Schwab Capital Trust
Schwab Core Equity Fund
Schwab Core Equity Fund
Portfolio Holdings as of July 31, 2023 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 98.8% OF NET ASSETS | ||
Banks 3.0% | ||
Citizens Financial Group, Inc. | 171,595 | 5,535,655 |
East West Bancorp, Inc. | 311,867 | 19,401,246 |
Truist Financial Corp. | 443,731 | 14,740,744 |
39,677,645 | ||
Capital Goods 4.3% | ||
A.O. Smith Corp. | 259,182 | 18,824,389 |
Fastenal Co. | 122,982 | 7,207,975 |
General Dynamics Corp. | 45,415 | 10,153,886 |
Lockheed Martin Corp. | 15,326 | 6,841,067 |
Parker-Hannifin Corp. | 12,337 | 5,058,293 |
Watsco, Inc. | 25,796 | 9,755,789 |
57,841,399 | ||
Commercial & Professional Services 1.1% | ||
Republic Services, Inc., Class A | 95,577 | 14,442,640 |
Consumer Discretionary Distribution & Retail 6.6% | ||
Amazon.com, Inc. * | 394,176 | 52,693,448 |
The Home Depot, Inc. | 36,635 | 12,230,228 |
The TJX Cos., Inc. | 261,519 | 22,629,239 |
87,552,915 | ||
Consumer Services 2.3% | ||
Starbucks Corp. | 295,544 | 30,018,404 |
Consumer Staples Distribution & Retail 2.3% | ||
Costco Wholesale Corp. | 26,388 | 14,794,960 |
Walmart, Inc. | 99,765 | 15,948,433 |
30,743,393 | ||
Energy 6.6% | ||
EOG Resources, Inc. | 357,784 | 47,417,114 |
Exxon Mobil Corp. | 377,413 | 40,473,770 |
87,890,884 | ||
Equity Real Estate Investment Trusts (REITs) 1.0% | ||
American Tower Corp. | 67,674 | 12,879,039 |
Financial Services 11.5% | ||
Berkshire Hathaway, Inc., Class B * | 91,198 | 32,098,048 |
CME Group, Inc. | 113,889 | 22,659,355 |
Fidelity National Information Services, Inc. | 525,275 | 31,716,105 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
PayPal Holdings, Inc. * | 452,716 | 34,324,927 |
Visa, Inc., Class A | 134,673 | 32,015,812 |
152,814,247 | ||
Food, Beverage & Tobacco 5.0% | ||
Constellation Brands, Inc., Class A | 91,600 | 24,988,480 |
Diageo plc, ADR | 54,716 | 9,626,733 |
The Coca-Cola Co. | 518,913 | 32,136,282 |
66,751,495 | ||
Health Care Equipment & Services 7.8% | ||
Abbott Laboratories | 186,054 | 20,713,392 |
Boston Scientific Corp. * | 290,769 | 15,076,373 |
CVS Health Corp. | 350,654 | 26,190,347 |
Intuitive Surgical, Inc. * | 85,130 | 27,616,172 |
UnitedHealth Group, Inc. | 27,797 | 14,075,567 |
103,671,851 | ||
Household & Personal Products 1.7% | ||
L'Oreal S.A., Sponsored ADR | 141,090 | 13,138,301 |
The Estee Lauder Cos., Inc., Class A | 54,905 | 9,882,900 |
23,021,201 | ||
Materials 0.7% | ||
Linde plc | 23,368 | 9,129,176 |
Media & Entertainment 10.0% | ||
Alphabet, Inc., Class A * | 649,580 | 86,212,257 |
Meta Platforms, Inc., Class A * | 144,501 | 46,038,019 |
132,250,276 | ||
Pharmaceuticals, Biotechnology & Life Sciences 9.4% | ||
Eli Lilly & Co. | 21,268 | 9,667,369 |
Johnson & Johnson | 177,193 | 29,685,143 |
Pfizer, Inc. | 633,044 | 22,827,567 |
Roche Holding AG, Sponsored ADR | 439,715 | 17,016,971 |
Thermo Fisher Scientific, Inc. | 32,190 | 17,661,365 |
Zoetis, Inc. | 151,573 | 28,509,366 |
125,367,781 | ||
Semiconductors & Semiconductor Equipment 4.9% | ||
ASML Holding N.V. NY Registry Shares | 20,750 | 14,865,508 |
Broadcom, Inc. | 55,414 | 49,797,791 |
64,663,299 | ||
Software & Services 10.8% | ||
Accenture plc, Class A | 37,155 | 11,753,984 |
Adobe, Inc. * | 21,000 | 11,469,570 |
1
Schwab Core Equity Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
Fortinet, Inc. * | 128,274 | 9,969,455 |
Microsoft Corp. | 328,583 | 110,377,602 |
143,570,611 | ||
Technology Hardware & Equipment 8.3% | ||
Apple Inc. | 561,309 | 110,269,153 |
Utilities 1.5% | ||
Duke Energy Corp. | 209,354 | 19,599,721 |
Total Common Stocks (Cost $868,936,570) | 1,312,155,130 |
SHORT-TERM INVESTMENTS 1.3% OF NET ASSETS | ||
Money Market Funds 1.3% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.19% (a) | 17,066,194 | 17,066,194 |
Total Short-Term Investments (Cost $17,066,194) | 17,066,194 | |
Total Investments in Securities (Cost $886,002,764) | 1,329,221,324 |
* | Non-income producing security. |
(a) | The rate shown is the annualized 7-day yield. |
ADR — | American Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of July 31, 2023:
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $1,312,155,130 | $— | $— | $1,312,155,130 |
Short-Term Investments1 | 17,066,194 | — | — | 17,066,194 |
Total | $1,329,221,324 | $— | $— | $1,329,221,324 |
1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
2
Schwab Capital Trust
Schwab Dividend Equity Fund
Schwab Dividend Equity Fund
Portfolio Holdings as of July 31, 2023 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.9% OF NET ASSETS | ||
Banks 7.9% | ||
Bank of America Corp. | 300,000 | 9,600,000 |
Huntington Bancshares, Inc. | 340,000 | 4,161,600 |
JPMorgan Chase & Co. | 125,000 | 19,745,000 |
Truist Financial Corp. | 185,000 | 6,145,700 |
39,652,300 | ||
Capital Goods 8.4% | ||
Fastenal Co. | 62,000 | 3,633,820 |
General Dynamics Corp. | 15,000 | 3,353,700 |
Illinois Tool Works, Inc. | 18,500 | 4,871,420 |
Lockheed Martin Corp. | 32,000 | 14,283,840 |
Parker-Hannifin Corp. | 13,000 | 5,330,130 |
RTX Corp. | 58,000 | 5,099,940 |
Watsco, Inc. | 15,000 | 5,672,850 |
42,245,700 | ||
Consumer Discretionary Distribution & Retail 5.8% | ||
Genuine Parts Co. | 35,000 | 5,450,200 |
The Home Depot, Inc. | 35,000 | 11,684,400 |
The TJX Cos., Inc. | 135,000 | 11,681,550 |
28,816,150 | ||
Consumer Services 2.3% | ||
McDonald’s Corp. | 39,000 | 11,434,800 |
Consumer Staples Distribution & Retail 2.4% | ||
Walmart, Inc. | 75,000 | 11,989,500 |
Energy 8.1% | ||
Chevron Corp. | 100,000 | 16,366,000 |
Exxon Mobil Corp. | 180,000 | 19,303,200 |
Kinder Morgan, Inc. | 290,000 | 5,135,900 |
40,805,100 | ||
Equity Real Estate Investment Trusts (REITs) 2.5% | ||
Crown Castle, Inc. | 48,750 | 5,279,137 |
Lamar Advertising Co., Class A | 40,000 | 3,948,000 |
Public Storage | 12,000 | 3,381,000 |
12,608,137 | ||
Financial Services 9.0% | ||
BlackRock, Inc. | 16,500 | 12,191,025 |
Fidelity National Information Services, Inc. | 155,000 | 9,358,900 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Morgan Stanley | 155,000 | 14,191,800 |
Visa, Inc., Class A | 38,500 | 9,152,605 |
44,894,330 | ||
Food, Beverage & Tobacco 8.2% | ||
Altria Group, Inc. | 120,000 | 5,450,400 |
Philip Morris International, Inc. | 150,000 | 14,958,000 |
The Coca-Cola Co. | 335,000 | 20,746,550 |
41,154,950 | ||
Health Care Equipment & Services 7.8% | ||
Abbott Laboratories | 77,000 | 8,572,410 |
CVS Health Corp. | 110,000 | 8,215,900 |
Medtronic plc | 113,000 | 9,916,880 |
UnitedHealth Group, Inc. | 24,000 | 12,152,880 |
38,858,070 | ||
Household & Personal Products 3.1% | ||
The Procter & Gamble Co. | 100,000 | 15,630,000 |
Insurance 1.6% | ||
The Allstate Corp. | 70,000 | 7,887,600 |
Materials 0.7% | ||
PPG Industries, Inc. | 23,000 | 3,309,700 |
Media & Entertainment 2.9% | ||
Comcast Corp., Class A | 275,000 | 12,446,500 |
Omnicom Group, Inc. | 26,250 | 2,221,275 |
14,667,775 | ||
Pharmaceuticals, Biotechnology & Life Sciences 9.0% | ||
Johnson & Johnson | 103,000 | 17,255,590 |
Pfizer, Inc. | 295,000 | 10,637,700 |
Roche Holding AG | 40,663 | 12,607,618 |
Zoetis, Inc. | 25,000 | 4,702,250 |
45,203,158 | ||
Semiconductors & Semiconductor Equipment 3.0% | ||
Broadcom, Inc. | 16,800 | 15,097,320 |
Software & Services 7.3% | ||
Accenture plc, Class A | 36,500 | 11,546,775 |
International Business Machines Corp. | 75,000 | 10,813,500 |
Microsoft Corp. | 43,000 | 14,444,560 |
36,804,835 | ||
3
Schwab Dividend Equity Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
Technology Hardware & Equipment 4.0% | ||
Apple Inc. | 26,000 | 5,107,700 |
Cisco Systems, Inc. | 287,500 | 14,961,500 |
20,069,200 | ||
Telecommunication Services 2.2% | ||
BCE, Inc. | 165,000 | 7,131,300 |
Verizon Communications, Inc. | 110,000 | 3,748,800 |
10,880,100 | ||
Transportation 1.1% | ||
United Parcel Service, Inc., Class B | 30,000 | 5,613,900 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Utilities 2.6% | ||
Duke Energy Corp. | 110,000 | 10,298,200 |
Eversource Energy | 40,000 | 2,893,200 |
13,191,400 | ||
Total Common Stocks (Cost $413,006,357) | 500,814,025 | |
Total Investments in Securities (Cost $413,006,357) | 500,814,025 |
The following is a summary of the inputs used to value the fund’s investments as of July 31, 2023:
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $455,610,867 | $— | $— | $455,610,867 |
Pharmaceuticals, Biotechnology & Life Sciences | 32,595,540 | 12,607,618 | — | 45,203,158 |
Total | $488,206,407 | $12,607,618 | $— | $500,814,025 |
1 | As categorized in the Portfolio Holdings. |
4
Schwab Capital Trust
Schwab Large-Cap Growth Fund
Schwab Large-Cap Growth Fund
Portfolio Holdings as of July 31, 2023 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 93.3% OF NET ASSETS | ||
Automobiles & Components 1.5% | ||
Tesla, Inc. * | 17,116 | 4,577,332 |
Capital Goods 4.9% | ||
Fastenal Co. | 38,044 | 2,229,759 |
Illinois Tool Works, Inc. | 4,799 | 1,263,673 |
Lockheed Martin Corp. | 7,652 | 3,415,623 |
Parker-Hannifin Corp. | 10,673 | 4,376,037 |
Quanta Services, Inc. | 9,885 | 1,993,014 |
Watsco, Inc. | 3,371 | 1,274,878 |
14,552,984 | ||
Commercial & Professional Services 1.5% | ||
Paychex, Inc. | 13,902 | 1,744,284 |
Republic Services, Inc., Class A | 17,758 | 2,683,411 |
4,427,695 | ||
Consumer Discretionary Distribution & Retail 7.9% | ||
Amazon.com, Inc. * | 114,359 | 15,287,511 |
O'Reilly Automotive, Inc. * | 1,888 | 1,747,892 |
The Home Depot, Inc. | 12,073 | 4,030,450 |
The TJX Cos., Inc. | 25,285 | 2,187,911 |
23,253,764 | ||
Consumer Durables & Apparel 1.8% | ||
Deckers Outdoor Corp. * | 3,962 | 2,154,100 |
NIKE, Inc., Class B | 28,300 | 3,124,037 |
5,278,137 | ||
Consumer Services 1.7% | ||
Starbucks Corp. | 48,462 | 4,922,285 |
Consumer Staples Distribution & Retail 1.4% | ||
Costco Wholesale Corp. | 7,253 | 4,066,540 |
Energy 0.7% | ||
EOG Resources, Inc. | 14,768 | 1,957,203 |
Equity Real Estate Investment Trusts (REITs) 0.8% | ||
American Tower Corp. | 6,424 | 1,222,551 |
Public Storage | 4,253 | 1,198,283 |
2,420,834 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Financial Services 5.4% | ||
Interactive Brokers Group, Inc., Class A | 18,507 | 1,616,216 |
Mastercard, Inc., Class A | 11,969 | 4,719,138 |
MSCI, Inc., Class A | 2,815 | 1,542,845 |
PayPal Holdings, Inc. * | 28,277 | 2,143,962 |
Visa, Inc., Class A | 24,440 | 5,810,121 |
15,832,282 | ||
Food, Beverage & Tobacco 3.2% | ||
Constellation Brands, Inc., Class A | 10,649 | 2,905,047 |
Diageo plc, ADR | 12,155 | 2,138,551 |
PepsiCo, Inc. | 14,805 | 2,775,345 |
Philip Morris International, Inc. | 14,946 | 1,490,415 |
9,309,358 | ||
Health Care Equipment & Services 5.3% | ||
Edwards Lifesciences Corp. * | 27,680 | 2,271,697 |
IDEXX Laboratories, Inc. * | 3,556 | 1,972,620 |
Intuitive Surgical, Inc. * | 16,517 | 5,358,115 |
UnitedHealth Group, Inc. | 11,673 | 5,910,857 |
15,513,289 | ||
Household & Personal Products 0.8% | ||
The Estee Lauder Cos., Inc., Class A | 13,741 | 2,473,380 |
Insurance 1.0% | ||
Arthur J. Gallagher & Co. | 13,345 | 2,866,506 |
Media & Entertainment 9.1% | ||
Alphabet, Inc., Class A * | 120,240 | 15,958,253 |
Meta Platforms, Inc., Class A * | 25,540 | 8,137,044 |
Netflix, Inc. * | 6,145 | 2,697,471 |
26,792,768 | ||
Pharmaceuticals, Biotechnology & Life Sciences 5.3% | ||
Eli Lilly & Co. | 10,599 | 4,817,775 |
Horizon Therapeutics plc * | 11,420 | 1,145,083 |
Moderna, Inc. * | 20,760 | 2,442,622 |
Thermo Fisher Scientific, Inc. | 6,166 | 3,383,038 |
Zoetis, Inc. | 20,079 | 3,776,659 |
15,565,177 | ||
Semiconductors & Semiconductor Equipment 9.4% | ||
Advanced Micro Devices, Inc. * | 21,181 | 2,423,107 |
ASML Holding N.V. NY Registry Shares | 5,852 | 4,192,431 |
5
Schwab Large-Cap Growth Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
Broadcom, Inc. | 9,252 | 8,314,310 |
NVIDIA Corp. | 27,403 | 12,805,148 |
27,734,996 | ||
Software & Services 19.2% | ||
Accenture plc, Class A | 8,194 | 2,592,172 |
Adobe, Inc. * | 10,158 | 5,547,995 |
Fortinet, Inc. * | 27,385 | 2,128,362 |
Gartner, Inc. * | 10,548 | 3,729,667 |
Intuit, Inc. | 4,573 | 2,340,004 |
Microsoft Corp. | 99,364 | 33,378,355 |
Palo Alto Networks, Inc. * | 11,676 | 2,918,533 |
ServiceNow, Inc. * | 2,645 | 1,542,035 |
Synopsys, Inc. * | 5,560 | 2,512,008 |
56,689,131 | ||
Technology Hardware & Equipment 12.4% | ||
Apple Inc. | 186,176 | 36,574,275 |
Total Common Stocks (Cost $131,755,286) | 274,807,936 | |
INVESTMENT COMPANIES 2.0% OF NET ASSETS | ||
Equity Funds 2.0% | ||
Invesco QQQ Trust, Series 1 | 15,475 | 5,937,448 |
Total Investment Companies (Cost $5,919,480) | 5,937,448 | |
Total Investments in Securities (Cost $137,674,766) | 280,745,384 |
NUMBER OF CONTRACTS | NOTIONAL AMOUNT ($) | CURRENT VALUE/ UNREALIZED APPRECIATION ($) | |
FUTURES CONTRACTS | |||
Long | |||
S&P 500 Index, e-mini, expires 09/15/23 | 20 | 4,614,500 | 287,721 |
* | Non-income producing security. |
ADR — | American Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of July 31, 2023:
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $274,807,936 | $— | $— | $274,807,936 |
Investment Companies1 | 5,937,448 | — | — | 5,937,448 |
Futures Contracts2 | 287,721 | — | — | 287,721 |
Total | $281,033,105 | $— | $— | $281,033,105 |
1 | As categorized in the Portfolio Holdings. |
2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
6
Schwab Capital Trust
Schwab Small-Cap Equity Fund
Schwab Small-Cap Equity Fund
Portfolio Holdings as of July 31, 2023 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 97.2% OF NET ASSETS | ||
Automobiles & Components 2.7% | ||
American Axle & Manufacturing Holdings, Inc. * | 282,501 | 2,669,634 |
Fox Factory Holding Corp. * | 4,917 | 550,212 |
LCI Industries | 6,404 | 872,673 |
Modine Manufacturing Co. * | 108,894 | 4,090,059 |
Patrick Industries, Inc. | 30,416 | 2,632,505 |
The Goodyear Tire & Rubber Co. * | 63,926 | 1,027,930 |
Visteon Corp. * | 9,566 | 1,474,025 |
Winnebago Industries, Inc. | 26,971 | 1,855,605 |
15,172,643 | ||
Banks 7.7% | ||
Associated Banc-Corp. | 283,604 | 5,374,296 |
Axos Financial, Inc. * | 12,857 | 604,279 |
Banner Corp. | 5,220 | 248,524 |
Cathay General Bancorp | 32,982 | 1,254,635 |
Eagle Bancorp, Inc. | 33,074 | 916,150 |
Enterprise Financial Services Corp. | 49,137 | 2,014,617 |
First BanCorp | 151,531 | 2,250,235 |
Great Southern Bancorp, Inc. | 37,856 | 2,094,573 |
Hancock Whitney Corp. | 85,526 | 3,763,999 |
Hanmi Financial Corp. | 55,564 | 1,055,716 |
HomeTrust Bancshares, Inc. | 19,033 | 462,692 |
International Bancshares Corp. | 95,606 | 4,745,882 |
Mercantile Bank Corp. | 80,576 | 2,829,829 |
Metropolitan Bank Holding Corp. * | 7,720 | 349,639 |
OceanFirst Financial Corp. | 44,229 | 823,986 |
OFG Bancorp | 19,210 | 643,343 |
Old Second Bancorp, Inc. | 47,966 | 766,976 |
Peapack-Gladstone Financial Corp. | 72,272 | 2,112,511 |
Renasant Corp. | 66,293 | 2,051,105 |
Republic Bancorp, Inc., Class A | 29,304 | 1,343,002 |
SouthState Corp. | 31,944 | 2,481,091 |
Trustmark Corp. | 31,562 | 828,818 |
UMB Financial Corp. | 29,827 | 2,117,717 |
Univest Financial Corp. | 28,441 | 554,600 |
Washington Federal, Inc. | 53,428 | 1,658,405 |
Western New England Bancorp, Inc. | 39,105 | 261,613 |
43,608,233 | ||
Capital Goods 12.3% | ||
AAR Corp. * | 39,962 | 2,389,728 |
AeroVironment, Inc. * | 17,419 | 1,659,334 |
Alamo Group, Inc. | 2,096 | 406,121 |
Applied Industrial Technologies, Inc. | 6,332 | 918,077 |
Array Technologies, Inc. * | 49,143 | 936,174 |
Atkore, Inc. * | 51,723 | 8,206,888 |
AZZ, Inc. | 23,139 | 1,025,752 |
Boise Cascade Co. | 14,013 | 1,450,205 |
Ducommun, Inc. * | 23,955 | 1,201,104 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
EMCOR Group, Inc. | 28,471 | 6,122,404 |
Encore Wire Corp. | 9,166 | 1,564,545 |
EnerSys | 37,771 | 4,091,355 |
Helios Technologies, Inc. | 27,806 | 1,757,339 |
Herc Holdings, Inc. | 7,806 | 1,044,677 |
Hillenbrand, Inc. | 23,780 | 1,235,133 |
IES Holdings, Inc. * | 13,986 | 801,678 |
JELD-WEN Holding, Inc. * | 73,662 | 1,311,920 |
Moog, Inc., Class A | 49,544 | 5,223,919 |
Mueller Industries, Inc. | 74,621 | 6,048,778 |
MYR Group, Inc. * | 11,863 | 1,691,189 |
Preformed Line Products Co. | 9,869 | 1,712,370 |
Proto Labs, Inc. * | 13,625 | 451,669 |
Shoals Technologies Group, Inc., Class A * | 29,734 | 771,895 |
Simpson Manufacturing Co., Inc. | 16,487 | 2,604,946 |
SPX Technologies, Inc. * | 9,150 | 774,181 |
Standex International Corp. | 1,861 | 276,489 |
Sterling Infrastructure, Inc. * | 51,440 | 3,085,886 |
Terex Corp. | 40,650 | 2,383,309 |
Titan International, Inc. * | 103,699 | 1,295,200 |
UFP Industries, Inc. | 21,676 | 2,227,426 |
V2X, Inc. * | 21,753 | 1,119,409 |
Veritiv Corp. | 13,063 | 1,830,518 |
Wabash National Corp. | 42,901 | 1,015,896 |
Watts Water Technologies, Inc., Class A | 5,805 | 1,082,807 |
69,718,321 | ||
Commercial & Professional Services 2.7% | ||
Casella Waste Systems, Inc., Class A * | 32,699 | 2,638,482 |
Cimpress plc * | 28,148 | 1,956,286 |
Conduent, Inc. * | 201,790 | 698,193 |
ExlService Holdings, Inc. * | 20,944 | 2,952,057 |
Insperity, Inc. | 7,628 | 897,434 |
Kforce, Inc. | 38,447 | 2,439,078 |
Mastech Digital, Inc. * | 20,611 | 220,126 |
NV5 Global, Inc. * | 7,237 | 792,813 |
SP Plus Corp. * | 45,402 | 1,745,707 |
TriNet Group, Inc. * | 7,290 | 767,127 |
Verra Mobility Corp., Class A * | 10,204 | 214,182 |
15,321,485 | ||
Consumer Discretionary Distribution & Retail 2.1% | ||
AutoNation, Inc. * | 1,762 | 283,647 |
Build-A-Bear Workshop, Inc. | 54,997 | 1,350,176 |
Caleres, Inc. | 20,191 | 545,965 |
CarParts.com, Inc. * | 263,613 | 1,323,337 |
Chico's FAS, Inc. * | 221,362 | 1,350,308 |
Group 1 Automotive, Inc. | 7,928 | 2,049,626 |
Macy's, Inc. | 165,881 | 2,751,966 |
Signet Jewelers Ltd. | 14,784 | 1,189,964 |
The Buckle, Inc. | 19,762 | 722,499 |
The Children's Place, Inc. * | 15,685 | 493,136 |
12,060,624 | ||
7
Schwab Small-Cap Equity Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
Consumer Durables & Apparel 1.7% | ||
Crocs, Inc. * | 13,283 | 1,439,213 |
La-Z-Boy, Inc. | 14,013 | 439,588 |
Malibu Boats, Inc., Class A * | 23,703 | 1,420,995 |
MasterCraft Boat Holdings, Inc. * | 81,836 | 2,508,273 |
Oxford Industries, Inc. | 9,747 | 1,051,214 |
Skyline Champion Corp. * | 23,702 | 1,651,081 |
Solo Brands, Inc., Class A * | 87,447 | 512,440 |
Vista Outdoor, Inc. * | 15,854 | 480,376 |
9,503,180 | ||
Consumer Services 3.5% | ||
Bloomin' Brands, Inc. | 119,304 | 3,205,699 |
Boyd Gaming Corp. | 34,708 | 2,371,251 |
Dave & Buster's Entertainment, Inc. * | 31,481 | 1,441,830 |
Everi Holdings, Inc. * | 57,797 | 857,707 |
Hilton Grand Vacations, Inc. * | 64,028 | 2,977,302 |
Inspired Entertainment, Inc. * | 76,732 | 966,056 |
International Game Technology plc | 19,494 | 659,482 |
Light & Wonder, Inc. * | 17,371 | 1,221,181 |
PlayAGS, Inc. * | 93,766 | 620,731 |
SeaWorld Entertainment, Inc. * | 40,447 | 2,239,550 |
Stride, Inc. * | 35,619 | 1,361,002 |
Texas Roadhouse, Inc., Class A | 19,033 | 2,123,131 |
20,044,922 | ||
Consumer Staples Distribution & Retail 0.6% | ||
BJ's Wholesale Club Holdings, Inc. * | 6,582 | 436,452 |
The Andersons, Inc. | 64,286 | 3,138,443 |
3,574,895 | ||
Energy 7.0% | ||
Arch Resources, Inc. | 8,548 | 1,097,905 |
California Resources Corp. | 12,333 | 657,965 |
ChampionX Corp. | 42,027 | 1,496,161 |
Chord Energy Corp. | 3,318 | 520,395 |
Civitas Resources, Inc. | 15,706 | 1,175,751 |
CONSOL Energy, Inc. | 37,286 | 2,778,553 |
CVR Energy, Inc. | 84,855 | 3,117,573 |
Delek US Holdings, Inc. | 8,756 | 241,578 |
Equitrans Midstream Corp. | 45,997 | 476,989 |
Liberty Energy, Inc., Class A | 286,522 | 4,719,017 |
Magnolia Oil & Gas Corp., Class A | 56,907 | 1,260,490 |
Matador Resources Co. | 39,715 | 2,209,345 |
Murphy Oil Corp. | 12,860 | 556,452 |
NexTier Oilfield Solutions, Inc. * | 289,317 | 3,448,659 |
Ovintiv, Inc. | 9,840 | 453,526 |
Par Pacific Holdings, Inc. * | 17,646 | 555,496 |
Patterson-UTI Energy, Inc. | 109,152 | 1,728,968 |
PBF Energy, Inc., Class A | 66,393 | 3,149,684 |
Peabody Energy Corp. | 27,391 | 614,654 |
RPC, Inc. | 117,353 | 976,377 |
SM Energy Co. | 53,225 | 1,931,535 |
Southwestern Energy Co. * | 274,016 | 1,775,624 |
Teekay Corp. * | 116,886 | 778,461 |
Teekay Tankers Ltd., Class A | 14,659 | 639,279 |
US Silica Holdings, Inc. * | 178,439 | 2,321,491 |
W&T Offshore, Inc. * | 151,384 | 663,062 |
World Kinect Corp. | 13,272 | 299,151 |
39,644,141 | ||
Equity Real Estate Investment Trusts (REITs) 4.9% | ||
Apple Hospitality REIT, Inc. | 382,634 | 5,930,827 |
Armada Hoffler Properties, Inc. | 244,009 | 3,030,592 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
BRT Apartments Corp. | 75,106 | 1,462,314 |
CareTrust REIT, Inc. | 27,704 | 575,966 |
DiamondRock Hospitality Co. | 319,793 | 2,718,240 |
EastGroup Properties, Inc. | 17,948 | 3,180,027 |
Paramount Group, Inc. | 172,415 | 903,455 |
Piedmont Office Realty Trust, Inc., Class A | 91,234 | 678,781 |
RPT Realty | 45,684 | 496,585 |
Ryman Hospitality Properties, Inc. | 59,375 | 5,657,844 |
Sabra Health Care REIT, Inc. | 48,950 | 635,860 |
SITE Centers Corp. | 78,628 | 1,104,723 |
Uniti Group, Inc. | 115,959 | 647,051 |
Urban Edge Properties | 64,162 | 1,091,396 |
28,113,661 | ||
Financial Services 5.1% | ||
Donnelley Financial Solutions, Inc. * | 18,902 | 894,065 |
Enact Holdings, Inc. | 46,559 | 1,266,405 |
Enova International, Inc. * | 67,277 | 3,706,290 |
Essent Group Ltd. | 27,018 | 1,340,093 |
EVERTEC, Inc. | 13,758 | 541,102 |
Federal Agricultural Mortgage Corp., Class C | 15,930 | 2,560,748 |
Jackson Financial, Inc., Class A | 31,507 | 1,040,361 |
Merchants Bancorp | 9,966 | 315,025 |
MGIC Investment Corp. | 95,345 | 1,596,075 |
NMI Holdings, Inc., Class A * | 25,925 | 692,457 |
OneMain Holdings, Inc. | 56,956 | 2,590,359 |
Oportun Financial Corp. * | 64,300 | 395,445 |
Piper Sandler Cos. | 2,995 | 438,348 |
Radian Group, Inc. | 58,696 | 1,580,683 |
Regional Management Corp. | 48,480 | 1,575,115 |
StepStone Group, Inc., Class A | 38,659 | 1,085,158 |
Stifel Financial Corp. | 42,385 | 2,693,143 |
StoneX Group, Inc. * | 17,191 | 1,581,744 |
Victory Capital Holdings, Inc., Class A | 11,263 | 373,481 |
Virtus Investment Partners, Inc. | 12,939 | 2,661,940 |
28,928,037 | ||
Food, Beverage & Tobacco 2.8% | ||
Coca-Cola Consolidated, Inc. | 8,347 | 5,287,073 |
John B. Sanfilippo & Son, Inc. | 982 | 106,950 |
MGP Ingredients, Inc. | 7,560 | 861,916 |
National Beverage Corp. * | 36,784 | 1,944,034 |
Primo Water Corp. | 189,849 | 2,690,160 |
The Simply Good Foods Co. * | 16,772 | 649,244 |
Vector Group Ltd. | 337,447 | 4,427,305 |
15,966,682 | ||
Health Care Equipment & Services 5.3% | ||
Addus HomeCare Corp. * | 5,252 | 480,926 |
AirSculpt Technologies, Inc. (a) | 44,104 | 400,023 |
AMN Healthcare Services, Inc. * | 15,098 | 1,617,751 |
Avanos Medical, Inc. * | 36,623 | 896,165 |
Axonics, Inc. * | 8,943 | 539,889 |
Cerus Corp. * | 270,093 | 829,185 |
Haemonetics Corp. * | 12,962 | 1,195,615 |
Hims & Hers Health, Inc. * | 121,790 | 1,092,456 |
Inmode Ltd. * | 16,776 | 719,858 |
Inspire Medical Systems, Inc. * | 1,777 | 511,438 |
Lantheus Holdings, Inc. * | 58,525 | 5,061,827 |
LivaNova plc * | 15,145 | 885,225 |
Merit Medical Systems, Inc. * | 58,683 | 4,381,860 |
ModivCare, Inc. * | 4,961 | 216,994 |
NeoGenomics, Inc. * | 17,832 | 309,029 |
NextGen Healthcare, Inc. * | 45,238 | 752,308 |
OmniAb, Inc., Class A *(b) | 5,508 | 0 |
8
Schwab Small-Cap Equity Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
OmniAb, Inc., Class B *(b) | 5,508 | 0 |
Option Care Health, Inc. * | 39,310 | 1,327,892 |
OraSure Technologies, Inc. * | 125,881 | 594,158 |
Shockwave Medical, Inc. * | 3,348 | 872,489 |
STAAR Surgical Co. * | 15,370 | 841,815 |
Tenet Healthcare Corp. * | 7,942 | 593,506 |
The Ensign Group, Inc. | 28,849 | 2,794,603 |
Utah Medical Products, Inc. | 4,981 | 489,782 |
Veradigm, Inc. * | 107,604 | 1,454,806 |
Zimvie, Inc. * | 49,870 | 684,216 |
Zynex, Inc. *(a) | 75,538 | 737,251 |
30,281,067 | ||
Household & Personal Products 0.6% | ||
elf Beauty, Inc. * | 10,984 | 1,282,053 |
Herbalife Ltd. * | 9,730 | 158,015 |
Medifast, Inc. | 13,522 | 1,377,757 |
Nature's Sunshine Products, Inc. * | 37,813 | 527,491 |
3,345,316 | ||
Insurance 1.6% | ||
American Equity Investment Life Holding Co. * | 39,161 | 2,101,771 |
CNO Financial Group, Inc. | 201,889 | 5,192,585 |
Genworth Financial, Inc., Class A * | 105,366 | 617,445 |
Investors Title Co. | 1,858 | 290,870 |
Kinsale Capital Group, Inc. | 2,736 | 1,019,515 |
9,222,186 | ||
Materials 4.0% | ||
AdvanSix, Inc. | 17,366 | 696,550 |
Alpha Metallurgical Resources, Inc. | 4,159 | 720,422 |
Avient Corp. | 71,456 | 2,896,112 |
Cabot Corp. | 17,523 | 1,244,133 |
Commercial Metals Co. | 20,853 | 1,193,209 |
Constellium SE, Class A * | 220,404 | 4,207,512 |
Ecovyst, Inc. * | 230,004 | 2,826,749 |
H.B. Fuller Co. | 11,231 | 831,431 |
Ingevity Corp. * | 14,245 | 911,965 |
LSB Industries, Inc. * | 39,787 | 444,421 |
O-I Glass, Inc. * | 56,088 | 1,287,780 |
Orion S.A. | 26,918 | 590,043 |
Quaker Chemical Corp. | 2,717 | 544,432 |
Rayonier Advanced Materials, Inc. * | 105,791 | 500,391 |
Ryerson Holding Corp. | 55,279 | 2,348,805 |
SunCoke Energy, Inc. | 174,877 | 1,552,908 |
22,796,863 | ||
Media & Entertainment 2.3% | ||
AMC Networks, Inc., Class A * | 68,700 | 866,994 |
Cargurus, Inc. * | 18,673 | 423,130 |
Cars.com, Inc. * | 58,592 | 1,336,484 |
Entravision Communications Corp., Class A | 227,618 | 1,088,014 |
Gaia, Inc., Class A * | 44,500 | 104,575 |
Gannett Co., Inc. * | 148,450 | 418,629 |
Gray Television, Inc. | 114,949 | 1,088,567 |
iHeartMedia, Inc., Class A * | 97,406 | 460,730 |
IMAX Corp. * | 48,630 | 895,278 |
Shutterstock, Inc. | 27,031 | 1,390,745 |
Yelp, Inc., Class A * | 87,001 | 3,919,395 |
Ziff Davis, Inc. * | 11,205 | 812,587 |
12,805,128 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Pharmaceuticals, Biotechnology & Life Sciences 11.6% | ||
2seventy bio, Inc. * | 39,172 | 297,315 |
ACADIA Pharmaceuticals, Inc. * | 85,573 | 2,502,155 |
Agios Pharmaceuticals, Inc. * | 22,874 | 606,618 |
Alkermes plc * | 117,209 | 3,431,880 |
Amicus Therapeutics, Inc. * | 152,254 | 2,073,700 |
Amneal Pharmaceuticals, Inc. * | 447,489 | 1,431,965 |
Amphastar Pharmaceuticals, Inc. * | 32,714 | 1,985,413 |
Arcus Biosciences, Inc. * | 34,756 | 691,644 |
Arrowhead Pharmaceuticals, Inc. * | 32,572 | 1,124,385 |
Arvinas, Inc. * | 22,617 | 559,092 |
Assertio Holdings, Inc. * | 205,923 | 1,171,702 |
Aurinia Pharmaceuticals, Inc. * | 21,205 | 245,554 |
Beam Therapeutics, Inc. * | 12,397 | 382,695 |
BioCryst Pharmaceuticals, Inc. * | 23,543 | 173,983 |
Bridgebio Pharma, Inc. * | 91,987 | 3,220,465 |
Cara Therapeutics, Inc. * | 194,145 | 646,503 |
Caribou Biosciences, Inc. * | 24,887 | 178,938 |
Catalyst Pharmaceuticals, Inc. * | 131,363 | 1,816,750 |
Codexis, Inc. * | 106,837 | 384,613 |
Collegium Pharmaceutical, Inc. * | 32,695 | 744,138 |
Deciphera Pharmaceuticals, Inc. * | 78,471 | 1,060,928 |
Denali Therapeutics, Inc. * | 22,087 | 627,933 |
Dynavax Technologies Corp. * | 42,203 | 590,420 |
Dyne Therapeutics, Inc. * | 25,035 | 304,926 |
Eagle Pharmaceuticals, Inc. * | 29,281 | 607,874 |
Editas Medicine, Inc. * | 58,785 | 516,132 |
Fate Therapeutics, Inc. * | 331,124 | 1,367,542 |
Halozyme Therapeutics, Inc. * | 29,341 | 1,260,489 |
Harmony Biosciences Holdings, Inc. * | 22,922 | 810,751 |
Harvard Bioscience, Inc. * | 126,539 | 588,406 |
Horizon Therapeutics plc * | 13,976 | 1,401,374 |
IGM Biosciences, Inc. *(a) | 23,025 | 244,986 |
ImmunoGen, Inc. * | 46,972 | 837,041 |
Intercept Pharmaceuticals, Inc. * | 72,218 | 779,954 |
Ironwood Pharmaceuticals, Inc., Class A * | 155,237 | 1,721,578 |
Karuna Therapeutics, Inc. * | 4,784 | 955,700 |
Kiniksa Pharmaceuticals Ltd., Class A * | 133,519 | 2,515,498 |
Kymera Therapeutics, Inc. * | 11,109 | 243,065 |
Ligand Pharmaceuticals, Inc. * | 28,305 | 1,894,454 |
MacroGenics, Inc. * | 344,941 | 1,645,369 |
Medpace Holdings, Inc. * | 25,005 | 6,330,516 |
Mersana Therapeutics, Inc. * | 57,116 | 69,967 |
MiMedx Group, Inc. * | 133,074 | 1,073,907 |
Morphic Holding, Inc. * | 9,921 | 562,818 |
Myriad Genetics, Inc. * | 18,320 | 409,452 |
Nurix Therapeutics, Inc. * | 39,694 | 385,429 |
Organogenesis Holdings, Inc., Class A * | 265,465 | 1,133,536 |
Phibro Animal Health Corp., Class A | 79,718 | 1,154,317 |
Prestige Consumer Healthcare, Inc. * | 42,530 | 2,773,381 |
PTC Therapeutics, Inc. * | 27,076 | 1,092,246 |
Repligen Corp. * | 77 | 13,210 |
Rigel Pharmaceuticals, Inc. * | 407,364 | 562,162 |
TG Therapeutics, Inc. * | 30,413 | 629,245 |
Travere Therapeutics, Inc. * | 33,522 | 576,243 |
Vanda Pharmaceuticals, Inc. * | 196,999 | 1,138,654 |
Veracyte, Inc. * | 84,876 | 2,329,846 |
Vericel Corp. * | 18,406 | 661,144 |
Vir Biotechnology, Inc. * | 36,407 | 512,611 |
Xencor, Inc. * | 23,893 | 580,361 |
65,632,973 | ||
Real Estate Management & Development 0.2% | ||
eXp World Holdings, Inc. | 50,819 | 1,267,426 |
9
Schwab Small-Cap Equity Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
Semiconductors & Semiconductor Equipment 3.0% | ||
Ambarella, Inc. * | 5,097 | 425,192 |
Amkor Technology, Inc. | 29,727 | 864,758 |
Axcelis Technologies, Inc. * | 21,381 | 4,286,463 |
Diodes, Inc. * | 18,066 | 1,707,056 |
Lattice Semiconductor Corp. * | 64,917 | 5,903,552 |
MaxLinear, Inc. * | 41,976 | 1,035,548 |
Onto Innovation, Inc. * | 5,610 | 697,435 |
Photronics, Inc. * | 45,125 | 1,193,556 |
Synaptics, Inc. * | 8,663 | 782,356 |
16,895,916 | ||
Software & Services 6.6% | ||
8x8, Inc. * | 315,131 | 1,493,721 |
A10 Networks, Inc. | 67,754 | 1,051,542 |
Agilysys, Inc. * | 16,724 | 1,231,388 |
Alarm.com Holdings, Inc. * | 10,732 | 592,514 |
Asana, Inc., Class A * | 25,116 | 609,816 |
Blackline, Inc. * | 28,412 | 1,650,169 |
Box, Inc., Class A * | 167,928 | 5,247,750 |
CommVault Systems, Inc. * | 10,126 | 789,119 |
Domo, Inc., Class B * | 72,801 | 1,300,954 |
eGain Corp. * | 188,200 | 1,387,034 |
EngageSmart, Inc. * | 9,786 | 185,543 |
Everbridge, Inc. * | 35,938 | 1,108,328 |
PagerDuty, Inc. * | 107,748 | 2,792,828 |
Qualys, Inc. * | 40,501 | 5,621,539 |
Sprinklr, Inc., Class A * | 75,428 | 1,059,009 |
Sprout Social, Inc., Class A * | 27,507 | 1,571,750 |
Tenable Holdings, Inc. * | 16,251 | 790,774 |
The Hackett Group, Inc. | 64,409 | 1,497,509 |
Unisys Corp. * | 285,306 | 1,552,065 |
Workiva, Inc., Class A * | 27,481 | 2,893,474 |
Yext, Inc. * | 92,483 | 898,935 |
Zeta Global Holdings Corp., Class A * | 92,943 | 856,934 |
Zuora, Inc., Class A * | 117,441 | 1,377,583 |
37,560,278 | ||
Technology Hardware & Equipment 4.5% | ||
Arlo Technologies, Inc. * | 39,333 | 446,823 |
Avid Technology, Inc. * | 58,166 | 1,386,677 |
Belden, Inc. | 31,827 | 3,075,761 |
Calix, Inc. * | 7,357 | 331,874 |
CommScope Holding Co., Inc. * | 220,768 | 993,456 |
Extreme Networks, Inc. * | 147,042 | 3,909,847 |
Fabrinet * | 15,169 | 1,875,495 |
OSI Systems, Inc. * | 14,083 | 1,679,116 |
Rogers Corp. * | 3,982 | 671,405 |
Sanmina Corp. * | 8,821 | 542,139 |
Super Micro Computer, Inc. * | 15,635 | 5,163,771 |
Vishay Intertechnology, Inc. | 145,525 | 4,096,529 |
Xerox Holdings Corp. | 85,124 | 1,360,282 |
25,533,175 | ||
Telecommunication Services 1.0% | ||
Cogent Communications Holdings, Inc. | 7,872 | 482,081 |
Iridium Communications, Inc. | 32,245 | 1,694,475 |
Liberty Latin America Ltd., Class A * | 353,075 | 2,965,830 |
Ooma, Inc. * | 32,459 | 486,885 |
5,629,271 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Transportation 1.4% | ||
ArcBest Corp. | 4,717 | 548,681 |
Daseke, Inc. * | 248,260 | 1,931,463 |
Forward Air Corp. | 18,967 | 2,254,038 |
Hub Group, Inc., Class A * | 11,981 | 1,079,848 |
Matson, Inc. | 16,791 | 1,569,287 |
Radiant Logistics, Inc. * | 69,136 | 532,347 |
7,915,664 | ||
Utilities 2.0% | ||
Chesapeake Utilities Corp. | 6,681 | 789,961 |
Clearway Energy, Inc., Class A | 105,973 | 2,614,354 |
Consolidated Water Co., Ltd. | 35,962 | 703,417 |
Genie Energy Ltd., Class B | 66,550 | 892,435 |
MGE Energy, Inc. | 5,556 | 445,813 |
New Jersey Resources Corp. | 14,851 | 663,840 |
Otter Tail Corp. | 60,856 | 4,929,945 |
Via Renewables, Inc., Class A | 21,017 | 171,709 |
11,211,474 | ||
Total Common Stocks (Cost $469,730,637) | 551,753,561 |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS | ||
Money Market Funds 0.2% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.19% (c)(d) | 1,215,578 | 1,215,578 |
Total Short-Term Investments (Cost $1,215,578) | 1,215,578 | |
Total Investments in Securities (Cost $470,946,215) | 552,969,139 |
NUMBER OF CONTRACTS | NOTIONAL AMOUNT ($) | CURRENT VALUE/ UNREALIZED APPRECIATION ($) | |
FUTURES CONTRACTS | |||
Long | |||
Russell 2000 Index, e-mini, expires 09/15/23 | 150 | 15,102,000 | 967,101 |
* | Non-income producing security. |
(a) | All or a portion of this security is on loan. Securities on loan were valued at $1,179,963. |
(b) | Fair valued using significant unobservable inputs (see Notes for additional information). |
(c) | The rate shown is the annualized 7-day yield. |
(d) | Security purchased with cash collateral received for securities on loan. |
REIT — | Real Estate Investment Trust |
10
Schwab Small-Cap Equity Fund
Portfolio Holdings (Unaudited) continued
The following is a summary of the inputs used to value the fund’s investments as of July 31, 2023:
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $521,472,494 | $— | $— | $521,472,494 |
Health Care Equipment & Services | 30,281,067 | — | 0 * | 30,281,067 |
Short-Term Investments1 | 1,215,578 | — | — | 1,215,578 |
Futures Contracts2 | 967,101 | — | — | 967,101 |
Total | $553,936,240 | $— | $— | $553,936,240 |
* | Level 3 amount shown includes securities determined to have no value at July 31, 2023. |
1 | As categorized in the Portfolio Holdings. |
2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
11
Schwab Capital Trust
Schwab Health Care Fund
Schwab Health Care Fund
Portfolio Holdings as of July 31, 2023 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.8% OF NET ASSETS | ||
Australia 0.7% | ||
Ansell Ltd. | 57,028 | 926,117 |
Cochlear Ltd. | 6,544 | 1,052,748 |
CSL Ltd. | 6,623 | 1,192,909 |
Pro Medicus Ltd. | 29,011 | 1,343,590 |
Sonic Healthcare Ltd. | 58,796 | 1,389,220 |
5,904,584 | ||
Denmark 3.9% | ||
Demant A/S * | 31,535 | 1,254,928 |
Novo Nordisk A/S, Class B | 187,506 | 30,235,754 |
31,490,682 | ||
France 2.2% | ||
EssilorLuxottica S.A. | 24,831 | 4,995,381 |
Ipsen S.A. | 56,414 | 7,109,677 |
Sanofi | 52,677 | 5,619,820 |
17,724,878 | ||
Germany 0.3% | ||
Fresenius SE & Co. KGaA | 78,478 | 2,462,808 |
Hong Kong 0.1% | ||
The United Laboratories International Holdings Ltd. | 752,000 | 603,170 |
Ireland 2.6% | ||
Medtronic plc | 236,283 | 20,736,196 |
Japan 2.2% | ||
Astellas Pharma, Inc. | 431,400 | 6,308,081 |
Hoya Corp. | 49,000 | 5,706,506 |
Ono Pharmaceutical Co., Ltd. | 168,000 | 3,078,654 |
Shionogi & Co., Ltd. | 62,800 | 2,631,824 |
17,725,065 | ||
Republic of Korea 0.1% | ||
Dentium Co., Ltd. | 6,793 | 766,088 |
Sweden 0.3% | ||
Elekta AB, B Shares | 317,112 | 2,568,995 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Switzerland 5.7% | ||
Novartis AG | 164,655 | 17,238,906 |
Roche Holding AG | 77,606 | 24,061,844 |
Sonova Holding AG | 14,456 | 4,029,538 |
45,330,288 | ||
Taiwan 0.2% | ||
Universal Vision Biotechnology Co., Ltd. * | 120,000 | 1,497,344 |
United Kingdom 3.1% | ||
AstraZeneca plc | 124,258 | 17,852,917 |
GSK plc | 383,303 | 6,823,235 |
24,676,152 | ||
United States 78.4% | ||
Abbott Laboratories | 226,284 | 25,192,198 |
AbbVie, Inc. | 108,560 | 16,238,405 |
Agilent Technologies, Inc. | 126,206 | 15,368,105 |
Alkermes plc * | 82,000 | 2,400,960 |
Amgen, Inc. | 115,984 | 27,157,653 |
Becton, Dickinson & Co. | 30,898 | 8,608,801 |
Biogen, Inc. * | 36,226 | 9,787,903 |
BioMarin Pharmaceutical, Inc. * | 56,532 | 4,970,859 |
Bio-Techne Corp. | 38,584 | 3,217,906 |
Bristol-Myers Squibb Co. | 324,302 | 20,168,341 |
Cardinal Health, Inc. | 33,629 | 3,076,045 |
Cigna Corp. | 80,169 | 23,657,872 |
CVS Health Corp. | 40,942 | 3,057,958 |
Danaher Corp. | 80,806 | 20,610,378 |
DaVita, Inc. * | 7,934 | 809,189 |
Dentsply Sirona, Inc. | 149,003 | 6,186,604 |
Edwards Lifesciences Corp. * | 73,287 | 6,014,664 |
Elanco Animal Health, Inc. * | 118,200 | 1,426,674 |
Elevance Health, Inc. | 37,011 | 17,455,498 |
Eli Lilly & Co. | 85,322 | 38,783,115 |
Gilead Sciences, Inc. | 276,732 | 21,070,374 |
Halozyme Therapeutics, Inc. * | 185,956 | 7,988,670 |
Hologic, Inc. * | 133,346 | 10,590,339 |
Humana, Inc. | 25,938 | 11,849,256 |
Incyte Corp. * | 46,447 | 2,959,603 |
Intellia Therapeutics, Inc. * | 27,272 | 1,154,424 |
Intuitive Surgical, Inc. * | 17,368 | 5,634,179 |
IQVIA Holdings, Inc. * | 62,840 | 14,061,078 |
Ironwood Pharmaceuticals, Inc., Class A * | 33,163 | 367,778 |
Jazz Pharmaceuticals plc * | 63,510 | 8,282,974 |
Johnson & Johnson | 227,266 | 38,073,873 |
Lantheus Holdings, Inc. * | 47,970 | 4,148,925 |
McKesson Corp. | 18,694 | 7,522,466 |
Medpace Holdings, Inc. * | 26,555 | 6,722,929 |
Merck & Co., Inc. | 376,042 | 40,104,879 |
Merit Medical Systems, Inc. * | 44,501 | 3,322,890 |
Mettler-Toledo International, Inc. * | 11,210 | 14,096,239 |
12
Schwab Health Care Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
NextGen Healthcare, Inc. * | 111,801 | 1,859,251 |
Pfizer, Inc. | 451,544 | 16,282,677 |
Prestige Consumer Healthcare, Inc. * | 129,156 | 8,422,263 |
Regeneron Pharmaceuticals, Inc. * | 8,131 | 6,032,470 |
Stryker Corp. | 7,997 | 2,266,430 |
Supernus Pharmaceuticals, Inc. * | 33,700 | 1,034,253 |
The Cooper Cos., Inc. | 3,500 | 1,369,410 |
Thermo Fisher Scientific, Inc. | 37,354 | 20,494,646 |
United Therapeutics Corp. * | 37,583 | 9,122,146 |
UnitedHealth Group, Inc. | 91,659 | 46,413,368 |
Veracyte, Inc. * | 71,378 | 1,959,326 |
Vertex Pharmaceuticals, Inc. * | 66,246 | 23,341,116 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Waters Corp. * | 23,288 | 6,432,378 |
Zimmer Biomet Holdings, Inc. | 103,288 | 14,269,237 |
Zoetis, Inc. | 87,416 | 16,442,075 |
627,881,050 | ||
Total Common Stocks (Cost $536,919,285) | 799,367,300 | |
Total Investments in Securities (Cost $536,919,285) | 799,367,300 |
* | Non-income producing security. |
The following is a summary of the inputs used to value the fund’s investments as of July 31, 2023:
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $648,617,246 | $— | $— | $648,617,246 |
Australia | — | 5,904,584 | — | 5,904,584 |
Denmark | — | 31,490,682 | — | 31,490,682 |
France | — | 17,724,878 | — | 17,724,878 |
Germany | — | 2,462,808 | — | 2,462,808 |
Hong Kong | — | 603,170 | — | 603,170 |
Japan | — | 17,725,065 | — | 17,725,065 |
Republic of Korea | — | 766,088 | — | 766,088 |
Sweden | — | 2,568,995 | — | 2,568,995 |
Switzerland | — | 45,330,288 | — | 45,330,288 |
Taiwan | — | 1,497,344 | — | 1,497,344 |
United Kingdom | — | 24,676,152 | — | 24,676,152 |
Total | $648,617,246 | $150,750,054 | $— | $799,367,300 |
1 | As categorized in the Portfolio Holdings. |
13
Schwab Capital Trust
Schwab International Core Equity Fund
Schwab International Core Equity Fund
Portfolio Holdings as of July 31, 2023 (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.0% OF NET ASSETS | ||
Australia 7.6% | ||
ANZ Group Holdings Ltd. | 206,416 | 3,581,145 |
Aristocrat Leisure Ltd. | 153,174 | 4,056,847 |
BHP Group Ltd. | 341,183 | 10,618,252 |
Iluka Resources Ltd. | 398,749 | 2,754,145 |
National Australia Bank Ltd. | 108,648 | 2,081,266 |
Qantas Airways Ltd. * | 1,327,148 | 5,831,184 |
QBE Insurance Group Ltd. | 131,885 | 1,400,210 |
Sonic Healthcare Ltd. | 127,838 | 3,020,530 |
South32 Ltd. | 1,131,324 | 2,978,997 |
Suncorp Group Ltd. | 316,867 | 3,036,227 |
Technology One Ltd. | 335,762 | 3,557,450 |
42,916,253 | ||
Austria 0.9% | ||
Erste Group Bank AG | 23,066 | 871,799 |
Wienerberger AG | 126,459 | 4,153,020 |
5,024,819 | ||
Brazil 0.3% | ||
Banco do Brasil S.A. | 177,100 | 1,804,800 |
Canada 2.0% | ||
CGI, Inc. * | 56,109 | 5,701,745 |
Imperial Oil Ltd. | 31,700 | 1,707,783 |
Loblaw Cos., Ltd. | 27,460 | 2,436,446 |
Suncor Energy, Inc. | 45,200 | 1,414,289 |
11,260,263 | ||
China 0.7% | ||
COSCO SHIPPING Holdings Co., Ltd., H Shares | 1,977,500 | 2,093,010 |
Tencent Holdings Ltd. | 38,500 | 1,769,503 |
3,862,513 | ||
Denmark 3.7% | ||
Novo Nordisk A/S, Class B | 122,442 | 19,744,041 |
Pandora A/S | 12,369 | 1,237,295 |
20,981,336 | ||
France 15.0% | ||
BNP Paribas S.A. | 35,323 | 2,329,474 |
Cie de Saint-Gobain | 118,432 | 8,009,716 |
Dassault Aviation S.A. | 13,667 | 2,654,969 |
Eiffage S.A. | 75,938 | 7,900,402 |
Engie S.A. | 321,374 | 5,272,245 |
Hermes International | 1,695 | 3,751,484 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Ipsen S.A. | 40,575 | 5,113,538 |
L'Oreal S.A. | 25,318 | 11,775,640 |
LVMH Moet Hennessy Louis Vuitton SE | 20,873 | 19,386,165 |
Sanofi | 22,454 | 2,395,494 |
Schneider Electric SE | 8,546 | 1,524,367 |
Societe Generale S.A. | 79,877 | 2,172,394 |
TotalEnergies SE | 193,533 | 11,758,389 |
84,044,277 | ||
Germany 8.6% | ||
Allianz SE | 19,821 | 4,737,206 |
Bayerische Motoren Werke AG | 70,870 | 8,642,594 |
Deutsche Telekom AG | 259,900 | 5,666,141 |
Heidelberg Materials AG | 47,944 | 3,885,758 |
Infineon Technologies AG | 85,787 | 3,769,092 |
Mercedes-Benz Group AG | 79,477 | 6,347,265 |
SAP SE | 38,147 | 5,203,692 |
Siemens AG | 58,481 | 9,967,627 |
48,219,375 | ||
Greece 0.2% | ||
OPAP SA | 52,129 | 916,821 |
Hong Kong 1.4% | ||
AIA Group Ltd. | 97,800 | 978,463 |
China CITIC Bank Corp., Ltd., H Shares | 1,982,000 | 958,484 |
Hong Kong Exchanges & Clearing Ltd. | 41,600 | 1,753,939 |
NetEase, Inc. | 57,000 | 1,241,479 |
PetroChina Co., Ltd., H Shares | 3,586,000 | 2,629,386 |
Sino Land Co., Ltd. | 356,585 | 437,716 |
7,999,467 | ||
Ireland 1.1% | ||
CRH plc | 102,224 | 6,089,579 |
Italy 3.0% | ||
Assicurazioni Generali S.p.A. | 61,244 | 1,304,529 |
Stellantis N.V. | 335,309 | 6,879,830 |
UniCredit S.p.A. | 122,000 | 3,089,070 |
Unipol Gruppo S.p.A. | 967,764 | 5,388,210 |
16,661,639 | ||
Japan 20.3% | ||
Advantest Corp. | 25,100 | 3,471,577 |
BayCurrent Consulting, Inc. | 21,800 | 704,025 |
Canon, Inc. | 25,200 | 651,304 |
Dai-ichi Life Holdings, Inc. | 53,200 | 1,086,967 |
Dexerials Corp. | 31,100 | 706,024 |
DMG Mori Co., Ltd. | 83,900 | 1,427,634 |
Fast Retailing Co., Ltd. | 11,100 | 2,780,691 |
14
Schwab International Core Equity Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
Fujikura Ltd. | 327,800 | 2,740,795 |
Hitachi Ltd. | 32,000 | 2,094,864 |
Honda Motor Co., Ltd. | 131,300 | 4,186,026 |
Hoya Corp. | 52,003 | 6,056,234 |
Inpex Corp. | 298,100 | 3,849,132 |
Japan Exchange Group, Inc. | 196,700 | 3,427,142 |
Japan Tobacco, Inc. | 157,782 | 3,501,119 |
KDDI Corp. | 137,200 | 4,038,029 |
Keyence Corp. | 8,800 | 3,948,929 |
Lawson, Inc. | 107,200 | 5,378,736 |
Marubeni Corp. | 180,000 | 3,186,899 |
Meitec Corp. | 51,100 | 931,569 |
Mitsubishi Corp. | 94,900 | 4,855,697 |
Nexon Co., Ltd. | 105,400 | 2,010,970 |
Nippon Building Fund, Inc. | 325 | 1,362,339 |
Nippon Express Holdings, Inc. | 11,000 | 644,943 |
Obic Co., Ltd. | 9,530 | 1,559,490 |
Ono Pharmaceutical Co., Ltd. | 208,100 | 3,813,499 |
ORIX Corp. | 364,000 | 7,002,093 |
Recruit Holdings Co., Ltd. | 50,300 | 1,742,173 |
Seino Holdings Co., Ltd. | 197,000 | 3,100,489 |
Shimamura Co., Ltd. | 10,600 | 1,049,779 |
Shin-Etsu Chemical Co., Ltd. | 276,000 | 9,092,777 |
Shinko Electric Industries Co., Ltd. | 15,400 | 622,635 |
Sompo Holdings, Inc. | 18,600 | 822,320 |
Sony Group Corp. | 37,800 | 3,540,583 |
Sumitomo Mitsui Financial Group, Inc. | 156,100 | 7,313,542 |
Suntory Beverage & Food Ltd. | 70,600 | 2,513,149 |
Tokyo Electron Ltd. | 26,400 | 3,962,295 |
Toyo Suisan Kaisha Ltd. | 17,000 | 703,156 |
Toyota Motor Corp. | 100,400 | 1,688,100 |
Yakult Honsha Co., Ltd. | 47,500 | 2,635,577 |
114,203,302 | ||
Netherlands 6.1% | ||
ABN AMRO Bank N.V., GDR | 132,464 | 2,252,313 |
ASML Holding N.V. | 24,397 | 17,474,809 |
Koninklijke Ahold Delhaize N.V. | 229,725 | 7,918,303 |
OCI N.V. * | 33,100 | 943,343 |
Wolters Kluwer N.V. | 46,365 | 5,822,331 |
34,411,099 | ||
Norway 0.7% | ||
Equinor A.S.A. | 68,221 | 2,086,776 |
Norsk Hydro A.S.A. | 298,554 | 1,955,355 |
4,042,131 | ||
Republic of Korea 1.7% | ||
Doosan Bobcat, Inc. | 40,330 | 1,849,998 |
Kia Corp. | 68,647 | 4,455,143 |
Samsung Electro-Mechanics Co., Ltd. | 6,004 | 684,929 |
Samsung Electronics Co., Ltd. | 51,704 | 2,830,930 |
9,821,000 | ||
Singapore 0.8% | ||
Jardine Cycle & Carriage Ltd. | 104,500 | 2,697,127 |
Jardine Matheson Holdings Ltd. | 38,800 | 1,916,542 |
4,613,669 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Spain 1.4% | ||
Banco Bilbao Vizcaya Argentaria S.A. | 300,000 | 2,377,912 |
Banco Santander S.A. | 1,078,329 | 4,369,693 |
Industria de Diseno Textil S.A. | 24,116 | 923,108 |
7,670,713 | ||
Sweden 1.3% | ||
Assa Abloy AB, B Shares | 26,900 | 646,754 |
Atlas Copco AB, A Shares | 237,205 | 3,369,707 |
Nordea Bank Abp | 144,421 | 1,634,605 |
Sandvik AB | 22,805 | 463,227 |
SSAB AB, A Shares | 85,965 | 545,486 |
Telefonaktiebolaget LM Ericsson, B Shares | 126,417 | 635,938 |
7,295,717 | ||
Switzerland 8.4% | ||
ABB Ltd. | 57,000 | 2,287,268 |
Cie Financiere Richemont S.A., Class A | 32,744 | 5,272,858 |
Holcim Ltd. * | 22,632 | 1,577,381 |
Nestle S.A. | 95,008 | 11,640,297 |
Novartis AG | 156,339 | 16,368,245 |
Partners Group Holding AG | 1,725 | 1,936,543 |
Roche Holding AG | 23,233 | 7,203,423 |
UBS Group AG | 30,535 | 677,537 |
46,963,552 | ||
Taiwan 0.8% | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 237,000 | 4,279,651 |
United Kingdom 13.0% | ||
AstraZeneca plc | 49,169 | 7,064,415 |
BAE Systems plc | 265,935 | 3,180,328 |
Burberry Group plc | 50,263 | 1,434,769 |
Centrica plc | 1,857,162 | 3,291,170 |
Glencore plc | 508,625 | 3,093,169 |
GSK plc | 336,163 | 5,984,088 |
Howden Joinery Group plc | 292,851 | 2,772,993 |
HSBC Holdings plc | 1,680,795 | 13,961,377 |
Imperial Brands plc | 180,648 | 4,267,888 |
Investec plc | 821,614 | 5,162,430 |
Land Securities Group plc | 186,207 | 1,546,410 |
Legal & General Group plc | 830,297 | 2,488,288 |
Man Group plc | 1,287,933 | 3,948,275 |
NatWest Group plc | 702,672 | 2,205,714 |
Rio Tinto plc | 38,893 | 2,570,739 |
Shell plc | 206,996 | 6,273,583 |
Tesco plc | 762,547 | 2,525,610 |
Unilever plc | 28,498 | 1,531,280 |
73,302,526 | ||
Total Common Stocks (Cost $455,449,124) | 556,384,502 |
15
Schwab International Core Equity Fund
Portfolio Holdings (Unaudited) continued
SECURITY | NUMBER OF SHARES | VALUE ($) |
SHORT-TERM INVESTMENTS 0.7% OF NET ASSETS | ||
Money Market Funds 0.7% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.19% (a) | 4,065,381 | 4,065,381 |
Total Short-Term Investments (Cost $4,065,381) | 4,065,381 | |
Total Investments in Securities (Cost $459,514,505) | 560,449,883 |
* | Non-income producing security. |
(a) | The rate shown is the annualized 7-day yield. |
GDR — | Global Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of July 31, 2023:
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $— | $463,927,334 | $— | $463,927,334 |
Brazil | 1,804,800 | — | — | 1,804,800 |
Canada | 11,260,263 | — | — | 11,260,263 |
Ireland | 6,089,579 | — | — | 6,089,579 |
United Kingdom | 5,162,430 | 68,140,096 | — | 73,302,526 |
Short-Term Investments1 | 4,065,381 | — | — | 4,065,381 |
Total | $28,382,453 | $532,067,430 | $— | $560,449,883 |
1 | As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
16
Schwab Active Equity Funds
Notes to Portfolio Holdings (Unaudited)
Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the 1940 Act), the Board of Trustees (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 net asset value (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 generally accepted accounting principles in the United States of America (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.
• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the valuation of a fund’s holdings
17
Schwab Active Equity Funds
Notes to Portfolio Holdings (Unaudited) (continued)
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.
REG87636JUL23
18