Atea Pharmaceuticals, Inc. * | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
37
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Atossa Therapeutics, Inc. * | | |
| | |
Aurinia Pharmaceuticals, Inc. * | | |
Avadel Pharmaceuticals PLC * | | |
| | |
Avidity Biosciences, Inc. * | | |
| | |
Axsome Therapeutics, Inc. * | | |
Beam Therapeutics, Inc. * | | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
BioLife Solutions, Inc. * | | |
| | |
| | |
Black Diamond Therapeutics, Inc. * | | |
| | |
Blueprint Medicines Corp. * | | |
| | |
| | |
| | |
| | |
Candel Therapeutics, Inc. *(a) | | |
Capricor Therapeutics, Inc. *(a) | | |
Cardiff Oncology, Inc. *(a) | | |
| | |
Cargo Therapeutics, Inc. * | | |
Caribou Biosciences, Inc. * | | |
Cartesian Therapeutics, Inc. *(a) | | |
Cassava Sciences, Inc. *(a) | | |
Catalyst Pharmaceuticals, Inc. * | | |
| | |
Celldex Therapeutics, Inc. * | | |
Century Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Compass Therapeutics, Inc. * | | |
Conduit Pharmaceuticals, Inc. * | | |
Contineum Therapeutics, Inc., Class A *(a) | | |
Corbus Pharmaceuticals Holdings, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
| | |
Crinetics Pharmaceuticals, Inc. * | | |
| | |
Cullinan Therapeutics, Inc. * | | |
Cytek Biosciences, Inc. * | | |
| | |
Day One Biopharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
Design Therapeutics, Inc. * | | |
Dianthus Therapeutics, Inc. * | | |
| | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Edgewise Therapeutics, Inc. * | | |
| | |
Elevation Oncology, Inc. * | | |
Enanta Pharmaceuticals, Inc. * | | |
Enliven Therapeutics, Inc. * | | |
Entrada Therapeutics, Inc. * | | |
| | |
| | |
Esperion Therapeutics, Inc. * | | |
| | |
EyePoint Pharmaceuticals, Inc. * | | |
Fate Therapeutics, Inc. * | | |
Fennec Pharmaceuticals, Inc. * | | |
Fibrobiologics, Inc. *(a) | | |
Foghorn Therapeutics, Inc. * | | |
Fulcrum Therapeutics, Inc. * | | |
Galectin Therapeutics, Inc. *(a) | | |
| | |
| | |
Greenwich Lifesciences, Inc. * | | |
Gyre Therapeutics, Inc. *(a) | | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Harvard Bioscience, Inc. * | | |
Heron Therapeutics, Inc. * | | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
| | |
Inhibrx Biosciences, Inc. * | | |
| | |
| | |
Inovio Pharmaceuticals, Inc. * | | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
| | |
Iovance Biotherapeutics, Inc. * | | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
iTeos Therapeutics, Inc. * | | |
Janux Therapeutics, Inc. * | | |
Jasper Therapeutics, Inc. * | | |
KalVista Pharmaceuticals, Inc. * | | |
Keros Therapeutics, Inc. * | | |
Kiniksa Pharmaceuticals International PLC * | | |
| | |
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Kyverna Therapeutics, Inc. * | | |
Larimar Therapeutics, Inc. *(a) | | |
| | |
Lexeo Therapeutics, Inc. * | | |
Lexicon Pharmaceuticals, Inc. *(c) | | |
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 * | | |
| | |
| | |
| | |
38
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Mersana Therapeutics, Inc. * | | |
| | |
| | |
| | |
Mind Medicine MindMed, Inc. * | | |
Mineralys Therapeutics, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
Monte Rosa Therapeutics, Inc. * | | |
| | |
Nautilus Biotechnology, Inc. * | | |
Nektar Therapeutics, Class A * | | |
Neumora Therapeutics, Inc. * | | |
| | |
| | |
| | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
| | |
Ocular Therapeutix, Inc. * | | |
Olema Pharmaceuticals, Inc. * | | |
Omeros Corp., Class B *(a) | | |
| | |
Organogenesis Holdings, Inc., Class A * | | |
ORIC Pharmaceuticals, Inc. * | | |
Outlook Therapeutics, Inc. *(a) | | |
Ovid therapeutics, Inc. * | | |
Pacific Biosciences of California, Inc. *(a) | | |
Pacira BioSciences, Inc. * | | |
| | |
Perspective Therapeutics, Inc. * | | |
Phathom Pharmaceuticals, Inc. *(a) | | |
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. * | | |
| | |
| | |
| | |
| | |
Rapport Therapeutics, Inc. *(a) | | |
RAPT Therapeutics, Inc. * | | |
Recursion Pharmaceuticals, Inc., Class A *(a) | | |
| | |
Regulus Therapeutics, Inc. * | | |
Relay Therapeutics, Inc. * | | |
| | |
| | |
Revance Therapeutics, Inc. * | | |
REVOLUTION Medicines, Inc. * | | |
Rhythm Pharmaceuticals, Inc. * | | |
Rigel Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
Sage Therapeutics, Inc. * | | |
Sana Biotechnology, Inc. * | | |
| | |
Scholar Rock Holding Corp. * | | |
| | |
| | |
scPharmaceuticals, Inc. * | | |
Sera Prognostics, Inc., Class A * | | |
| | |
| | |
Skye Bioscience, Inc. *(a) | | |
Soleno Therapeutics, Inc. * | | |
Solid Biosciences, Inc. * | | |
SpringWorks Therapeutics, Inc. * | | |
Spyre Therapeutics, Inc. * | | |
Standard BioTools, Inc. * | | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
Syndax Pharmaceuticals, Inc. * | | |
Tango Therapeutics, Inc. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
Taysha Gene Therapies, Inc. * | | |
Telomir Pharmaceuticals, Inc. * | | |
Tenaya Therapeutics, Inc. * | | |
Terns Pharmaceuticals, Inc. * | | |
Tevogen Bio Holdings, Inc. *(a) | | |
| | |
Theravance Biopharma, Inc. * | | |
Third Harmonic Bio, Inc. * | | |
| | |
Travere Therapeutics, Inc. * | | |
Trevi Therapeutics, Inc. * | | |
TScan Therapeutics, Inc. * | | |
| | |
| | |
| | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
Ventyx Biosciences, Inc. * | | |
Vera Therapeutics, Inc., Class A * | | |
| | |
| | |
| | |
Verrica Pharmaceuticals, Inc. *(a) | | |
Verve Therapeutics, Inc. * | | |
Vir Biotechnology, Inc. * | | |
Viridian Therapeutics, Inc. * | | |
Voyager Therapeutics, Inc. * | | |
WaVe Life Sciences Ltd. * | | |
Werewolf Therapeutics, Inc. * | | |
X4 Pharmaceuticals, Inc. * | | |
| | |
| | |
Xeris Biopharma Holdings, Inc. * | | |
| | |
Y-mAbs Therapeutics, Inc. * | | |
Zentalis Pharmaceuticals, Inc. * | | |
Zevra Therapeutics, Inc. * | | |
| | |
| | |
| | |
|
Real Estate Management & Development 0.7% |
American Realty Investors, Inc. * | | |
Anywhere Real Estate, Inc. * | | |
| | |
Cushman & Wakefield PLC * | | |
| | |
| | |
| | |
Kennedy-Wilson Holdings, Inc. | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
39
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Maui Land & Pineapple Co., Inc. * | | |
Newmark Group, Inc., Class A | | |
Offerpad Solutions, Inc. * | | |
Opendoor Technologies, Inc. * | | |
RE/MAX Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Stratus Properties, Inc. * | | |
| | |
Transcontinental Realty Investors, Inc. * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.2% |
ACM Research, Inc., Class A * | | |
| | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
Everspin Technologies, Inc. * | | |
| | |
GCT Semiconductor Holding, Inc. * | | |
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
Kulicke & Soffa Industries, Inc. | | |
| | |
Navitas Semiconductor Corp., Class A * | | |
| | |
| | |
Penguin Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
Rigetti Computing, Inc. *(a) | | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
| | |
Ultra Clean Holdings, Inc. * | | |
Veeco Instruments, Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Airship AI Holdings, Inc., Class A *(a) | | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
Amplitude, Inc., Class A * | | |
| | |
Applied Digital Corp. *(a) | | |
| | |
| | |
| | |
| | |
| | |
Aurora Innovation, Inc. * | | |
| | |
Backblaze, Inc., Class A * | | |
BigBear.ai Holdings, Inc. *(a) | | |
BigCommerce Holdings, Inc. * | | |
| | |
| | |
| | |
Blend Labs, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Clear Secure, Inc., Class A | | |
Clearwater Analytics Holdings, Inc., Class A * | | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
| | |
| | |
E2open Parent Holdings, Inc. * | | |
| | |
Enfusion, Inc., Class A * | | |
| | |
| | |
| | |
Freshworks, Inc., Class A * | | |
Grid Dynamics Holdings, Inc. * | | |
| | |
| | |
iLearningEngines Holdings, Inc. *(a) | | |
Information Services Group, Inc. | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Logility Supply Chain Solutions, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pagaya Technologies Ltd., Class A *(a) | | |
| | |
| | |
40
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Rackspace Technology, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sapiens International Corp. NV | | |
SEMrush Holdings, Inc., Class A * | | |
| | |
| | |
SoundHound AI, Inc., Class A *(a) | | |
| | |
Sprinklr, Inc., Class A * | | |
Sprout Social, 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 3.8% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
Applied Optoelectronics, Inc. * | | |
Arlo Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
Climb Global Solutions, Inc. | | |
CommScope Holding Co., Inc. * | | |
CompoSecure, Inc., Class A (a) | | |
| | |
| | |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ribbon Communications, Inc. * | | |
Richardson Electronics Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
Vishay Precision Group, Inc. * | | |
| | |
| | |
|
Telecommunication Services 0.8% |
| | |
AST SpaceMobile, Inc., Class 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. * | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
41
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Covenant Logistics Group, Inc., Class A | | |
| | |
Frontier Group Holdings, Inc. * | | |
FTAI Infrastructure, Inc. | | |
Genco Shipping & Trading Ltd. | | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
PAM Transportation Services, Inc. * | | |
Pangaea Logistics Solutions Ltd. | | |
Proficient Auto Logistics, Inc. * | | |
Radiant Logistics, Inc. * | | |
| | |
| | |
Sky Harbour Group Corp. * | | |
| | |
Spirit Airlines, Inc. (a) | | |
Sun Country Airlines Holdings, Inc. * | | |
Universal Logistics Holdings, Inc. | | |
| | |
Wheels Up Experience, Inc. * | | |
| | |
|
|
| | |
Altus Power, Inc., Class A * | | |
American States Water Co. | | |
| | |
| | |
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. | | |
Hawaiian Electric Industries, 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. * | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $4,481,444,699) | |
|
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 1.5% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d)(e) | | |
Total Short-Term Investments
(Cost $96,107,250) | |
Total Investments in Securities
(Cost $4,577,595,955) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $87,260,480. |
| 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 |
42
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
Below is a summary of the fund’s transactions with affiliated issuers and affiliated companies which are or were affiliates during the period ended October 31, 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 October 31, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of the period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
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 October 31, 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 | | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
43
Schwab Small-Cap Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $2,961,097) | | |
Investments in securities, at value - unaffiliated issuers (cost $4,574,634,858) including securities on loan of $87,260,480 | | |
| | |
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 | | |
| | |
44
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Small-Cap Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $158,863) | | |
Income from non-cash dividends - unaffiliated | | |
| | |
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 Equity Index Funds | Annual Holdings and Financial Statements
45
Schwab Small-Cap Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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) | | | | | |
| | | | | |
46
Schwab Equity Index Funds | Annual Holdings and Financial Statements
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. |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
47
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.7% OF NET ASSETS |
|
Automobiles & Components 1.6% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
| | |
Canoo, Inc., Class A *(a) | | |
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 * | | |
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. | | |
| | |
| | |
| | |
| | |
| | |
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. | | |
Citizens Financial Services, Inc. | | |
| | |
| | |
| | |
Coastal Financial Corp. * | | |
| | |
Columbia Banking System, Inc. | | |
Columbia Financial, Inc. * | | |
| | |
Commerce Bancshares, Inc. | | |
Community Financial 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. | | |
| | |
| | |
| | |
48
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
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. * | | |
Firstsun Capital Bancorp * | | |
| | |
| | |
| | |
| | |
Franklin Financial Services Corp. | | |
| | |
| | |
| | |
German American Bancorp, Inc. | | |
| | |
Great Southern Bancorp, Inc. | | |
Greene County Bancorp, Inc. | | |
Guaranty Bancshares, Inc. | | |
| | |
| | |
Hanover Bancorp, Inc. (a) | | |
| | |
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 | | |
National Bankshares, 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. | | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
49
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
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 First Bancshares, Inc. * | | |
Southern Missouri Bancorp, Inc. | | |
Southern States Bancshares, Inc. | | |
Southside Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
Stock Yards Bancorp, 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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Albany International Corp., Class A | | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
Alta Equipment Group, Inc. | | |
Ameresco, Inc., Class A * | | |
American Superconductor Corp. * | | |
American Woodmark Corp. * | | |
| | |
| | |
| | |
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 * | | |
| | |
Babcock & Wilcox Enterprises, Inc. * | | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
50
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Bloom Energy Corp., Class A * | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
| | |
Bowman Consulting Group Ltd., Class A * | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
Byrna Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Centuri Holdings, Inc. *(a) | | |
ChargePoint Holdings, Inc., Class A *(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 * | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Enerpac Tool Group Corp., Class A | | |
| | |
| | |
| | |
Eos Energy Enterprises, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
| | |
| | |
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. * | | |
| | |
| | |
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
Innovative Solutions & Support, Inc. * | | |
| | |
Intuitive Machines, Inc., Class A *(a) | | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
Manitex International, Inc. * | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
51
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Mayville Engineering Co., Inc. * | | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
| | |
| | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 | | |
Sensata Technologies Holding PLC | | |
Shoals Technologies Group, Inc., Class A * | | |
| | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
| | |
| | |
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. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 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. | | |
52
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
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. | | |
| | |
| | |
| | |
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. | | |
| | |
| | |
Science Applications International Corp. | | |
Spire Global, Inc., Class A *(a) | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
UL Solutions, Inc., Class A | | |
| | |
| | |
| | |
Verisk Analytics, Inc., Class A | | |
Verra Mobility Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.3% |
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. *(a) | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
53
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
Big 5 Sporting Goods Corp. | | |
Boot Barn Holdings, Inc. * | | |
| | |
Build-A-Bear Workshop, Inc. | | |
Burlington Stores, Inc. * | | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
ContextLogic, Inc., Class A * | | |
Designer Brands, Inc., Class A | | |
Destination XL Group, Inc. * | | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
GigaCloud Technology, Inc., Class A *(a) | | |
| | |
Groupon, Inc., Class A *(a) | | |
Grove Collaborative Holdings *(a) | | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
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 * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.0% |
| | |
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. | | |
| | |
54
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
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. * | | |
| | |
| | |
| | |
Superior Group of Cos., Inc. | | |
| | |
Taylor Morrison Home Corp., Class A * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
Under Armour, Inc., Class A * | | |
| | |
United Homes Group, Inc. * | | |
Universal Electronics, Inc. * | | |
| | |
| | |
| | |
Vizio Holding Corp., Class A * | | |
| | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
| | |
| | |
|
| | |
|
Accel Entertainment, Inc., Class A * | | |
| | |
Adtalem Global Education, Inc. * | | |
| | |
American Public Education, Inc. * | | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
Chipotle Mexican Grill, Inc., Class A * | | |
Choice Hotels International, Inc. (a) | | |
| | |
| | |
Cracker Barrel Old Country Store, Inc. | | |
| | |
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. * | | |
Flutter Entertainment PLC * | | |
| | |
Full House Resorts, Inc. * | | |
| | |
Global Business Travel Group I * | | |
Golden Entertainment, Inc. | | |
Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Grand Vacations, Inc. * | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
Inspired Entertainment, Inc. * | | |
| | |
| | |
Kura Sushi USA, Inc., Class A *(a) | | |
| | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
Lincoln Educational Services Corp. * | | |
Lindblad Expeditions Holdings, Inc. * | | |
Marriott International, Inc., Class A | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
55
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International * | | |
| | |
Monarch Casino & Resort, Inc. | | |
Mondee Holdings, Inc., Class A *(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 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. * | | |
| | |
| | |
| | |
WW International, Inc. *(a) | | |
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. * | | |
| | |
| | |
| | |
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. * | | |
| | |
| | |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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. * | | |
56
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
HighPeak Energy, Inc. (a) | | |
Innovex International, Inc. * | | |
International Seaways, Inc. | | |
| | |
Kinetik Holdings, Inc., Class A | | |
KLX Energy Services Holdings, Inc. * | | |
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. (a) | | |
Newpark Resources, Inc. * | | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
| | |
OPAL Fuels, 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 *(a) | | |
| | |
| | |
Ranger Energy Services, Inc. | | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
Sable Offshore Corp. *(a) | | |
| | |
| | |
SEACOR Marine Holdings, Inc. * | | |
Select Water Solutions, Inc. | | |
Sitio Royalties Corp., Class A | | |
| | |
| | |
Solaris Energy Infrastructure, Inc. | | |
| | |
| | |
| | |
| | |
TETRA Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.5% |
| | |
| | |
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 Investment & Management Co., Class A * | | |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
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. | | |
| | |
| | |
| | |
| | |
| | |
Curbline Properties 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. | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
57
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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. | | |
| | |
Gladstone Commercial Corp. | | |
| | |
Global Medical REIT, 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. | | |
| | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
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. | | |
Advanced Flower Capital, Inc. | | |
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 | | |
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. * | | |
| | |
58
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Blackstone Mortgage Trust, Inc., Class 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. | | |
| | |
Credit Acceptance Corp. * | | |
Diamond Hill Investment Group, Inc. | | |
DigitalBridge 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 | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
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 | | |
HA Sustainable Infrastructure Capital, Inc. | | |
Hamilton Lane, Inc., Class A | | |
| | |
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. | | |
NMI Holdings, Inc., Class A * | | |
| | |
Old Market Capital Corp. * | | |
| | |
| | |
Open Lending Corp., Class A * | | |
Oppenheimer Holdings, Inc., Class A | | |
| | |
Orchid Island Capital, Inc. | | |
| | |
Paymentus Holdings, Inc., Class A * | | |
| | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
Perella Weinberg Partners, Class A | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
59
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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 | | |
| | |
| | |
Sunrise Realty Trust, Inc. | | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
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. | | |
| | |
| | |
| | |
Waterstone Financial, Inc. | | |
| | |
Westwood Holdings Group, Inc. | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.4% |
| | |
| | |
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 | | |
| | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
Tootsie Roll Industries, Inc. | | |
| | |
Turning Point Brands, Inc. | | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 4.6% |
23andMe Holding Co., Class A * | | |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
60
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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. * | | |
| | |
Castle Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Clover Health Investments Corp., Class A * | | |
Community Health Systems, Inc. * | | |
Concentra Group Holdings Parent, Inc. * | | |
| | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
| | |
| | |
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. * | | |
| | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
| | |
LifeStance Health Group, 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. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
61
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
| | |
Pulse Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Semler Scientific, Inc. * | | |
Sensus Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
Sonida Senior Living, 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 1.2% |
| | |
| | |
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 Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Baldwin Insurance Group, Inc., Class A * | | |
Bowhead Specialty Holdings, Inc. * | | |
Brighthouse Financial, Inc. * | | |
| | |
| | |
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 * | | |
| | |
62
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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. | | |
| | |
| | |
| | |
| | |
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. * | | |
| | |
Ampco-Pittsburgh Corp. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
Core Molding Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Flotek Industries, Inc. * | | |
| | |
| | |
Friedman Industries, Inc. | | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
| | |
Hycroft Mining Holding Corp. * | | |
Idaho Strategic Resources, Inc. * | | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
63
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Northern Technologies International Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
Piedmont Lithium, Inc. *(a) | | |
| | |
PureCycle Technologies, Inc. *(a) | | |
| | |
Radius Recycling, Inc., Class A | | |
Ramaco Resources, Inc., Class A | | |
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. * | | |
| | |
| | |
Altice USA, Inc., Class A * | | |
AMC Entertainment Holdings, Inc., Class 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. * | | |
| | |
| | |
| | |
| | |
EchoStar Corp., Class A * | | |
| | |
| | |
Endeavor Group Holdings, Inc., Class A (a) | | |
Entravision Communications Corp., Class A | | |
Eventbrite, Inc., Class A * | | |
EverQuote, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Getty Images Holdings, Inc. *(a) | | |
Golden Matrix Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
| | |
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 * | | |
Lions Gate Entertainment Corp., Class A * | | |
Lionsgate Studios Corp. * | | |
Live Nation Entertainment, Inc. * | | |
64
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
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 * | | |
| | |
| | |
| | |
PubMatic, Inc., Class A * | | |
| | |
Reading International, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
Saga Communications, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Sphere Entertainment Co. * | | |
Stagwell, Inc., Class A * | | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
| | |
TKO Group Holdings, Inc. * | | |
Townsquare Media, Inc., Class A | | |
Trade Desk, Inc., Class A * | | |
| | |
| | |
| | |
Trump Media & Technology Group Corp. *(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 6.7% |
10X Genomics, Inc., Class A * | | |
| | |
4D Molecular Therapeutics, Inc. * | | |
| | |
| | |
Abeona Therapeutics, Inc. * | | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
| | |
Achieve Life Sciences, Inc. * | | |
Acrivon Therapeutics, Inc. * | | |
Acumen Pharmaceuticals, Inc. * | | |
Adaptive Biotechnologies Corp. * | | |
| | |
| | |
Adverum Biotechnologies, Inc. * | | |
| | |
Agilent Technologies, Inc. | | |
Agios Pharmaceuticals, Inc. * | | |
Akebia Therapeutics, Inc. * | | |
Akero Therapeutics, Inc. * | | |
Aldeyra Therapeutics, Inc. * | | |
| | |
Aligos Therapeutics, Inc. * | | |
| | |
Allogene Therapeutics, Inc. * | | |
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Alto Neuroscience, Inc. * | | |
ALX Oncology Holdings, Inc. * | | |
American Resources Corp. *(a)(c) | | |
| | |
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. * | | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
| | |
ArriVent Biopharma, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
ARS Pharmaceuticals, Inc. * | | |
Artiva Biotherapeutics, Inc. *(a) | | |
| | |
Assembly Biosciences, Inc. * | | |
Assertio Holdings, Inc. * | | |
Astria Therapeutics, Inc. * | | |
Atara Biotherapeutics, Inc. * | | |
Atea Pharmaceuticals, Inc. * | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
65
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Atossa Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Avidity Biosciences, Inc. * | | |
| | |
Axsome Therapeutics, Inc. * | | |
| | |
Beam Therapeutics, Inc. * | | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
| | |
BioLife Solutions, Inc. * | | |
BioMarin Pharmaceutical, Inc. * | | |
| | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Black Diamond Therapeutics, Inc. * | | |
| | |
Blueprint Medicines Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Capricor Therapeutics, Inc. *(a) | | |
| | |
| | |
Cargo Therapeutics, Inc. * | | |
Caribou Biosciences, Inc. * | | |
Cartesian Therapeutics, Inc. *(a) | | |
Cassava Sciences, Inc. *(a) | | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
| | |
Celldex Therapeutics, Inc. * | | |
| | |
Century Therapeutics, Inc. * | | |
| | |
Champions Oncology, Inc. * | | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
Cidara Therapeutics, Inc. * | | |
Citius Pharmaceuticals, Inc. * | | |
Clearside Biomedical, Inc. * | | |
| | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Compass Therapeutics, Inc. * | | |
Contineum Therapeutics, Inc., Class A *(a) | | |
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. * | | |
Denali Therapeutics, Inc. * | | |
Design 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. * | | |
| | |
Emergent BioSolutions, Inc. *(b) | | |
Enanta Pharmaceuticals, Inc. * | | |
Enliven Therapeutics, Inc. * | | |
Entrada Therapeutics, Inc. * | | |
| | |
Esperion Therapeutics, Inc. * | | |
Eton Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
EyePoint Pharmaceuticals, Inc. * | | |
Fate Therapeutics, Inc. * | | |
| | |
Foghorn Therapeutics, Inc. * | | |
| | |
Fulcrum Therapeutics, Inc. * | | |
Galectin Therapeutics, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
Greenwich Lifesciences, Inc. * | | |
Gyre Therapeutics, Inc. *(a) | | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Harvard Bioscience, Inc. * | | |
Heron Therapeutics, Inc. * | | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Inhibrx Biosciences, Inc. * | | |
| | |
| | |
Inovio Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
66
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Iovance Biotherapeutics, Inc. * | | |
| | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
iTeos Therapeutics, Inc. * | | |
Janux Therapeutics, Inc. * | | |
Jasper Therapeutics, Inc. * | | |
Jazz Pharmaceuticals PLC * | | |
| | |
KalVista Pharmaceuticals, Inc. * | | |
Karyopharm Therapeutics, Inc. * | | |
Keros Therapeutics, Inc. * | | |
Kezar Life Sciences, Inc. * | | |
| | |
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Kyverna Therapeutics, Inc. * | | |
Larimar Therapeutics, Inc. * | | |
| | |
Lexeo Therapeutics, Inc. * | | |
Lexicon Pharmaceuticals, Inc. *(c) | | |
Lifecore Biomedical, Inc. * | | |
Ligand Pharmaceuticals, Inc. * | | |
Lineage Cell Therapeutics, Inc. * | | |
| | |
| | |
Longboard Pharmaceuticals, Inc. * | | |
Madrigal Pharmaceuticals, Inc. * | | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Merrimack Pharmaceuticals, Inc. *(c) | | |
Mersana Therapeutics, Inc. * | | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Mind Medicine MindMed, Inc. * | | |
Mineralys Therapeutics, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
| | |
Monte Rosa Therapeutics, Inc. * | | |
| | |
| | |
Nautilus Biotechnology, Inc. * | | |
Nektar Therapeutics, Class A * | | |
Neumora Therapeutics, Inc. * | | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
Nuvectis Pharma, Inc. *(a) | | |
| | |
Ocular Therapeutix, Inc. * | | |
Olema Pharmaceuticals, Inc. * | | |
Omeros Corp., Class B *(a) | | |
| | |
| | |
| | |
Organogenesis Holdings, Inc., Class A * | | |
| | |
ORIC Pharmaceuticals, Inc. * | | |
| | |
Outlook Therapeutics, Inc. * | | |
Ovid therapeutics, Inc. * | | |
Pacific Biosciences of California, Inc. *(a) | | |
Pacira BioSciences, Inc. * | | |
PDS Biotechnology Corp. *(a) | | |
| | |
| | |
| | |
Perspective Therapeutics, Inc. * | | |
| | |
Phathom Pharmaceuticals, Inc. *(a) | | |
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. * | | |
| | |
| | |
| | |
Rapport Therapeutics, Inc. *(a) | | |
Recursion Pharmaceuticals, Inc., Class A *(a) | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Regulus Therapeutics, Inc. * | | |
Relay Therapeutics, Inc. * | | |
Relmada Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Revance Therapeutics, Inc. * | | |
REVOLUTION Medicines, Inc. * | | |
| | |
| | |
Rhythm Pharmaceuticals, Inc. * | | |
Rigel Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
| | |
Royalty Pharma PLC, Class A | | |
Sage Therapeutics, Inc. * | | |
Sana Biotechnology, Inc. * | | |
Sangamo Therapeutics, Inc. * | | |
Sarepta Therapeutics, Inc. * | | |
| | |
Scholar Rock Holding Corp. * | | |
| | |
scPharmaceuticals, Inc. * | | |
| | |
SELLAS Life Sciences Group, Inc. * | | |
Sera Prognostics, Inc., Class A * | | |
Seres Therapeutics, Inc. * | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
67
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Skye Bioscience, Inc. *(a) | | |
Soleno Therapeutics, Inc. * | | |
Solid Biosciences, Inc. * | | |
| | |
Spero Therapeutics, Inc. * | | |
SpringWorks Therapeutics, Inc. * | | |
Spyre Therapeutics, Inc. * | | |
Standard BioTools, Inc. * | | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
Syndax Pharmaceuticals, Inc. * | | |
Tango Therapeutics, Inc. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
Taysha Gene Therapies, Inc. * | | |
Tectonic Therapeutic, Inc. * | | |
Tenaya Therapeutics, Inc. * | | |
Terns Pharmaceuticals, Inc. * | | |
| | |
| | |
Theravance Biopharma, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
Third Harmonic Bio, Inc. * | | |
| | |
Travere Therapeutics, Inc. * | | |
Trevi Therapeutics, Inc. * | | |
TScan Therapeutics, Inc. * | | |
| | |
| | |
Ultragenyx Pharmaceutical, Inc. * | | |
| | |
United Therapeutics Corp. * | | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
| | |
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. * | | |
| | |
Y-mAbs Therapeutics, Inc. * | | |
Zentalis Pharmaceuticals, Inc. * | | |
Zevra Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
| | |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
| | |
| | |
Cushman & Wakefield PLC * | | |
| | |
| | |
| | |
| | |
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. * | | |
RE/MAX Holdings, Inc., Class A * | | |
| | |
| | |
Seaport Entertainment Group, Inc. * | | |
| | |
| | |
Stratus Properties, Inc. * | | |
| | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 10.3% |
ACM Research, Inc., Class A * | | |
Advanced Micro Devices, Inc. * | | |
| | |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
Everspin Technologies, Inc. * | | |
| | |
| | |
GCT Semiconductor Holding, Inc. * | | |
| | |
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
68
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
Navitas Semiconductor Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Penguin Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
| | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
| | |
Veeco Instruments, Inc. * | | |
| | |
| | |
|
Software & Services 11.1% |
| | |
| | |
| | |
| | |
| | |
| | |
Airship AI Holdings, Inc., Class A *(a) | | |
Akamai Technologies, Inc. * | | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, 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. *(a) | | |
BigCommerce Holdings, Inc. * | | |
| | |
| | |
| | |
Blend Labs, Inc., Class 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. * | | |
| | |
| | |
| | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
DocuSign, Inc., Class A * | | |
Dolby Laboratories, Inc., Class A | | |
| | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
E2open Parent Holdings, Inc. * | | |
| | |
| | |
Enfusion, Inc., Class A * | | |
| | |
| | |
| | |
Expensify, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Freshworks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
69
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Grid Dynamics Holdings, Inc. * | | |
Guidewire Software, Inc. * | | |
| | |
HashiCorp, Inc., Class A * | | |
| | |
| | |
iLearningEngines Holdings, Inc. *(a) | | |
Informatica, Inc., Class A * | | |
Information Services Group, Inc. | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Logility Supply Chain Solutions, Inc., Class A | | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
Procore Technologies, 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 * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Varonis Systems, Inc., Class B * | | |
| | |
| | |
| | |
Viant Technology, Inc., Class A * | | |
Weave Communications, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 8.1% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
| | |
| | |
| | |
Applied Optoelectronics, Inc. * | | |
| | |
Arlo Technologies, Inc. * | | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
70
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
Climb Global Solutions, Inc. | | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
CompoSecure, Inc., Class A (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
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 * | | |
Lightwave Logic, Inc. *(a) | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
Methode Electronics, Inc. | | |
| | |
Mirion Technologies, Inc., Class A * | | |
| | |
M-Tron Industries, Inc. * | | |
Napco Security Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
Red Cat Holdings, Inc. *(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) | | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.9% |
| | |
AST SpaceMobile, Inc., Class 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. | | |
| | |
|
Schwab Equity Index Funds | Annual Holdings and Financial Statements
71
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
|
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. | | |
| | |
| | |
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. | | |
Proficient Auto Logistics, Inc. * | | |
Radiant Logistics, Inc. * | | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
Spirit Airlines, Inc. (a) | | |
Sun Country Airlines Holdings, Inc. * | | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
Universal Logistics Holdings, Inc. | | |
| | |
Wheels Up Experience, Inc. *(a) | | |
| | |
| | |
|
|
| | |
| | |
| | |
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. | | |
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. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
72
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
Total Common Stocks
(Cost $11,143,978,270) | |
|
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) | | |
Homology Medicines, Inc. 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) | | |
Tectonic Therapeutic, Inc. CVR *(c) | | |
Zynerba Pharmaceuticals, Inc. CVR *(c) | | |
| | |
Total Rights
(Cost $29,538) | |
| | |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (e)(f) | | |
Total Short-Term Investments
(Cost $29,668,965) | |
Total Investments in Securities
(Cost $11,173,676,773) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 12/20/24 | | | |
S&P 500 Index, e-mini, expires 12/20/24 | | | |
| | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $26,919,244. |
| 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 |
Below is a summary of the fund’s transactions with affiliated issuers and affiliated companies which are or were affiliates during the period ended October 31, 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 October 31, 2024, columns means either the issuer was not held or not held as an affiliate at the beginning of the period and is no longer held at period end or the issuer is held at period end but is no longer an affiliate.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Schwab Equity Index Funds | Annual Holdings and Financial Statements
73
Schwab Total Stock Market Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
Equity Real Estate Investment Trusts (REITs) 0.0% |
Ashford Hospitality Trust, Inc. | | | | | | | | |
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 October 31, 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
74
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $27,201,348) | | |
Investments in securities, at value - unaffiliated issuers (cost $11,146,475,425) including securities on loan of $26,919,244 | | |
| | |
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 | Annual Holdings and Financial Statements
75
Schwab Total Stock Market Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $107,630) | | |
| | |
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 | | |
76
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Total Stock Market Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 Equity Index Funds | Annual Holdings and Financial Statements
77
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 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
78
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 2.5% |
| | |
|
|
NU Holdings Ltd., Class A * | | |
| | |
| | |
|
|
| | |
| | |
Advanced Drainage Systems, Inc. | | |
Armstrong World Industries, Inc. | | |
| | |
AZEK Co., Inc., Class A * | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
WillScot 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 8.7% |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 0.5% |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
Skechers USA, Inc., Class A * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
|
|
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc., Class A * | | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Dutch Bros, Inc., Class A * | | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
79
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
| | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. | | |
| | |
Texas Roadhouse, Inc., Class A | | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.5% |
Casey's General Stores, Inc. | | |
| | |
Performance Food Group Co. * | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. (a) | | |
Permian Resources Corp., Class A | | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 0.5% |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
Simon Property Group, Inc. | | |
| | |
|
|
| | |
| | |
Ameriprise Financial, Inc. | | |
Apollo Global Management, Inc. | | |
ARES Management Corp., Class A | | |
| | |
| | |
Blue Owl Capital, Inc., Class A | | |
| | |
Coinbase Global, Inc., Class A * | | |
| | |
Credit Acceptance Corp. * | | |
| | |
FactSet Research Systems, Inc. | | |
| | |
| | |
Goldman Sachs Group, Inc. | | |
Houlihan Lokey, Inc., Class A | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
Shift4 Payments, Inc., Class A * | | |
SoFi Technologies, Inc. * | | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 1.3% |
Boston Beer Co., Inc., Class A * | | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 2.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
GE HealthCare Technologies, Inc. | | |
| | |
IDEXX Laboratories, Inc. * | | |
Inspire Medical Systems, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
|
80
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Household & Personal Products 0.7% |
| | |
| | |
| | |
Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
| | |
Ryan Specialty Holdings, Inc., Class A | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 13.1% |
| | |
| | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp.-Liberty Formula One, Class C * | | |
Live Nation Entertainment, Inc. * | | |
Madison Square Garden Sports Corp. * | | |
Meta Platforms, Inc., Class A | | |
| | |
Nexstar Media Group, Inc., Class A | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
TKO Group Holdings, Inc. * | | |
Trade Desk, Inc., Class A * | | |
| | |
Trump Media & Technology Group Corp. *(a) | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 5.5% |
10X Genomics, Inc., Class A * | | |
| | |
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Intra-Cellular Therapies, Inc. * | | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Sarepta Therapeutics, Inc. * | | |
Ultragenyx Pharmaceutical, Inc. * | | |
Vertex Pharmaceuticals, Inc. * | | |
Viking Therapeutics, Inc. * | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.0% |
Jones Lang LaSalle, Inc. * | | |
|
Semiconductors & Semiconductor Equipment 16.9% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 18.8% |
| | |
Appfolio, Inc., Class A * | | |
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 * | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
81
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
HashiCorp, Inc., Class A * | | |
| | |
| | |
Manhattan Associates, Inc. * | | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
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 12.8% |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
Super Micro Computer, Inc. * | | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.0% |
Iridium Communications, Inc. | | |
|
| | |
|
American Airlines Group, Inc. * | | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
| | |
| | |
|
|
Constellation Energy Corp. | | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,903,200,476) | |
|
INVESTMENT COMPANIES 0.2% OF NET ASSETS |
|
|
iShares Russell 1000 Growth ETF | | |
Total Investment Companies
(Cost $3,922,368) | |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $6,602,058) | |
Total Investments in Securities
(Cost $1,913,724,902) | |
82
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $188,805. |
| 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. |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended October 31, 2024:
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.0% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 | Annual Holdings and Financial Statements
83
Schwab U.S. Large-Cap Growth Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $1,092,797) | | |
Investments in securities, at value - unaffiliated issuers (cost $1,912,632,105) including securities on loan of $188,805 | | |
| | |
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 | | |
| | |
84
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Growth Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $1,895) | | |
| | |
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 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 | Annual Holdings and Financial Statements
85
Schwab U.S. Large-Cap Growth Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
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 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
86
Schwab Equity Index Funds | Annual Holdings and Financial Statements
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 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
87
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.4% OF NET ASSETS |
|
Automobiles & Components 0.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
QuantumScape Corp., Class A *(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. | | |
| | |
| | |
| | |
Pinnacle Financial Partners, Inc. | | |
PNC Financial Services Group, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
| | |
| | |
Armstrong World Industries, Inc. | | |
AZEK Co., Inc., Class A * | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
| | |
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. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Sensata Technologies Holding PLC | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
88
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Spirit AeroSystems Holdings, Inc., Class A * | | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Holdings Corp. * | | |
| | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.3% |
| | |
Automatic Data Processing, Inc. | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Republic Services, Inc., Class A | | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 2.1% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A * | | |
| | |
| | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.3% |
| | |
Birkenstock Holding PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ralph Lauren Corp., Class A | | |
| | |
Skechers USA, Inc., Class A * | | |
| | |
| | |
| | |
Under Armour, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
Choice Hotels International, Inc. | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
89
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
Dutch Bros, Inc., Class A * | | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International * | | |
Penn Entertainment, Inc. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. | | |
Service Corp. International | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 2.3% |
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. | | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
Permian Resources Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 4.4% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
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 | | |
| | |
Omega Healthcare Investors, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
SBA Communications Corp., Class A | | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
90
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
VICI Properties, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
|
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 B * | | |
| | |
| | |
Capital One Financial Corp. | | |
| | |
Cboe Global Markets, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A * | | |
Corebridge Financial, Inc. | | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
Euronet Worldwide, Inc. * | | |
| | |
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. | | |
| | |
| | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A * | | |
| | |
| | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 3.7% |
| | |
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. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 7.3% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
91
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
GE HealthCare Technologies, Inc. | | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.8% |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
92
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 2.4% |
Charter Communications, 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 Live, Class C * | | |
Madison Square Garden Sports Corp. * | | |
| | |
New York Times Co., Class A | | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class B | | |
| | |
| | |
| | |
Take-Two Interactive Software, Inc. * | | |
TKO Group Holdings, Inc. * | | |
| | |
Trump Media & Technology Group Corp. *(a) | | |
| | |
Warner Bros Discovery, Inc. * | | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 7.6% |
10X Genomics, Inc., Class A * | | |
| | |
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 * | | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
| | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.4% |
CBRE Group, Inc., Class A * | | |
| | |
Howard Hughes Holdings, Inc. * | | |
Jones Lang LaSalle, Inc. * | | |
Seaport Entertainment Group, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 3.2% |
Advanced Micro Devices, Inc. * | | |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Akamai Technologies, Inc. * | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
93
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
HashiCorp, Inc., Class A * | | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
SentinelOne, Inc., Class A * | | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
|
Technology Hardware & Equipment 2.6% |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
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. | | |
Liberty Global Ltd., Class C * | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
94
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $535,825,991) | |
|
INVESTMENT COMPANIES 0.2% OF NET ASSETS |
|
|
iShares Russell 1000 Value ETF | | |
Total Investment Companies
(Cost $1,168,395) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $2,774,477) | |
Total Investments in Securities
(Cost $539,768,863) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $208,303. |
| 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 October 31, 2024:
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.4% OF NET ASSETS |
|
|
| | | | | | | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
95
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
96
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $1,882,922) | | |
Investments in securities, at value - unaffiliated issuers (cost $537,885,941) including securities on loan of $208,303 | | |
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 | Annual Holdings and Financial Statements
97
Schwab U.S. Large-Cap Value Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $1,912) | | |
Dividends received from securities - affiliated issuers | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
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 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 | | |
98
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Large-Cap Value Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
99
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. |
| Portfolio turnover rate excludes in-kind transactions. |
100
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 0.5% |
| | |
| | |
| | |
| | |
| | |
| | |
QuantumScape Corp., Class A *(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. | | |
| | |
| | |
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. * | | |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
| | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ferguson Enterprises, Inc. | | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Gates Industrial Corp. PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
| | |
| | |
L3Harris Technologies, 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 | | |
Simpson Manufacturing Co., Inc. | | |
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 Holdings Corp. * | | |
| | |
| | |
| | |
| | |
|
Schwab Equity Index Funds | Annual Holdings and Financial Statements
101
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Commercial & Professional Services 3.7% |
| | |
Booz Allen Hamilton Holding Corp., Class A | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
| | |
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 * | | |
| | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 2.9% |
| | |
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 * | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
| | |
Choice Hotels International, Inc. (a) | | |
| | |
| | |
| | |
DraftKings, Inc., Class A * | | |
| | |
Dutch Bros, 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. * | | |
102
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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 1.5% |
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. | | |
| | |
| | |
| | |
Permian Resources Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
| | |
|
| | |
Equity Real Estate Investment Trusts (REITs) 7.1% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
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 | | |
| | |
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 | | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
ARES Management Corp., Class A | | |
Bank of New York Mellon Corp. | | |
| | |
Blue Owl Capital, Inc., Class A | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
103
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Cboe Global Markets, Inc. | | |
Coinbase Global, Inc., Class A * | | |
Corebridge Financial, Inc. | | |
| | |
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. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.4% |
Archer-Daniels-Midland Co. | | |
Boston Beer Co., Inc., Class A * | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
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 5.3% |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
| | |
| | |
| | |
GE HealthCare Technologies, Inc. | | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Inspire Medical Systems, Inc. * | | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 0.9% |
| | |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
| | |
104
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 3.4% |
Charter Communications, 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 Live, 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 | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Take-Two Interactive Software, Inc. * | | |
TKO Group Holdings, Inc. * | | |
Trade Desk, Inc., Class A * | | |
| | |
Trump Media & Technology Group Corp. *(a) | | |
Warner Bros Discovery, Inc. * | | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 4.4% |
10X Genomics, Inc., Class A * | | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
Apellis Pharmaceuticals, Inc. * | | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
105
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Intra-Cellular Therapies, Inc. * | | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals PLC * | | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Royalty Pharma PLC, Class A | | |
Sarepta Therapeutics, Inc. * | | |
| | |
Ultragenyx Pharmaceutical, Inc. * | | |
United Therapeutics Corp. * | | |
| | |
Viking Therapeutics, Inc. * | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
|
Real Estate Management & Development 0.8% |
CBRE Group, Inc., Class A * | | |
| | |
Howard Hughes Holdings, Inc. * | | |
Jones Lang LaSalle, Inc. * | | |
Seaport Entertainment Group, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.1% |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Akamai Technologies, Inc. * | | |
| | |
| | |
Appfolio, Inc., Class A * | | |
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 * | | |
| | |
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. * | | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
| | |
Procore Technologies, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
SentinelOne, Inc., Class A * | | |
Smartsheet, Inc., Class A * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
106
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
|
Technology Hardware & Equipment 3.3% |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
Pure Storage, Inc., Class A * | | |
Super Micro Computer, Inc. * | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 0.2% |
Frontier Communications Parent, Inc. * | | |
| | |
Iridium Communications, Inc. | | |
Liberty Global Ltd., Class C * | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
| | |
CH Robinson Worldwide, Inc. | | |
| | |
Expeditors International of Washington, 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 Shares | | |
United Airlines Holdings, Inc. * | | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
American Water Works Co., Inc. | | |
| | |
| | |
Brookfield Renewable Corp., Class A | | |
| | |
Clearway Energy, Inc., Class C | | |
| | |
Consolidated Edison, Inc. | | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,271,975,503) | |
|
INVESTMENT COMPANIES 0.2% OF NET ASSETS |
|
|
iShares Russell Mid-Cap ETF | | |
Total Investment Companies
(Cost $1,931,091) | |
| | |
SHORT-TERM INVESTMENTS 0.3% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $4,886,939) | |
Total Investments in Securities
(Cost $1,278,793,533) | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
107
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 400 Mid-Cap Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $1,665,317. |
| 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 |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
108
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Mid-Cap Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $1,278,793,533) including securities on loan of $1,665,317 | | |
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 | Annual Holdings and Financial Statements
109
Schwab U.S. Mid-Cap Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $10,620) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
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 - 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 | | |
110
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab U.S. Mid-Cap Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
111
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. |
112
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 98.8% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
James Hardie Industries PLC * | | |
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
Pilbara Minerals Ltd. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
113
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
La Francaise des Jeux SAEM | | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Unibail-Rodamco-Westfield * | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
Carl Zeiss Meditec AG, Bearer Shares | | |
| | |
| | |
| | |
CTS Eventim AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fresenius Medical Care AG | | |
Fresenius SE & Co. KGaA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
BOC Hong Kong Holdings Ltd. | | |
| | |
CK Hutchison Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
| | |
Futu Holdings Ltd., ADR * | | |
Galaxy Entertainment Group 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. | | |
| | |
114
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
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 * | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hankyu Hanshin Holdings, Inc. | | |
| | |
Hitachi Construction Machinery Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Japan Exchange Group, Inc. | | |
| | |
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
Japan Real Estate Investment Corp. | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
115
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Kansai Electric Power Co., Inc. | | |
| | |
Kawasaki Kisen Kaisha Ltd. | | |
| | |
Keisei Electric Railway 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 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 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. | | |
| | |
| | |
Shizuoka Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Metal Mining Co. Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Group, Inc. | | |
Sumitomo Realty & Development Co. Ltd. | | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
Tokio Marine Holdings, Inc. | | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
116
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
CapitaLand Integrated Commercial Trust | | |
CapitaLand Investment Ltd. | | |
| | |
| | |
Grab Holdings Ltd., Class A * | | |
| | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering 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 | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, B Shares * | | |
| | |
H & M Hennes & Mauritz AB, B Shares (a) | | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
Schwab Equity Index Funds | Annual Holdings and Financial Statements
117
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Investment AB Latour, B Shares | | |
| | |
L E Lundbergforetagen AB, B Shares | | |
| | |
Nibe Industrier AB, B Shares | | |
| | |
| | |
| | |
| | |
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 | | |
| | |
| | |
| | |
| | |
Volvo Car AB, B Shares *(a) | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
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 | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Associated British Foods PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings PLC | | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
| | |
| | |
| | |
| | |
Land Securities Group PLC | | |
Legal & General Group PLC | | |
| | |
London Stock Exchange Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
118
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Phoenix Group Holdings PLC | | |
| | |
Reckitt Benckiser Group PLC | | |
| | |
| | |
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group PLC | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $6,677,122,309) | |
|
PREFERRED STOCKS 0.4% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
Porsche Automobil Holding SE | | |
| | |
| | |
| | |
Total Preferred Stocks
(Cost $42,511,764) | |
| | |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c)(d) | | |
Total Short-Term Investments
(Cost $13,155,255) | |
| | |
Total Investments in Securities
(Cost $6,732,789,328) | |
| | |
| | |
| | |
| | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $12,110,950. |
| 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 | Annual Holdings and Financial Statements
119
Schwab International Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
120
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab International Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $6,732,789,328) including securities on loan of $12,110,950 | | |
| | |
Foreign currency, at value (cost $3,061,273) | | |
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 | Annual Holdings and Financial Statements
121
Schwab International Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $29,608,467) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses 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). |
122
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab International Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
123
Schwab Equity Index Funds
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 U.S. Large Company Index Fund |
Schwab International Index Fund | Schwab Fundamental U.S. Small Company Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Equity Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental International Small Equity Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Emerging Markets Equity 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.
124
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Equity Index Funds
Financial Notes (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 and holdings and financial statements, which are filed in Form N-CSR 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
Schwab Equity Index Funds | Annual Holdings and Financial Statements
125
Schwab Equity Index Funds
Financial Notes (continued)
2. Significant Accounting Policies (continued):
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. 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 October 31, 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.
126
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Equity Index Funds
Financial Notes (continued)
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 October 31, 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 October 31, 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
Schwab Equity Index Funds | Annual Holdings and Financial Statements
127
Schwab Equity Index Funds
Financial Notes (continued)
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 October 31, 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 fund, 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 NAVs 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.
128
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Equity Index Funds
Financial Notes (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 within each fund’s Statement of Operations. Foreign taxes accrued as of October 31, 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.
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.
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.
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Schwab Equity Index Funds
Financial Notes (continued)
3. Risk Factors (continued):
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, 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 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.
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Schwab Equity Index Funds
Financial Notes (continued)
3. Risk Factors (continued):
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
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 fund.
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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Schwab Equity Index Funds
Financial Notes (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 October 31, 2024, as applicable:
| |
| | 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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| | | | | |
| | | | | |
| | | | | |
| | | | | |
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| | | | | |
| | | | | |
| | | | | |
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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 October 31, 2024, the professional fees incurred by the Schwab International Index Fund and paid by the investment adviser were $40,863, as shown as Professional fees in the fund’s Statement of Operations.
During the period ended October 31, 2024, Schwab International Index Fund did not recover any previously withheld foreign taxes and made no reimbursements to the investment adviser.
As of October 31, 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 $57,655.
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 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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Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Equity Index Funds
Financial Notes (continued)
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 October 31, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any net realized gains (losses) were as follows:
| | | 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 | | | |
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.
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), which matured on September 26, 2024. On September 26, 2024, the Syndicated CreditFacility was amended to run for a new 364 day period with the line of credit amount increasing to $1.2 billion, maturing on September 25, 2025. 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, which matured on September 26, 2024. On September 26, 2024, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 25, 2025. 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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Schwab Equity Index Funds
Financial Notes (continued)
7. Derivatives (continued):
As of October 31, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | |
| | |
Schwab S&P 500 Index Fund | | |
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| | |
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Schwab Small-Cap Index Fund | | |
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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 | | |
| | |
| |
| 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 October 31, 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. |
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Schwab Equity Index Funds
Financial Notes (continued)
7. Derivatives (continued):
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 | | |
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| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
During the period ended October 31, 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 October 31, 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 | | |
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Schwab Equity Index Funds
Financial Notes (continued)
8. Purchases and Sales of Investment Securities (continued):
During the period ended October 31, 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 | | |
Schwab U.S. Large-Cap Value Index Fund | | |
Schwab U.S. Mid-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 October 31, 2024, are disclosed in the funds’ Statements of Operations, if any.
As of October 31, 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 | | | | |
The primary differences between book basis and tax basis unrealized appreciation or unrealized depreciation of investments are the tax deferral of losses on wash sales, the realization for tax purposes of unrealized appreciation or depreciation on futures contracts, the realization for tax purposes of unrealized appreciation on investments in PFICs and partnership investments. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| UNDISTRIBUTED
ORDINARY
INCOME | UNDISTRIBUTED
LONG-TERM
CAPITAL GAINS | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | NET OTHER UNREALIZED
APPRECIATION
(DEPRECIATION) | CAPITAL LOSS
CARRYFORWARDS
AND OTHER 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 | | | | | | |
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Schwab Equity Index Funds
Financial Notes (continued)
9. Federal Income Taxes (continued):
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, 2024, 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 | |
For the fiscal year ended October 31, 2024, the funds had capital loss carryforwards utilized 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 paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | 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.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of October 31, 2024, 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, 2024, the funds did not incur any interest or penalties.
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Schwab Equity Index Funds
Financial Notes (continued)
10. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
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Schwab Equity Index Funds
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Investments and Schwab Capital Trust and Shareholders of Schwab 1000 Index 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 U.S. Mid-Cap Index Fund, and Schwab International Index Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab 1000 Index Fund, one of the Funds constituting Schwab Investments, and 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, and Schwab International Index Fund (the “Funds”), seven of the Funds constituting Schwab Capital Trust, as of October 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds constituting Schwab Investments and Schwab Capital Trust as of October 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
December 16, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
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Schwab Equity Index Funds
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the amended and restated investment advisory and administration agreements (the Agreements) between Schwab Capital Trust and Schwab Investments (collectively, the Trusts) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trusts, including Schwab S&P 500 Index Fund, Schwab 1000 Index Fund, Schwab Small-Cap Index Fund, Schwab Total Stock Market Index Fund, Schwab International Index Fund, Schwab U.S. Large-Cap Growth Index Fund, Schwab U.S. Large-Cap Value Index Fund, and Schwab U.S. Mid-Cap Index Fund (each, a Fund and collectively, the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of
trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreements with respect to the Funds at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreements with respect to the Funds for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreements with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to each Fund under the Agreements, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.
each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.
each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreements reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to each Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also
140
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Schwab Equity Index Funds
considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services, and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreements with respect to the Funds.
Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreements with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of each Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and such Fund’s demonstrated performance in tracking its benchmark index. The Trustees noted that the Funds had closely tracked their respective indexes in 2023, with all of the Funds performing in their expected performance ranges. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year.. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of each Fund supported renewal of the Agreements with respect to such Fund.
Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreements, and each Fund’s operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees also considered fees charged by the investment adviser to ETFs, other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating
features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of each Fund are reasonable and supported renewal of the Agreements with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed the profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreements and other service agreements were reasonable in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser with respect to each Fund is reasonable and supported renewal of the Agreements with respect to such Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Funds do not have any breakpoints in their advisory fees, the Trustees considered the potential existence of any economies of scale by way of the relatively low advisory fee and unitary fee structure of the Funds and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment
Schwab Equity Index Funds | Annual Holdings and Financial Statements
141
Schwab Equity Index Funds
management, technology, administrative, legal and compliance services to the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that each Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation
and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreements with respect to the Funds and concluded that the compensation under the Agreements with respect to the Funds is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
142
Schwab Equity Index Funds | Annual Holdings and Financial Statements
Annual Holdings and Financial Statements | October 31, 2024
Schwab Fundamental Index* Funds
Schwab Fundamental
U.S. Large Company Index Fund
(formerly Schwab Fundamental
US Large Company Index Fund)
Schwab Fundamental
U.S. Small Company Index Fund
(formerly Schwab Fundamental
US Small Company Index Fund)
Schwab Fundamental International
Equity Index Fund
(formerly Schwab Fundamental International
Large Company Index Fund)
Schwab Fundamental International
Small Equity Index Fund
(formerly Schwab Fundamental International
Small Company Index Fund)
Schwab Fundamental Emerging
Markets Equity Index Fund
(formerly 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.
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.
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
1
Schwab Fundamental U.S. 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. |
2
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.7% OF NET ASSETS |
|
Automobiles & Components 1.6% |
| | |
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Goodyear Tire & Rubber Co. * | | |
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Citizens Financial Group, Inc. | | |
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First Citizens BancShares, Inc., Class A | | |
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Huntington Bancshares, Inc. | | |
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PNC Financial Services Group, Inc. | | |
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Allison Transmission Holdings, Inc. | | |
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Beacon Roofing Supply, Inc. * | | |
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Builders FirstSource, Inc. * | | |
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Fortune Brands Innovations, Inc. | | |
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Honeywell International, Inc. | | |
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| | |
Huntington Ingalls Industries, Inc. | | |
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Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International PLC | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
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MDU Resources Group, Inc. | | |
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MSC Industrial Direct Co., Inc., Class A | | |
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Resideo Technologies, Inc. * | | |
Rockwell Automation, Inc. | | |
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Rush Enterprises, Inc., Class A | | |
Sensata Technologies Holding PLC | | |
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Stanley Black & Decker, Inc. | | |
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WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
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|
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
3
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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 * | | |
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Republic Services, Inc., Class A | | |
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Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
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Verisk Analytics, Inc., Class A | | |
| | |
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|
Consumer Discretionary Distribution & Retail 4.4% |
Academy Sports & Outdoors, Inc. | | |
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American Eagle Outfitters, Inc. | | |
Asbury Automotive Group, Inc. * | | |
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Burlington Stores, Inc. * | | |
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Dick's Sporting Goods, Inc. | | |
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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. * | | |
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Mohawk Industries, Inc. * | | |
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Ralph Lauren Corp., Class A | | |
Skechers USA, Inc., Class A * | | |
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Taylor Morrison Home Corp., Class A * | | |
Tempur Sealy International, Inc. | | |
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Caesars Entertainment, Inc. * | | |
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Chipotle Mexican Grill, Inc., Class A * | | |
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Hilton Worldwide Holdings, Inc. | | |
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Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
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MGM Resorts International * | | |
Penn Entertainment, Inc. * | | |
Service Corp. International | | |
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|
Consumer Staples Distribution & Retail 3.5% |
Albertsons Cos., Inc., Class A | | |
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BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
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4
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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Performance Food Group Co. * | | |
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Sprouts Farmers Market, Inc. * | | |
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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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Occidental Petroleum Corp. | | |
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PBF Energy, Inc., Class A | | |
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|
Equity Real Estate Investment Trusts (REITs) 1.8% |
Alexandria Real Estate Equities, Inc. | | |
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AvalonBay Communities, Inc. | | |
Brixmor Property Group, Inc. | | |
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Digital Realty Trust, Inc. | | |
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Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthpeak Properties, Inc. | | |
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Host Hotels & Resorts, Inc. | | |
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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. | | |
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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 * | | |
| | |
| | |
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Bread Financial Holdings, Inc. | | |
Capital One Financial Corp. | | |
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Cboe Global Markets, Inc. | | |
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Corebridge Financial, Inc. | | |
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Discover Financial Services | | |
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Fidelity National Information Services, Inc. | | |
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Goldman Sachs Group, Inc. | | |
Intercontinental Exchange, Inc. | | |
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Jack Henry & Associates, Inc. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group PLC | | |
Jefferies Financial Group, Inc. | | |
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LPL Financial Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
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Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
5
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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Raymond James Financial, Inc. | | |
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Starwood Property Trust, Inc. | | |
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T. Rowe Price Group, Inc. | | |
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|
Food, Beverage & Tobacco 3.4% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
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Coca-Cola Europacific Partners PLC | | |
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Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
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Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
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Philip Morris International, Inc. | | |
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Tyson Foods, Inc., Class A | | |
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|
Health Care Equipment & Services 5.5% |
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Baxter International, Inc. | | |
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Boston Scientific Corp. * | | |
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Community Health Systems, Inc. * | | |
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Edwards Lifesciences Corp. * | | |
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GE HealthCare Technologies, Inc. | | |
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IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
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Molina Healthcare, Inc. * | | |
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Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
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|
Household & Personal Products 1.2% |
Church & Dwight Co., Inc. | | |
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Estee Lauder Cos., Inc., Class A | | |
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|
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American Financial Group, Inc. | | |
American International Group, Inc. | | |
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Arch Capital Group Ltd. * | | |
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Cincinnati Financial Corp. | | |
CNO Financial Group, Inc. | | |
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Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
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Hanover Insurance Group, Inc. | | |
Hartford Financial Services Group, Inc. | | |
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Marsh & McLennan Cos., Inc. | | |
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Old Republic International Corp. | | |
6
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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Principal Financial Group, Inc. | | |
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Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
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Air Products & Chemicals, Inc. | | |
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Axalta Coating Systems Ltd. * | | |
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CF Industries Holdings, Inc. | | |
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Graphic Packaging Holding Co. | | |
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International Flavors & Fragrances, Inc. | | |
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LyondellBasell Industries NV, Class A | | |
Martin Marietta Materials, Inc. | | |
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Packaging Corp. of America | | |
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Media & Entertainment 6.7% |
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Charter Communications, Inc., Class A * | | |
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Interpublic Group of Cos., Inc. | | |
Meta Platforms, Inc., Class A | | |
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Nexstar Media Group, Inc., Class A | | |
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Paramount Global, Class B | | |
Take-Two Interactive Software, Inc. * | | |
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Warner Bros Discovery, Inc. * | | |
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|
Pharmaceuticals, Biotechnology & Life Sciences 5.6% |
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Agilent Technologies, Inc. | | |
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Charles River Laboratories International, Inc. * | | |
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Jazz Pharmaceuticals PLC * | | |
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Mettler-Toledo International, Inc. * | | |
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Regeneron Pharmaceuticals, Inc. * | | |
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Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
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West Pharmaceutical Services, Inc. | | |
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|
Real Estate Management & Development 0.2% |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
Jones Lang LaSalle, Inc. * | | |
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|
Semiconductors & Semiconductor Equipment 4.0% |
Advanced Micro Devices, Inc. * | | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
7
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 7.1% |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
| | |
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 3.5% |
| | |
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. | | |
| | |
|
|
| | |
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. | | |
| | |
| | |
Uber Technologies, Inc. * | | |
U-Haul Holding Co., Non Voting Shares | | |
| | |
United Parcel Service, Inc., Class B | | |
| | |
ZIM Integrated Shipping Services Ltd. (a) | | |
| | |
|
|
| | |
| | |
| | |
8
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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 $5,372,633,356) | |
| | |
SHORT-TERM INVESTMENTS 0.3% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $23,963,762) | |
Total Investments in Securities
(Cost $5,396,597,118) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $4,641,687. |
| 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. |
Below is a summary of the fund’s transactions with affiliated issuers and companies which are or were affiliates during the period ended October 31, 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 October 31, 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 REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.1% OF NET ASSETS |
|
|
| | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
9
Schwab Fundamental U.S. Large Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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. |
10
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $6,828,717) | | |
Investments in securities, at value - unaffiliated issuers (cost $5,389,768,401) including securities on loan of $4,641,687 | | |
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 Fundamental Index Funds | Annual Holdings and Financial Statements
11
Schwab Fundamental U.S. Large Company Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $96,313) | | |
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 | | |
12
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
13
Schwab Fundamental U.S. 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. |
14
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.9% OF NET ASSETS |
|
Automobiles & Components 1.3% |
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 Financial 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 | | |
ServisFirst Bancshares, Inc. | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
| | |
Texas Capital Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
Albany International Corp., Class A | | |
Ameresco, Inc., Class A * | | |
American Woodmark Corp. * | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
15
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
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. * | | |
| | |
| | |
| | |
John Bean Technologies Corp. | | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
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. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Vertiv Holdings Co., Class A | | |
| | |
Watts Water Technologies, Inc., Class A | | |
WillScot Holdings Corp. * | | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 5.5% |
| | |
| | |
Barrett Business Services, Inc. | | |
| | |
BrightView Holdings, Inc. * | | |
| | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
Healthcare Services Group, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
Huron Consulting Group, Inc. * | | |
16
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Verra Mobility Corp., Class A * | | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.1% |
1-800-Flowers.com, Inc., Class A * | | |
Abercrombie & Fitch Co., Class A * | | |
American Eagle Outfitters, Inc. | | |
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 * | | |
| | |
| | |
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 3.9% |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
Levi Strauss & Co., Class A | | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
Smith & Wesson Brands, Inc. | | |
| | |
| | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
Under Armour, Inc., Class A * | | |
| | |
Wolverine World Wide, Inc. | | |
Worthington Enterprises, Inc. | | |
| | |
| | |
|
|
| | |
Adtalem Global Education, Inc. * | | |
| | |
Arcos Dorados Holdings, Inc., Class A | | |
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
Carriage Services, Inc., Class A | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
17
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
Choice Hotels International, Inc. (a) | | |
| | |
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. | | |
| | |
Strategic Education, Inc. | | |
| | |
Texas Roadhouse, Inc., Class A | | |
| | |
United Parks & Resorts, Inc. * | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 0.7% |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
| | |
| | |
| | |
| | |
Expro Group Holdings NV * | | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
Innovex International, 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. | | |
| | |
| | |
| | |
| | |
Teekay Tankers Ltd., Class A | | |
| | |
| | |
Tsakos Energy Navigation Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Weatherford International PLC | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 8.2% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Apple Hospitality REIT, Inc. | | |
| | |
Broadstone Net Lease, Inc. | | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Curbline Properties Corp. * | | |
DiamondRock Hospitality Co. | | |
Diversified Healthcare Trust (b) | | |
| | |
Easterly Government Properties, Inc., Class A | | |
EastGroup Properties, Inc. | | |
18
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
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. | | |
Apollo Global Management, 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. | | |
DigitalBridge 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 * | | |
HA Sustainable Infrastructure Capital, Inc. | | |
Hamilton Lane, Inc., Class A | | |
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 | | |
| | |
| | |
| | |
| | |
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 | | |
Virtus Investment Partners, Inc. | | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
19
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.1% |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Equipment & Services 4.1% |
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 1.0% |
| | |
Central Garden & Pet Co. * | | |
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. | | |
| | |
| | |
| | |
Erie Indemnity Co., Class A | | |
Horace Mann Educators Corp. | | |
James River Group Holdings Ltd. | | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
RenaissanceRe Holdings Ltd. | | |
| | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
Stewart Information Services Corp. | | |
| | |
Universal Insurance Holdings, Inc. | | |
20
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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 3.4% |
AMC Entertainment Holdings, Inc., Class A * | | |
AMC Networks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
EchoStar Corp., Class A * | | |
Endeavor Group Holdings, Inc., Class A (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) | | |
| | |
| | |
| | |
| | |
TKO Group Holdings, Inc. * | | |
Trade Desk, Inc., Class A * | | |
| | |
Warner Music Group Corp., Class A | | |
| | |
| | |
| | |
ZoomInfo Technologies, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 2.8% |
| | |
Amphastar Pharmaceuticals, Inc. * | | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
Elanco Animal Health, Inc. * | | |
Emergent BioSolutions, Inc. *(b) | | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
21
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Ironwood Pharmaceuticals, Inc., Class A * | | |
Jazz Pharmaceuticals PLC * | | |
Ligand Pharmaceuticals, Inc. * | | |
| | |
| | |
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 1.2% |
| | |
| | |
Cushman & Wakefield PLC * | | |
| | |
Howard Hughes Holdings, Inc. * | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * | | |
Seaport Entertainment Group, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.3% |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
Lattice Semiconductor Corp. * | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
Penguin Solutions, Inc. * | | |
| | |
| | |
| | |
| | |
Silicon Laboratories, 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 3.6% |
| | |
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 * | | |
| | |
22
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
|
Telecommunication Services 0.4% |
| | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
| | |
Iridium Communications, Inc. | | |
Liberty Latin America Ltd., Class C * | | |
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 | | |
| | |
Essential Utilities, Inc. | | |
Hawaiian Electric Industries, Inc. * | | |
| | |
| | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
Northwestern Energy Group, Inc. | | |
| | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,235,108,958) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $7,484,991) | |
Total Investments in Securities
(Cost $1,242,593,949) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $4,058,023. |
| 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 Fundamental Index Funds | Annual Holdings and Financial Statements
23
Schwab Fundamental U.S. Small Company Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
Below is a summary of the fund’s transactions with affiliated issuers and companies which are or were affiliates during the period ended October 31, 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 October 31, 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 REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
COMMON STOCKS 0.3% OF NET ASSETS |
|
Consumer Durables & Apparel 0.0% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
Equity Real Estate Investment Trusts (REITs) 0.1% |
Ashford Hospitality Trust, Inc. | | | | | | | | |
Diversified Healthcare Trust | | | | | | | | |
| | | | | | | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.2% |
Emergent BioSolutions, Inc. | | | | | | | | |
|
|
| | | | | | | | |
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
24
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $2,001,226) | | |
Investments in securities, at value - unaffiliated issuers (cost $1,240,592,723) including securities on loan of $4,058,023 | | |
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 Fundamental Index Funds | Annual Holdings and Financial Statements
25
Schwab Fundamental U.S. Small Company Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $10,381) | | |
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 | | |
26
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental U.S. Small Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 Fundamental Index Funds | Annual Holdings and Financial Statements
27
Schwab Fundamental International Equity 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. |
28
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 98.3% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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. | | |
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 | | |
CCL Industries, Inc., Class B | | |
| | |
| | |
| | |
Constellation Software, Inc. | | |
| | |
| | |
| | |
| | |
Fairfax Financial Holdings Ltd. | | |
Finning International, Inc. | | |
First Quantum Minerals Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magna International, Inc. | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
29
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Restaurant Brands International, Inc. | | |
RioCan Real Estate Investment Trust | | |
Rogers Communications, Inc., Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Teck Resources Ltd., Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
West Fraser Timber Co. Ltd. | | |
Wheaton Precious Metals Corp. | | |
| | |
| | |
| | |
|
|
| | |
GCL Technology Holdings Ltd. * | | |
| | |
SITC International Holdings Co. Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
|
AP Moller - Maersk AS, Class A | | |
AP Moller - Maersk AS, Class B | | |
| | |
| | |
| | |
| | |
| | |
Novonesis (Novozymes) B, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
30
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Unibail-Rodamco-Westfield * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fresenius Medical Care AG | | |
Fresenius SE & Co. KGaA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
BOC Hong Kong 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. | | |
| | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., A Shares | | |
Swire Pacific Ltd., B Shares | | |
Techtronic Industries Co. Ltd. | | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
Yue Yuen Industrial Holdings Ltd. | | |
| | |
|
|
| | |
Bank of Ireland Group PLC | | |
| | |
| | |
| | |
Flutter Entertainment PLC * | | |
| | |
| | |
| | |
James Hardie Industries PLC * | | |
| | |
| | |
| | |
| | |
Ryanair Holdings PLC, ADR | | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
Check Point Software Technologies Ltd. * | | |
| | |
| | |
Israel Discount Bank Ltd., A Shares | | |
| | |
Teva Pharmaceutical Industries Ltd. * | | |
Teva Pharmaceutical Industries Ltd., ADR * | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
31
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
ZIM Integrated Shipping Services Ltd. (a) | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mediobanca Banca di Credito Finanziario 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. | | |
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. | | |
| | |
| | |
| | |
| | |
| | |
Fuji Media Holdings, Inc. | | |
| | |
| | |
| | |
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. | | |
| | |
32
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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. | | |
| | |
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 Group, Inc. | | |
Sumitomo Realty & Development Co. Ltd. | | |
Sumitomo Rubber Industries Ltd. | | |
| | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tohoku Electric Power Co., Inc. | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
33
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Tokio Marine Holdings, Inc. | | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
Tokyu Fudosan Holdings Corp. | | |
| | |
| | |
| | |
| | |
Toyo Seikan Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
B&M European Value Retail SA | | |
| | |
Millicom International Cellular SA * | | |
| | |
| | |
| | |
| | |
|
|
Golden Agri-Resources Ltd. | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
STMicroelectronics NV (b) | | |
STMicroelectronics NV (b) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Bank Polska Kasa Opieki SA | | |
| | |
| | |
PGE Polska Grupa Energetyczna SA * | | |
Powszechna Kasa Oszczednosci Bank Polski SA | | |
Powszechny Zaklad Ubezpieczen SA | | |
| | |
|
|
| | |
| | |
| | |
| | |
|
|
BNK Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
34
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Posco International Corp. | | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
Woori Financial Group, Inc. | | |
| | |
|
|
| | |
| | |
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 | | |
International Consolidated Airlines Group SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Electrolux AB, B Shares * | | |
| | |
| | |
| | |
H & M Hennes & Mauritz 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 | | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
35
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Volvo Car AB, B Shares *(a) | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
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 | | |
| | |
| | |
| | |
| | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Associated British Foods PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings PLC | | |
| | |
| | |
British American Tobacco PLC | | |
| | |
| | |
| | |
| | |
CK Hutchison Holdings Ltd. | | |
Coca-Cola Europacific Partners PLC | | |
| | |
| | |
| | |
| | |
Direct Line Insurance Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
International Distribution 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 | | |
| | |
36
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
|
|
| | |
Ferguson Enterprises, Inc. | | |
Lululemon Athletica, Inc. * | | |
| | |
Total Common Stocks
(Cost $2,314,413,088) | |
|
PREFERRED STOCKS 1.0% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
Samsung Electronics Co. Ltd. | | |
| | |
|
|
| | |
Total Preferred Stocks
(Cost $33,025,008) | |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
Constellation Software, Inc. |
| | |
| |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d)(e) | | |
Total Short-Term Investments
(Cost $5,957,554) | |
Total Investments in Securities
(Cost $2,353,395,650) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $5,804,854. |
| Security is traded on separate exchanges for the same issuer. |
| 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 Fundamental Index Funds | Annual Holdings and Financial Statements
37
Schwab Fundamental International Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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. |
38
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Equity Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $2,353,395,650) including securities on loan of $5,804,854 | | |
| | |
Foreign currency, at value (cost $2,435,064) | | |
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 Fundamental Index Funds | Annual Holdings and Financial Statements
39
Schwab Fundamental International Equity Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $11,276,203) | | |
| | |
Interest received from securities - unaffiliated issuers | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
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). |
40
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Equity Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
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 | Annual Holdings and Financial Statements
41
Schwab Fundamental International Small Equity 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. |
42
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 99.1% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bendigo & Adelaide Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cleanaway Waste Management Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Domino's Pizza Enterprises Ltd. | | |
| | |
| | |
| | |
| | |
FleetPartners Group Ltd. * | | |
Flight Centre Travel Group Ltd. | | |
| | |
| | |
| | |
Harvey Norman Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magellan Financial Group Ltd. | | |
McMillan Shakespeare Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Nine Entertainment Co. Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pilbara Minerals Ltd. *(a) | | |
Platinum Asset Management Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Reliance Worldwide Corp. Ltd. | | |
| | |
| | |
Sandfire Resources Ltd. * | | |
| | |
Seven Group Holdings Ltd. | | |
| | |
| | |
Star Entertainment Group Ltd. *(a) | | |
| | |
| | |
| | |
| | |
Ventia Services Group Pty. Ltd. | | |
| | |
Virgin Australia Holdings Pty. Ltd. *(b) | | |
Washington H Soul Pattinson & Co. Ltd. | | |
| | |
West African Resources Ltd. * | | |
| | |
| | |
| | |
|
|
| | |
AT&S Austria Technologie & Systemtechnik AG * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schoeller-Bleckmann Oilfield Equipment AG | | |
| | |
| | |
| | |
| | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
| | |
|
|
Ackermans & van Haaren NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
43
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Titan Cement International SA | | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
Ag Growth International, Inc. | | |
| | |
Alamos Gold, Inc., Class A | | |
| | |
Allied Properties Real Estate Investment Trust | | |
| | |
| | |
Artis Real Estate Investment Trust | | |
| | |
| | |
| | |
Badger Infrastructure Solution | | |
| | |
| | |
| | |
| | |
| | |
Boardwalk Real Estate Investment Trust | | |
Bombardier, Inc., Class B * | | |
| | |
Boyd Group Services, Inc. | | |
Brookfield Business Corp., Class A | | |
Brookfield Infrastructure Corp., Class A | | |
Brookfield Renewable Corp., Class A | | |
Brookfield Wealth Solutions Ltd. * | | |
| | |
| | |
| | |
Canaccord Genuity Group, Inc. | | |
Canada Goose Holdings, Inc. * | | |
Canadian Apartment Properties REIT | | |
Canadian Solar, Inc. *(a) | | |
Canadian Utilities Ltd., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CES Energy Solutions Corp. | | |
Chartwell Retirement Residences | | |
Chemtrade Logistics Income Fund | | |
China Gold International Resources Corp. Ltd. * | | |
Choice Properties Real Estate Investment Trust | | |
| | |
| | |
| | |
Cogeco Communications, Inc. | | |
| | |
Colliers International Group, Inc. | | |
Crombie Real Estate Investment Trust | | |
CT Real Estate Investment Trust | | |
Curaleaf Holdings, Inc. * | | |
| | |
Descartes Systems Group, Inc. * | | |
Doman Building Materials Group Ltd. | | |
Dream Industrial Real Estate Investment Trust | | |
Dundee Precious Metals, Inc. | | |
| | |
Element Fleet Management Corp. | | |
| | |
| | |
Ensign Energy Services, Inc. * | | |
| | |
| | |
| | |
| | |
Fiera Capital Corp., Class A | | |
First Capital Real Estate Investment Trust | | |
First Majestic Silver Corp. | | |
| | |
| | |
| | |
| | |
| | |
Granite Real Estate Investment Trust | | |
H&R Real Estate Investment Trust | | |
| | |
| | |
| | |
Innergex Renewable Energy, Inc. | | |
| | |
International Petroleum Corp. *(c) | | |
International Petroleum Corp. *(c) | | |
| | |
Killam Apartment Real Estate Investment Trust | | |
Labrador Iron Ore Royalty Corp. | | |
Lassonde Industries, Inc., Class A | | |
Laurentian Bank of Canada | | |
| | |
Major Drilling Group International, Inc. * | | |
| | |
Martinrea International, Inc. | | |
| | |
| | |
| | |
| | |
North American Construction Group Ltd. | | |
| | |
NorthWest Healthcare Properties Real Estate Investment Trust | | |
44
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
Pan American Silver Corp. | | |
Paramount Resources Ltd., Class A | | |
| | |
| | |
Peyto Exploration & Development Corp. | | |
| | |
Precision Drilling Corp. * | | |
Premium Brands Holdings Corp., Class A | | |
| | |
| | |
| | |
| | |
RioCan Real Estate Investment Trust | | |
| | |
Secure Energy Services, Inc. | | |
| | |
Sienna Senior Living, Inc. | | |
SmartCentres Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tamarack Valley Energy Ltd. | | |
Teekay Tankers Ltd., Class A | | |
TELUS International CDA, Inc. * | | |
| | |
Torex Gold Resources, Inc. * | | |
| | |
Transcontinental, Inc., Class A | | |
| | |
| | |
Westshore Terminals Investment Corp. | | |
| | |
| | |
| | |
|
|
AAC Technologies Holdings, Inc. | | |
Alibaba Health Information Technology Ltd. * | | |
Bosideng International Holdings Ltd. | | |
Budweiser Brewing Co. APAC Ltd. | | |
China Medical System Holdings Ltd. | | |
China Water Affairs Group Ltd. | | |
Chow Tai Fook Jewellery Group Ltd. | | |
| | |
| | |
Health & Happiness H&H International Holdings Ltd. | | |
Hopson Development Holdings Ltd. * | | |
Jinchuan Group International Resources Co. Ltd. | | |
| | |
Kerry Logistics Network Ltd. | | |
Lee & Man Paper Manufacturing Ltd. | | |
Nexteer Automotive Group Ltd. | | |
Powerlong Real Estate Holdings Ltd. *(a) | | |
| | |
Theme International Holdings Ltd. | | |
Towngas Smart Energy Co. Ltd. * | | |
| | |
| | |
Want Want China Holdings Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Novonesis (Novozymes) B, Class B | | |
| | |
Ringkjoebing Landbobank AS | | |
| | |
| | |
Scandinavian Tobacco Group AS, A Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Metsa Board OYJ, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
45
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Eutelsat Communications SACA *(a) | | |
| | |
Gaztransport Et Technigaz SA | | |
| | |
| | |
| | |
ID Logistics Group SACA * | | |
| | |
| | |
| | |
| | |
La Francaise des Jeux SAEM | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Television Francaise 1 SA | | |
| | |
Ubisoft Entertainment SA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Carl Zeiss Meditec AG, Bearer Shares | | |
| | |
| | |
CompuGroup Medical SE & Co. KGaA | | |
CTS Eventim AG & Co. KGaA | | |
| | |
Deutsche Pfandbriefbank AG * | | |
| | |
| | |
| | |
DWS Group GmbH & Co. KGaA | | |
| | |
| | |
Fraport AG Frankfurt Airport Services Worldwide * | | |
| | |
| | |
Heidelberger Druckmaschinen AG * | | |
| | |
| | |
| | |
| | |
Hornbach Holding AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mercer International, Inc. | | |
| | |
Mutares SE & Co. KGaA (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
46
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Wuestenrot & Wuerttembergische AG | | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Brightoil Petroleum Holdings Ltd. *(b) | | |
Cafe de Coral Holdings Ltd. | | |
Cathay Pacific Airways Ltd. | | |
CITIC Telecom International Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
Cowell e Holdings, Inc. * | | |
Dah Sing Financial Holdings Ltd. | | |
DFI Retail Group Holdings Ltd. | | |
Fortune Real Estate Investment Trust | | |
Futu Holdings Ltd., ADR * | | |
Giordano International Ltd. | | |
Grand Pharmaceutical Group Ltd. | | |
| | |
Hang Lung Properties Ltd. | | |
Henderson Land Development Co. Ltd. | | |
HK Electric Investments & HK Electric Investments Ltd. | | |
| | |
Hongkong Land Holdings Ltd. | | |
Hysan Development Co. Ltd. | | |
Johnson Electric Holdings Ltd. | | |
| | |
Kingboard Laminates Holdings Ltd. | | |
Luk Fook Holdings International Ltd. | | |
| | |
Melco International Development Ltd. * | | |
Melco Resorts & Entertainment Ltd., ADR * | | |
| | |
Nine Dragons Paper Holdings Ltd. * | | |
| | |
PAX Global Technology Ltd. | | |
| | |
Sino Biopharmaceutical Ltd. | | |
| | |
| | |
| | |
Stella International Holdings Ltd. | | |
Sun Art Retail Group Ltd. | | |
| | |
Texhong International Group Ltd. | | |
| | |
United Laboratories International Holdings Ltd. | | |
Vitasoy International Holdings Ltd. | | |
| | |
| | |
| | |
|
| | |
|
| | |
|
|
Gulf Keystone Petroleum Ltd. | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Glenveagh Properties PLC * | | |
| | |
| | |
Irish Continental Group PLC | | |
| | |
| | |
| | |
|
|
| | |
|
|
Alony Hetz Properties & Investments Ltd. | | |
| | |
| | |
Bezeq The Israeli Telecommunication Corp. Ltd. | | |
| | |
Clal Insurance Enterprises Holdings Ltd. * | | |
| | |
Delek Automotive Systems Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Fattal Holdings 1998 Ltd. * | | |
| | |
First International Bank of Israel Ltd. | | |
Formula Systems 1985 Ltd. | | |
| | |
| | |
Harel Insurance Investments & Financial Services Ltd. | | |
| | |
| | |
| | |
Migdal Insurance & Financial Holdings Ltd. | | |
Mivne Real Estate KD Ltd. | | |
Mizrahi Tefahot Bank Ltd. | | |
| | |
| | |
| | |
Partner Communications Co. Ltd. * | | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
47
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | | |
| | |
| | |
| | |
Tower Semiconductor Ltd. * | | |
| | |
|
|
| | |
Alitalia - Linee Aeree Italiane SpA *(b) | | |
| | |
| | |
| | |
| | |
| | |
Banca Monte dei Paschi di Siena SpA | | |
Banca Popolare di Sondrio SpA | | |
| | |
| | |
| | |
CIR SpA-Compagnie Industriali * | | |
| | |
Danieli & C Officine Meccaniche SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
FinecoBank Banca Fineco SpA | | |
Infrastrutture Wireless Italiane SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica SpA | | |
| | |
| | |
Salvatore Ferragamo SpA (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Advance Residence Investment Corp. | | |
| | |
AEON Financial Service Co. Ltd. | | |
| | |
| | |
AEON REIT Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bando Chemical Industries Ltd. | | |
| | |
| | |
Bell System24 Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Canon Marketing Japan, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Chugin Financial Group, Inc. | | |
Chugoku Marine Paints Ltd. | | |
| | |
| | |
| | |
Comforia Residential REIT, Inc. | | |
Concordia Financial Group Ltd. | | |
Cosmos Pharmaceutical Corp. | | |
Create SD Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
48
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
Daiki Aluminium Industry Co. Ltd. | | |
Daikokutenbussan Co. Ltd. | | |
| | |
| | |
Daishi Hokuetsu Financial Group, Inc. | | |
Daiwa House REIT Investment Corp. | | |
Daiwa Office Investment Corp. | | |
Daiwa Securities Living Investments Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Doutor Nichires Holdings Co. Ltd. | | |
| | |
| | |
DyDo Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Frontier Real Estate Investment Corp. | | |
| | |
| | |
| | |
Fuji Media Holdings, Inc. | | |
| | |
| | |
Fuji Seal International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Fukuoka Financial Group, Inc. | | |
| | |
Fukushima Galilei Co. Ltd. | | |
Fukuyama Transporting Co. Ltd. | | |
| | |
| | |
| | |
Futaba Industrial Co. Ltd. | | |
Fuyo General Lease Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GungHo Online Entertainment, Inc. | | |
| | |
| | |
H.U. Group Holdings, Inc. | | |
| | |
| | |
Hagiwara Electric Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Harmonic Drive Systems, Inc. | | |
| | |
| | |
Heiwa Real Estate Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Hisamitsu Pharmaceutical Co., Inc. | | |
| | |
Hokkaido Electric Power Co., Inc. | | |
Hokkoku Financial Holdings, Inc. | | |
| | |
Hokuhoku Financial Group, Inc. | | |
Hokuriku Electric Power Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Inaba Denki Sangyo Co. Ltd. | | |
| | |
| | |
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. | | |
| | |
| | |
| | |
J Front Retailing Co. Ltd. | | |
| | |
| | |
| | |
Japan Airport Terminal Co. Ltd. | | |
Japan Aviation Electronics Industry Ltd. | | |
| | |
Japan Exchange Group, Inc. | | |
Japan Hotel REIT Investment Corp. | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
49
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Japan Logistics Fund, Inc. | | |
Japan Metropolitan Fund Invest | | |
Japan Petroleum Exploration Co. Ltd. | | |
Japan Prime Realty Investment Corp. | | |
Japan Pulp & Paper Co. Ltd. | | |
Japan Real Estate Investment Corp. | | |
| | |
Japan Wool Textile Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Juroku Financial Group, Inc. | | |
| | |
| | |
Kaga Electronics Co. Ltd. | | |
| | |
| | |
Kaken Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kanto Denka Kogyo Co. Ltd. | | |
| | |
| | |
Kawada Technologies, Inc. | | |
KDX Realty Investment Corp. | | |
| | |
| | |
| | |
Keisei Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
Kissei Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
Kobayashi Pharmaceutical Co. Ltd. | | |
| | |
Koei Tecmo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Konoike Transport Co. Ltd. | | |
| | |
KPP Group Holdings Co. Ltd. | | |
| | |
Kumiai Chemical Industry Co. Ltd. | | |
| | |
| | |
Kurita Water Industries 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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Makino Milling Machine Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Maruzen Showa Unyu Co. Ltd. | | |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Logisnext Co. Ltd. | | |
Mitsubishi Logistics Corp. | | |
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. | | |
Mitsuuroko Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Mochida Pharmaceutical Co. Ltd. | | |
| | |
| | |
Mori Hills REIT Investment Corp. | | |
| | |
Morinaga Milk Industry Co. Ltd. | | |
| | |
Musashi Seimitsu Industry Co. Ltd. | | |
50
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
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 Paint Holdings Co. Ltd. | | |
Nippon Prologis REIT, Inc. | | |
NIPPON REIT Investment Corp. | | |
| | |
Nippon Sanso Holdings Corp. | | |
| | |
Nippon Sheet Glass Co. Ltd. * | | |
| | |
| | |
| | |
Nippon Television Holdings, Inc. | | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rohto Pharmaceutical Co. Ltd. | | |
| | |
| | |
Ryoyo Ryosan Holdings, Inc. | | |
| | |
Saibu Gas Holdings Co. Ltd. | | |
| | |
Sakai Chemical Industry Co. Ltd. | | |
Sakai Moving Service Co. Ltd. | | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
51
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
Sanken Electric 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. | | |
| | |
Seikitokyu Kogyo Co. Ltd. | | |
| | |
| | |
| | |
| | |
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. | | |
| | |
| | |
Taihei Dengyo Kaisha 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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Towa Pharmaceutical Co. Ltd. | | |
Toyo Construction Co. Ltd. | | |
| | |
| | |
| | |
52
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tsubaki Nakashima Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Super Markets Holdings, Inc. (a) | | |
United Urban Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Warabeya Nichiyo Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Yamae Group 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. | | |
| | |
| | |
| | |
|
|
| | |
| | |
International Workplace Group PLC | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Espirito Santo Financial Group SA *(b) | | |
Grand City Properties SA * | | |
| | |
Samsonite International SA | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
AMG Critical Materials NV | | |
| | |
| | |
| | |
| | |
BE Semiconductor Industries NV | | |
| | |
| | |
| | |
| | |
Eurocommercial Properties NV | | |
| | |
| | |
| | |
| | |
| | |
Just Eat Takeaway.com NV * | | |
| | |
| | |
| | |
MFE-MediaForEurope NV, Class A | | |
MFE-MediaForEurope NV, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Auckland International Airport Ltd. | | |
| | |
| | |
| | |
Fisher & Paykel Healthcare Corp. Ltd. | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
53
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SKYCITY Entertainment Group Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gjensidige Forsikring ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nordic Semiconductor ASA * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SpareBank 1 Sor-Norge ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Wilh Wilhelmsen Holding ASA, Class A | | |
Wilh Wilhelmsen Holding ASA, Class B | | |
| | |
|
|
| | |
| | |
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. * | | |
Daishin Securities Co. Ltd. | | |
| | |
| | |
| | |
DGB Financial Group, Inc. | | |
| | |
Dongjin Semichem Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Green Cross Holdings Corp. | | |
| | |
| | |
| | |
Hanjin Transportation Co. Ltd. | | |
| | |
| | |
| | |
54
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Hanwha Aerospace Co. Ltd. | | |
Hanwha General Insurance Co. Ltd. | | |
Hanwha Industrial Solutions 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 | | |
| | |
| | |
| | |
HS Hyosung Advanced Materials Corp. | | |
| | |
| | |
| | |
Hyosung Heavy Industries Corp. | | |
| | |
| | |
Hyundai Department Store Co. Ltd. | | |
Hyundai Elevator Co. Ltd. | | |
| | |
Hyundai Home Shopping Network Corp. | | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
JB Financial Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
KEPCO Plant Service & Engineering Co. Ltd. | | |
| | |
| | |
| | |
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. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Macquarie Korea Infrastructure Fund | | |
| | |
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. | | |
| | |
SeAH Steel Holdings Corp. | | |
Sebang Global Battery Co. Ltd. | | |
| | |
Seohee Construction Co. Ltd. | | |
Seoul Semiconductor Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Songwon Industrial Co. Ltd. | | |
| | |
| | |
Taekwang Industrial Co. Ltd. | | |
Taihan Electric Wire Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
55
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Youngone Holdings Co. Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
CapitaLand Integrated Commercial Trust | | |
CapitaLand Investment Ltd. | | |
| | |
| | |
| | |
Frasers Logistics & Commercial Trust | | |
| | |
Geo Energy Resources Ltd. | | |
| | |
Hutchison Port Holdings Trust, Class U | | |
| | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Keppel Infrastructure Trust | | |
| | |
Kulicke & Soffa Industries, Inc. | | |
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 *(b) | | |
| | |
| | |
Atresmedia Corp. de Medios de Comunicacion SA | | |
| | |
Caja de Ahorros del Mediterraneo *(b) | | |
| | |
| | |
Construcciones y Auxiliar de Ferrocarriles SA | | |
Corp. ACCIONA Energias Renovables SA | | |
| | |
| | |
| | |
Ence Energia y Celulosa SA | | |
| | |
| | |
| | |
| | |
Grupo Catalana Occidente SA | | |
| | |
Inmobiliaria Colonial Socimi SA | | |
International Consolidated Airlines Group SA | | |
Linea Directa Aseguradora SA Cia de Seguros y Reaseguros | | |
| | |
| | |
Melia Hotels International SA | | |
Merlin Properties Socimi SA | | |
| | |
Obrascon Huarte Lain SA *(a) | | |
Prosegur Cia 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 | | |
| | |
| | |
56
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
L E Lundbergforetagen AB, B Shares | | |
Lagercrantz Group AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Wave Group AB, B Shares | | |
Nibe Industrier AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samhallsbyggnadsbolaget i Norden AB | | |
Samhallsbyggnadsbolaget i Norden AB, D Shares | | |
Scandic Hotels Group AB * | | |
| | |
| | |
Storskogen Group AB, B Shares | | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
| | |
Bossard Holding AG, Class A | | |
| | |
Burckhardt Compression Holding AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
OC Oerlikon Corp. AG Pfaffikon | | |
| | |
Schweiter Technologies AG | | |
| | |
| | |
| | |
| | |
St. Galler Kantonalbank AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Babcock International Group PLC | | |
Bank of Georgia Group PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Close Brothers Group PLC * | | |
| | |
| | |
| | |
| | |
| | |
Crest Nicholson Holdings PLC | | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
57
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
| | |
Diversified Energy Co. PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group PLC | | |
Intermediate Capital Group PLC | | |
| | |
| | |
| | |
| | |
Johnson Service Group PLC | | |
Jupiter Fund Management PLC | | |
| | |
| | |
| | |
| | |
Land Securities Group PLC | | |
Liontrust Asset Management PLC | | |
LondonMetric Property PLC | | |
| | |
| | |
Mitchells & Butlers PLC * | | |
| | |
| | |
| | |
Morgan Advanced Materials PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paragon Banking Group PLC | | |
| | |
| | |
| | |
Pinewood Technologies Group PLC | | |
Polar Capital Holdings PLC | | |
| | |
Primary Health Properties PLC | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rolls-Royce Holdings PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Spire Healthcare Group PLC | | |
Spirent Communications PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vanquis Banking Group PLC | | |
| | |
| | |
| | |
Watches of Switzerland Group PLC * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Constellium SE, Class A * | | |
Coronado Global Resources, Inc. | | |
| | |
Magnachip Semiconductor Corp. * | | |
58
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
SolarEdge Technologies, Inc. * | | |
| | |
Total Common Stocks
(Cost $465,379,002) | |
|
PREFERRED STOCKS 0.2% OF NET ASSETS |
|
|
Draegerwerk AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Danieli & C Officine Meccaniche SpA | | |
|
|
Daishin Securities Co. Ltd. | | |
Total Preferred Stocks
(Cost $1,112,501) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
|
Cir Dir Opz Az Ord Su Az Ord |
expires 11/08/24, strike EUR 0.55 *(b) | | |
|
expires 11/28/24, strike EUR 130.96 *(b) | | |
|
expires 11/28/24, strike EUR 110.20 *(b) | | |
| | |
|
|
|
expires 11/01/24, strike SGD 0.31 *(b) | | |
| |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
|
| | |
| |
| | |
SHORT-TERM INVESTMENTS 0.8% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d)(e) | | |
Total Short-Term Investments
(Cost $4,437,667) | |
Total Investments in Securities
(Cost $470,929,170) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $4,219,468. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Security is traded on separate exchanges for the same issuer. |
| 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 |
| |
| |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
59
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
60
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| 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 October 31, 2024. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
61
Schwab Fundamental International Small Equity Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $470,929,170) including securities on loan of $4,219,468 | | |
| | |
Foreign currency, at value (cost $345,557) | | |
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 | | |
| | |
62
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental International Small Equity Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $2,361,442) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
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 | Annual Holdings and Financial Statements
63
Schwab Fundamental International Small Equity Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
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) | | | | | |
| | | | | |
64
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity 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 | Annual Holdings and Financial Statements
65
Schwab Fundamental Emerging Markets Equity Index Fund
Portfolio Holdings as of October 31, 2024
| | |
COMMON STOCKS 95.7% 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 Paranaense de Energia - Copel | | |
Cia Siderurgica Nacional SA | | |
| | |
| | |
| | |
| | |
Marfrig Global Foods SA * | | |
| | |
| | |
| | |
| | |
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 Beijing Co. Ltd., A 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 | | |
BOE Technology Group Co. Ltd., A Shares | | |
| | |
| | |
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 Hongqiao Group Ltd. | | |
China Life Insurance Co. Ltd., A Shares | | |
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 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 Shenhua Energy Co. Ltd., A Shares | | |
China Shenhua Energy Co. Ltd., H Shares | | |
China State Construction Engineering Corp. Ltd., A Shares | | |
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. | | |
CITIC Securities Co. Ltd., A Shares | | |
CITIC Securities Co. Ltd., H Shares | | |
COSCO SHIPPING Holdings Co. Ltd., A Shares | | |
COSCO SHIPPING Holdings Co. Ltd., H Shares | | |
Country Garden Holdings Co. Ltd. *(b) | | |
CRRC Corp. Ltd., A Shares | | |
CRRC Corp. Ltd., H Shares | | |
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 | | |
66
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
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. | | |
| | |
| | |
Midea Group Co. Ltd., A Shares | | |
| | |
PDD Holdings, Inc., ADR * | | |
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. | | |
Sinopharm Group Co. Ltd., H Shares | | |
Sunac China Holdings Ltd. *(a) | | |
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 | | |
ZTO Express Cayman, Inc., ADR | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
Alpha Services & Holdings SA | | |
Eurobank Ergasias Services & Holdings SA, Class H | | |
National Bank of Greece SA | | |
| | |
|
|
Beijing Enterprises Holdings Ltd. | | |
BOC Hong Kong Holdings Ltd. | | |
China Everbright Environment Group Ltd. | | |
China Jinmao Holdings Group Ltd. | | |
China Overseas Land & Investment Ltd. | | |
China Resources Power Holdings Co. Ltd. | | |
China Taiping Insurance Holdings Co. Ltd. | | |
| | |
CSPC Pharmaceutical Group Ltd. | | |
| | |
| | |
Nine Dragons Paper Holdings Ltd. * | | |
Orient Overseas International Ltd. | | |
Sino Biopharmaceutical Ltd. | | |
| | |
|
|
MOL Hungarian Oil & Gas PLC | | |
| | |
| | |
|
|
| | |
Bharat Petroleum Corp. Ltd. | | |
| | |
Bharti Airtel Ltd. - Partly Paid Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hindustan Petroleum Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Oil & Natural Gas Corp. Ltd. | | |
| | |
| | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
67
Schwab Fundamental Emerging Markets Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
Power Grid Corp. of India Ltd. | | |
| | |
| | |
| | |
Reliance Industries Ltd., Interim Shares *(b) | | |
| | |
Steel Authority of India Ltd. | | |
Sun Pharmaceutical Industries Ltd. | | |
Tata Consultancy Services Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
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 | | |
Fibra Uno Administracion SA de CV | | |
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 | | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Saudi Arabian Mining Co. * | | |
| | |
| | |
Saudi Basic Industries Corp. | | |
| | |
| | |
| | |
| | |
|
|
| | |
Anglo American Platinum Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Impala Platinum Holdings Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sibanye Stillwater Ltd. * | | |
| | |
| | |
| | |
|
|
| | |
ASE Technology Holding Co. Ltd. | | |
| | |
| | |
| | |
Catcher Technology Co. Ltd. | | |
Cathay Financial Holding Co. Ltd. | | |
Chailease Holding Co. Ltd. | | |
| | |
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. | | |
Far EasTone Telecommunications Co. Ltd. | | |
First Financial Holding Co. Ltd. | | |
Formosa Chemicals & Fibre Corp. | | |
Formosa Petrochemical Corp. | | |
68
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
| | |
Fubon Financial Holding Co. Ltd. | | |
Hon Hai Precision Industry Co. Ltd. | | |
| | |
| | |
KGI Financial Holding Co. Ltd. | | |
Largan Precision Co. Ltd. | | |
Lite-On Technology Corp., ADR | | |
| | |
Mega Financial Holding Co. Ltd. | | |
Micro-Star International Co. Ltd. | | |
| | |
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. | | |
TCC Group Holdings 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 0.8% |
Abu Dhabi Commercial Bank PJSC | | |
| | |
| | |
| | |
Emirates Telecommunications Group Co. PJSC | | |
First Abu Dhabi Bank PJSC | | |
| | |
|
|
| | |
|
|
Yum China Holdings, Inc. (c) | | |
Yum China Holdings, Inc. (c) | | |
| | |
Total Common Stocks
(Cost $661,819,908) | |
|
PREFERRED STOCKS 3.8% OF NET ASSETS |
|
|
| | |
Centrais Eletricas Brasileiras SA, B Shares | | |
Cia Energetica de Minas Gerais | | |
Cia Paranaense de Energia - Copel, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Sociedad Quimica y Minera de Chile SA, Class B | | |
|
|
| | |
Total Preferred Stocks
(Cost $27,197,851) | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
69
Schwab Fundamental Emerging Markets Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.82% (d)(e) | | |
Total Short-Term Investments
(Cost $2,184,586) | |
Total Investments in Securities
(Cost $691,202,345) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
MSCI Emerging Markets Index, expires 12/20/24 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $2,062,070. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Security is traded on separate exchanges for the same issuer. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| Non-Voting Depositary Receipt |
| |
| Includes holdings within sectors that are less than 1.0% of net assets. |
The following is a summary of the inputs used to value the fund’s investments as of October 31, 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) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
70
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity Index Fund
Portfolio Holdings as of October 31, 2024 (continued)
| 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 | Annual Holdings and Financial Statements
71
Schwab Fundamental Emerging Markets Equity Index Fund
Statement of Assets and Liabilities
|
Investments in securities, at value - unaffiliated issuers (cost $691,202,345) including securities on loan of $2,062,070 | | |
| | |
Foreign currency, at value (cost $1,923,588) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
Foreign capital gains tax | | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
72
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Emerging Markets Equity Index Fund
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $4,269,179) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated issuers (net of foreign capital gains tax paid of $2,590,794) | | |
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 ($3,711,301)) | | |
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 | | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
73
Schwab Fundamental Emerging Markets Equity Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
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 |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
74
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Index Funds
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 U.S. Large Company Index Fund | |
Schwab Fundamental U.S. Small Company Index Fund | |
Schwab Fundamental International Equity Index Fund | |
Schwab Fundamental International Small Equity Index Fund | |
Schwab Fundamental Emerging Markets Equity 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 |
Effective June 21, 2024, the following name changes occurred: Schwab Fundamental US Large Company Index Fund changed to Schwab Fundamental U.S. Large Company Index Fund, Schwab Fundamental US Small Company Index Fund changed to Schwab Fundamental U.S. Small Company Index Fund, Schwab Fundamental International Large Company Index Fund changed to Schwab Fundamental International Equity Index Fund, Schwab Fundamental International Small Company Index Fund changed to Schwab Fundamental International Small Equity Index Fund, Schwab Fundamental Emerging Markets Large Company Index Fund changed to Schwab Fundamental Emerging Markets Equity Index Fund.
Each fund in this report offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law. 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 U.S. Large Company Index Fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of large U.S. companies based on their fundamental size and weight.
The Schwab Fundamental U.S. Small Company Index Fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of small U.S. companies based on their fundamental size and weight.
The Schwab Fundamental International Equity Index Fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of large non-U.S. developed market companies based on their fundamental size and weight.
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Financial Notes (continued)
1. Business Structure of the Funds (continued):
The Schwab Fundamental International Small Equity Index Fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of small non-U.S. developed market companies based on their fundamental size and weight.
The Schwab Fundamental Emerging Markets Equity Index Fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of large sized companies, based on their fundamental size and weight, in emerging market countries.
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 and holdings and financial statements, which are filed in Form N-CSR 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
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Financial Notes (continued)
2. Significant Accounting Policies (continued):
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, exchange-traded 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 October 31, 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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Financial Notes (continued)
2. Significant Accounting Policies (continued):
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender), may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 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 October 31, 2024, Schwab Fundamental U.S. Large Company Index Fund, Schwab Fundamental U.S. Small Company Index Fund, Schwab Fundamental International Equity Index Fund, Schwab Fundamental International Small Equity Index Fund and Schwab Fundamental Emerging Markets Equity 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 October 31, 2024, are disclosed in each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Cash Investments: The funds, except for the Schwab Fundamental U.S. Large Company Index Fund and Schwab Fundamental U.S. 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 Equity Index Fund, Schwab Fundamental International Small Equity Index Fund and Schwab Fundamental Emerging Markets Equity 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
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Financial Notes (continued)
2. Significant Accounting Policies (continued):
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.
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 Equity Index Fund and Schwab Fundamental International Small Equity 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 Equity Index Fund and Schwab Fundamental International Small Equity 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 October 31, 2024, the Schwab Fundamental International Equity Index Fund and Schwab Fundamental International Small Equity Index Fund did not incur any compliance fees.
Pursuant to the Amended and Restated Advisory Agreement (Advisory Agreement) between the investment adviser and each fund, 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 NAVs 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.
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Financial Notes (continued)
2. Significant Accounting Policies (continued):
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.
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 October 31, 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.
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.
New Index Risk. Each fund’s comparative index was recently constituted and has not previously been utilized for a registered fund, which may create additional risks for investing in each 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.
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Financial Notes (continued)
3. Risk Factors (continued):
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.
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.
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Financial Notes (continued)
3. Risk Factors (continued):
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
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.
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 U.S. LARGE COMPANY INDEX FUND | SCHWAB FUNDAMENTAL U.S. SMALL COMPANY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL EQUITY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL SMALL EQUITY INDEX FUND | SCHWAB FUNDAMENTAL EMERGING MARKETS EQUITY INDEX FUND |
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Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments from Affiliates
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 October 31, 2024, as applicable:
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| SCHWAB FUNDAMENTAL U.S. LARGE COMPANY INDEX FUND | SCHWAB FUNDAMENTAL U.S. SMALL COMPANY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL EQUITY INDEX FUND | SCHWAB FUNDAMENTAL INTERNATIONAL SMALL EQUITY INDEX FUND | SCHWAB FUNDAMENTAL EMERGING MARKETS EQUITY 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 October 31, 2024, the professional fees incurred by the Schwab Fundamental International Equity Index Fund and Schwab Fundamental International Small Equity Index Fund and paid by the investment adviser were $55,470 and $6,895, respectively, as shown as Professional fees in each fund’s Statement of Operations.
During the period ended October 31, 2024, the Schwab Fundamental International Equity Index Fund recovered previously withheld foreign taxes from Finland. The payment received by the fund amounted to $184,423 and is recorded as Dividends received from securities — unaffiliated in the fund’s Statement of Operations. The investment adviser paid upfront professional fees associated with recovering these foreign taxes in the amount of $143,269, which has been reimbursed to the investment adviser by the fund and is recorded as Dividends received from securities — unaffiliated in the fund’s Statement of Operations. The Schwab Fundamental International Small Equity Index Fund did not recover any previously withheld foreign taxes and made no reimbursements to the investment adviser.
As of October 31, 2024, the balance of professional fees related to foreign withholding tax claims subject to future reimbursement by the Schwab Fundamental International Equity Index Fund and Schwab Fundamental International Small Equity Index Fund to the investment adviser were $16,084 and $8,959, 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.
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
83
Schwab Fundamental Index Funds
Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
Interfund Transactions
The funds may engage in direct transactions with 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 October 31, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any net realized gains (losses) were as follows:
| | | NET REALIZED GAINS (LOSSES) |
Schwab Fundamental U.S. Large Company Index Fund | | | |
Schwab Fundamental U.S. Small Company Index Fund | | | |
Schwab Fundamental International Equity Index Fund | | | |
Schwab Fundamental International Small Equity Index Fund | | | |
Schwab Fundamental Emerging Markets Equity 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.
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), which matured on September 26, 2024. On September 26, 2024, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount increasing to $1.2 billion, maturing on September 25, 2025. 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, which matured on September 26, 2024. On September 26, 2024, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 25, 2025. 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.
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Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Index Funds
Financial Notes (continued)
7. Derivatives:
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 October 31, 2024, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
| | |
| | |
Schwab Fundamental U.S. Large Company Index Fund | | |
| | |
Schwab Fundamental U.S. Small Company Index Fund | | |
| | |
Schwab Fundamental International Equity Index Fund | | |
| | |
Schwab Fundamental International Small Equity Index Fund | | |
| | |
Schwab Fundamental Emerging Markets Equity 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. |
The effects of the derivative contracts in the Statement of Operations for the period ended October 31, 2024, were:
| | |
Net Realized Gains (Losses) | | |
Schwab Fundamental U.S. Large Company Index Fund | | |
| | |
Schwab Fundamental U.S. Small Company Index Fund | | |
| | |
Schwab Fundamental International Equity Index Fund | | |
| | |
Schwab Fundamental International Small Equity Index Fund | | |
| | |
Schwab Fundamental Emerging Markets Equity Index Fund | | |
| | |
| |
| Statement of Operations location: Net realized gains (losses) on futures contracts. |
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85
Schwab Fundamental Index Funds
Financial Notes (continued)
7. Derivatives (continued):
Net Change in Unrealized Appreciation (Depreciation) | | |
Schwab Fundamental U.S. Large Company Index Fund | | |
| | |
Schwab Fundamental U.S. Small Company Index Fund | | |
| | |
Schwab Fundamental International Equity Index Fund | | |
| | |
Schwab Fundamental International Small Equity Index Fund | | |
| | |
Schwab Fundamental Emerging Markets Equity Index Fund | | |
| | |
| |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
During the period ended October 31, 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 U.S. Large Company Index Fund | | |
Schwab Fundamental U.S. Small Company Index Fund | | |
Schwab Fundamental International Equity Index Fund | | |
Schwab Fundamental International Small Equity Index Fund | | |
Schwab Fundamental Emerging Markets Equity Index Fund | | |
8. Purchases and Sales of Investment Securities:For the period ended October 31, 2024, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:
| | |
Schwab Fundamental U.S. Large Company Index Fund | | |
Schwab Fundamental U.S. Small Company Index Fund | | |
Schwab Fundamental International Equity Index Fund | | |
Schwab Fundamental International Small Equity Index Fund | | |
Schwab Fundamental Emerging Markets Equity Index Fund | | |
During the period ended October 31, 2024, the following funds had transactions in connection with in-kind transactions:
| IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
Schwab Fundamental U.S. Large Company Index Fund | | |
Schwab Fundamental U.S. Small Company Index Fund | | |
During the period ended October 31, 2024, 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 October 31, 2024, are disclosed in the funds’ Statements of Operations, if any.
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Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Index Funds
Financial Notes (continued)
9. Federal Income Taxes:
As of October 31, 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 U.S. Large Company Index Fund | | | | |
Schwab Fundamental U.S. Small Company Index Fund | | | | |
Schwab Fundamental International Equity Index Fund | | | | |
Schwab Fundamental International Small Equity Index Fund | | | | |
Schwab Fundamental Emerging Markets Equity Index Fund | | | | |
The primary differences between book basis and tax basis unrealized appreciation or unrealized depreciation of investments are the tax deferral of losses on wash sales, the realization for tax purposes of unrealized appreciation or depreciation on futures contracts, the realization for tax purposes of unrealized appreciation on investments in PFICs and partnership investments. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| UNDISTRIBUTED
ORDINARY
INCOME | UNDISTRIBUTED
LONG-TERM
CAPITAL GAINS | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | NET OTHER UNREALIZED
APPRECIATION
(DEPRECIATION) | CAPITAL LOSS
CARRYFORWARDS
AND OTHER LOSSES | |
Schwab Fundamental U.S. Large Company Index Fund | | | | | | |
Schwab Fundamental U.S. Small Company Index Fund | | | | | | |
Schwab Fundamental International Equity Index Fund | | | | | | |
Schwab Fundamental International Small Equity Index Fund | | | | | | |
Schwab Fundamental Emerging Markets Equity 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, 2024, the funds had capital loss carryforwards available as follows:
| |
Schwab Fundamental U.S. Large Company Index Fund | |
Schwab Fundamental U.S. Small Company Index Fund | |
Schwab Fundamental International Equity Index Fund | |
Schwab Fundamental International Small Equity Index Fund | |
Schwab Fundamental Emerging Markets Equity Index Fund | |
For the fiscal year ended October 31, 2024, the funds had capital loss carryforwards utilized as follows:
| |
Schwab Fundamental U.S. Large Company Index Fund | |
Schwab Fundamental U.S. Small Company Index Fund | |
Schwab Fundamental International Equity Index Fund | |
Schwab Fundamental International Small Equity Index Fund | |
Schwab Fundamental Emerging Markets Equity Index Fund | |
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
87
Schwab Fundamental Index Funds
Financial Notes (continued)
9. Federal Income Taxes (continued):
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | | |
Schwab Fundamental U.S. Large Company Index Fund | | | |
Schwab Fundamental U.S. Small Company Index Fund | | | |
Schwab Fundamental International Equity Index Fund | | | |
Schwab Fundamental International Small Equity Index Fund | | | |
Schwab Fundamental Emerging Markets Equity 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.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of October 31, 2024, 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, 2024, the funds did not incur any interest or penalties.
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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Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Index Funds
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Capital Trust and Shareholders of Schwab Fundamental U.S. Large Company Index Fund (formerly Schwab Fundamental US Large Company Index Fund), Schwab Fundamental U.S. Small Company Index Fund (formerly Schwab Fundamental US Small Company Index Fund), Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund), Schwab Fundamental International Small Equity Index Fund (formerly Schwab Fundamental International Small Company Index Fund), and Schwab Fundamental Emerging Markets Equity Index Fund (formerly Schwab Fundamental Emerging Markets Large Company Index Fund):
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab Fundamental U.S. Large Company Index Fund, Schwab Fundamental U.S. Small Company Index Fund, Schwab Fundamental International Equity Index Fund, Schwab Fundamental International Small Equity Index Fund, and Schwab Fundamental Emerging Markets Equity Index Fund (the “Funds”), five of the Funds constituting Schwab Capital Trust, as of October 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds constituting Schwab Capital Trust as of October 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
December 16, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
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Schwab Fundamental Index Funds
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between Schwab Capital Trust (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab Fundamental U.S. Large Company Index Fund, Schwab Fundamental U.S. Small Company Index Fund, Schwab Fundamental International Equity Index Fund, Schwab Fundamental International Small Equity Index Fund and Schwab Fundamental Emerging Markets Equity Index Fund (each, a Fund and collectively, the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the
approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.
each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.
each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to each Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also
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Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Schwab Fundamental Index Funds
considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.
Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of each Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and such Fund’s demonstrated performance in tracking its benchmark index. The Trustees noted that the Funds had closely tracked their respective indexes in 2023, with all of the Funds performing in their expected performance ranges. The Trustees further noted that, at a meeting held on February 27, 2024, the Trustees had approved each Fund’s transition to a new benchmark index which will be relevant in evaluating Fund performance going forward. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of each Fund supported renewal of the Agreement with respect to such Fund.
Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement, and each Fund’s operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees also considered fees charged by the
investment adviser to ETFs, other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of each Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed the profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser with respect to each Fund is reasonable and supported renewal of the Agreement with respect to such Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Funds do not have breakpoints in their advisory fees, the Trustees considered the potential existence of any economies of scale by way of the relatively low advisory fee and unitary fee structure of the Funds and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows.
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Schwab Fundamental Index Funds
The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that each Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not
identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Funds and concluded that the compensation under the Agreement with respect to the Funds is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
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Schwab Fundamental Index Funds | Annual Holdings and Financial Statements
Annual Holdings and Financial Statements | October 31, 2024
Schwab MarketTrack Portfolios®
Schwab MarketTrack
All Equity Portfolio™
Schwab MarketTrack
Growth Portfolio™
Schwab MarketTrack
Balanced Portfolio™
Schwab MarketTrack
Conservative Portfolio™
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
1
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: | | | | | | |
| | | | | | |
| | | | | | |
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. |
2
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack All Equity Portfolio
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 99.6% OF NET ASSETS |
|
|
|
Schwab Fundamental U.S. Large Company Index Fund (formerly Schwab Fundamental US Large Company Index Fund) | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental U.S. Small Company Index Fund (formerly Schwab Fundamental US Small Company Index Fund) | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 33.3% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab Fundamental International Small Equity Index Fund (formerly Schwab Fundamental International Small Company Index Fund) | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Equity Index Fund (formerly Schwab Fundamental Emerging Markets Large Company Index Fund) | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $479,777,139) | | | | | | | | |
Total Investments in Securities
(Cost $479,777,139) | | | | | | | | |
| 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). |
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
3
Schwab MarketTrack All Equity Portfolio
Portfolio Holdings as of October 31, 2024 (continued)
| |
| Real Estate Investment Trust |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
4
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack All Equity Portfolio
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $479,777,139) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
5
Schwab MarketTrack All Equity Portfolio
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
6
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack All Equity Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
7
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: | | | | | | |
| | | | | | |
| | | | | | |
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. |
8
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 99.4% OF NET ASSETS |
|
|
|
Schwab Fundamental U.S. Large Company Index Fund (formerly Schwab Fundamental US Large Company Index Fund) | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental U.S. Small Company Index Fund (formerly Schwab Fundamental US Small Company Index Fund) | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 24.1% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab Fundamental International Small Equity Index Fund (formerly Schwab Fundamental International Small Company Index Fund) | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Equity Index Fund (formerly Schwab Fundamental Emerging Markets Large Company Index Fund) | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 16.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
9
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $569,330,642) | | | | | | | | |
Total Investments in Securities
(Cost $569,330,642) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $32,706,828 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
| |
| Real Estate Investment Trust |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
10
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Growth Portfolio
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $569,330,642) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
11
Schwab MarketTrack Growth Portfolio
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
12
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Growth Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
13
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: | | | | | | |
| | | | | | |
| | | | | | |
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. |
14
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 99.6% OF NET ASSETS |
|
|
|
Schwab Fundamental U.S. Large Company Index Fund (formerly Schwab Fundamental US Large Company Index Fund) | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental U.S. Small Company Index Fund (formerly Schwab Fundamental US Small Company Index Fund) | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 18.1% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab Fundamental International Small Equity Index Fund (formerly Schwab Fundamental International Small Company Index Fund) | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Equity Index Fund (formerly Schwab Fundamental Emerging Markets Large Company Index Fund) | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 35.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
15
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $411,527,562) | | | | | | | | |
Total Investments in Securities
(Cost $411,527,562) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $20,540,608 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
| |
| Real Estate Investment Trust |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
16
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Balanced Portfolio
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $411,527,562) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
17
Schwab MarketTrack Balanced Portfolio
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
18
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Balanced Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
19
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: | | | | | | |
| | | | | | |
| | | | | | |
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. |
20
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 99.6% OF NET ASSETS |
|
|
|
Schwab Fundamental U.S. Large Company Index Fund (formerly Schwab Fundamental US Large Company Index Fund) | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental U.S. Small Company Index Fund (formerly Schwab Fundamental US Small Company Index Fund) | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 12.0% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab Fundamental International Small Equity Index Fund (formerly Schwab Fundamental International Small Company Index Fund) | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Equity Index Fund (formerly 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 | Annual Holdings and Financial Statements
21
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $165,832,606) | | | | | | | | |
Total Investments in Securities
(Cost $165,832,606) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $7,142,052 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
| |
| Real Estate Investment Trust |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
22
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Conservative Portfolio
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $165,832,606) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
23
Schwab MarketTrack Conservative Portfolio
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
24
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Conservative Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
25
Schwab MarketTrack Portfolios
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 U.S. Large Company Index Fund |
Schwab Total Stock Market Index Fund | Schwab Fundamental U.S. Small Company Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Fundamental International Equity 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 Equity 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.
26
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Portfolios
Financial Notes (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 and holdings and financial statements, which are filed in Form N-CSR 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
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Financial Notes (continued)
2. Significant Accounting Policies (continued):
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 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 October 31, 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 NAVs 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.
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Financial Notes (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.
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.
● Investment Style Risk. Certain underlying funds seek to track the performance of various segments of the stock market, as measured by their respective indices. Such underlying funds follow these stocks during upturns as well as downturns. Because of their indexing strategy, these underlying funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of an underlying fund’s expenses, the underlying fund’s performance is normally below that of the index. Errors relating to an index may occur from time to time and may not be identified by the underlying fund’s index provider for a period of time. In addition, market disruptions could cause delays in an underlying fund’s index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for an underlying fund.
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Financial Notes (continued)
3. Risk Factors (continued):
● Tracking Error Risk. Each underlying index fund seeks to track the performance of its respective index, although it may not be successful in doing so. The divergence between the performance of an underlying fund and its index, positive or negative, is called "tracking error." Tracking error can be caused by many factors and it may be significant. If an underlying fund utilizes a sampling approach, it may not track the return of the index as well as it would if the underlying fund purchased all of the securities in the index.
● Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
● Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
● Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, an underlying fund’s performance could be impacted.
● Real Estate Investment Risk. An underlying fund that has a policy of concentrating its investments in real estate companies and companies related to the real estate industry is subject to risks associated with the direct ownership of real estate securities. These risks include, among others, declines in the value of (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 structures; and higher transaction costs. These risks may negatively impact the value or liquidity of an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar.
● Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more
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Financial Notes (continued)
3. Risk Factors (continued):
precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
● Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures, 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.
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 each fund.
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.
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Financial Notes (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 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.
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 October 31, 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 Equity Index Fund | | | | |
Schwab Fundamental International Equity Index Fund | | | | |
Schwab Fundamental International Small Equity Index Fund | | | | |
Schwab Fundamental U.S. Large Company Index Fund | | | | |
Schwab Fundamental U.S. Small Company Index Fund | | | | |
Schwab Government Money Fund, Ultra Shares | | | | |
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 | | | | |
| | | | |
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Financial Notes (continued)
4. Affiliates and Affiliated Transactions (continued):
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 October 31, 2024, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any net realized gains (losses) were as follows:
| | | NET REALIZED GAINS (LOSSES) |
Schwab MarketTrack All Equity Portfolio | | | |
Schwab MarketTrack Growth Portfolio | | | |
Schwab MarketTrack Balanced Portfolio | | | |
Schwab MarketTrack Conservative Portfolio | | | |
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.
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), which matured on September 26, 2024. On September 26, 2024, the Syndicated Credit Facility was amended to run for a new 364 day period with the committed line of credit increasing to $1.2 billion, maturing on September 25, 2025. 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, which matured on September 26, 2024. On September 26, 2024, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 25, 2025. 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.
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Financial Notes (continued)
7. Purchases and Sales of Investment Securities:
For the period ended October 31, 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 October 31, 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 | | | | |
The primary difference between book basis and tax basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| UNDISTRIBUTED
ORDINARY
INCOME | UNDISTRIBUTED
LONG-TERM
CAPITAL GAINS | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | |
Schwab MarketTrack All Equity Portfolio | | | | |
Schwab MarketTrack Growth Portfolio | | | | |
Schwab MarketTrack Balanced Portfolio | | | | |
Schwab MarketTrack Conservative Portfolio | | | | |
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | 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.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
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Financial Notes (continued)
8. Federal Income Taxes (continued):
As of October 31, 2024, 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, 2024, 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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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Capital Trust and Shareholders of Schwab MarketTrack All Equity Portfolio, Schwab MarketTrack Growth Portfolio, Schwab MarketTrack Balanced Portfolio, and Schwab MarketTrack Conservative Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab MarketTrack All Equity Portfolio, Schwab MarketTrack Growth Portfolio, Schwab MarketTrack Balanced Portfolio, and Schwab MarketTrack Conservative Portfolio (the “Funds”), four of the Funds constituting Schwab Capital Trust, as of October 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds constituting Schwab Capital Trust as of October 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
December 16, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
36
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Portfolios
Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between Schwab Capital Trust (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab MarketTrack All Equity Portfolio, Schwab MarketTrack Growth Portfolio, Schwab MarketTrack Balanced Portfolio and Schwab MarketTrack Conservative Portfolio (each, a Fund and collectively, the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and
answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.
each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.
each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to each Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
37
Schwab MarketTrack Portfolios
technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.
Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of each Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Although Schwab MarketTrack Conservative Portfolio had performance that ranked in the fourth quartile of a relevant peer group for more than one performance period considered, the Board concluded that other factors relevant to performance supported renewal of the Agreement with respect to the Fund including that the underperformance was attributable, to a significant extent, to investment decisions by the investment adviser that were reasonable and consistent with the Fund’s investment objective and policies and that the investment adviser had taken steps designed to help improve performance. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of each Fund supported renewal of the Agreement with respect to such Fund.
Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement, and each Fund’s operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees also considered the investment adviser’s contractual commitment to limit the operating
expense of each Fund for so long as it serves as the adviser to the Fund. The Trustees also considered fees charged by the investment adviser to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts, and any differences in the market for these types of accounts. The Trustees noted that shareholders of the Funds indirectly pay their pro rata share of the fees and expenses of the underlying funds in which the Funds invest. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of each Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed the profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. Also, because each Fund invests a portion of its assets in other funds within the Schwab fund complex, the Trustees considered the indirect benefits to the investment adviser from such Fund’s investments in other underlying funds managed by the investment adviser. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser with respect to each Fund is reasonable and supported renewal of the Agreement with respect to such Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, and although the Funds do not have breakpoints in their advisory fees, the Trustees considered the potential existence of any economies of scale and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and
38
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
Schwab MarketTrack Portfolios
use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds. The Trustees considered that the investment adviser and its affiliates employ contractual expense caps to protect shareholders from higher fees, including for example, when fund assets are relatively small. Based on this evaluation, the Board concluded, within the context of its full deliberations, that each Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Funds and concluded that the compensation under the Agreement with respect to the Funds is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
Schwab MarketTrack Portfolios | Annual Holdings and Financial Statements
39
Annual Holdings and Financial Statements | October 31, 2024
Schwab Target Funds
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Target Funds | Annual Holdings and Financial Statements
1
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 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. |
2
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 75.5% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 7.5% |
|
Schwab Fundamental International Equity Index Fund (formerly 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 27.0% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $27,146,484) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
3
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 24.0% 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 16.9% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $9,879,273) | | | | | | | | |
Total Investments in Securities
(Cost $37,025,757) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $1,098,835 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
4
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $27,146,484) | | |
Investments in securities, at value - unaffiliated issuers (cost $9,879,273) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
5
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
6
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
7
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 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. |
8
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 75.5% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 8.6% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 6.3% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 25.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $30,201,087) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
9
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 24.1% 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 16.2% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $11,200,707) | | | | | | | | |
Total Investments in Securities
(Cost $41,401,794) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $1,041,367 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
10
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $30,201,087) | | |
Investments in securities, at value - unaffiliated issuers (cost $11,200,707) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
11
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
12
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
13
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 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. |
14
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 75.7% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 9.5% |
|
Schwab Fundamental International Equity Index Fund (formerly 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 23.8% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $192,742,435) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
15
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 23.9% 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 15.8% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $72,392,995) | | | | | | | | |
Total Investments in Securities
(Cost $265,135,430) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $5,440,474 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
16
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $192,742,435) | | |
Investments in securities, at value - unaffiliated issuers (cost $72,392,995) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
17
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
18
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
19
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 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. |
20
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 75.0% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 11.6% |
|
Schwab Fundamental International Equity Index Fund (formerly 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 21.3% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $266,408,212) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
21
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 24.6% 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 0.1% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 15.1% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $103,247,481) | | | | | | | | |
Total Investments in Securities
(Cost $369,655,693) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $6,213,491 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
22
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $266,408,212) | | |
Investments in securities, at value - unaffiliated issuers (cost $103,247,481) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
23
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
24
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
25
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 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. |
26
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 73.7% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 15.5% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 1.7% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 14.6% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $514,859,049) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
27
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 25.9% 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 0.9% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 12.4% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $234,311,323) | | | | | | | | |
Total Investments in Securities
(Cost $749,170,372) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $9,955,450 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
28
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $514,859,049) | | |
Investments in securities, at value - unaffiliated issuers (cost $234,311,323) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
29
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
30
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
31
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 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. |
32
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 73.5% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 18.2% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 10.0% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $323,061,529) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
33
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 26.0% 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 9.9% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $141,763,849) | | | | | | | | |
Total Investments in Securities
(Cost $464,825,378) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $3,986,477 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
34
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $323,061,529) | | |
Investments in securities, at value - unaffiliated issuers (cost $141,763,849) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
35
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
36
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
37
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 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. |
38
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 74.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 20.5% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 6.6% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $584,679,374) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
39
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 24.6% 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 2.7% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 7.6% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $255,071,625) | | | | | | | | |
Total Investments in Securities
(Cost $839,750,999) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $4,986,865 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
40
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $584,679,374) | | |
Investments in securities, at value - unaffiliated issuers (cost $255,071,625) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
41
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
42
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
43
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 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. |
44
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 77.0% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 22.4% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 4.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $180,477,123) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
45
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 22.4% 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 3.5% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 5.3% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $59,373,045) | | | | | | | | |
Total Investments in Securities
(Cost $239,850,168) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $652,494 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
46
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $180,477,123) | | |
Investments in securities, at value - unaffiliated issuers (cost $59,373,045) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
47
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
48
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
49
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 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. |
50
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 78.8% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 23.4% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 2.3% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Government Money Fund, Ultra | | | | | | | | |
Schwab Variable Share Price Money | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $191,972,616) | | | | | | | | |
|
Schwab Target Funds | Annual Holdings and Financial Statements
51
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
UNAFFILIATED UNDERLYING FUNDS 20.8% 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 4.5% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 3.7% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $56,191,127) | | | | | | | | |
Total Investments in Securities
(Cost $248,163,743) | | | | | | | | |
| 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. |
| After U.S. market close on September 6, 2024, the Schwab Variable Share Price Money Fund reorganized into the Schwab Government Money Fund. The reorganization qualified as a tax-free exchange for federal income tax purposes. The total transaction amount was $280,965 and is included in the sales for the Schwab Variable Share Price Money Fund, Ultra Shares and in the purchases for the Schwab Government Money Fund, Ultra Shares. |
At October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
52
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $191,972,616) | | |
Investments in securities, at value - unaffiliated issuers (cost $56,191,127) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
53
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
54
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
55
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 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. |
56
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 80.4% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 24.1% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 1.7% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $139,691,039) | | | | | | | | |
|
UNAFFILIATED UNDERLYING FUNDS 18.9% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
Schwab Target Funds | Annual Holdings and Financial Statements
57
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.1% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 2.4% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $35,973,065) | | | | | | | | |
Total Investments in Securities
(Cost $175,664,104) | | | | | | | | |
| 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 October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
58
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $139,691,039) | | |
Investments in securities, at value - unaffiliated issuers (cost $35,973,065) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
59
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
60
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
61
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 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. |
62
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 81.1% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 24.6% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 1.0% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $58,224,699) | | | | | | | | |
|
UNAFFILIATED UNDERLYING FUNDS 18.2% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
Schwab Target Funds | Annual Holdings and Financial Statements
63
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.5% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 1.5% |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $13,854,643) | | | | | | | | |
Total Investments in Securities
(Cost $72,079,342) | | | | | | | | |
| 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 October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
64
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $58,224,699) | | |
Investments in securities, at value - unaffiliated issuers (cost $13,854,643) | | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
65
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
66
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
67
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) | | | | | | |
| 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. |
| |
68
Schwab Target Funds | Annual Holdings and Financial Statements
Portfolio Holdings as of October 31, 2024
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.
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
AFFILIATED UNDERLYING FUNDS 81.5% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund (formerly 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 25.0% |
|
Schwab Fundamental International Equity Index Fund (formerly Schwab Fundamental International Large Company Index Fund) | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 0.3% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $17,023,863) | | | | | | | | |
|
UNAFFILIATED UNDERLYING FUNDS 17.4% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
Schwab Target Funds | Annual Holdings and Financial Statements
69
Portfolio Holdings as of October 31, 2024 (continued)
| | | | NET REALIZED GAINS (LOSSES) | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 10/31/24 | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.9% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 0.8% |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $3,766,214) | | | | | | | | |
Total Investments in Securities
(Cost $20,790,077) | | | | | | | | |
| 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 October 31, 2024, all of the fund’s investment securities were classified as Level 1 (see financial note 2(a) for additional
information).
70
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Assets and Liabilities
|
Investments in securities, at value - affiliated issuers (cost $17,023,863) | | |
Investments in securities, at value - unaffiliated issuers (cost $3,766,214) | | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Annual Holdings and Financial Statements
71
Statement of Operations
For the period November 1, 2023 through October 31, 2024 |
|
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 | | |
72
Schwab Target Funds | Annual Holdings and Financial Statements
Statement of Changes in Net Assets
For the current and prior report periods
|
| | |
| | | |
| | | |
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 | Annual Holdings and Financial Statements
73
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 U.S. Large Company Index Fund |
| Schwab Fundamental U.S. Small Company Index Fund |
| Schwab Fundamental International Equity Index Fund |
| Schwab Fundamental International Small Equity Index Fund |
| Schwab Fundamental Emerging Markets Equity 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, to provide capital appreciation and income consistent with its current asset allocation, 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.
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).
74
Schwab Target Funds | Annual Holdings and Financial Statements
Financial Notes (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 and holdings and financial statements, which are filed in Form N-CSR 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
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Financial Notes (continued)
2. Significant Accounting Policies (continued):
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 October 31, 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 NAVs 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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Financial Notes (continued)
3. Risk Factors:
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
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 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.
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Financial Notes (continued)
3. Risk Factors (continued):
● 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, 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 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
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Financial Notes (continued)
3. Risk Factors (continued):
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 each fund. 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 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 (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments in Affiliates
The funds may engage in transactions involving affiliated parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other affiliated funds. As of October 31, 2024, each Schwab Target Fund’s ownership percentages of other affiliated funds’ shares are as follows:
| | | | | | | | | | | | |
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Schwab Fundamental International Equity Index Fund | | | | | | | | | | | | |
Schwab Fundamental U.S. Large Company Index Fund | | | | | | | | | | | | |
Schwab Global Real Estate Fund | | | | | | | | | | | | |
Schwab Government Money Fund, Ultra Shares | | | | | | | | | | | | |
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 | | | | | | | | | | | | |
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.
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Financial Notes (continued)
6. Borrowing from Banks:
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), which matured on September 26, 2024. On September 26, 2024, the Syndicated Credit Facility was amended to run for a new 364 day period with the committed line of credit increasing to $1.2 billion, maturing on September 25,2025. 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, which matured on September 26, 2024. On September 26, 2024, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on September 25, 2025. 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 October 31, 2024, purchases and sales of securities (excluding short-term obligations) were as follows:
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Financial Notes (continued)
8. Federal Income Taxes:
As of October 31, 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) |
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The primary difference between book basis and tax basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales. The tax cost of the funds’ investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| UNDISTRIBUTED
ORDINARY
INCOME | UNDISTRIBUTED
LONG-TERM
CAPITAL GAINS | NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS | |
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Schwab Target Funds | Annual Holdings and Financial Statements
Financial Notes (continued)
8. Federal Income Taxes (continued):
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
| CURRENT FISCAL YEAR END DISTRIBUTIONS | 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 funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of October 31, 2024, 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, 2024, 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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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Schwab Capital Trust and Shareholders of Schwab Target 2010 Fund, Schwab Target 2015 Fund, Schwab Target 2020 Fund, Schwab Target 2025 Fund, Schwab Target 2030 Fund, Schwab Target 2035 Fund, Schwab Target 2040 Fund, Schwab Target 2045 Fund, Schwab Target 2050 Fund, Schwab Target 2055 Fund, Schwab Target 2060 Fund, and Schwab Target 2065 Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of Schwab Target 2010 Fund, Schwab Target 2015 Fund, Schwab Target 2020 Fund, Schwab Target 2025 Fund, Schwab Target 2030 Fund, Schwab Target 2035 Fund, Schwab Target 2040 Fund, Schwab Target 2045 Fund, Schwab Target 2050 Fund, Schwab Target 2055 Fund, Schwab Target 2060 Fund, and Schwab Target 2065 Fund (the “Funds”), twelve of the Funds constituting Schwab Capital Trust, as of October 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended (excluding Schwab Target 2065 Fund); the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and for the period from February 26, 2021 (commencement of operations) through October 31, 2021 for Schwab Target 2065 Fund; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds constituting Schwab Capital Trust (excluding Schwab Target 2065 Fund) as of October 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Schwab Target 2065 Fund as of October 31, 2024, and the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and financial highlights for each of the three years in the period then ended and for the period from February 26, 2021 (commencement of operations) through October 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
December 16, 2024
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
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Investment Advisory Agreement Approval
The Investment Company Act of 1940, as amended (the 1940 Act), requires that the continuation of a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.
The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between Schwab Capital Trust (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab Target 2010 Fund, Schwab Target 2015 Fund, Schwab Target 2020 Fund, Schwab Target 2025 Fund, Schwab Target 2030 Fund, Schwab Target 2035 Fund, Schwab Target 2040 Fund, Schwab Target 2045 Fund, Schwab Target 2050 Fund, Schwab Target 2055 Fund, Schwab Target 2060 Fund and Schwab Target 2065 Fund (the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the
approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.
The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 2, 2024 and June 6, 2024, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 6, 2024 called for the purpose of voting on such approval.
The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:
1.
the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.
each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.
each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.
the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.
the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to each Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also
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considered the investment adviser’s continued investment in its infrastructure, including the investment adviser’s technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees considered Schwab’s overall financial condition and reputation as a full service brokerage firm, as well as the wide range of products, services and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.
Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of total return and the market environment, as well as in consideration of each Fund’s investment style and strategy. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and the appropriateness of the benchmark used to compare the performance of each Fund. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. The Board also considered that, in January 2024, CSIM had implemented enhancements to each Fund’s fixed income allocation and allocations to certain underlying funds. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of each Fund supported renewal of the Agreement with respect to such Fund.
Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and each Fund’s operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of the investment adviser’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of each Fund from exceeding a specified cap. The Trustees also considered
the investment adviser’s contractual commitment to limit the total annual operating expenses of each Fund for so long as it serves as the adviser to the Fund. The Trustees also considered fees charged by the investment adviser to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts, and any differences in the market for these types of accounts. The Trustees noted that shareholders of the Funds indirectly pay their pro rata share of the fees and expenses of the underlying funds in which the Funds invest. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of each Fund are reasonable and supported renewal of the Agreement with respect to such Fund.
Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly and reviewed profitability on a pre-tax basis, without regard to distribution expenses. The Trustees reviewed the profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. Also, because each Fund invests a portion of its assets in other funds within the Schwab fund complex, the Trustees considered the indirect benefits to the investment adviser from such Fund’s investments in other underlying funds managed by the investment adviser. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser with respect to each Fund is reasonable and supported renewal of the Agreement with respect to such Fund.
Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, the Trustees considered the potential existence of any economies of scale and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure,
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including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has invested in its infrastructure, as discussed above, over time and noted the impact of regulatory and other developments on the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds. The Trustees considered that the investment adviser and its affiliates employ contractual expense caps to protect shareholders from higher fees, including for example, when fund assets are relatively small. Based on this evaluation, the Board concluded, within the context of its full deliberations, that each Fund obtains reasonable benefits from economies of scale.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the continuation of the Agreement with respect to the Funds and concluded that the compensation under the Agreement with respect to the Funds is fair and reasonable in light of the services provided and the related expenses borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.
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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 7 of this Form.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract.
The statement regarding basis for approval of investment advisory contract is included as part of the report to shareholders filed under Item 7 of this Form.
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.
(a) Not applicable.
(b) Not applicable
Item 19: Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Capital Trust
| | |
| By: | | /s/ Omar Aguilar |
| | Omar Aguilar Principal Executive Officer (Chief Executive Officer) |
| |
| Date: | | December 16, 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 (Chief Executive Officer) |
| |
| Date: | | December 16, 2024 |
| |
| By: | | /s/ Dana Smith |
| | Dana Smith Principal Financial Officer (Chief Financial Officer) |
| |
| Date: | | December 16, 2024 |
