nvcsr

Operations

In This Report



Performance at a Glance		2

From the President		3

Investment Environment		4

Fund Management		5

Schwab U.S. Broad Market ETF™		6

Schwab U.S. Large-Cap ETF™		8

Schwab U.S. Large-Cap Growth ETF™		10

Schwab U.S. Large-Cap Value ETF™		12

Schwab U.S. Small-Cap ETF™		14

Fund Expenses		16

Financial Statements		17

Financial Notes		85

Report of Independent Registered Accounting Firm		94

Other Federal Tax Information		95

Other Information		96

Trustees and Officers		98

Glossary		101

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO).

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International 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. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

The performance quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.


Total Return from Inception*
to August 31, 2010



Schwab U.S. Broad Market ETF^tm
(Ticker Symbol: SCHB)

NAV Return¹		3.74%
Market Price Return¹		3.70%
Dow Jones U.S. Broad Stock Market Index^SM		3.88%
ETF Category: Morningstar Large Blend²		1.99%

Performance Details		pages 6-7



Schwab U.S. Large-Cap ETF^tm
(Ticker Symbol: SCHX)

NAV Return¹		3.01%
Market Price Return¹		2.97%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		3.08%
ETF Category: Morningstar Large Blend²		1.99%

Performance Details		pages 8-9



Schwab U.S. Large-Cap Growth ETF^tm
(Ticker Symbol: SCHG)

NAV Return¹		-3.94%
Market Price Return¹		-4.02%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		-3.90%
ETF Category: Morningstar Large Growth²		-3.30%

Performance Details		pages 10-11



Schwab U.S. Large-Cap Value ETF^tm
(Ticker Symbol: SCHV)

NAV Return¹		-2.00%
Market Price Return¹		-2.00%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		-1.87%
ETF Category: Morningstar Large Value²		-0.95%

Performance Details		pages 12-13



Schwab U.S. Small-Cap ETF^tm
(Ticker Symbol: SCHA)

NAV Return¹		10.15%
Market Price Return¹		9.94%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		10.39%
ETF Category: Morningstar Small Blend²		6.21%

Performance Details		pages 14-15

All fund and index figures 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 you cannot invest in them directly. Performance results less than one year are not annualized. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

Exchange-traded funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Index ownership — “Dow Jones” and the names identifying the Dow Jones Indexes underlying Schwab’s Domestic ETFs are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Charles Schwab Investment Management, Inc. The Schwab ETFs are not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in such products.


*	Inception represents the date that the shares began trading in the secondary market. For the Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, and Schwab U.S. Small-Cap ETF, total returns are since inception date of 11/3/09. For the Schwab U.S. Large-Cap Growth ETF and Schwab U.S. Large-Cap Value ETF, total returns are since inception date of 12/11/09. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.

¹	The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

²	The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

2 Schwab U.S. ETFs

From the President

Randall W. Merk is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

We are pleased to provide you this first annual report for the Schwab U.S. equity Exchange-Traded Funds (ETFs). The content covers the period from the inception date of each fund through August 31, 2010, and includes information about the performance and management of the five U.S. equity ETFs.

Schwab is committed to offering investors ETFs that can play an important role in building a diversified portfolio, at low cost. In June 2010, we reduced the operating expense ratios on six of our eight equity ETFs, making Schwab ETF expense ratios among the lowest in the industry. Moreover, in August 2010, we launched three new fixed income ETFs that offer investors broad access to the U.S. Treasury markets. With the addition of the Schwab U.S. TIPS ETF^tm, the Schwab Short-Term U.S. Treasury ETF^tm, and the Schwab Intermediate-Term U.S. Treasury ETF^tm, investors can now choose from our growing suite of Schwab ETFs^tm to gain exposure to a core asset class or to combine several ETFs as part of a diversified portfolio.

All five of the U.S. equity ETFs had returns that were consistent with their respective indices for the reporting period. For details about each fund’s performance, please see the managers’ discussion and analysis in the following pages. If you have any questions about the Schwab ETFs or any of our mutual funds, we are always available at 1-800-435-4000, and additional resources may be found on schwab.com.

Thank you for investing with us.

Sincerely,

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.

Schwab U.S. ETFs 3

The Investment Environment

After hitting multi-year lows in the first quarter of 2009, the U.S. equity market delivered strong gains into the first quarter of 2010 before seeing a decline toward summer of 2010. Talks of a double-dip recession for the U.S. economy also led to volatility in the market as various economic indicators showed less than upbeat results.

During the reporting period,* the U.S. economy struggled to gain sustainable momentum. The federal funds rate remained in the low range of 0.00−0.25%, housing prices hit ten-year lows, foreclosures reached new highs, and sales of new and existing homes continued to fall. Early 2010 showed some improvement in unemployment, though national numbers still lingered at just below 10%, even as new factory orders increased.

Investor confidence was further shaken on May 6, 2010, when the U.S. stock market plunged, recording a brief, but alarming drop in the Dow Jones Industrial Average (the Dow) of 999 points within a 30-minute timeframe before partially rebounding. The equity market event was subsequently named the “flash crash.” As a result of the “flash crash,” more than 16,000 trades were cancelled by the major U.S. stock exchanges, of which ETFs represented approximately 67%. Performance of Schwab ETFs that were exposed to the event remained consistent with their respective indices for the reporting period.

During the period following the “flash crash” through August 31, 2010, nearly all major U.S. equity indices posted negative returns. Strong gains experienced earlier in the year offset these declines, however. The S&P 500^® Index and Russell 2000^® Index posted positive performance for the reporting period, returning 2.39% and 8.20%, respectively. U.S. markets outperformed the international developed markets as measured by the MSCI EAFE^® Index, which returned −4.32%. Bond markets outperformed the equity markets during the period, as the Barclays Capital U.S. Aggregate Bond Index reported a 7.61% return and the Barclays Capital U.S. TIPS Index returned 6.85%.

Asset Class Performance Comparison % returns during the report period*

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.



		2.39%		S&P 500^{^®} Index: measures U.S. large-cap stocks

		8.20%		Russell 2000^{^®} Index: measures U.S. small-cap stocks

		−4.32%		MSCI EAFE^{^®} Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		7.61%		Barclays Capital U.S. Aggregate Bond Index: measures the U.S. bond market

		0.09%		Three-Month U.S. Treasury Bills (T-bills): measures short-term U.S. Treasury obligations

These figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and you cannot invest in them directly. Remember that past performance is not an indication of future results.

Data source: Charles Schwab & Co., Inc.

Nothing in this report represents a recommendation of a security by the investment adviser.

Manager views and portfolio holdings may have changed since the report date.


*		Reflects the period from 11/3/09 (the earliest inception date of the funds in this report) through 8/31/10.

4 Schwab U.S. ETFs

Fund Management



		Dustin Lewellyn, CFA, a managing director of the Adviser, oversees the Adviser’s management of ETFs. Prior to joining the firm in May 2009, he worked for two years as director of ETF product management and development at a major financial institution focused on asset and wealth management. Prior to that, he was a portfolio manager for institutional clients at a financial services firm for three years. In addition, he held roles in portfolio operations and product management at a large asset management firm for more than six years.

		Agnes Hong, CFA, a managing director and portfolio manager of the Adviser, has day-to-day responsibility for co-management of the funds. Prior to joining the firm in September 2009, she worked for more than five years as a portfolio manager for a major asset management firm.

		Ferian Juwono, CFA, a managing director and portfolio manager of the Adviser, has day-to-day responsibility for co-management of the funds. Prior to joining the firm in May 2010, he was a portfolio manager at a major asset management firm for three years. Before that position, he was a senior business analyst at a major financial firm for nearly two years. In addition, he was a senior financial analyst at a regional banking firm for four years.

Schwab U.S. ETFs 5

Schwab U.S. Broad Market ETF™

The Schwab U.S. Broad Market ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Broad Stock Market Index^SM. The index includes the largest 2,500 constituents in the Dow Jones U.S. Total Stock Market Index^SM and represents approximately 99% of the investable U.S. stock market. The fund invests in a representative sample of securities included in the index that collectively has a similar investment profile to the index. Due to the use of representative sampling, the fund may or may not hold all of the securities in the index.

During the reporting period that began with the fund’s inception date of November 3, 2009, and ended August 31, 2010, the fund’s market price return was 3.70% and its NAV return was 3.74%. (For an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The index returned 3.88% during the same period.

The best performing sectors in the fund’s index were Telecommunication Services and Consumer Discretionary. For both the fund and the index, Consumer Discretionary, at close to 11% of the fund’s net assets, was the strongest positive contributor to returns. The Energy Sector, at over 10% of the fund’s net assets, was the only negative detractor from returns.

Seven of the fund’s ten largest holdings posted positive returns for the reporting period. Apple gained the most, while Exxon Mobil and Microsoft experienced the worst declines.

As of 8/31/10:

Statistics


Number of Holdings		1558
Weighted Average Market Cap ($ x 1,000,000)		$60,964
Price/Earnings Ratio (P/E)		16.3
Price/Book Ratio (P/B)		1.9
Portfolio Turnover Rate²		2%

Sector Weightings % of Investments


Information Technology		18.0%
Financials		16.7%
Health Care		11.8%
Consumer Discretionary		11.0%
Industrials		10.7%
Consumer Staples		10.4%
Energy		10.1%
Materials		4.1%
Utilities		4.0%
Telecommunication Services		3.0%
Other		0.2%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Exxon Mobil Corp		2.6%
Apple, Inc.		1.9%
Microsoft Corp.		1.6%
The Procter & Gamble Co.		1.5%
AT&T, Inc.		1.4%
International Business Machines Corp.		1.4%
Johnson & Johnson		1.4%
General Electric Co.		1.3%
Berkshire Hathaway, Inc., Class B		1.3%
Chevron Corp.		1.3%
Total		15.7%

Manager views and portfolio holdings may have changed since the report date.

An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of operational and transaction costs incurred by the fund.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

6 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Performance Summary as of 8/31/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares may, when sold or redeemed, 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.schwabetfs.com.

November 3, 2009 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Broad Market ETF^tm (11/3/09)
NAV Return³		3.74	%
Market Price Return³		3.70	%
Dow Jones U.S. Broad Stock Market Index^SM		3.88	%
ETF Category: Morningstar Large Blend⁴		1.99	%

Fund Expense Ratio⁵: 0.06%

Style Assessment⁶

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 you cannot invest in them directly. Performance results less than one year are not annualized.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus. Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 7

Schwab U.S. Large-Cap ETF™

The Schwab U.S. Large-Cap ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index^SM. The index includes approximately the largest 750 names of the Dow Jones U.S. Broad Stock Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the reporting period that began with the fund’s inception date of November 3, 2009, and ended August 31, 2010, the fund’s market price return was 2.97% and its NAV return was 3.01%. (For an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The index returned 3.08% during the same period.

The performance of the fund’s index lagged that of the Dow Jones U.S. Broad Stock Market Index^SM during the reporting period. The best performing sectors were Telecommunication Services and Consumer Discretionary. For both the index and the fund, Consumer Discretionary, at over 10% of the fund’s net assets, was the strongest positive contributor to returns. The Energy Sector, at close to 11% of fund’s net assets, was the largest negative detractor from returns.

Seven of the fund’s ten largest holdings posted positive returns for the reporting period. Apple gained the most, while Exxon Mobil and Microsoft experienced the worst declines.

As of 8/31/10:

Statistics


Number of Holdings		745
Weighted Average Market Cap ($ x 1,000,000)		$68,239
Price/Earnings Ratio (P/E)		15.4
Price/Book Ratio (P/B)		1.9
Portfolio Turnover Rate²		3%

Sector Weightings % of Investments


Information Technology		18.1%
Financials		16.0%
Health Care		11.9%
Consumer Staples		11.1%
Energy		10.7%
Consumer Discretionary		10.5%
Industrials		10.2%
Utilities		4.1%
Materials		3.9%
Telecommunication Services		3.3%
Other		0.2%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Exxon Mobil Corp.		3.0%
Apple, Inc.		2.2%
Microsoft Corp.		1.8%
The Procter & Gamble Co.		1.7%
AT&T, Inc.		1.6%
Johnson & Johnson		1.5%
International Business Machines Corp.		1.5%
General Electric Co.		1.5%
Berkshire Hathaway, Inc., Class B		1.5%
Chevron Corp.		1.5%
Total		17.8%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

8 Schwab U.S. ETFs

Schwab U.S. Large-Cap ETF^tm

Performance Summary as of 8/31/10

November 3, 2009 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Large-Cap ETF^tm (11/3/09)
NAV Return³		3.01	%
Market Price Return³		2.97	%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		3.08	%
ETF Category: Morningstar Large Blend⁴		1.99	%

Fund Expense Ratio⁵: 0.08%

Style Assessment⁶


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 9

Schwab U.S. Large-Cap Growth ETF™

The Schwab U.S. Large-Cap Growth ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM. The index includes approximately 430 names with Growth characteristics of the Dow Jones U.S. Large-Cap Total Stock Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the reporting period that began with the fund’s inception date of December 11, 2009 and ended August 31, 2010, the fund’s market price return was -4.02% and its NAV return was -3.94%. (For an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The index returned -3.90% during the same period.

The performance of the fund’s index lagged that of the Dow Jones U.S. Broad Stock Market Index^SM and the Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM. The best performing sectors were Telecommunication Services and Industrials. For both the index and the fund, Industrials, at about 10% of the fund’s net assets, was the best positive contributor to returns. Health Care and Information Technology were the worst performing sectors. Information Technology, the highest-weighted sector at about 32% of fund’s net assets, was the worst detractor from returns.

Three of the fund’s ten largest holdings posted positive returns for the reporting period. Apple delivered the best return, while other stocks within Information Technology, such as Google and Hewlett Packard, posted the largest losses.

As of 8/31/10:

Statistics


Number of Holdings		422
Weighted Average Market Cap ($ x 1,000,000)		$51,231
Price/Earnings Ratio (P/E)		16.9
Price/Book Ratio (P/B)		2.5
Portfolio Turnover Rate²		6%

Sector Weightings % of Investments


Information Technology		31.8%
Health Care		13.0%
Consumer Discretionary		12.3%
Industrials		10.1%
Energy		9.4%
Consumer Staples		8.6%
Financials		7.7%
Materials		5.4%
Telecommunication Services		0.9%
Utilities		0.6%
Other		0.2%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Apple, Inc.		4.7%
Microsoft Corp.		3.9%
Berkshire Hathaway, Inc., Class B		3.2%
Cisco Systems, Inc.		2.5%
Wal-Mart Stores, Inc.		2.3%
PepsiCo, Inc.		2.2%
Google, Inc., Class A		2.2%
Hewlett-Packard Co.		1.9%
Oracle Corp.		1.8%
Schlumberger Ltd.		1.5%
Total		26.2%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

10 Schwab U.S. ETFs

Schwab U.S. Large-Cap Growth ETF^tm

Performance Summary as of 8/31/10

December 11, 2009 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Large-Cap Growth ETF^tm (12/11/09)
NAV Return³		-3.94	%
Market Price Return³		-4.02	%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		-3.90	%
ETF Category: Morningstar Large Growth⁴		-3.30	%

Fund Expense Ratio⁵: 0.13%

Style Assessment⁶


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus. Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 11

Schwab U.S. Large-Cap Value ETF™

The Schwab U.S. Large-Cap Value ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM. The index includes approximately 320 names with Value characteristics of the Dow Jones U.S. Large-Cap Total Stock Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the reporting period that began with the fund’s inception date of December 11, 2009 and ended August 31, 2010, the fund’s market price return was -2.00%, equal to its NAV return. (For an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The index returned -1.87% during the same period.

The performance of the fund’s index lagged that of the Dow Jones U.S. Broad Stock Market Index^SM, but outperformed the Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM. The best performing sectors were Materials and Consumer Discretionary, while Energy and Health Care were the worst performing sectors. For both the index and the fund, Consumer Staples, at about 13% of the fund’s net assets, was the best positive contributor to returns. Energy, at almost 12% of the fund’s net assets, was the worst detractor from returns.

Nine of the fund’s ten largest holdings posted negative returns for the reporting period. Securities in Energy and Financials, Exxon Mobil, Bank of America, and JP Morgan Chase, experienced the worst returns. AT&T was the only stock in the ten largest holdings that delivered a positive return.

As of 8/31/10:

Statistics


Number of Holdings		323
Weighted Average Market Cap ($ x 1,000,000)		$82,879
Price/Earnings Ratio (P/E)		14.3
Price/Book Ratio (P/B)		1.6
Portfolio Turnover Rate²		5%

Sector Weightings % of Investments


Financials		23.2%
Consumer Staples		13.4%
Energy		11.9%
Health Care		10.9%
Industrials		10.2%
Consumer Discretionary		8.9%
Utilities		7.1%
Information Technology		6.3%
Telecommunication Services		5.4%
Materials		2.6%
Other		0.1%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Exxon Mobil Corp.		5.5%
The Procter & Gamble Co.		3.1%
AT&T, Inc.		2.9%
International Business Machines Corp.		2.9%
Johnson & Johnson		2.9%
General Electric Co.		2.8%
Chevron Corp.		2.7%
JPMorgan Chase & Co.		2.6%
Pfizer, Inc.		2.3%
Bank of America Corp.		2.3%
Total		30.0%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

12 Schwab U.S. ETFs

Schwab U.S. Large-Cap Value ETF^tm

Performance Summary as of 8/31/10

December 11, 2009 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Large-Cap Value ETF^tm (12/11/09)
NAV Return³		-2.00	%
Market Price Return³		-2.00	%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		-1.87	%
ETF Category: Morningstar Large Value⁴		-0.95	%

Fund Expense Ratio⁵: 0.13%

Style Assessment⁶


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus. Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 13

Schwab U.S. Small-Cap ETF™

The Schwab U.S. Small-Cap ETF seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Small-Cap Total Stock Market Index^SM. The index includes the approximately 1,750 smallest issuers ranked by market capitalization of the Dow Jones U.S. Broad Market Index^SM. The fund will generally give the same weight to a given stock as the index does.

During the reporting period that began with the fund’s inception date of November 3, 2009 and ended August 31, 2010, the fund’s market price return was 9.94% and its NAV return was 10.15%. (For an explanation of the market price and NAV returns, please refer to footnote 3 on the following page) The index returned 10.39% during the same period.

The fund’s index substantially outperformed the Dow Jones U.S. Large-Cap Total Stock Market Index^SM during the period. All broad industry sectors in the U.S. small-cap index delivered positive returns. The best performing sectors were Materials and Consumer Staples, while Energy and Health Care were the worst performing sectors. For both the index and the fund, Financials, the highest-weighted sector at almost 22% of fund’s net assets, was the best positive contributor to returns.

All of the fund’s ten largest holdings posted positive returns of at least 30% for the reporting period, with Liberty Media and Continental Airlines delivering the best returns at 110% and 97%, respectively.

As of 8/31/10:

Statistics


Number of Holdings		1759
Weighted Average Market Cap ($ x 1,000,000)		$1,371
Price/Earnings Ratio (P/E)		40.6
Price/Book Ratio (P/B)		1.6
Portfolio Turnover Rate²		8%

Sector Weightings % of Investments


Financials		21.9%
Information Technology		17.8%
Industrials		15.1%
Consumer Discretionary		15.1%
Health Care		11.0%
Energy		5.7%
Materials		5.7%
Consumer Staples		3.5%
Utilities		3.1%
Telecommunication Services		1.0%
Other		0.1%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Liberty Media Corp. - Capital, Series A		0.3%
Herbalife Ltd.		0.3%
UDR, Inc.		0.3%
Essex Property Trust, Inc.		0.3%
Skyworks Solutions, Inc.		0.3%
NBTY, Inc.		0.3%
Continental Airlines, Inc., Class B		0.3%
Jones Lang LaSalle, Inc.		0.2%
Alexandria Real Estate Equities, Inc.		0.2%
MICROS Systems, Inc.		0.2%
Total		2.7%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

14 Schwab U.S. ETFs

Schwab U.S. Small-Cap ETF^tm

Performance Summary as of 8/31/10

November 3, 2009 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Small-Cap ETF^tm (11/3/09)
NAV Return³		10.15	%
Market Price Return³		9.94	%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		10.39	%
ETF Category: Morningstar Small Blend⁴		6.21	%

Fund Expense Ratio⁵: 0.13%

Style Assessment⁶


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus. Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab U.S. ETFs 15

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees, and ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2010 and held through August 31, 2010.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 3/01/10		at 8/31/10		3/01/10–8/31/10

Schwab U.S. Broad Market ETF^tm*
Actual Return		0.07%	$	1,000	$	961.90	$	0.35
Hypothetical 5% Return		0.07%	$	1,000	$	1,024.85	$	0.36


Schwab U.S. Large-Cap ETF^tm
Actual Return		0.08%	$	1,000	$	961.00	$	0.40
Hypothetical 5% Return		0.08%	$	1,000	$	1,024.80	$	0.41


Schwab U.S. Large-Cap Growth ETF^tm*
Actual Return		0.14%	$	1,000	$	940.90	$	0.68
Hypothetical 5% Return		0.14%	$	1,000	$	1,024.50	$	0.71


Schwab U.S. Large-Cap Value ETF^tm*
Actual Return		0.14%	$	1,000	$	978.10	$	0.70
Hypothetical 5% Return		0.14%	$	1,000	$	1,024.50	$	0.71


Schwab U.S. Small-Cap ETF^tm*
Actual Return		0.14%	$	1,000	$	970.40	$	0.70
Hypothetical 5% Return		0.14%	$	1,000	$	1,024.50	$	0.71


*		Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights, which covers the period since commencement of operations through 8/31/10.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

16 Schwab U.S. ETFs

Schwab U.S. Broad Market ETF™

Financial Statements

Financial Highlights


	10/30/09¹–
	8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.42	²
Net realized and unrealized gains (losses)		(0.05	)

Total from investment operations		0.37
Less distributions:
Distributions from net investment income		(0.26	)

Net asset value at end of period		25.11

Total return (%)		1.42	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.07	^4,5
Gross operating expenses		0.07	⁴
Net investment income (loss)		1.92	⁴
Portfolio turnover rate⁶		2	³
Net assets, end of period ($ x 1,000)		272,490

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate. Please see financial note 4 for more information.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 17

Schwab U.S. Broad Market ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on Schwab’s website at www.schwab.com/schwabetfs.

Cost

Value

Holdings by Category

($)

.5%

Common Stock

291,662,110

271,274,844

.2%

Other Investment Company

473,428

.7%

Total Investments

292,135,538

271,748,272

.3%

Other Assets and
Liabilities, Net

742,109

100

.0%

Net Assets

272,490,381


	Number		Value
Security	of Shares		($)

Common Stock 99.5% of net assets

Automobiles & Components 0.8%
ArvinMeritor, Inc. *		2,002		26,166
BorgWarner, Inc. *		2,821		123,137
Cooper Tire & Rubber Co.		2,170		35,132
Dana Holding Corp. *		3,689		37,849
Federal-Mogul Corp. *		1,519		23,233
Ford Motor Co. *		80,731		911,453
Gentex Corp.		3,255		57,190
Harley-Davidson, Inc.		5,642		137,214
Johnson Controls, Inc.		15,841		420,262
Lear Corp. *		1,027		75,649
Tenneco, Inc. *		1,302		32,185
Tesla Motors, Inc. *		1,302		25,571
The Goodyear Tire & Rubber Co. *		6,944		64,163
Thor Industries, Inc.		1,085		25,324
TRW Automotive Holdings Corp. *		2,170		75,429
WABCO Holdings, Inc. *		1,519		53,560

				2,123,517

Banks 3.2%
Associated Banc-Corp		3,472		41,872
Astoria Financial Corp.		3,472		41,872
BancorpSouth, Inc.		1,736		22,134
Bank of Hawaii Corp.		1,085		48,456
BB&T Corp.		16,275		360,003
Beneficial Mutual Bancorp, Inc. *		3,689		30,766
BOK Financial Corp.		868		38,574
CapitalSource, Inc.		10,199		51,505
Capitol Federal Financial		1,085		27,841
Cathay General Bancorp		2,508		24,052
City National Corp.		1,085		52,557
Columbia Banking System, Inc.		1,406		25,041
Comerica, Inc.		4,171		143,524
Commerce Bancshares, Inc.		1,519		54,274
Community Bank System, Inc.		868		19,599
Cullen/Frost Bankers, Inc.		1,302		66,728
CVB Financial Corp.		4,340		29,642
East West Bancorp, Inc.		3,492		51,053
F.N.B. Corp.		4,774		37,094
Fifth Third Bancorp		19,096		211,011
First Citizens BancShares, Inc., Class A		217		36,449
First Financial Bancorp		2,604		41,534
First Financial Bankshares, Inc.		651		29,080
First Horizon National Corp. *		5,303		53,454
First Interstate BancSystem, Inc.		1,804		20,602
First Midwest Bancorp, Inc.		2,048		22,487
First Niagara Financial Group, Inc.		4,340		48,999
FirstMerit Corp.		1,953		33,787
Fulton Financial Corp.		4,123		34,138
Glacier Bancorp, Inc.		2,604		36,039
Hancock Holding Co.		868		23,627
Home Bancshares, Inc.		703		15,143
Hudson City Bancorp, Inc.		11,501		132,549
Huntington Bancshares, Inc.		16,709		88,391
IBERIABANK Corp.		434		21,158
International Bancshares Corp.		2,170		33,852
Investors Bancorp, Inc. *		3,255		34,568
Kearny Financial Corp.		3,472		30,206
KeyCorp		21,700		159,929
M&T Bank Corp.		2,014		172,479
Marshall & Ilsley Corp.		11,718		76,753
MB Financial, Inc.		1,953		29,256
MGIC Investment Corp. *		3,255		23,501
National Penn Bancshares, Inc.		5,425		31,519
NBT Bancorp, Inc.		1,519		31,018
New York Community Bancorp, Inc.		10,199		162,062
NewAlliance Bancshares, Inc.		3,038		37,185
Northfield Bancorp, Inc.		1,302		14,192
Northwest Bancshares, Inc.		3,255		34,991
Ocwen Financial Corp. *		3,038		27,615
Old National Bancorp		3,255		30,011
PacWest Bancorp		1,085		18,510
Park National Corp.		651		39,093
People’s United Financial, Inc.		8,246		104,889
PNC Financial Services Group, Inc.		12,369		630,324
Popular, Inc. *		15,190		38,886
PrivateBancorp, Inc.		1,953		20,428
Prosperity Bancshares, Inc.		1,085		30,868
Provident Financial Services, Inc.		1,736		19,912
Radian Group, Inc.		3,115		19,718
Regions Financial Corp.		29,078		186,972
Signature Bank *		1,085		39,646
SunTrust Banks, Inc.		11,935		268,418
Susquehanna Bancshares, Inc.		3,261		25,795
SVB Financial Group *		868		32,264
Synovus Financial Corp.		15,407		31,738
TCF Financial Corp.		2,821		40,284
Texas Capital Bancshares, Inc. *		1,519		23,241
TFS Financial Corp.		3,038		27,919
The PMI Group, Inc. *		6,757		20,812
Trustmark Corp.		1,736		33,106
U.S. Bancorp		45,787		952,370
UMB Financial Corp.		868		27,672
Umpqua Holdings Corp.		3,472		36,109
United Bankshares, Inc.		1,736		39,945

18 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Valley National Bancorp		3,383		44,080
Washington Federal, Inc.		2,604		37,159
Webster Financial Corp.		2,821		45,390
Wells Fargo & Co.		116,155		2,735,450
Westamerica Bancorp		651		32,993
Whitney Holding Corp.		4,340		32,246
Wilmington Trust Corp.		2,604		22,915
Wintrust Financial Corp.		1,085		31,205
Zions Bancorp		3,255		59,990

				8,694,519

Capital Goods 7.8%
3M Co.		15,407		1,210,220
A.O. Smith Corp.		868		44,572
AAR CORP. *		868		13,332
Actuant Corp., Class A		1,953		38,708
Acuity Brands, Inc.		1,085		42,033
Aecom Technology Corp. *		2,387		53,708
Aerovironment, Inc. *		651		14,726
AGCO Corp. *		2,170		71,719
Aircastle Ltd.		1,953		15,253
Alliant Techsystems, Inc. *		868		57,201
American Science & Engineering, Inc.		217		15,401
American Superconductor Corp. *		1,085		29,176
AMETEK, Inc.		2,604		111,946
Applied Industrial Technologies, Inc.		1,736		46,525
Armstrong World Industries, Inc. *		868		34,112
Babcock & Wilcox Co. *		2,821		63,190
Badger Meter, Inc.		434		16,188
Baldor Electric Co.		1,302		45,674
Barnes Group, Inc.		1,953		29,705
BE Aerospace, Inc. *		2,604		70,178
Beacon Roofing Supply, Inc. *		1,085		15,114
Belden, Inc.		1,302		28,514
Brady Corp., Class A		1,085		27,950
Briggs & Stratton Corp.		1,736		31,508
Bucyrus International, Inc.		1,736		99,803
Carlisle Cos., Inc.		1,519		42,608
Caterpillar, Inc.		13,494		879,269
CLARCOR, Inc.		1,302		43,799
Crane Co.		1,302		44,138
Cubic Corp.		868		33,149
Cummins, Inc.		4,340		322,939
Curtiss-Wright Corp.		1,085		28,850
Danaher Corp.		11,718		425,715
Deere & Co.		9,982		631,561
DigitalGlobe, Inc. *		1,099		33,706
Donaldson Co., Inc.		1,736		72,738
Dover Corp.		4,340		194,258
Eaton Corp.		3,906		271,389
EMCOR Group, Inc. *		1,519		34,542
Emerson Electric Co.		18,011		840,213
EnerSys *		1,519		33,524
ESCO Technologies, Inc.		868		27,038
Esterline Technologies Corp. *		868		39,928
Fastenal Co.		3,255		147,354
First Solar, Inc. *		1,085		138,717
Flowserve Corp.		1,302		116,373
Fluor Corp.		4,340		193,824
Franklin Electric Co., Inc.		651		20,617
Gardner Denver, Inc.		1,302		62,157
GATX Corp.		1,302		35,545
General Cable Corp. *		1,210		26,923
General Dynamics Corp.		7,812		436,456
General Electric Co.		252,805		3,660,616
Goodrich Corp.		3,038		208,042
Graco, Inc.		1,519		42,395
GrafTech International Ltd. *		3,038		42,714
Granite Construction, Inc.		1,302		28,657
Griffon Corp. *		1,519		16,238
GT Solar International, Inc. *		3,038		23,484
Harsco Corp.		1,953		38,943
HEICO Corp., Class A		1,343		41,176
Hexcel Corp. *		3,038		51,828
Honeywell International, Inc.		16,709		653,155
Hubbell, Inc., Class B		1,302		58,564
IDEX Corp.		1,953		58,180
II-VI, Inc. *		1,302		44,776
Illinois Tool Works, Inc.		10,199		420,811
InsituForm Technologies, Inc., Class A *		868		17,672
ITT Corp.		4,340		184,450
Jacobs Engineering Group, Inc. *		3,038		105,358
Joy Global, Inc.		2,604		147,751
Kaman Corp.		651		13,912
Kaydon Corp.		1,085		35,165
KBR, Inc.		3,906		90,619
Kennametal, Inc.		1,953		49,216
L-3 Communications Holdings, Inc.		2,821		187,879
Lennox International, Inc.		1,302		55,192
Lincoln Electric Holdings, Inc.		868		43,027
Lockheed Martin Corp.		7,378		512,919
Masco Corp.		9,114		95,606
MasTec, Inc. *		2,821		27,307
McDermott International, Inc. *		5,642		72,330
Moog, Inc., Class A *		1,302		40,622
MSC Industrial Direct Co., Class A		1,085		48,358
Mueller Industries, Inc.		1,302		30,701
Mueller Water Products, Inc., Class A		3,255		7,714
Navistar International Corp. *		1,302		54,528
Nordson Corp.		651		41,775
Northrop Grumman Corp.		6,944		375,809
Orbital Sciences Corp. *		1,302		16,913
Oshkosh Corp. *		2,170		53,990
Otter Tail Corp.		1,519		28,147
Owens Corning, Inc. *		2,387		64,926
PACCAR, Inc.		8,246		338,004
Pall Corp.		2,821		96,450
Parker Hannifin Corp.		3,906		231,079
Pentair, Inc.		2,387		71,849
Precision Castparts Corp.		3,472		392,961
Quanex Building Products Corp.		868		13,714
Quanta Services, Inc. *		4,774		85,646
Raytheon Co.		9,114		400,287
Regal-Beloit Corp.		868		48,018
Robbins & Myers, Inc.		1,519		35,940
Rockwell Automation, Inc.		3,472		177,558
Rockwell Collins, Inc.		3,689		198,948
Roper Industries, Inc.		2,170		126,034
RSC Holdings, Inc. *		2,387		14,274
Simpson Manufacturing Co., Inc.		1,302		28,696
Snap-On, Inc.		1,302		53,681

See financial notes 19

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Spirit AeroSystems Holdings, Inc., Class A *		2,387		46,165
SPX Corp.		1,302		72,990
SunPower Corp., Class A *		2,263		24,463
Teledyne Technologies, Inc. *		1,085		39,255
Terex Corp. *		2,821		51,370
Textainer Group Holdings Ltd.		1,085		29,621
Textron, Inc.		6,727		114,830
The Boeing Co.		16,059		981,687
The Manitowoc Co., Inc.		3,689		33,791
The Middleby Corp. *		651		35,799
The Shaw Group, Inc. *		1,953		63,277
The Timken Co.		1,953		63,883
The Toro Co.		868		43,313
Thomas & Betts Corp. *		1,302		48,109
TransDigm Group, Inc.		868		50,249
Trinity Industries, Inc.		1,953		33,435
Triumph Group, Inc.		651		43,213
Tutor Perini Corp. *		1,736		34,303
United Technologies Corp.		20,832		1,358,455
Universal Forest Products, Inc.		434		11,245
URS Corp. *		1,953		69,664
USG Corp. *		2,604		31,691
Valmont Industries, Inc.		434		29,091
W.W. Grainger, Inc.		1,519		160,695
Wabtec Corp.		1,085		46,145
Watsco, Inc.		651		33,429
Watts Water Technologies, Inc., Class A		1,085		32,593
WESCO International, Inc. *		1,302		42,029
Woodward Governor Co.		1,302		34,008

				21,167,188

Commercial & Professional Services 1.0%
ABM Industries, Inc.		1,736		34,043
Avery Dennison Corp.		2,604		84,682
Cintas Corp.		3,038		77,439
Clean Harbors, Inc. *		651		39,353
Copart, Inc. *		1,736		57,375
Corrections Corp. of America *		2,604		58,095
CoStar Group, Inc. *		868		35,822
Covanta Holding Corp.		3,255		46,905
Deluxe Corp.		2,604		43,565
EnergySolutions, Inc.		4,123		18,883
EnerNOC, Inc. *		1,085		35,349
Equifax, Inc.		3,038		89,530
FTI Consulting, Inc. *		1,302		42,680
Healthcare Services Group, Inc.		1,736		36,057
Herman Miller, Inc.		2,170		35,631
HNI Corp.		1,302		30,428
IHS, Inc., Class A *		1,085		67,042
Interface, Inc. Class A		2,387		30,601
Iron Mountain, Inc.		4,340		88,015
KAR Auction Services, Inc. *		2,171		26,291
Korn/Ferry International *		2,170		28,253
M&F Worldwide Corp. *		434		10,069
Manpower, Inc.		1,736		73,780
Mine Safety Appliances Co.		1,302		29,686
Monster Worldwide, Inc. *		3,255		35,903
Navigant Consulting, Inc. *		1,519		15,038
Pitney Bowes, Inc.		4,991		96,027
R.R. Donnelley & Sons Co.		4,991		75,589
Republic Services, Inc.		7,378		217,134
Resources Connection, Inc. *		1,953		21,659
Robert Half International, Inc.		3,689		79,609
Rollins, Inc.		1,736		35,553
Steelcase, Inc., Class A		6,076		37,732
Stericycle, Inc. *		1,953		127,921
Sykes Enterprises, Inc. *		1,519		18,167
Tetra Tech, Inc. *		1,302		23,631
The Brink’s Co.		1,302		24,569
The Corporate Executive Board Co.		1,302		36,508
The Dun & Bradstreet Corp.		1,302		85,802
The Geo Group, Inc. *		1,519		33,570
Towers Watson & Co., Class A		1,085		48,716
TrueBlue, Inc. *		1,302		14,049
United Stationers, Inc. *		651		29,223
Verisk Analytics, Inc., Class A *		2,432		67,658
Waste Connections, Inc. *		1,953		73,726
Waste Management, Inc.		11,067		366,207

				2,683,565

Consumer Durables & Apparel 1.3%
American Greetings Corp., Class A		1,519		29,317
Brunswick Corp.		3,689		46,887
Carter’s, Inc. *		1,519		33,934
Coach, Inc.		7,812		279,982
Columbia Sportswear Co.		868		40,458
Crocs, Inc. *		2,438		30,475
D.R. Horton, Inc.		6,944		71,245
Deckers Outdoor Corp. *		1,302		56,598
Eastman Kodak Co. *		9,982		34,837
Fortune Brands, Inc.		3,689		165,230
Fossil, Inc. *		1,302		61,832
Garmin Ltd.		2,821		75,067
Hanesbrands, Inc. *		2,170		51,950
Harman International Industries, Inc. *		1,519		47,347
Hasbro, Inc.		2,821		113,856
Iconix Brand Group, Inc. *		3,038		46,284
Jarden Corp.		1,953		52,614
Jones Apparel Group, Inc.		2,170		33,375
KB HOME		2,387		24,610
Leggett & Platt, Inc.		3,906		74,878
Lennar Corp., Class A		3,689		48,584
M.D.C Holdings, Inc.		1,085		28,883
Mattel, Inc.		8,897		186,748
Mohawk Industries, Inc. *		1,302		57,692
Newell Rubbermaid, Inc.		6,944		104,299
NIKE, Inc., Class B		6,510		455,700
NVR, Inc. *		136		82,166
Phillips-Van Heusen Corp.		1,302		59,475
Polaris Industries, Inc.		868		46,290
Polo Ralph Lauren Corp.		1,519		115,049
Pool Corp.		1,953		36,033
Pulte Group, Inc. *		8,246		66,215
Skechers U.S.A., Inc., Class A *		868		22,108
Stanley Black & Decker, Inc.		3,555		190,690
Tempur-Pedic International, Inc. *		1,953		52,340
The Ryland Group, Inc.		1,953		31,463
The Timberland Co., Class A *		1,085		17,436
The Warnaco Group, Inc. *		1,085		45,440
Toll Brothers, Inc. *		3,255		56,246

20 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Tupperware Brands Corp.		1,519		59,757
Under Armour, Inc., Class A *		1,302		46,703
UniFirst Corp.		434		17,039
VF Corp.		2,170		153,245
Whirlpool Corp.		1,736		128,742
Wolverine World Wide, Inc.		1,302		32,902

				3,512,021

Consumer Services 2.3%
Ameristar Casinos, Inc.		2,170		35,610
Apollo Group, Inc., Class A *		3,038		129,054
Bally Technologies, Inc. *		1,302		40,948
Bob Evans Farms, Inc.		1,302		33,266
Boyd Gaming Corp. *		4,340		30,120
Bridgepoint Education, Inc. *		2,387		30,840
Brinker International, Inc.		2,821		44,431
Buffalo Wild Wings, Inc. *		868		36,300
Burger King Holdings, Inc.		2,170		35,696
Capella Education Co. *		434		27,160
Career Education Corp. *		1,519		26,628
Carnival Corp.		10,199		318,005
Chipotle Mexican Grill, Inc. *		742		111,916
Choice Hotels International, Inc.		1,085		35,675
Coinstar, Inc. *		1,085		47,197
Corinthian Colleges, Inc. *		1,953		9,531
Cracker Barrel Old Country Store, Inc.		651		29,041
Darden Restaurants, Inc.		3,255		134,301
DeVry, Inc.		1,519		57,889
Education Management Corp. *		868		7,005
Gaylord Entertainment Co. *		868		22,707
Grand Canyon Education, Inc. *		1,085		18,543
H&R Block, Inc.		8,029		103,173
Hillenbrand, Inc.		1,736		33,036
Hyatt Hotels Corp., Class A *		868		32,689
International Game Technology		7,378		107,719
International Speedway Corp., Class A		1,302		29,803
ITT Educational Services, Inc. *		868		46,230
Jack in the Box, Inc. *		1,736		35,032
Las Vegas Sands Corp. *		10,850		307,380
Life Time Fitness, Inc. *		1,519		51,600
Lincoln Educational Services Corp. *		217		2,370
Marriott International, Inc., Class A		7,378		236,170
Matthews International Corp., Class A		868		27,333
McDonald’s Corp.		25,570		1,868,144
MGM Resorts International *		6,293		56,700
Orient-Express Hotels Ltd., Class A *		2,170		18,749
P.F. Chang’s China Bistro, Inc. *		434		18,579
Panera Bread Co., Class A *		651		52,041
Penn National Gaming, Inc. *		1,519		42,805
Regis Corp.		2,170		36,391
Royal Caribbean Cruises Ltd. *		3,255		79,943
Scientific Games Corp., Class A *		2,604		26,587
Service Corp. International		6,076		46,724
Six Flags Entertainment Corp. *		868		32,819
Sotheby’s		2,387		63,518
Starbucks Corp.		17,577		404,095
Starwood Hotels & Resorts Worldwide, Inc.		4,123		192,668
Strayer Education, Inc.		434		62,834
The Cheesecake Factory, Inc. *		1,736		38,869
Vail Resorts, Inc. *		868		28,670
Weight Watchers International, Inc.		1,302		37,133
Wendy’s/Arby’s Group, Inc., Class A		8,897		34,609
WMS Industries, Inc. *		1,302		46,013
Wyndham Worldwide Corp.		4,340		100,645
Wynn Resorts Ltd.		2,058		165,895
Yum! Brands, Inc.		11,067		461,494

				6,190,323

Diversified Financials 6.4%
Affiliated Managers Group, Inc. *		868		55,734
American Express Co.		25,389		1,012,259
AmeriCredit Corp. *		1,953		47,263
Ameriprise Financial, Inc.		6,076		264,792
Artio Global Investors, Inc.		1,302		18,033
Bank of America Corp.		235,551		2,932,610
Bank of New York Mellon Corp.		28,644		695,190
BlackRock, Inc.		1,085		154,016
Capital One Financial Corp.		11,067		418,997
Cash America International, Inc.		1,085		33,234
CBOE Holdings, Inc. *		1,085		22,687
CIT Group, Inc. *		4,123		151,232
Citigroup, Inc. *		500,021		1,860,078
CME Group, Inc.		1,578		391,470
Cohen & Steers, Inc.		1,736		37,046
Credit Acceptance Corp. *		651		36,879
Discover Financial Services		13,020		188,920
Duff & Phelps Corp., Class A		1,953		19,510
ETRADE Financial Corp.		4,227		52,457
Eaton Vance Corp.		2,821		73,318
Federated Investors, Inc., Class B		2,387		49,769
Franklin Resources, Inc.		3,906		376,968
GAMCO Investors, Inc., Class A		434		15,320
Greenhill & Co., Inc.		651		45,850
IntercontinentalExchange, Inc. *		1,736		165,892
Invesco Ltd.		10,416		188,530
Investment Technology Group, Inc. *		1,302		17,304
Janus Capital Group, Inc.		4,340		39,407
Jefferies Group, Inc.		2,604		58,616
JPMorgan Chase & Co.		94,178		3,424,312
KBW, Inc. *		1,085		23,837
Knight Capital Group, Inc., Class A *		2,170		25,780
Legg Mason, Inc.		3,906		98,939
Leucadia National Corp. *		4,774		101,925
MF Global Holdings Ltd. *		4,774		31,508
Moody’s Corp.		4,340		91,748
Morgan Stanley		29,729		734,009
MSCI, Inc., Class A *		2,743		82,016
Northern Trust Corp.		5,859		270,334
NYSE Euronext		6,293		174,568
optionsXpress Holdings, Inc. *		2,170		30,901
PHH Corp. *		2,170		40,167
PICO Holdings, Inc. *		1,085		30,293
Piper Jaffray Cos., Inc. *		651		17,981
Portfolio Recovery Associates, Inc. *		386		24,588
Raymond James Financial, Inc.		2,387		55,092
SEI Investments Co.		3,906		69,136
SLM Corp. *		11,284		124,688
State Street Corp.		11,718		411,067
Stifel Financial Corp. *		651		28,175
T. Rowe Price Group, Inc.		6,076		266,007
TD Ameritrade Holding Corp. *		5,642		82,430

See financial notes 21

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
The Charles Schwab Corp. (a)		22,134		282,430
The Goldman Sachs Group, Inc.		10,416		1,426,367
The NASDAQ OMX Group, Inc. *		3,689		66,070
Waddell & Reed Financial, Inc., Class A		1,953		44,939

				17,482,688

Energy 10.0%
Alpha Natural Resources, Inc. *		2,838		105,375
Anadarko Petroleum Corp.		11,935		548,891
Apache Corp.		8,029		721,406
Arch Coal, Inc.		3,906		87,924
Atlas Energy, Inc. *		1,953		53,122
Atwood Oceanics, Inc. *		1,302		32,654
Baker Hughes, Inc.		10,336		388,427
Berry Petroleum Co., Class A		1,302		35,349
Bill Barrett Corp. *		1,085		35,328
BPZ Resources, Inc. *		2,821		11,143
Brigham Exploration Co. *		3,689		56,515
Bristow Group, Inc. *		1,085		35,805
Cabot Oil & Gas Corp.		2,604		72,495
Cameron International Corp. *		6,076		223,475
CARBO Ceramics, Inc.		651		49,300
Chesapeake Energy Corp.		15,407		318,617
Chevron Corp.		47,525		3,524,454
Cimarex Energy Co.		2,170		141,961
Clean Energy Fuels Corp. *		1,519		21,950
Cobalt International Energy, Inc. *		3,472		28,332
Complete Production Services, Inc. *		1,953		34,451
Comstock Resources, Inc. *		1,085		23,620
Concho Resources, Inc. *		1,953		114,094
ConocoPhillips		32,855		1,722,588
CONSOL Energy, Inc.		5,331		171,658
Contango Oil & Gas Co. *		217		9,515
Continental Resources, Inc. *		868		35,171
Denbury Resources, Inc. *		9,380		138,261
Devon Energy Corp.		10,199		614,796
Diamond Offshore Drilling, Inc.		1,519		88,375
Dresser-Rand Group, Inc. *		2,170		77,078
Dril-Quip, Inc. *		651		34,418
El Paso Corp.		17,143		195,259
EOG Resources, Inc.		6,076		527,822
EXCO Resources, Inc.		4,123		55,454
Exterran Holdings, Inc. *		1,519		33,615
Exxon Mobil Corp.		121,215		7,171,079
FMC Technologies, Inc. *		3,038		187,900
Forest Oil Corp. *		2,604		68,016
Frontier Oil Corp.		2,604		30,493
Gulfport Energy Corp. *		2,170		24,673
Halliburton Co.		21,700		612,157
Helix Energy Solutions Group, Inc. *		2,387		21,722
Helmerich & Payne, Inc.		2,387		88,414
Hess Corp.		7,378		370,745
Holly Corp.		1,085		28,221
ION Geophysical Corp. *		4,123		14,101
Key Energy Services, Inc. *		4,123		33,025
Lufkin Industries, Inc.		868		33,557
Marathon Oil Corp.		17,143		522,690
Mariner Energy, Inc. *		2,390		54,707
Massey Energy Co.		2,170		62,388
Murphy Oil Corp.		4,557		244,073
Nabors Industries Ltd. *		7,161		112,285
National-Oilwell Varco, Inc.		10,199		383,380
Newfield Exploration Co. *		3,255		156,273
Noble Energy, Inc.		4,340		302,845
Oasis Petroleum, Inc. *		1,736		28,592
Occidental Petroleum Corp.		19,192		1,402,551
Oceaneering International, Inc. *		1,302		65,113
Oil States International, Inc. *		1,085		44,735
Overseas Shipholding Group, Inc.		868		27,950
Patriot Coal Corp. *		2,821		29,000
Patterson-UTI Energy, Inc.		3,906		57,653
Peabody Energy Corp.		6,727		287,916
Penn Virginia Corp.		1,519		21,175
Petrohawk Energy Corp. *		7,595		114,836
Pioneer Drilling Co. *		2,821		15,346
Pioneer Natural Resources Co.		2,821		163,110
Plains Exploration & Production Co. *		3,472		82,911
Pride International, Inc. *		3,906		91,986
QEP Resources, Inc.		3,906		113,391
Quicksilver Resources, Inc. *		3,038		37,064
Range Resources Corp.		3,906		132,062
Rosetta Resources, Inc. *		1,519		29,924
Rowan Cos., Inc. *		2,604		66,949
SandRidge Energy, Inc. *		8,484		34,275
Schlumberger Ltd.		32,730		1,745,491
SEACOR Holdings, Inc. *		434		34,143
Ship Finance International Ltd.		1,736		30,397
SM Energy Co.		1,519		57,707
Southern Union Co.		2,387		53,708
Southwestern Energy Co. *		8,246		269,809
Spectra Energy Corp.		15,407		313,378
Sunoco, Inc.		2,821		95,011
Superior Energy Services, Inc. *		1,953		41,990
Swift Energy Co. *		868		23,393
Teekay Corp.		1,736		42,202
Tesco Corp. *		1,953		19,374
Tesoro Corp.		3,472		38,991
TETRA Technologies, Inc. *		868		7,283
The Williams Cos., Inc.		13,888		251,789
Tidewater, Inc.		1,302		52,184
Ultra Petroleum Corp. *		3,689		143,908
Unit Corp. *		1,085		36,966
Valero Energy Corp.		13,454		212,170
Whiting Petroleum Corp. *		1,302		110,462
World Fuel Services Corp.		1,302		33,253

				27,351,590

Food & Staples Retailing 2.2%
BJ’s Wholesale Club, Inc. *		1,302		54,632
Casey’s General Stores, Inc. *		1,085		40,818
Costco Wholesale Corp.		10,416		589,025
CVS Caremark Corp.		32,261		871,047
Nash Finch Co.		434		17,043
PriceSmart, Inc.		868		22,403
Rite Aid Corp. *		267		233
Ruddick Corp.		1,302		42,146
Safeway, Inc.		9,765		183,582
SUPERVALU, Inc.		4,965		48,260
Sysco Corp.		13,888		381,781
The Andersons, Inc.		651		23,325
The Kroger Co.		14,539		286,854

22 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
United Natural Foods, Inc. *		1,302		45,231
Wal-Mart Stores, Inc.		50,449		2,529,513
Walgreen Co.		23,653		635,793
Weis Markets, Inc.		8		281
Whole Foods Market, Inc. *		3,181		110,667
Winn-Dixie Stores, Inc. *		4,082		26,778

				5,909,412

Food, Beverage & Tobacco 5.6%
Altria Group, Inc.		49,042		1,094,617
Archer-Daniels-Midland Co.		13,888		427,473
Brown-Forman Corp., Class B		2,604		159,599
Bunge Ltd.		3,402		180,306
Campbell Soup Co.		4,991		185,965
Central European Distribution Corp. *		1,519		34,755
Chiquita Brands International, Inc. *		1,953		24,530
Coca-Cola Enterprises, Inc.		7,812		222,330
ConAgra Foods, Inc.		10,633		229,567
Constellation Brands, Inc., Class A *		4,774		79,535
Corn Products International, Inc.		1,953		66,656
Dean Foods Co. *		4,123		42,178
Del Monte Foods Co.		4,557		59,423
Dole Food Co., Inc. *		2,387		20,624
Dr. Pepper Snapple Group, Inc.		5,807		213,814
Flowers Foods, Inc.		1,953		50,466
Fresh Del Monte Produce, Inc. *		2,041		44,841
General Mills, Inc.		14,756		533,577
Green Mountain Coffee Roasters, Inc. *		2,604		80,255
H.J. Heinz Co.		7,378		341,159
Hansen Natural Corp. *		1,736		78,189
Hormel Foods Corp.		1,736		74,908
J&J Snack Foods Corp.		868		32,767
Kellogg Co.		6,099		302,998
Kraft Foods, Inc., Class A		38,192		1,143,850
Lancaster Colony Corp.		651		29,666
Lance, Inc.		1,302		28,006
Lorillard, Inc.		3,906		296,895
McCormick & Co., Inc.		2,604		103,822
Molson Coors Brewing Co., Class B		3,689		160,693
PepsiCo, Inc.		38,228		2,453,473
Philip Morris International, Inc.		44,211		2,274,214
Pilgrim’s Pride Corp. *		4,774		29,885
Ralcorp Holdings, Inc. *		1,302		77,664
Reynolds American, Inc.		3,906		213,033
Sanderson Farms, Inc.		1,020		43,870
Sara Lee Corp.		15,841		228,744
Smithfield Foods, Inc. *		3,689		59,504
The Coca-Cola Co.		50,995		2,851,640
The Hain Celestial Group, Inc. *		1,736		38,782
The Hershey Co.		3,689		171,428
The J.M. Smucker Co.		2,821		164,972
Tootsie Roll Industries, Inc.		1,322		31,212
TreeHouse Foods, Inc. *		868		36,022
Tyson Foods, Inc., Class A		6,727		110,188
Universal Corp.		868		30,953
Vector Group Ltd.		2,387		45,472

				15,204,520

Health Care Equipment & Services 4.2%
Aetna, Inc.		10,633		284,114
AGA Medical Holdings, Inc. *		1,302		17,772
Alere, Inc. *		1,953		54,625
Align Technology, Inc. *		1,953		31,297
Allscripts Healthcare Solutions, Inc. *		3,819		63,816
Amedisys, Inc. *		868		20,068
American Medical Systems Holdings, Inc. *		2,170		39,537
AMERIGROUP Corp. *		1,519		56,051
AmerisourceBergen Corp.		7,161		195,352
AmSurg Corp. *		1,519		25,322
Baxter International, Inc.		14,539		618,780
Beckman Coulter, Inc.		1,736		79,231
Becton, Dickinson & Co.		5,425		369,931
Boston Scientific Corp. *		36,239		188,080
Brookdale Senior Living, Inc. *		2,170		29,078
C.R. Bard, Inc.		2,387		183,393
Cardinal Health, Inc.		8,680		260,053
CareFusion Corp. *		4,340		93,657
Catalyst Health Solutions, Inc. *		1,085		43,498
Centene Corp. *		2,045		41,350
Cerner Corp. *		1,519		110,659
Chemed Corp.		651		32,485
CIGNA Corp.		6,510		209,752
Community Health Systems, Inc. *		2,387		62,229
CONMED Corp. *		1,519		28,117
Coventry Health Care, Inc. *		3,689		71,382
Cyberonics, Inc. *		868		18,601
DaVita, Inc. *		2,387		154,248
DENTSPLY International, Inc.		3,472		96,591
Edwards Lifesciences Corp. *		2,604		149,912
Emdeon, Inc., Class A *		2,170		22,243
Emergency Medical Services Corp., Class A *		651		31,281
Emeritus Corp. *		1,519		23,362
Express Scripts, Inc. *		12,152		517,675
Gen-Probe, Inc. *		1,085		48,858
Genoptix, Inc. *		868		14,938
Gentiva Health Services, Inc. *		1,302		26,756
Haemonetics Corp. *		651		33,904
Health Management Associates, Inc., Class A *		6,293		39,331
Health Net, Inc. *		2,387		57,002
HEALTHSOUTH Corp. *		2,170		35,284
Healthspring, Inc. *		1,302		27,030
Henry Schein, Inc. *		2,170		114,576
Hill-Rom Holdings, Inc.		1,519		48,760
HMS Holdings Corp. *		868		45,292
Hologic, Inc. *		6,076		86,218
Hospira, Inc. *		3,906		200,612
Humana, Inc. *		4,123		197,038
IDEXX Laboratories, Inc. *		1,519		83,955
Immucor, Inc. *		1,953		34,373
Integra LifeSciences Holdings Corp. *		1,085		37,725
Intuitive Surgical, Inc. *		919		243,563
Invacare Corp.		1,519		34,785
Kindred Healthcare, Inc. *		2,170		25,498
Kinetic Concepts, Inc. *		1,519		48,486
Laboratory Corp. of America Holdings *		2,604		189,102

See financial notes 23

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Landauer, Inc.		217		12,195
LHC Group, Inc. *		434		8,684
LifePoint Hospitals, Inc. *		1,302		39,607
Lincare Holdings, Inc.		2,267		52,186
Magellan Health Services, Inc. *		1,085		47,534
Masimo Corp.		1,302		29,634
McKesson Corp.		6,510		377,906
MedAssets, Inc. *		1,519		30,107
Medco Health Solutions, Inc. *		11,284		490,628
MEDNAX, Inc. *		1,085		50,279
Medtronic, Inc.		26,474		833,402
Meridian Bioscience, Inc.		1,519		27,767
NuVasive, Inc. *		914		26,826
Omnicare, Inc.		2,821		54,163
Owens & Minor, Inc.		1,587		42,309
Patterson Cos., Inc.		2,387		60,367
PSS World Medical, Inc. *		1,519		27,889
Psychiatric Solutions, Inc. *		1,953		65,133
Quality Systems, Inc.		651		36,489
Quest Diagnostics, Inc.		3,689		160,472
RehabCare Group, Inc. *		868		14,374
ResMed, Inc. *		3,472		104,646
Select Medical Holdings Corp. *		3,472		24,825
Sirona Dental Systems, Inc. *		1,085		34,199
St. Jude Medical, Inc. *		8,246		285,064
STERIS Corp.		1,254		36,078
Stryker Corp.		7,378		318,656
Teleflex, Inc.		868		41,716
Tenet Healthcare Corp. *		11,718		45,935
The Cooper Cos., Inc.		1,085		43,769
Thoratec Corp. *		1,302		41,924
UnitedHealth Group, Inc.		27,776		881,055
Universal American Financial Corp.		1,953		26,971
Universal Health Services, Inc., Class B		2,170		68,138
Varian Medical Systems, Inc. *		3,038		161,743
VCA Antech, Inc. *		1,953		38,611
Volcano Corp. *		1,322		29,216
WellCare Health Plans, Inc. *		1,302		32,303
WellPoint, Inc. *		10,124		502,960
West Pharmaceutical Services, Inc.		868		29,182
Wright Medical Group, Inc. *		1,302		17,278
Zimmer Holdings, Inc. *		5,208		245,661
Zoll Medical Corp. *		651		17,199

				11,411,708

Household & Personal Products 2.6%
Alberto-Culver Co.		1,953		60,641
Avon Products, Inc.		10,199		296,791
Central Garden & Pet Co., Class A *		1,736		16,214
Church & Dwight Co., Inc.		1,736		106,295
Colgate-Palmolive Co.		11,935		881,280
Energizer Holdings, Inc. *		1,736		109,455
Herbalife Ltd.		1,519		84,426
Kimberly-Clark Corp.		9,982		642,841
Mead Johnson Nutrition Co.		4,798		250,408
NBTY, Inc. *		1,302		70,946
Nu Skin Enterprises, Inc., Class A		1,519		38,841
Revlon, Inc., Class A *		1,302		14,127
Spectrum Brands Holdings, Inc. *		1,085		27,678
The Clorox Co.		3,255		210,989
The Estee Lauder Cos., Inc., Class A		2,821		158,173
The Procter & Gamble Co.		68,268		4,073,552

				7,042,657

Insurance 4.2%
Aflac, Inc.		11,284		533,169
Alleghany Corp. *		219		65,185
Allied World Assurance Co. Holdings Ltd.		868		43,721
American Financial Group, Inc.		1,736		49,945
American International Group, Inc. *		2,761		93,681
American National Insurance Co.		434		33,227
American Physicians Capital, Inc.		217		8,971
AMERISAFE, Inc. *		434		7,625
AmTrust Financial Services, Inc.		1,519		20,734
Aon Corp.		5,859		212,330
Arch Capital Group Ltd. *		1,302		103,900
Argo Group International Holdings Ltd.		868		26,448
Arthur J. Gallagher & Co.		2,604		64,709
Aspen Insurance Holdings Ltd.		1,736		49,302
Assurant, Inc.		2,821		103,136
Assured Guaranty Ltd.		3,980		61,491
Axis Capital Holdings Ltd.		3,472		107,215
Berkshire Hathaway, Inc., Class B *		45,290		3,567,946
Brown & Brown, Inc.		2,821		53,712
Cincinnati Financial Corp.		3,689		98,422
CNA Financial Corp. *		1,535		39,941
CNA Surety Corp. *		1,085		18,185
CNO Financial Group, Inc. *		6,727		31,819
Delphi Financial Group, Inc., Class A		1,635		36,460
Endurance Specialty Holdings Ltd.		1,302		47,966
Enstar Group Ltd. *		217		15,108
Erie Indemnity Co., Class A		868		45,570
Everest Re Group Ltd.		1,302		103,040
FBL Financial Group, Inc., Class A		217		4,991
Fidelity National Financial, Inc., Class A		5,642		81,865
First American Financial Corp. *		3,038		45,054
Flagstone Reinsurance Holdings S.A.		1,519		15,296
Genworth Financial, Inc., Class A *		12,152		131,606
Greenlight Capital Re Ltd., Class A *		651		15,051
Hanover Insurance Group, Inc.		1,302		56,481
Harleysville Group, Inc.		434		13,836
HCC Insurance Holdings, Inc.		2,604		65,699
Hilltop Holdings, Inc. *		1,519		14,993
Infinity Property & Casualty Corp.		217		10,058
Lincoln National Corp.		7,161		167,281
Loews Corp.		8,463		297,390
Markel Corp. *		217		71,115
Marsh & McLennan Cos., Inc.		12,586		298,540
MBIA, Inc. *		5,208		48,747
Mercury General Corp.		868		34,043
MetLife, Inc.		13,888		522,189
Montpelier Re Holdings Ltd.		1,953		30,936
Old Republic International Corp.		5,425		69,331
OneBeacon Insurance Group Ltd., Class A		26		339
PartnerRe Ltd.		1,656		123,289
Platinum Underwriters Holdings Ltd.		1,085		43,628
PMA Capital Corp., Class A *		651		4,498
Principal Financial Group, Inc.		7,378		170,063

24 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
ProAssurance Corp. *		868		45,961
Protective Life Corp.		1,953		36,482
Prudential Financial, Inc.		11,067		559,658
Reinsurance Group of America, Inc.		1,736		75,933
RenaissanceRe Holdings Ltd.		1,519		86,264
RLI Corp.		651		34,151
Safety Insurance Group, Inc.		434		17,685
Selective Insurance Group, Inc.		1,302		19,348
StanCorp Financial Group, Inc.		1,085		38,659
State Auto Financial Corp.		1,085		15,168
The Allstate Corp.		12,803		353,363
The Chubb Corp.		7,780		428,834
The Hartford Financial Services Group, Inc.		10,505		211,781
The Navigators Group, Inc. *		434		18,154
The Progressive Corp.		15,190		300,762
The Travelers Cos., Inc.		11,751		575,564
Torchmark Corp.		1,953		96,381
Tower Group, Inc.		868		18,627
Transatlantic Holdings, Inc.		1,302		62,066
Unitrin, Inc.		1,736		41,317
Unum Group		8,029		160,981
Validus Holdings Ltd.		2,170		55,270
W.R. Berkley Corp.		3,472		91,487
White Mountains Insurance Group Ltd.		217		65,877
XL Group plc		8,246		147,686

				11,536,736

Materials 4.0%
Air Products & Chemicals, Inc.		4,664		345,276
Airgas, Inc.		1,633		107,451
AK Steel Holding Corp.		2,821		35,940
Albemarle Corp.		2,170		86,995
Alcoa, Inc.		24,304		248,144
Allegheny Technologies, Inc.		2,387		97,199
Allied Nevada Gold Corp. *		1,302		30,532
AMCOL International Corp.		1,302		34,008
AptarGroup, Inc.		1,519		63,266
Arch Chemicals, Inc.		562		17,265
Ashland, Inc.		1,736		80,655
Ball Corp.		2,170		121,694
Bemis Co., Inc.		2,604		75,177
Cabot Corp.		1,519		43,185
Calgon Carbon Corp. *		2,387		29,790
Carpenter Technology Corp.		1,736		53,833
Celanese Corp., Series A		3,472		92,702
Century Aluminum Co. *		1,302		13,020
CF Industries Holdings, Inc.		1,538		142,265
Cliffs Natural Resources, Inc.		3,255		199,173
Coeur d’Alene Mines Corp. *		2,058		35,315
Commercial Metals Co.		2,821		36,758
Compass Minerals International, Inc.		748		53,669
Crown Holdings, Inc. *		3,906		108,821
Cytec Industries, Inc.		1,085		51,462
Domtar Corp.		973		58,399
E.I. du Pont de Nemours & Co.		21,296		868,238
Eagle Materials, Inc.		1,302		29,881
Eastman Chemical Co.		1,519		93,494
Ecolab, Inc.		5,642		267,431
FMC Corp.		1,736		108,118
Freeport-McMoRan Copper & Gold, Inc.		10,206		734,628
Graphic Packaging Holding Co. *		7,161		21,841
Greif, Inc., Class A		868		49,346
H.B. Fuller Co.		1,736		32,967
Hecla Mining Co. *		6,076		34,755
Huntsman Corp.		4,340		39,537
International Flavors & Fragrances, Inc.		1,736		79,318
International Paper Co.		9,765		199,792
Intrepid Potash, Inc. *		1,302		29,230
Kaiser Aluminum Corp.		868		32,047
Koppers Holdings, Inc.		475		9,500
Kronos Worldwide, Inc. *		1,302		39,659
Martin Marietta Materials, Inc.		1,085		79,422
MeadWestvaco Corp.		3,689		80,273
Minerals Technologies, Inc.		651		34,894
Monsanto Co.		13,020		685,503
Nalco Holding Co.		3,255		73,954
NewMarket Corp.		434		43,630
Newmont Mining Corp.		11,501		705,241
Nucor Corp.		6,944		255,400
Olin Corp.		2,170		38,865
OM Group, Inc. *		1,085		27,776
Owens-Illinois, Inc. *		4,123		103,322
Packaging Corp. of America		2,387		53,206
Pactiv Corp. *		3,038		97,459
PPG Industries, Inc.		4,123		271,417
Praxair, Inc.		7,378		634,729
Reliance Steel & Aluminum Co.		1,519		56,583
Rock-Tenn Co., Class A		868		41,820
Rockwood Holdings, Inc. *		1,736		44,876
Royal Gold, Inc.		1,311		64,331
RPM International, Inc.		3,255		55,009
Schnitzer Steel Industries, Inc., Class A		651		28,800
Schweitzer-Mauduit International, Inc.		651		35,050
Sealed Air Corp.		3,689		75,661
Sensient Technologies Corp.		1,302		36,104
Sigma-Aldrich Corp.		2,604		138,455
Silgan Holdings, Inc.		1,186		35,450
Solutia, Inc. *		3,038		41,134
Sonoco Products Co.		2,387		75,071
Southern Copper Corp.		5,208		157,490
Steel Dynamics, Inc.		5,208		71,350
Stillwater Mining Co. *		1,953		26,756
Temple-Inland, Inc.		2,604		41,482
Texas Industries, Inc.		868		26,248
The Dow Chemical Co.		27,342		666,324
The Lubrizol Corp.		1,603		149,576
The Mosaic Co.		3,689		216,397
The Scotts Miracle-Gro Co., Class A		1,085		51,245
The Valspar Corp.		2,170		65,360
Titanium Metals Corp. *		2,387		43,252
United States Steel Corp.		3,472		147,595
Valhi, Inc.		1,953		34,802
Vulcan Materials Co.		2,604		95,723
W.R. Grace & Co. *		1,519		38,431
Walter Energy, Inc.		1,302		93,796
Westlake Chemical Corp.		1,302		33,748
Weyerhaeuser Co.		4,991		78,359
Worthington Industries, Inc.		3,038		43,200

				10,926,345

See financial notes 25

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Media 3.0%
Arbitron, Inc.		217		5,520
Belo Corp., Class A *		1,953		10,214
Cablevision Systems Corp., Class A		5,642		141,558
CBS Corp., Class B		14,973		206,927
Cinemark Holdings, Inc.		1,736		25,363
Clear Channel Outdoor Holdings, Inc., Class A *		2,170		21,808
Comcast Corp., Class A		66,878		1,144,951
Dex One Corp. *		1,233		10,505
DIRECTV, Class A *		22,176		840,914
Discovery Communications, Inc., Series A *		6,727		253,944
DISH Network Corp., Class A		5,208		93,484
DreamWorks Animation SKG, Inc., Class A *		1,736		51,438
Gannett Co., Inc.		6,076		73,459
John Wiley & Sons, Inc., Class A		1,085		38,615
Lamar Advertising Co., Class A *		1,519		39,813
Liberty Global, Inc., Series A *		6,076		167,211
Liberty Media - Starz, Series A *		1,143		68,283
Liberty Media Corp. - Capital, Series A *		1,953		88,041
Live Nation Entertainment, Inc. *		3,346		28,909
Madison Square Garden, Inc., Class A *		1,355		26,538
Meredith Corp.		1,085		31,747
Morningstar, Inc. *		651		26,333
News Corp., Class A		56,203		706,472
Omnicom Group, Inc.		7,378		258,304
Regal Entertainment Group, Class A		3,038		37,398
Scripps Networks Interactive, Class A		1,953		78,472
Sirius XM Radio, Inc. *		93,961		89,836
The Interpublic Group of Cos., Inc. *		11,501		98,104
The McGraw-Hill Cos., Inc.		7,595		210,002
The New York Times Co., Class A *		3,906		28,045
The Walt Disney Co.		42,563		1,387,128
The Washington Post Co., Class B		126		45,389
Time Warner Cable, Inc.		8,680		447,975
Time Warner, Inc.		27,993		839,230
Valassis Communications, Inc. *		1,085		31,801
Viacom, Inc., Class B		13,020		409,088
Virgin Media, Inc.		6,944		144,505
World Wrestling Entertainment, Inc., Class A		2,387		33,466

				8,240,790

Pharmaceuticals, Biotechnology & Life Sciences 7.6%
Abbott Laboratories		36,890		1,820,153
Abraxis BioScience, Inc. *		467		34,250
Acorda Therapeutics, Inc. *		1,519		45,752
Alexion Pharmaceuticals, Inc. *		2,170		122,540
Alkermes, Inc. *		4,123		54,671
Allergan, Inc.		7,595		466,485
Allos Therapeutics, Inc. *		5,642		20,593
Alnylam Pharmaceuticals, Inc. *		1,953		26,756
AMAG Pharmaceuticals, Inc. *		434		10,937
Amgen, Inc. *		22,708		1,159,016
Amylin Pharmaceuticals, Inc. *		3,472		71,315
Auxilium Pharmaceuticals, Inc. *		1,085		28,112
Bio-Rad Laboratories, Inc., Class A *		434		35,818
Biogen Idec, Inc. *		6,004		323,015
BioMarin Pharmaceutical, Inc. *		2,604		52,835
Bristol-Myers Squibb Co.		40,637		1,059,813
Bruker Corp. *		1,953		23,221
Celgene Corp. *		10,850		558,992
Cephalon, Inc. *		1,736		98,275
Cepheid, Inc. *		2,604		38,305
Charles River Laboratories International, Inc. *		1,519		42,912
Covance, Inc. *		1,519		57,616
Cubist Pharmaceuticals, Inc. *		1,953		43,025
Dendreon Corp. *		2,821		101,105
Dionex Corp. *		434		31,465
Eli Lilly & Co.		23,436		786,512
Endo Pharmaceuticals Holdings, Inc. *		2,387		64,855
Exelixis, Inc. *		3,038		8,992
Forest Laboratories, Inc. *		7,161		195,424
Furiex Pharmaceuticals, Inc. *		231		2,301
Genzyme Corp. *		6,293		441,202
Gilead Sciences, Inc. *		21,700		691,362
Halozyme Therapeutics, Inc. *		5,425		41,447
Human Genome Sciences, Inc. *		4,340		126,251
Illumina, Inc. *		3,472		148,914
Impax Laboratories, Inc. *		3,938		61,708
Incyte Corp. *		3,038		38,036
Ironwood Pharmaceuticals, Inc. *		2,326		21,562
Johnson & Johnson		65,559		3,738,174
King Pharmaceuticals, Inc. *		5,859		51,032
Life Technologies Corp. *		4,340		185,622
Luminex Corp. *		2,387		34,230
MannKind Corp. *		1,953		10,849
Martek Biosciences Corp. *		1,736		37,880
Medicis Pharmaceutical Corp., Class A		1,519		41,772
Merck & Co., Inc.		73,826		2,595,722
Mettler-Toledo International, Inc. *		868		95,992
Mylan, Inc. *		7,161		122,883
Myriad Genetics, Inc. *		2,170		33,982
Nektar Therapeutics *		2,214		28,361
Onyx Pharmaceuticals, Inc. *		1,519		36,593
Par Pharmaceutical Cos., Inc. *		1,519		40,056
PAREXEL International Corp. *		1,381		27,468
PDL BioPharma, Inc.		4,340		24,564
PerkinElmer, Inc.		3,038		63,828
Perrigo Co.		1,953		111,301
Pfizer, Inc.		190,929		3,041,499
Pharmaceutical Product Development, Inc.		2,821		64,798
Pharmasset, Inc. *		889		21,594
Regeneron Pharmaceuticals, Inc. *		1,953		42,927
Salix Pharmaceuticals Ltd. *		1,736		65,725
Savient Pharmaceuticals, Inc. *		2,821		40,679
Seattle Genetics, Inc. *		3,689		42,239
Talecris Biotherapeutics Holdings Corp. *		1,085		23,805
Targacept, Inc. *		868		18,028
Techne Corp.		868		50,110
Theravance, Inc. *		1,861		22,499
Thermo Fisher Scientific, Inc. *		9,548		402,162
United Therapeutics Corp. *		1,085		50,149
Valeant Pharmaceuticals International *		1,519		87,631

26 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Vertex Pharmaceuticals, Inc. *		4,557		151,930
ViroPharma, Inc. *		4,557		57,145
VIVUS, Inc. *		2,387		13,463
Waters Corp. *		2,170		131,328
Watson Pharmaceuticals, Inc. *		2,387		102,808

				20,666,371

Real Estate 2.8%
Acadia Realty Trust		868		15,572
Alexander’s, Inc.		151		45,987
Alexandria Real Estate Equities, Inc.		1,085		75,266
AMB Property Corp.		3,689		87,761
American Campus Communities, Inc.		1,302		38,787
American Capital Agency Corp.		1,007		27,431
Annaly Capital Management, Inc.		14,758		256,494
Anworth Mortgage Asset Corp.		4,774		32,511
Apartment Investment & Management Co., Class A		3,038		62,097
AvalonBay Communities, Inc.		1,953		205,495
BioMed Realty Trust, Inc.		2,821		48,211
Boston Properties, Inc.		3,472		282,621
Brandywine Realty Trust		3,689		40,542
BRE Properties, Inc.		1,302		53,226
Brookfield Properties Corp.		6,293		90,997
Camden Property Trust		1,519		69,509
Capstead Mortgage Corp.		2,604		30,258
CB Richard Ellis Group, Inc., Class A *		6,955		114,201
CBL & Associates Properties, Inc.		4,123		50,301
Chimera Investment Corp.		15,407		60,550
Colonial Properties Trust		1,519		24,091
Colony Financial, Inc.		1,736		30,762
CommonWealth REIT		1,352		32,610
Corporate Office Properties Trust		1,302		47,002
Cousins Properties, Inc.		5,045		33,146
DCT Industrial Trust, Inc.		7,378		34,160
Developers Diversified Realty Corp.		4,461		46,216
DiamondRock Hospitality Co. *		4,595		40,252
Digital Realty Trust, Inc.		2,005		118,836
Douglas Emmett, Inc.		3,038		48,973
Duke Realty Corp.		5,425		60,814
DuPont Fabros Technology, Inc.		868		21,448
EastGroup Properties, Inc.		868		30,597
Entertainment Properties Trust		1,085		46,753
Equity Lifestyle Properties, Inc.		651		33,676
Equity One, Inc.		2,170		34,698
Equity Residential		6,510		298,353
Essex Property Trust, Inc.		651		68,856
Extra Space Storage, Inc.		3,689		56,405
Federal Realty Investment Trust		1,519		120,441
Forest City Enterprises, Inc., Class A *		3,906		44,021
Forestar Group, Inc. *		868		12,916
Franklin Street Properties Corp.		1,953		22,909
Government Properties Income Trust		1,094		28,083
Hatteras Financial Corp.		1,302		37,732
HCP, Inc.		6,944		244,568
Health Care REIT, Inc.		2,821		129,597
Healthcare Realty Trust, Inc.		1,736		40,640
Highwoods Properties, Inc.		1,736		54,302
Home Properties, Inc.		868		43,834
Hospitality Properties Trust		3,038		59,393
Host Hotels & Resorts, Inc.		14,983		196,727
Inland Real Estate Corp.		1,739		13,408
Investors Real Estate Trust		1,744		14,301
Jones Lang LaSalle, Inc.		954		72,037
Kilroy Realty Corp.		1,302		40,505
Kimco Realty Corp.		9,331		139,125
LaSalle Hotel Properties		1,953		41,150
Lexington Realty Trust		4,774		31,843
Liberty Property Trust		2,604		79,083
Mack-Cali Realty Corp.		1,736		53,556
Medical Properties Trust, Inc.		1,736		17,082
MFA Financial, Inc.		6,510		47,979
Mid-America Apartment Communities, Inc.		868		49,016
National Health Investors, Inc.		1,085		45,483
National Retail Properties, Inc.		2,170		52,861
Nationwide Health Properties, Inc.		2,604		100,176
OMEGA Healthcare Investors, Inc.		2,170		46,546
Pennsylvania Real Estate Investment Trust		1,025		10,721
Piedmont Office Realty Trust, Inc., Class A		1,320		24,235
Plum Creek Timber Co., Inc.		3,906		134,640
Post Properties, Inc.		1,085		27,559
Potlatch Corp.		1,085		36,347
ProLogis		11,284		122,431
PS Business Parks, Inc.		651		36,632
Public Storage		3,255		319,055
Rayonier, Inc.		1,953		92,377
Realty Income Corp.		2,387		77,792
Redwood Trust, Inc.		2,387		32,964
Regency Centers Corp.		2,170		79,118
Saul Centers, Inc.		678		28,029
Senior Housing Properties Trust		3,038		71,393
Simon Property Group, Inc.		6,728		608,548
SL Green Realty Corp.		1,736		104,646
Sovran Self Storage, Inc.		1,085		40,980
Starwood Property Trust, Inc.		1,736		33,019
Sunstone Hotel Investors, Inc. *		4,340		37,194
Tanger Factory Outlet Centers, Inc.		868		40,119
Taubman Centers, Inc.		1,302		54,020
The Macerich Co.		2,961		122,645
The St. Joe Co. *		2,387		57,479
U-Store-It Trust		1,906		15,248
UDR, Inc.		3,472		71,454
Ventas, Inc.		3,689		186,331
Vornado Realty Trust		4,340		351,800
Washington Real Estate Investment Trust		1,302		39,893
Weingarten Realty Investors		3,038		61,307

				7,592,755

Retailing 3.7%
99 Cents Only Stores *		2,821		49,367
Aaron’s, Inc.		1,953		31,814
Abercrombie & Fitch Co., Class A		1,953		67,574
Advance Auto Parts, Inc.		2,170		118,200
Aeropostale, Inc. *		2,227		47,435
Amazon.com, Inc. *		8,202		1,023,856
American Eagle Outfitters, Inc.		4,340		54,858
AnnTaylor Stores Corp. *		2,604		39,919
AutoNation, Inc. *		1,736		39,199

See financial notes 27

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
AutoZone, Inc. *		651		136,567
Barnes & Noble, Inc.		1,953		29,568
Bed Bath & Beyond, Inc. *		6,293		226,359
Best Buy Co., Inc.		8,029		252,030
Big Lots, Inc. *		1,953		61,051
Blue Nile, Inc. *		651		26,730
Cabela’s, Inc. *		2,604		40,570
CarMax, Inc. *		4,774		95,146
Chico’s FAS, Inc.		4,340		35,805
Collective Brands, Inc. *		1,953		25,252
Dick’s Sporting Goods, Inc. *		1,953		47,790
Dillard’s, Inc., Class A		1,519		33,221
Dollar General Corp. *		868		23,705
Dollar Tree, Inc. *		3,255		147,549
DSW, Inc., Class A *		868		20,615
Expedia, Inc.		4,991		114,094
Family Dollar Stores, Inc.		3,038		129,996
Foot Locker, Inc.		3,906		45,856
GameStop Corp., Class A *		3,689		66,144
Genuine Parts Co.		3,689		154,680
Group 1 Automotive, Inc. *		1,085		27,385
Guess?, Inc.		1,302		42,068
hhgregg, Inc. *		868		16,405
HSN, Inc. *		1,302		34,230
J. Crew Group, Inc. *		1,302		39,698
J.C. Penney Co., Inc.		4,991		99,820
Jo-Ann Stores, Inc. *		651		26,470
Jos. A. Bank Clothiers, Inc. *		1,302		47,562
Kohl’s Corp. *		6,944		326,229
Liberty Media Corp. - Interactive, Series A *		14,539		153,386
Limited Brands, Inc.		6,510		153,636
LKQ Corp. *		3,472		64,579
Lowe’s Cos., Inc.		34,720		704,816
Lumber Liquidators Holdings, Inc. *		651		13,040
Macy’s, Inc.		10,199		198,269
Netflix, Inc. *		1,085		136,189
Nordstrom, Inc.		4,123		119,237
O’Reilly Automotive, Inc. *		3,255		153,864
Office Depot, Inc. *		6,727		22,939
OfficeMax, Inc. *		3,255		31,704
Penske Automotive Group, Inc. *		3,062		36,775
PetSmart, Inc.		3,038		96,882
Priceline.com, Inc. *		1,085		316,256
RadioShack Corp.		3,038		56,142
Rent-A-Center, Inc.		1,953		39,216
Ross Stores, Inc.		3,038		150,776
Saks, Inc. *		3,689		29,106
Sally Beauty Holdings, Inc. *		4,991		43,072
Sears Holdings Corp. *		1,302		80,594
Signet Jewelers Ltd. *		1,953		51,637
Staples, Inc.		17,143		304,631
Target Corp.		16,275		832,629
The Buckle, Inc.		1,085		25,986
The Children’s Place Retail Stores, Inc. *		1,085		47,371
The Dress Barn, Inc. *		1,736		36,196
The Gap, Inc.		9,052		152,888
The Gymboree Corp. *		651		24,497
The Home Depot, Inc.		40,796		1,134,537
The Men’s Wearhouse, Inc.		1,302		25,103
The Sherwin-Williams Co.		2,387		167,997
The TJX Cos., Inc.		9,982		396,186
Tiffany & Co.		3,038		120,396
Tractor Supply Co.		868		59,007
Ulta Salon, Cosmetics & Fragrance, Inc. *		1,302		29,490
Urban Outfitters, Inc. *		3,255		98,692
Williams-Sonoma, Inc.		2,387		61,966

				10,014,504

Semiconductors & Semiconductor Equipment 2.5%
Advanced Micro Devices, Inc. *		15,190		85,368
Altera Corp.		6,944		171,309
Amkor Technology, Inc. *		3,472		17,603
Analog Devices, Inc.		6,944		193,599
Applied Materials, Inc.		32,116		333,685
Applied Micro Circuits Corp. *		2,569		27,694
Atheros Communications *		1,519		37,459
Atmel Corp. *		9,765		56,637
Broadcom Corp., Class A		10,199		305,664
Cabot Microelectronics Corp. *		434		12,990
Cavium Networks, Inc. *		1,736		41,907
Cirrus Logic, Inc. *		1,837		27,776
Cree, Inc. *		2,170		116,182
Cymer, Inc. *		868		25,545
Cypress Semiconductor Corp. *		4,123		43,642
Diodes, Inc. *		868		12,803
Fairchild Semiconductor International, Inc. *		4,557		35,226
FEI Co. *		1,302		21,691
FormFactor, Inc. *		1,953		13,710
Hittite Microwave Corp. *		868		36,933
Integrated Device Technology, Inc. *		5,859		29,998
Intel Corp.		131,835		2,336,116
International Rectifier Corp. *		1,736		31,856
Intersil Corp., Class A		2,821		28,196
KLA-Tencor Corp.		4,123		115,485
Lam Research Corp. *		3,038		109,702
Linear Technology Corp.		4,991		142,992
LSI Corp. *		15,407		61,936
Marvell Technology Group Ltd. *		11,935		190,244
Maxim Integrated Products, Inc.		7,378		117,089
MEMC Electronic Materials, Inc. *		5,208		53,590
Microchip Technology, Inc.		4,340		120,175
Micron Technology, Inc. *		20,398		131,873
Microsemi Corp. *		2,387		33,418
MKS Instruments, Inc. *		2,170		37,454
Monolithic Power Systems, Inc. *		2,042		33,509
National Semiconductor Corp.		5,425		68,409
Netlogic Microsystems, Inc. *		1,736		41,925
Novellus Systems, Inc. *		2,170		50,561
NVIDIA Corp. *		13,237		123,501
OmniVision Technologies, Inc. *		868		17,794
ON Semiconductor Corp. *		10,416		64,371
PMC-Sierra, Inc. *		5,208		36,039
Power Integrations, Inc.		1,085		29,718
Rambus, Inc. *		2,604		46,429
RF Micro Devices, Inc. *		8,463		41,300
Semtech Corp. *		2,170		36,011
Silicon Laboratories, Inc. *		1,085		41,382
Skyworks Solutions, Inc. *		3,906		69,761
Teradyne, Inc. *		4,340		38,973

28 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Tessera Technologies, Inc. *		1,302		19,790
Texas Instruments, Inc.		28,975		667,294
TriQuint Semiconductor, Inc. *		6,510		45,245
Varian Semiconductor Equipment Associates, Inc. *		1,736		43,088
Veeco Instruments, Inc. *		1,519		50,476
Volterra Semiconductor Corp. *		1,085		21,754
Xilinx, Inc.		6,727		162,457

				6,907,334

Software & Services 7.1%
Activision Blizzard, Inc.		13,888		148,463
Acxiom Corp. *		2,170		26,897
Adobe Systems, Inc. *		12,586		349,387
Advent Software, Inc. *		868		43,114
Akamai Technologies, Inc. *		4,340		199,944
Alliance Data Systems Corp. *		1,302		73,159
ANSYS, Inc. *		1,953		75,737
AOL, Inc. *		2,445		54,328
ArcSight, Inc. *		1,302		49,997
Ariba, Inc. *		3,038		46,998
Autodesk, Inc. *		5,425		150,544
Automatic Data Processing, Inc.		11,935		460,810
Blackbaud, Inc.		1,519		31,626
Blackboard, Inc. *		868		28,722
BMC Software, Inc. *		4,340		156,500
Broadridge Financial Solutions, Inc.		3,255		69,494
CA, Inc.		9,982		179,776
CACI International, Inc., Class A *		651		26,567
Cadence Design Systems, Inc. *		6,293		42,792
Citrix Systems, Inc. *		4,340		251,460
Cognizant Technology Solutions Corp., Class A *		6,944		400,009
CommVault Systems, Inc. *		1,736		42,619
Computer Sciences Corp. *		3,689		146,859
Compuware Corp. *		5,642		40,510
Concur Technologies, Inc. *		1,085		50,745
Convergys Corp. *		3,038		30,775
CoreLogic, Inc.		3,038		52,466
DealerTrack Holdings, Inc. *		868		12,799
Digital River, Inc. *		1,519		40,056
DST Systems, Inc.		868		35,362
EarthLink, Inc.		4,123		35,293
eBay, Inc. *		26,257		610,213
Electronic Arts, Inc. *		7,812		119,055
Equinix, Inc. *		1,057		96,409
Euronet Worldwide, Inc. *		1,302		18,332
FactSet Research Systems, Inc.		1,085		79,802
Fair Isaac Corp.		1,519		34,010
Fidelity National Information Services, Inc.		7,812		201,862
Fiserv, Inc. *		3,906		195,417
Fortinet, Inc. *		3,198		65,207
Gartner, Inc. *		1,736		49,788
Genpact Ltd. *		2,821		39,466
Global Payments, Inc.		1,953		73,491
Google, Inc., Class A *		5,456		2,455,309
GSI Commerce, Inc. *		1,736		39,529
Hewitt Associates, Inc., Class A *		1,953		94,271
IAC/InterActiveCorp *		2,604		64,553
Informatica Corp. *		1,953		62,808
Intuit, Inc. *		7,161		306,491
j2 Global Communications, Inc. *		1,736		37,446
Jack Henry & Associates, Inc.		1,953		45,974
JDA Software Group, Inc. *		1,302		29,907
Lawson Software, Inc. *		5,208		39,581
Lender Processing Services, Inc.		2,170		63,646
ManTech International Corp., Class A *		651		23,039
MasterCard, Inc., Class A		2,387		473,485
MAXIMUS, Inc.		651		34,965
McAfee, Inc. *		3,689		173,567
Mentor Graphics Corp. *		1,953		17,753
MICROS Systems, Inc. *		1,953		74,409
Microsoft Corp.		185,318		4,351,267
MicroStrategy, Inc., Class A *		434		33,822
NetSuite, Inc. *		2,387		45,353
NeuStar, Inc., Class A *		1,736		38,435
Novell, Inc. *		8,463		47,562
Nuance Communications, Inc. *		5,208		76,453
Oracle Corp.		91,574		2,003,639
Parametric Technology Corp. *		2,604		44,398
Paychex, Inc.		7,812		194,441
Pegasystems, Inc.		1,085		23,761
Progress Software Corp. *		1,519		40,572
Quest Software, Inc. *		1,953		41,853
Rackspace Hosting, Inc. *		1,953		38,455
Red Hat, Inc. *		4,557		157,444
Rovi Corp. *		2,387		103,858
SAIC, Inc. *		9,373		139,470
Salesforce.com, Inc. *		2,738		300,851
Sapient Corp.		4,340		45,266
SAVVIS, Inc. *		2,170		37,997
Solarwinds, Inc. *		1,085		15,646
Solera Holdings, Inc.		1,519		60,274
Sourcefire, Inc. *		651		16,516
SRA International, Inc., Class A *		1,736		33,418
SuccessFactors, Inc. *		2,387		50,366
Symantec Corp. *		19,747		269,152
Synopsys, Inc. *		3,255		74,507
Syntel, Inc.		868		33,414
Taleo Corp., Class A *		868		22,247
TeleTech Holdings, Inc. *		1,953		24,764
The Ultimate Software Group, Inc. *		651		21,431
TIBCO Software, Inc. *		4,340		62,887
TiVo, Inc. *		3,255		25,584
Total System Services, Inc.		4,774		67,791
Tyler Technologies, Inc. *		868		15,025
ValueClick, Inc. *		3,472		37,845
VeriFone Systems, Inc. *		2,604		62,965
VeriSign, Inc. *		4,774		139,067
Visa, Inc., Class A		11,798		813,826
VMware, Inc., Class A *		1,433		112,591
WebMD Health Corp. *		1,085		55,270
Websense, Inc. *		1,953		37,986
Western Union Co.		16,709		261,997
Wright Express Corp. *		1,085		34,839
Yahoo!, Inc. *		31,682		414,401

				19,502,299

Technology Hardware & Equipment 8.2%
3PAR, Inc. *		3,255		104,551
Acme Packet, Inc. *		1,000		33,600

See financial notes 29

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
ADC Telecommunications, Inc. *		5,208		65,985
ADTRAN, Inc.		1,519		47,742
Agilent Technologies, Inc. *		8,246		222,395
Amphenol Corp., Class A		4,123		167,889
Anixter International, Inc. *		868		39,824
Apple, Inc. *		21,524		5,238,296
Arris Group, Inc. *		3,255		26,593
Arrow Electronics, Inc. *		3,038		69,509
Aruba Networks, Inc. *		2,387		43,849
Avnet, Inc. *		3,689		84,478
AVX Corp.		3,038		37,762
Benchmark Electronics, Inc. *		2,170		30,445
Blue Coat Systems, Inc. *		1,302		24,517
Brightpoint, Inc. *		4,557		27,160
Brocade Communications Systems, Inc. *		9,765		49,020
Ciena Corp. *		2,170		27,060
Cisco Systems, Inc. *		136,722		2,741,276
Cogent, Inc. *		3,689		40,579
Cognex Corp.		1,953		38,083
Coherent, Inc. *		487		18,092
CommScope, Inc. *		2,170		40,687
Comtech Telecommunications Corp. *		1,085		22,101
Corning, Inc.		37,541		588,643
Dell, Inc. *		42,098		495,493
Diebold, Inc.		1,519		39,403
Dolby Laboratories, Inc., Class A *		1,302		72,157
EchoStar Corp., Class A *		1,953		36,443
Electronics for Imaging, Inc. *		1,085		11,550
EMC Corp. *		48,174		878,694
Emulex Corp. *		3,255		31,053
F5 Networks, Inc. *		1,953		170,751
Finisar Corp. *		1,809		23,137
FLIR Systems, Inc. *		3,689		92,668
Harris Corp.		3,038		127,809
Hewlett-Packard Co.		55,593		2,139,219
Infinera Corp. *		4,340		36,630
Ingram Micro, Inc., Class A *		3,689		55,556
InterDigital, Inc. *		1,736		42,914
Intermec, Inc. *		2,604		27,368
International Business Machines Corp.		30,399		3,746,069
IPG Photonics Corp. *		1,085		23,501
Itron, Inc. *		868		46,872
Jabil Circuit, Inc.		4,774		48,933
JDS Uniphase Corp. *		5,859		53,844
Juniper Networks, Inc. *		12,803		348,242
Lexmark International, Inc., Class A *		1,736		60,743
Littelfuse, Inc. *		434		16,162
Loral Space & Communications, Inc. *		434		23,236
Molex, Inc.		3,472		61,281
Motorola, Inc. *		51,429		387,260
Multi-Fineline Electronix, Inc. *		1,302		27,134
National Instruments Corp.		1,519		43,793
NCR Corp. *		3,689		47,404
NetApp, Inc. *		8,029		324,693
NETGEAR, Inc. *		868		18,332
Plantronics, Inc.		1,302		35,558
Plexus Corp. *		1,302		29,972
Polycom, Inc. *		1,953		55,621
QLogic Corp. *		3,038		45,251
QUALCOMM, Inc.		38,885		1,489,684
Riverbed Technology, Inc. *		1,519		58,269
Rofin-Sinar Technologies, Inc. *		1,519		30,988
SanDisk Corp. *		5,425		180,327
Sanmina-SCI Corp. *		1,736		15,676
ScanSource, Inc. *		1,302		32,498
Seagate Technology plc *		11,935		120,902
STEC, Inc. *		1,519		16,952
Sycamore Networks, Inc.		1,119		24,528
Synaptics, Inc. *		1,519		40,132
SYNNEX Corp. *		1,302		30,024
Tech Data Corp. *		1,085		39,277
Tekelec *		2,170		23,783
Tellabs, Inc.		8,463		60,087
Teradata Corp. *		3,906		127,882
Trimble Navigation Ltd. *		2,821		79,355
ViaSat, Inc. *		1,085		37,921
Vishay Intertechnology, Inc. *		5,208		40,050
Vishay Precision Group, Inc. *		355		5,144
Western Digital Corp. *		5,425		131,014
Xerox Corp.		31,469		265,598
Zebra Technologies Corp., Class A *		1,302		37,263

				22,442,236

Telecommunication Services 3.0%
AboveNet, Inc. *		651		33,605
American Tower Corp., Class A *		9,548		447,419
AT&T, Inc.		140,835		3,806,770
Atlantic Tele-Network, Inc.		651		27,765
CenturyLink, Inc.		7,161		258,942
Clearwire Corp., Class A *		5,642		36,165
Crown Castle International Corp. *		5,859		240,922
Frontier Communications Corp.		23,609		182,498
Global Crossing Ltd. *		2,821		34,698
Leap Wireless International, Inc. *		2,604		27,003
Level 3 Communications, Inc. *		42,966		44,255
MetroPCS Communications, Inc. *		5,859		52,379
NII Holdings, Inc. *		4,123		149,459
NTELOS Holdings Corp.		1,519		24,577
Qwest Communications International, Inc.		31,682		179,003
SBA Communications Corp., Class A *		2,821		100,992
Sprint Nextel Corp. *		71,256		290,725
Syniverse Holdings, Inc. *		1,953		40,173
Telephone & Data Systems, Inc.		2,170		62,691
tw telecom, Inc. *		3,689		64,687
United States Cellular Corp. *		868		36,387
Verizon Communications, Inc.		68,572		2,023,560
Windstream Corp.		10,416		120,149

				8,284,824

Transportation 2.0%
Alaska Air Group, Inc. *		1,302		57,587
Alexander & Baldwin, Inc.		1,085		36,716
Allegiant Travel Co.		434		16,331
AMERCO *		434		35,072
AMR Corp. *		8,246		50,383
Arkansas Best Corp.		651		13,424
Atlas Air Worldwide Holdings, Inc. *		434		18,810
Avis Budget Group, Inc. *		2,604		23,748
C.H. Robinson Worldwide, Inc.		3,906		253,851
Con-way, Inc.		1,085		28,438

30 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Continental Airlines, Inc., Class B *		3,472		77,564
CSX Corp.		9,331		465,524
Delta Air Lines, Inc. *		19,096		199,744
Dollar Thrifty Automotive Group, Inc. *		651		30,623
Expeditors International of Washington, Inc.		4,991		197,594
FedEx Corp.		6,944		541,979
Genesee & Wyoming, Inc., Class A *		1,085		42,109
Heartland Express, Inc.		2,555		37,201
Hertz Global Holdings, Inc. *		4,774		40,627
Hub Group, Inc., Class A *		1,302		34,607
J.B. Hunt Transport Services, Inc.		2,170		71,046
JetBlue Airways Corp. *		6,727		38,411
Kansas City Southern *		2,170		72,847
Kirby Corp. *		1,302		47,953
Knight Transportation, Inc.		2,170		40,883
Landstar System, Inc.		1,302		46,846
Norfolk Southern Corp.		8,680		465,942
Old Dominion Freight Line, Inc. *		1,953		45,524
Ryder System, Inc.		1,302		49,958
SkyWest, Inc.		2,387		30,410
Southwest Airlines Co.		17,794		196,624
UAL Corp. *		4,022		85,226
Union Pacific Corp.		11,935		870,539
United Parcel Service, Inc., Class B		16,709		1,066,034
US Airways Group, Inc. *		3,774		34,117
UTI Worldwide, Inc.		2,604		36,482
Werner Enterprises, Inc.		1,736		34,616

				5,435,390

Utilities 4.0%
AGL Resources, Inc.		1,736		63,711
Allegheny Energy, Inc.		3,906		88,080
ALLETE, Inc.		1,085		38,594
Alliant Energy Corp.		2,604		91,192
Ameren Corp.		5,597		157,108
American Electric Power Co., Inc.		11,284		399,567
American Water Works Co., Inc.		4,126		93,165
Aqua America, Inc.		3,255		64,709
Atmos Energy Corp.		2,170		61,411
Avista Corp.		1,736		36,230
Black Hills Corp.		1,302		39,620
California Water Service Group		868		30,215
Calpine Corp. *		8,897		113,170
CenterPoint Energy, Inc.		8,680		128,377
Cleco Corp.		1,302		36,886
CMS Energy Corp.		5,208		91,140
Consolidated Edison, Inc.		6,727		319,734
Constellation Energy Group, Inc.		4,340		127,292
Dominion Resources, Inc.		14,105		603,130
DPL, Inc.		2,604		65,933
DTE Energy Co.		3,906		182,996
Duke Energy Corp.		30,597		525,962
Dynegy, Inc. *		3,255		16,047
Edison International		6,944		234,360
El Paso Electric Co. *		1,736		39,841
Energen Corp.		1,736		74,093
Entergy Corp.		4,557		359,274
EQT Corp.		3,079		100,375
Exelon Corp.		15,841		645,046
FirstEnergy Corp.		7,161		261,591
Great Plains Energy, Inc.		3,038		56,173
Hawaiian Electric Industries, Inc.		2,170		52,123
IDACORP, Inc.		1,302		45,648
Integrys Energy Group, Inc.		1,736		84,109
ITC Holdings Corp.		1,085		62,887
MDU Resources Group, Inc.		3,906		73,472
MGE Energy, Inc.		868		32,394
Mirant Corp. *		3,472		33,678
National Fuel Gas Co.		1,519		65,287
New Jersey Resources Corp.		1,085		40,373
NextEra Energy, Inc.		9,789		525,963
Nicor, Inc.		1,085		45,885
NiSource, Inc.		6,510		112,883
Northeast Utilities		4,123		119,443
Northwest Natural Gas Co.		868		39,442
NorthWestern Corp.		1,519		42,714
NRG Energy, Inc. *		6,293		127,874
NSTAR		2,387		90,778
NV Energy, Inc.		5,425		69,440
OGE Energy Corp.		2,170		84,739
ONEOK, Inc.		2,387		102,426
Ormat Technologies, Inc.		868		23,922
Pepco Holdings, Inc.		5,208		93,484
PG&E Corp.		8,897		416,024
Piedmont Natural Gas Co., Inc.		1,519		41,438
Pinnacle West Capital Corp.		2,387		95,122
PNM Resources, Inc.		2,821		32,272
Portland General Electric Co.		1,736		34,685
PPL Corp.		11,501		312,367
Progress Energy, Inc.		6,510		279,344
Public Service Enterprise Group, Inc.		12,152		388,378
Questar Corp.		3,906		63,590
RRI Energy, Inc. *		8,680		30,120
SCANA Corp.		2,604		101,634
Sempra Energy		5,425		276,241
South Jersey Industries, Inc.		868		40,787
Southern Co.		19,096		700,632
Southwest Gas Corp.		1,302		40,948
TECO Energy, Inc.		4,557		76,922
The AES Corp. *		18,819		192,707
The Empire District Electric Co.		1,736		34,060
UGI Corp.		2,604		71,870
UIL Holdings Corp.		868		22,993
Unisource Energy Corp.		1,302		42,354
Vectren Corp.		1,953		47,927
Westar Energy, Inc.		2,604		62,418
WGL Holdings, Inc.		1,085		38,268
Wisconsin Energy Corp.		2,821		157,243
Xcel Energy, Inc.		10,633		237,222

				10,951,552

Total Common Stock
(Cost $291,662,110)				271,274,844

See financial notes 31

Schwab U.S. Broad Market ETF

Statement of

Operations

For October 30, 2009* through August 31, 2010



Investment Income

Dividends (including $3,084 from affiliated issuer and net of foreign withholding tax of $327)		$2,901,686
Interest	+	459

Total investment income		2,902,145

Expenses

Investment adviser and administrator fees		105,156

Total expenses	−	105,156

Net investment income		2,796,989

Realized and Unrealized Gains (Losses)

Net realized losses on investments (including $1,815 loss from affiliated issuer)		(157,222	)
Net realized gains on in-kind redemptions		1,871,272
Net realized gains on foreign currency transactions	+	31

Net realized gains		1,714,081
Net unrealized losses on investments	+	(20,387,266	)

Net realized and unrealized losses		(18,673,185	)

Net decrease in net assets resulting from operations		($15,876,196	)


*		Commencement of operations.

34 See financial notes

Schwab U.S. Broad Market ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.


*10/30/09-8/31/10**
Net investment income		$2,796,989
Net realized gains		1,714,081
Net unrealized losses	+	(20,387,266	)

Net decrease in net assets resulting from operations		(15,876,196	)

Distributions to Shareholders

Distributions from net investment income		$1,831,500

Transactions in Fund Shares


		*10/30/09-8/31/10**
			SHARES		VALUE
Shares Sold			12,050,001		$320,803,907
Shares Redeemed	+		(1,200,000	)	(30,605,830	)

Net transactions in fund shares			10,850,001		$290,198,077

Shares Outstanding and Net Assets

		*10/30/09-8/31/10**
			SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		10,850,001		272,490,381

End of period			10,850,001		$272,490,381


Net investment income not yet distributed					$965,625


*		Commencement of operations.

See financial notes 35

Schwab U.S. Large-Cap ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Cost

Value

Holdings by Category

($)

.5%

Common Stock

291,923,849

272,066,546

.2%

Other Investment Company

668,488

.7%

Total Investments

292,592,337

272,735,034

.3%

Other Assets and
Liabilities, Net

767,729

100

.0%

Net Assets

273,502,763


	Number		Value
Security	of Shares		($)

Common Stock 99.5% of net assets

Automobiles & Components 0.7%
BorgWarner, Inc. *		3,070		134,005
Ford Motor Co. *		90,805		1,025,188
Harley-Davidson, Inc.		6,193		150,614
Johnson Controls, Inc.		17,964		476,585
Lear Corp. *		1,236		91,044
The Goodyear Tire & Rubber Co. *		6,371		58,868

				1,936,304

Banks 2.8%
BB&T Corp.		18,435		407,782
BOK Financial Corp.		683		30,353
Capitol Federal Financial		482		12,368
City National Corp.		1,248		60,453
Comerica, Inc.		4,729		162,725
Commerce Bancshares, Inc.		1,940		69,316
Cullen/Frost Bankers, Inc.		1,533		78,566
Fifth Third Bancorp		21,243		234,735
First Horizon National Corp. *		6,037		60,853
Hudson City Bancorp, Inc.		13,186		151,969
Huntington Bancshares, Inc.		19,053		100,790
KeyCorp		23,433		172,701
M&T Bank Corp.		2,260		193,546
Marshall & Ilsley Corp.		14,016		91,805
New York Community Bancorp, Inc.		11,729		186,374
People’s United Financial, Inc.		10,077		128,179
PNC Financial Services Group, Inc.		14,027		714,816
Regions Financial Corp.		31,755		204,185
SunTrust Banks, Inc.		13,269		298,420
TFS Financial Corp.		2,456		22,571
U.S. Bancorp		51,027		1,061,362
Wells Fargo & Co.		130,996		3,084,956

				7,528,825

Capital Goods 7.5%
3M Co.		17,605		1,382,873
Aecom Technology Corp. *		2,674		60,165
AGCO Corp. *		2,409		79,617
Alliant Techsystems, Inc. *		876		57,728
AMETEK, Inc.		2,847		122,393
Babcock & Wilcox Co. *		3,068		68,723
Bucyrus International, Inc.		1,971		113,313
Caterpillar, Inc.		15,185		989,455
Cummins, Inc.		4,822		358,805
Danaher Corp.		13,448		488,566
Deere & Co.		11,193		708,181
Donaldson Co., Inc.		1,911		80,071
Dover Corp.		4,900		219,324
Eaton Corp.		4,380		304,322
Emerson Electric Co.		20,188		941,770
Fastenal Co.		3,645		165,009
First Solar, Inc. *		1,240		158,534
Flowserve Corp.		1,451		129,690
Fluor Corp.		4,822		215,350
General Dynamics Corp.		8,541		477,186
General Electric Co.		285,704		4,136,994
Goodrich Corp.		3,508		240,228
Harsco Corp.		2,190		43,669
Honeywell International, Inc.		18,658		729,341
Hubbell, Inc., Class B		1,533		68,954
Illinois Tool Works, Inc.		11,388		469,869
ITT Corp.		4,926		209,355
Jacobs Engineering Group, Inc. *		3,289		114,063
Joy Global, Inc.		2,716		154,106
KBR, Inc.		4,380		101,616
L-3 Communications Holdings, Inc.		3,127		208,258
Lincoln Electric Holdings, Inc.		1,095		54,279
Lockheed Martin Corp.		7,932		551,433
Masco Corp.		9,644		101,166
McDermott International, Inc. *		6,136		78,664
MSC Industrial Direct Co., Class A		1,190		53,038
Navistar International Corp. *		1,361		56,999
Northrop Grumman Corp.		7,528		407,415
Oshkosh Corp. *		2,409		59,936
Owens Corning, Inc. *		3,066		83,395
PACCAR, Inc.		9,198		377,026
Pall Corp.		3,066		104,827
Parker Hannifin Corp.		4,270		252,613
Pentair, Inc.		2,675		80,517
Precision Castparts Corp.		3,771		426,802
Quanta Services, Inc. *		5,522		99,065
Raytheon Co.		10,611		466,035
Rockwell Automation, Inc.		3,770		192,798
Rockwell Collins, Inc.		4,246		228,987
Roper Industries, Inc.		2,493		144,793
Spirit AeroSystems Holdings, Inc., Class A *		2,675		51,734
SPX Corp.		1,318		73,887
SunPower Corp., Class A *		2,628		28,409
Textron, Inc.		7,230		123,416
The Boeing Co.		18,027		1,101,990
The Shaw Group, Inc. *		2,194		71,086
United Technologies Corp.		23,277		1,517,893
URS Corp. *		2,190		78,117

See financial notes 37

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
W.W. Grainger, Inc.		1,634		172,861

				20,636,709

Commercial & Professional Services 0.8%
Avery Dennison Corp.		2,752		89,495
Cintas Corp.		3,504		89,317
Copart, Inc. *		2,018		66,695
Corrections Corp. of America *		3,113		69,451
Covanta Holding Corp.		3,504		50,493
Equifax, Inc.		3,526		103,911
FTI Consulting, Inc. *		1,314		43,073
IHS, Inc., Class A *		1,195		73,839
Iron Mountain, Inc.		4,847		98,297
Manpower, Inc.		2,153		91,502
Pitney Bowes, Inc.		5,523		106,263
R.R. Donnelley & Sons Co.		5,522		83,631
Republic Services, Inc.		8,223		242,003
Robert Half International, Inc.		4,008		86,493
Stericycle, Inc. *		2,268		148,554
The Dun & Bradstreet Corp.		1,318		86,856
Towers Watson & Co., Class A		1,095		49,165
Verisk Analytics, Inc., Class A *		2,680		74,558
Waste Connections, Inc. *		2,024		76,406
Waste Management, Inc.		12,061		399,098

				2,129,100

Consumer Durables & Apparel 1.0%
Coach, Inc.		8,136		291,594
D.R. Horton, Inc.		7,227		74,149
Fortune Brands, Inc.		4,055		181,624
Garmin Ltd.		3,074		81,799
Harman International Industries, Inc. *		1,902		59,285
Hasbro, Inc.		3,452		139,323
Leggett & Platt, Inc.		3,946		75,645
Lennar Corp., Class A		4,161		54,800
Mattel, Inc.		9,636		202,260
Mohawk Industries, Inc. *		1,848		81,885
Newell Rubbermaid, Inc.		7,553		113,446
NIKE, Inc., Class B		7,130		499,100
NVR, Inc. *		142		85,791
Polo Ralph Lauren Corp.		1,752		132,697
Pulte Group, Inc. *		8,760		70,343
Stanley Black & Decker, Inc.		4,244		227,648
Toll Brothers, Inc. *		3,508		60,618
VF Corp.		2,307		162,920
Whirlpool Corp.		2,007		148,839

				2,743,766

Consumer Services 2.1%
Apollo Group, Inc., Class A *		3,593		152,631
Burger King Holdings, Inc.		2,409		39,628
Career Education Corp. *		1,795		31,466
Carnival Corp.		11,169		348,249
Chipotle Mexican Grill, Inc. *		814		122,776
Darden Restaurants, Inc.		3,723		153,611
DeVry, Inc.		1,635		62,310
Education Management Corp. *		2,334		18,835
H&R Block, Inc.		8,785		112,887
Hyatt Hotels Corp., Class A *		1,095		41,238
International Game Technology		7,884		115,106
ITT Educational Services, Inc. *		915		48,733
Las Vegas Sands Corp. *		11,615		329,053
Marriott International, Inc., Class A		8,766		280,600
McDonald’s Corp.		28,773		2,102,155
MGM Resorts International *		6,789		61,169
Penn National Gaming, Inc. *		1,937		54,585
Royal Caribbean Cruises Ltd. *		3,508		86,156
Starbucks Corp.		19,765		454,397
Starwood Hotels & Resorts Worldwide, Inc.		4,704		219,818
Strayer Education, Inc.		354		51,252
Weight Watchers International, Inc.		876		24,984
Wendy’s/Arby’s Group, Inc., Class A		8,562		33,306
Wyndham Worldwide Corp.		4,646		107,741
Wynn Resorts Ltd.		2,306		185,887
Yum! Brands, Inc.		12,435		518,540

				5,757,113

Diversified Financials 6.9%
Affiliated Managers Group, Inc. *		1,170		75,126
American Express Co.		28,375		1,131,311
AmeriCredit Corp. *		1,752		42,398
Ameriprise Financial, Inc.		6,793		296,039
Bank of America Corp.		265,731		3,308,351
Bank of New York Mellon Corp.		32,221		782,004
BlackRock, Inc.		1,107		157,139
Capital One Financial Corp.		12,152		460,075
CBOE Holdings, Inc. *		1,069		22,353
CIT Group, Inc. *		4,719		173,093
Citigroup, Inc. *		562,621		2,092,950
CME Group, Inc.		1,761		436,869
Discover Financial Services		14,677		212,963
ETRADE Financial Corp.		5,356		66,468
Eaton Vance Corp.		3,066		79,685
Federated Investors, Inc., Class B		2,675		55,774
Franklin Resources, Inc.		4,165		401,964
IntercontinentalExchange, Inc. *		1,971		188,349
Invesco Ltd.		11,721		212,150
Jefferies Group, Inc.		2,894		65,144
JPMorgan Chase & Co.		106,469		3,871,213
Legg Mason, Inc.		4,308		109,122
Leucadia National Corp. *		5,256		112,215
Moody’s Corp.		5,412		114,410
Morgan Stanley		34,005		839,583
MSCI, Inc., Class A *		3,094		92,510
Northern Trust Corp.		6,449		297,557
NYSE Euronext		6,836		189,631
Raymond James Financial, Inc.		2,675		61,739
SEI Investments Co.		4,208		74,482
SLM Corp. *		12,749		140,876
State Street Corp.		13,187		462,600
T. Rowe Price Group, Inc.		6,838		299,368
TD Ameritrade Holding Corp. *		6,398		93,475
The Charles Schwab Corp. (a)		25,882		330,254
The Goldman Sachs Group, Inc.		11,481		1,572,208
The NASDAQ OMX Group, Inc. *		4,427		79,287

				19,000,735

38 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Energy 10.6%
Alpha Natural Resources, Inc. *		3,203		118,927
Anadarko Petroleum Corp.		13,328		612,955
Apache Corp.		8,983		807,123
Arch Coal, Inc.		4,380		98,594
Baker Hughes, Inc.		11,298		424,579
Cabot Oil & Gas Corp.		2,763		76,922
Cameron International Corp. *		6,418		236,054
Chesapeake Energy Corp.		17,301		357,785
Chevron Corp.		53,702		3,982,540
Cimarex Energy Co.		2,256		147,588
Cobalt International Energy, Inc. *		4,414		36,018
Concho Resources, Inc. *		2,058		120,228
ConocoPhillips		37,412		1,961,511
CONSOL Energy, Inc.		6,002		193,264
Continental Resources, Inc. *		750		30,390
Denbury Resources, Inc. *		10,611		156,406
Devon Energy Corp.		11,169		673,267
Diamond Offshore Drilling, Inc.		1,690		98,324
El Paso Corp.		18,834		214,519
EOG Resources, Inc.		6,708		582,724
EXCO Resources, Inc.		4,603		61,910
Exxon Mobil Corp.		136,488		8,074,630
FMC Technologies, Inc. *		3,289		203,425
Forest Oil Corp. *		2,970		77,576
Halliburton Co.		23,875		673,514
Helmerich & Payne, Inc.		2,561		94,860
Hess Corp.		7,888		396,372
Marathon Oil Corp.		18,834		574,249
Massey Energy Co.		2,723		78,286
Murphy Oil Corp.		5,041		269,996
Nabors Industries Ltd. *		7,669		120,250
National-Oilwell Varco, Inc.		11,173		419,993
Newfield Exploration Co. *		3,508		168,419
Noble Energy, Inc.		4,603		321,197
Occidental Petroleum Corp.		21,585		1,577,432
Oceaneering International, Inc. *		1,447		72,365
Patterson-UTI Energy, Inc.		4,161		61,416
Peabody Energy Corp.		7,134		305,335
Petrohawk Energy Corp. *		8,111		122,638
Pioneer Natural Resources Co.		3,070		177,507
Plains Exploration & Production Co. *		3,770		90,028
Pride International, Inc. *		4,165		98,086
QEP Resources, Inc. *		4,700		136,441
Quicksilver Resources, Inc. *		3,285		40,077
Range Resources Corp.		4,264		144,166
Rowan Cos., Inc. *		3,076		79,084
Schlumberger Ltd.		36,594		1,951,558
Southern Union Co.		3,093		69,593
Southwestern Energy Co. *		9,206		301,220
Spectra Energy Corp.		17,386		353,631
Sunoco, Inc.		3,212		108,180
The Williams Cos., Inc.		15,334		278,006
Tidewater, Inc.		1,752		70,220
Ultra Petroleum Corp. *		4,043		157,718
Valero Energy Corp.		14,938		235,572
Whiting Petroleum Corp. *		1,229		104,268

				28,998,936

Food & Staples Retailing 2.3%
Costco Wholesale Corp.		11,668		659,825
CVS Caremark Corp.		36,297		980,019
Safeway, Inc.		10,352		194,618
SUPERVALU, Inc.		5,741		55,802
Sysco Corp.		15,676		430,933
The Kroger Co.		16,555		326,630
Wal-Mart Stores, Inc.		56,769		2,846,398
Walgreen Co.		26,099		701,541
Whole Foods Market, Inc. *		3,645		126,810

				6,322,576

Food, Beverage & Tobacco 6.0%
Altria Group, Inc.		55,522		1,239,251
Archer-Daniels-Midland Co.		15,696		483,123
Brown-Forman Corp., Class B		2,931		179,641
Bunge Ltd.		3,824		202,672
Campbell Soup Co.		5,698		212,307
Coca-Cola Enterprises, Inc.		8,691		247,346
ConAgra Foods, Inc.		11,873		256,338
Constellation Brands, Inc., Class A *		5,256		87,565
Dean Foods Co. *		4,645		47,518
Dr. Pepper Snapple Group, Inc.		6,521		240,103
Flowers Foods, Inc.		2,464		63,670
General Mills, Inc.		16,775		606,584
Green Mountain Coffee Roasters, Inc. *		3,068		94,556
H.J. Heinz Co.		8,362		386,659
Hansen Natural Corp. *		1,813		81,657
Hormel Foods Corp.		1,905		82,201
Kellogg Co.		6,853		340,457
Kraft Foods, Inc., Class A		42,712		1,279,224
Lorillard, Inc.		4,087		310,653
McCormick & Co., Inc.		3,191		127,225
Molson Coors Brewing Co., Class B		4,161		181,253
PepsiCo, Inc.		43,010		2,760,382
Philip Morris International, Inc.		49,981		2,571,023
Ralcorp Holdings, Inc. *		1,421		84,763
Reynolds American, Inc.		4,474		244,012
Sara Lee Corp.		16,691		241,018
Smithfield Foods, Inc. *		3,988		64,326
The Coca-Cola Co.		57,266		3,202,315
The Hershey Co.		4,427		205,723
The J.M. Smucker Co.		3,157		184,621
Tyson Foods, Inc., Class A		8,326		136,380

				16,444,566

Health Care Equipment & Services 3.9%
Aetna, Inc.		11,316		302,363
Alere, Inc. *		2,230		62,373
AmerisourceBergen Corp.		7,493		204,409
Baxter International, Inc.		16,063		683,641
Beckman Coulter, Inc.		1,799		82,106
Becton, Dickinson & Co.		5,814		396,457
Boston Scientific Corp. *		40,146		208,358
C.R. Bard, Inc.		2,537		194,918
Cardinal Health, Inc.		9,636		288,695
CareFusion Corp. *		4,858		104,836
Cerner Corp. *		1,836		133,753

See financial notes 39

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
CIGNA Corp.		7,370		237,461
Community Health Systems, Inc. *		2,544		66,322
Coventry Health Care, Inc. *		3,946		76,355
DaVita, Inc. *		2,712		175,249
DENTSPLY International, Inc.		3,942		109,666
Edwards Lifesciences Corp. *		3,165		182,209
Express Scripts, Inc. *		13,586		578,764
Gen-Probe, Inc. *		1,314		59,169
Henry Schein, Inc. *		2,409		127,195
Hologic, Inc. *		6,836		97,003
Hospira, Inc. *		4,380		224,957
Humana, Inc. *		4,599		219,786
IDEXX Laboratories, Inc. *		1,533		84,729
Intuitive Surgical, Inc. *		1,018		269,801
Kinetic Concepts, Inc. *		1,700		54,264
Laboratory Corp. of America Holdings *		2,764		200,722
Lincare Holdings, Inc.		2,628		60,497
McKesson Corp.		7,348		426,551
Medco Health Solutions, Inc. *		12,175		529,369
Medtronic, Inc.		29,612		932,186
Omnicare, Inc.		3,113		59,770
Patterson Cos., Inc.		2,792		70,610
Quest Diagnostics, Inc.		3,994		173,739
ResMed, Inc. *		4,096		123,453
St. Jude Medical, Inc. *		8,668		299,653
Stryker Corp.		8,111		350,314
Teleflex, Inc.		1,035		49,742
UnitedHealth Group, Inc.		30,518		968,031
Universal Health Services, Inc., Class B		2,413		75,768
Varian Medical Systems, Inc. *		3,285		174,893
WellPoint, Inc. *		11,406		566,650
Zimmer Holdings, Inc. *		5,392		254,341

				10,541,128

Household & Personal Products 2.8%
Alberto-Culver Co.		2,236		69,428
Avon Products, Inc.		11,555		336,251
Church & Dwight Co., Inc.		1,854		113,520
Colgate-Palmolive Co.		13,324		983,844
Energizer Holdings, Inc. *		1,842		116,138
Kimberly-Clark Corp.		11,060		712,264
Mead Johnson Nutrition Co.		5,475		285,740
The Clorox Co.		3,723		241,325
The Estee Lauder Cos., Inc., Class A		3,194		179,088
The Procter & Gamble Co.		77,035		4,596,678

				7,634,276

Insurance 4.3%
Aflac, Inc.		12,487		590,011
Alleghany Corp. *		172		51,196
Allied World Assurance Co. Holdings Ltd.		1,142		57,523
American Financial Group, Inc.		2,222		63,927
American International Group, Inc. *		3,199		108,542
American National Insurance Co.		356		27,255
Aon Corp.		6,398		231,864
Arch Capital Group Ltd. *		1,394		111,241
Assurant, Inc.		2,948		107,779
Assured Guaranty Ltd.		4,473		69,108
Axis Capital Holdings Ltd.		3,373		104,158
Berkshire Hathaway, Inc., Class B *		51,153		4,029,833
Brown & Brown, Inc.		3,113		59,272
Cincinnati Financial Corp.		3,989		106,427
CNA Financial Corp. *		677		17,616
Everest Re Group Ltd.		1,580		125,041
Fidelity National Financial, Inc., Class A		6,179		89,657
First American Financial Corp.		3,113		46,166
Genworth Financial, Inc., Class A *		12,933		140,064
Hanover Insurance Group, Inc.		1,171		50,798
HCC Insurance Holdings, Inc.		3,084		77,809
Lincoln National Corp.		8,133		189,987
Loews Corp.		9,059		318,333
Markel Corp. *		253		82,913
Marsh & McLennan Cos., Inc.		14,395		341,449
MetLife, Inc.		15,477		581,935
Old Republic International Corp.		6,401		81,805
PartnerRe Ltd.		2,073		154,335
Principal Financial Group, Inc.		8,107		186,866
Prudential Financial, Inc.		12,333		623,680
Reinsurance Group of America, Inc.		1,913		83,675
RenaissanceRe Holdings Ltd.		1,546		87,797
The Allstate Corp.		13,449		371,192
The Chubb Corp.		8,769		483,347
The Hartford Financial Services Group, Inc.		11,793		237,747
The Progressive Corp.		16,910		334,818
The Travelers Cos., Inc.		13,208		646,928
Torchmark Corp.		2,190		108,076
Transatlantic Holdings, Inc.		1,667		79,466
Unum Group		8,807		176,580
Validus Holdings Ltd.		2,358		60,058
W.R. Berkley Corp.		3,513		92,568
Wesco Financial Corp.		32		11,601
White Mountains Insurance Group Ltd.		175		53,127
XL Group plc		9,026		161,656

				11,815,226

Materials 3.8%
Air Products & Chemicals, Inc.		5,260		389,398
Airgas, Inc.		1,846		121,467
Albemarle Corp.		2,526		101,267
Alcoa, Inc.		27,176		277,467
Allegheny Technologies, Inc.		2,471		100,619
AptarGroup, Inc.		1,599		66,598
Ashland, Inc.		1,849		85,904
Ball Corp.		2,458		137,845
Bemis Co., Inc.		2,847		82,193
Celanese Corp., Series A		4,171		111,366
CF Industries Holdings, Inc.		1,874		173,345
Cliffs Natural Resources, Inc.		3,597		220,100
Crown Holdings, Inc. *		4,208		117,235
E.I. du Pont de Nemours & Co.		23,947		976,319
Eastman Chemical Co.		1,833		112,821
Ecolab, Inc.		6,214		294,544
FMC Corp.		1,971		122,754
Freeport-McMoRan Copper & Gold, Inc.		11,467		825,395
Huntsman Corp.		5,107		46,525

40 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
International Flavors & Fragrances, Inc.		2,053		93,802
International Paper Co.		10,767		220,293
Intrepid Potash, Inc. *		1,164		26,132
Martin Marietta Materials, Inc.		1,192		87,254
MeadWestvaco Corp.		4,524		98,442
Monsanto Co.		14,585		767,900
Nalco Holding Co.		3,422		77,748
Newmont Mining Corp.		12,868		789,066
Nucor Corp.		7,665		281,919
Owens-Illinois, Inc. *		4,380		109,763
Pactiv Corp. *		3,551		113,916
PPG Industries, Inc.		4,411		290,376
Praxair, Inc.		8,211		706,392
Reliance Steel & Aluminum Co.		1,752		65,262
Sealed Air Corp.		4,427		90,798
Sigma-Aldrich Corp.		2,724		144,835
Smurfit-Stone Container Corp. *		1,286		22,081
Sonoco Products Co.		2,628		82,651
Southern Copper Corp.		5,694		172,187
Steel Dynamics, Inc.		5,694		78,008
The Dow Chemical Co.		30,879		752,521
The Lubrizol Corp.		1,811		168,984
The Mosaic Co.		3,946		231,472
The Scotts Miracle-Gro Co., Class A		1,211		57,195
The Valspar Corp.		2,409		72,559
United States Steel Corp.		3,834		162,983
Vulcan Materials Co.		3,070		112,853
Walter Energy, Inc.		1,602		115,408
Weyerhaeuser Co.		5,601		87,936

				10,443,898

Media 3.2%
Cablevision Systems Corp., Class A		6,360		159,572
CBS Corp., Class B		16,946		234,194
Clear Channel Outdoor Holdings, Inc., Class A *		1,491		14,985
Comcast Corp., Class A		75,250		1,288,280
DIRECTV, Class A *		24,973		946,976
Discovery Communications, Inc., Series A *		7,446		281,087
DISH Network Corp., Class A		5,694		102,207
DreamWorks Animation SKG, Inc., Class A *		1,592		47,171
Gannett Co., Inc.		6,351		76,784
John Wiley & Sons, Inc., Class A		1,314		46,765
Liberty Global, Inc., Series A *		6,570		180,806
Liberty Media - Starz, Series A *		1,413		84,413
News Corp., Class A		61,909		778,196
Omnicom Group, Inc.		8,164		285,822
Scripps Networks Interactive, Class A		2,190		87,994
Sirius XM Radio, Inc. *		102,711		98,202
The Interpublic Group of Cos., Inc. *		12,964		110,583
The McGraw-Hill Cos., Inc.		8,322		230,103
The Walt Disney Co.		48,469		1,579,605
The Washington Post Co., Class B		132		47,550
Time Warner Cable, Inc.		9,372		483,689
Time Warner, Inc.		30,536		915,469
Viacom, Inc., Class B		14,376		451,694
Virgin Media, Inc.		8,029		167,083

				8,699,230

Pharmaceuticals, Biotechnology & Life Sciences 8.0%
Abbott Laboratories		41,056		2,025,703
Alexion Pharmaceuticals, Inc. *		2,413		136,262
Allergan, Inc.		8,107		497,932
Amgen, Inc. *		25,552		1,304,174
Amylin Pharmaceuticals, Inc. *		3,621		74,375
Biogen Idec, Inc. *		6,740		362,612
Bristol-Myers Squibb Co.		45,810		1,194,725
Celgene Corp. *		12,311		634,263
Cephalon, Inc. *		2,056		116,390
Charles River Laboratories International, Inc. *		1,752		49,494
Covance, Inc. *		1,752		66,453
Dendreon Corp. *		3,946		141,425
Eli Lilly & Co.		26,208		879,541
Endo Pharmaceuticals Holdings, Inc. *		2,675		72,680
Forest Laboratories, Inc. *		8,031		219,166
Furiex Pharmaceuticals, Inc. *		2,444		24,342
Genzyme Corp. *		7,110		498,482
Gilead Sciences, Inc. *		23,734		756,165
Human Genome Sciences, Inc. *		5,003		145,537
Illumina, Inc. *		3,301		141,580
Johnson & Johnson		73,947		4,216,458
King Pharmaceuticals, Inc. *		6,570		57,225
Life Technologies Corp. *		4,818		206,066
Merck & Co., Inc.		83,730		2,943,947
Mettler-Toledo International, Inc. *		876		96,877
Mylan, Inc. *		8,103		139,047
Myriad Genetics, Inc. *		2,456		38,461
PerkinElmer, Inc.		3,070		64,501
Perrigo Co.		2,190		124,808
Pfizer, Inc.		215,795		3,437,614
Pharmaceutical Product Development, Inc.		3,285		75,456
Talecris Biotherapeutics Holdings Corp. *		1,620		35,543
Techne Corp.		983		56,749
Thermo Fisher Scientific, Inc. *		10,831		456,202
United Therapeutics Corp. *		1,314		60,733
Valeant Pharmaceuticals International *		1,546		89,189
Vertex Pharmaceuticals, Inc. *		5,366		178,902
Waters Corp. *		2,470		149,484
Watson Pharmaceuticals, Inc. *		2,975		128,133

				21,896,696

Real Estate 2.0%
AMB Property Corp.		4,464		106,199
Annaly Capital Management, Inc.		16,938		294,382
AvalonBay Communities, Inc.		2,190		230,432
Boston Properties, Inc.		3,655		297,517
Brookfield Properties Corp.		6,836		98,849
CB Richard Ellis Group, Inc., Class A *		7,802		128,109
Digital Realty Trust, Inc.		2,250		133,358
Equity Residential		7,529		345,054
Federal Realty Investment Trust		1,602		127,023
HCP, Inc.		7,884		277,674
Health Care REIT, Inc.		3,285		150,913
Host Hotels & Resorts, Inc.		17,540		230,300
Kimco Realty Corp.		10,774		160,640

See financial notes 41

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Liberty Property Trust		3,066		93,114
Nationwide Health Properties, Inc.		3,113		119,757
Piedmont Office Realty Trust, Inc., Class A		1,533		28,146
Plum Creek Timber Co., Inc.		4,380		150,979
ProLogis		12,748		138,316
Public Storage		3,753		367,869
Rayonier, Inc.		2,495		118,014
Realty Income Corp.		2,858		93,142
Regency Centers Corp.		2,157		78,644
Simon Property Group, Inc.		7,727		698,907
SL Green Realty Corp.		2,030		122,368
The Macerich Co.		3,372		139,668
The St. Joe Co. *		2,413		58,105
Ventas, Inc.		4,161		210,172
Vornado Realty Trust		4,822		390,871

				5,388,522

Retailing 3.5%
Abercrombie & Fitch Co., Class A		2,240		77,504
Advance Auto Parts, Inc.		2,324		126,588
Amazon.com, Inc. *		9,256		1,155,426
American Eagle Outfitters, Inc.		4,818		60,900
AutoNation, Inc. *		1,971		44,505
AutoZone, Inc. *		762		159,852
Bed Bath & Beyond, Inc. *		7,008		252,078
Best Buy Co., Inc.		9,144		287,030
CarMax, Inc. *		5,934		118,265
Dollar General Corp. *		884		24,142
Dollar Tree, Inc. *		3,451		156,434
Expedia, Inc.		5,475		125,158
Family Dollar Stores, Inc.		3,347		143,218
GameStop Corp., Class A *		4,063		72,850
Genuine Parts Co.		4,208		176,441
Guess?, Inc.		1,677		54,184
J.C. Penney Co., Inc.		5,475		109,500
Kohl’s Corp. *		7,665		360,102
Liberty Media Corp. - Interactive, Series A *		15,987		168,663
Limited Brands, Inc.		7,888		186,157
Lowe’s Cos., Inc.		38,485		781,245
Macy’s, Inc.		11,169		217,125
Netflix, Inc. *		1,191		149,494
Nordstrom, Inc.		4,527		130,921
O’Reilly Automotive, Inc. *		3,595		169,936
PetSmart, Inc.		3,145		100,294
Priceline.com, Inc. *		1,241		361,727
Ross Stores, Inc.		3,285		163,035
Sears Holdings Corp. *		1,314		81,337
Staples, Inc.		19,567		347,706
Target Corp.		17,867		914,076
The Gap, Inc.		10,200		172,278
The Home Depot, Inc.		45,373		1,261,823
The Sherwin-Williams Co.		2,461		173,205
The TJX Cos., Inc.		10,876		431,668
Tiffany & Co.		3,402		134,821
Urban Outfitters, Inc. *		3,507		106,332

				9,556,020

Semiconductors & Semiconductor Equipment 2.4%
Advanced Micro Devices, Inc. *		14,904		83,761
Altera Corp.		8,105		199,950
Analog Devices, Inc.		7,903		220,336
Applied Materials, Inc.		35,739		371,328
Broadcom Corp., Class A		11,456		343,336
Cree, Inc. *		2,582		138,240
Intel Corp.		148,852		2,637,658
KLA-Tencor Corp.		4,599		128,818
Lam Research Corp. *		3,402		122,846
Linear Technology Corp.		5,475		156,859
LSI Corp. *		17,567		70,619
Marvell Technology Group Ltd. *		13,436		214,170
Maxim Integrated Products, Inc.		8,103		128,595
MEMC Electronic Materials, Inc. *		5,956		61,287
Microchip Technology, Inc.		4,818		133,410
Micron Technology, Inc. *		22,604		146,135
National Semiconductor Corp.		6,398		80,679
NVIDIA Corp. *		15,336		143,085
ON Semiconductor Corp. *		11,607		71,731
Texas Instruments, Inc.		32,586		750,456
Varian Semiconductor Equipment Associates, Inc. *		1,971		48,920
Xilinx, Inc.		7,446		179,821

				6,432,040

Software & Services 7.1%
Activision Blizzard, Inc.		15,111		161,537
Adobe Systems, Inc. *		14,050		390,028
Akamai Technologies, Inc. *		4,639		213,719
Alliance Data Systems Corp. *		1,407		79,059
ANSYS, Inc. *		2,775		107,614
AOL, Inc. *		2,857		63,483
Autodesk, Inc. *		6,165		171,079
Automatic Data Processing, Inc.		13,359		515,791
BMC Software, Inc. *		4,865		175,432
Broadridge Financial Solutions, Inc.		3,332		71,138
CA, Inc.		10,904		196,381
Citrix Systems, Inc. *		4,935		285,934
Cognizant Technology Solutions Corp., Class A *		7,977		459,515
Computer Sciences Corp.		4,032		160,514
CoreLogic, Inc.		2,631		45,437
DST Systems, Inc.		935		38,092
eBay, Inc. *		29,898		694,829
Electronic Arts, Inc. *		8,588		130,881
Equinix, Inc. *		1,194		108,905
FactSet Research Systems, Inc.		1,165		85,686
Fidelity National Information Services, Inc.		6,570		169,769
Fiserv, Inc. *		4,033		201,771
Genpact Ltd. *		2,670		37,353
Global Payments, Inc.		2,190		82,410
Google, Inc., Class A *		6,216		2,797,324
Hewitt Associates, Inc., Class A *		2,894		139,693
IAC/InterActiveCorp *		2,148		53,249
Intuit, Inc. *		7,799		333,797
Lender Processing Services, Inc.		2,453		71,946
MasterCard, Inc., Class A		2,552		506,215
McAfee, Inc. *		4,161		195,775

42 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Microsoft Corp.		208,515		4,895,932
Nuance Communications, Inc. *		6,517		95,670
Oracle Corp.		102,085		2,233,620
Paychex, Inc.		8,791		218,808
Red Hat, Inc. *		5,037		174,028
Rovi Corp. *		2,667		116,041
SAIC, Inc. *		10,179		151,464
Salesforce.com, Inc. *		3,086		339,090
Symantec Corp. *		21,900		298,497
Synopsys, Inc. *		4,022		92,064
Total System Services, Inc.		5,260		74,692
VeriSign, Inc. *		4,861		141,601
Visa, Inc., Class A		13,254		914,261
VMware, Inc., Class A *		1,652		129,798
Western Union Co.		17,996		282,177
Yahoo!, Inc. *		34,869		456,086

				19,358,185

Technology Hardware & Equipment 8.5%
Agilent Technologies, Inc. *		9,267		249,931
Amphenol Corp., Class A		4,603		187,434
Apple, Inc. *		24,274		5,907,563
Arrow Electronics, Inc. *		3,213		73,513
Avnet, Inc. *		4,380		100,302
Brocade Communications Systems, Inc. *		11,865		59,562
Cisco Systems, Inc. *		154,401		3,095,740
Corning, Inc.		41,861		656,381
Dell, Inc. *		46,005		541,479
Dolby Laboratories, Inc., Class A *		1,388		76,923
EMC Corp. *		54,251		989,538
F5 Networks, Inc. *		2,080		181,854
FLIR Systems, Inc. *		4,165		104,625
Harris Corp.		3,458		145,478
Hewlett-Packard Co.		62,545		2,406,732
Ingram Micro, Inc., Class A *		4,380		65,963
International Business Machines Corp.		34,206		4,215,205
Itron, Inc. *		1,095		59,130
Jabil Circuit, Inc.		5,648		57,892
Juniper Networks, Inc. *		14,454		393,149
Molex, Inc.		3,512		61,987
Motorola, Inc. *		57,227		430,919
NCR Corp. *		4,208		54,073
NetApp, Inc. *		9,162		370,511
QUALCOMM, Inc.		43,745		1,675,871
SanDisk Corp. *		6,132		203,828
Seagate Technology plc *		12,977		131,457
Tellabs, Inc.		9,704		68,898
Teradata Corp. *		4,440		145,366
Trimble Navigation Ltd. *		3,551		99,890
Western Digital Corp. *		6,172		149,054
Xerox Corp.		36,802		310,609

				23,270,857

Telecommunication Services 3.3%
American Tower Corp., Class A *		10,731		502,855
AT&T, Inc.		158,800		4,292,364
CenturyLink, Inc.		8,032		290,437
Clearwire Corp., Class A *		2,546		16,320
Crown Castle International Corp. *		6,570		270,158
Frontier Communications Corp.		27,194		210,210
Level 3 Communications, Inc. *		43,614		44,922
MetroPCS Communications, Inc. *		6,613		59,120
NII Holdings, Inc. *		4,512		163,560
Qwest Communications International, Inc.		37,050		209,332
SBA Communications Corp., Class A *		3,097		110,873
Sprint Nextel Corp. *		80,174		327,110
Telephone & Data Systems, Inc.		2,456		70,954
United States Cellular Corp. *		779		32,656
Verizon Communications, Inc.		76,298		2,251,554
Windstream Corp.		12,852		148,248

				9,000,673

Transportation 1.9%
AMR Corp. *		9,119		55,717
C.H. Robinson Worldwide, Inc.		4,380		284,656
CSX Corp.		10,389		518,307
Delta Air Lines, Inc. *		21,029		219,963
Expeditors International of Washington, Inc.		5,698		225,584
FedEx Corp.		7,774		606,761
Hertz Global Holdings, Inc. *		5,037		42,865
J.B. Hunt Transport Services, Inc.		2,456		80,410
Kansas City Southern *		2,698		90,572
Norfolk Southern Corp.		9,959		534,599
Ryder System, Inc.		1,348		51,723
Southwest Airlines Co.		19,756		218,304
UAL Corp. *		4,618		97,855
Union Pacific Corp.		13,411		978,198
United Parcel Service, Inc., Class B		18,651		1,189,934

				5,195,448

Utilities 4.1%
AGL Resources, Inc.		2,105		77,254
Allegheny Energy, Inc.		4,427		99,829
Alliant Energy Corp.		3,072		107,581
Ameren Corp.		6,355		178,385
American Electric Power Co., Inc.		12,749		451,442
American Water Works Co., Inc.		4,618		104,274
Aqua America, Inc.		3,551		70,594
Atmos Energy Corp.		2,409		68,175
Calpine Corp. *		9,425		119,886
CenterPoint Energy, Inc.		9,878		146,096
CMS Energy Corp.		6,179		108,133
Consolidated Edison, Inc.		7,449		354,051
Constellation Energy Group, Inc.		4,818		141,312
Dominion Resources, Inc.		15,895		679,670
DPL, Inc.		3,113		78,821
DTE Energy Co.		4,427		207,405
Duke Energy Corp.		34,703		596,545
Edison International		7,930		267,638
Energen Corp.		1,971		84,122
Entergy Corp.		5,041		397,432
EQT Corp.		3,826		124,728
Exelon Corp.		17,589		716,224
FirstEnergy Corp.		8,150		297,719
Integrys Energy Group, Inc.		2,080		100,776
ITC Holdings Corp.		1,314		76,159
MDU Resources Group, Inc.		4,646		87,391

See financial notes 43

Schwab U.S. Large-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Mirant Corp. *		3,942		38,237
National Fuel Gas Co.		1,850		79,513
NextEra Energy, Inc.		11,003		591,191
NiSource, Inc.		7,274		126,131
Northeast Utilities		4,646		134,595
NRG Energy, Inc. *		6,793		138,034
NSTAR		2,847		108,271
NV Energy, Inc.		6,175		79,040
OGE Energy Corp.		2,640		103,092
ONEOK, Inc.		2,628		112,767
Pepco Holdings, Inc.		5,960		106,982
PG&E Corp.		9,883		462,129
Pinnacle West Capital Corp.		3,066		122,180
PPL Corp.		13,314		361,608
Progress Energy, Inc.		7,572		324,915
Public Service Enterprise Group, Inc.		13,618		435,231
Questar Corp.		4,700		76,516
SCANA Corp.		2,894		112,953
Sempra Energy		6,132		312,241
Southern Co.		21,900		803,511
TECO Energy, Inc.		5,303		89,515
The AES Corp. *		21,146		216,535
UGI Corp.		2,777		76,645
Vectren Corp.		2,190		53,743
Westar Energy, Inc.		3,504		83,991
Wisconsin Energy Corp.		3,066		170,899
Xcel Energy, Inc.		12,264		273,610

				11,335,717

Total Common Stock
(Cost $291,923,849)				272,066,546




Other Investment Company 0.2% of net assets

Money Fund 0.2%
State Street Institutional Liquid Reserves Fund - Institutional Class		668,488		668,488

Total Other Investment Company
(Cost $668,488)				668,488



End of Investments.

At 8/31/10, the tax basis cost of the fund’s investments was $292,662,111 and the unrealized appreciation and depreciation were $5,352,629 and ($25,279,706), respectively, with a net unrealized depreciation of ($19,927,077).


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.

44 See financial notes

Schwab U.S. Large-Cap ETF

Statement of

Operations

For October 30, 2009* through August 31, 2010



Investment Income

Dividends (including $3,283 from affiliated issuer and net of foreign withholding tax of $325)		$2,813,762
Interest	+	474

Total investment income		2,814,236

Expenses

Investment adviser and administrator fees		107,792

Total expenses	−	107,792

Net investment income		2,706,444

Realized and Unrealized Gains (Losses)

Net realized losses on investments (including $610 gain from affiliated issuer)		(191,763	)
Net realized gains on in-kind redemptions		1,219,031
Net realized gains on foreign currency transactions	+	33

Net realized gains		1,027,301
Net unrealized losses on investments	+	(19,857,303	)

Net realized and unrealized losses		(18,830,002	)

Net decrease in net assets resulting from operations		($16,123,558	)


*		Commencement of operations.

46 See financial notes

Schwab U.S. Large-Cap ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.


*10/30/09-8/31/10**
Net investment income		$2,706,444
Net realized gains		1,027,301
Net unrealized losses	+	(19,857,303	)

Net decrease in net assets resulting from operations		(16,123,558	)

Distributions to Shareholders

Distributions from net investment income		$1,572,500

Transactions in Fund Shares


		*10/30/09-8/31/10**
			SHARES		VALUE
Shares Sold			11,350,001		$301,973,952
Shares Redeemed	+		(400,000	)	(10,775,131	)

Net transactions in fund shares			10,950,001		$291,198,821

Shares Outstanding and Net Assets

		*10/30/09-8/31/10**
			SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		10,950,001		273,502,763

End of period			10,950,001		$273,502,763


Net investment income not yet distributed					$1,133,977


*		Commencement of operations.

See financial notes 47

Schwab U.S. Large-Cap Growth ETF™

Financial Statements

Financial Highlights


	12/9/09¹–
	8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.15
Net realized and unrealized gains (losses)		(0.83	)

Total from investment operations		(0.68	)
Less distributions:
Distributions from net investment income		(0.11	)

Net asset value at end of period		24.21

Total return (%)		(2.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.14	^3,4
Gross operating expenses		0.14	³
Net investment income (loss)		0.86	³
Portfolio turnover rate⁵		6	²
Net assets, end of period ($ x 1,000)		108,946

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate. Please see financial note 4 for more information.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

48 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Cost

Value

Holdings by Category

($)

.7%

Common Stock

116,342,477

108,618,577

.2%

Other Investment Company

213,684

.9%

Total Investments

116,556,161

108,832,261

.1%

Other Assets and
Liabilities, Net

113,443

100

.0%

Net Assets

108,945,704


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.1%
Lear Corp. *		1,050		77,343
The Goodyear Tire & Rubber Co. *		5,501		50,829

				128,172

Banks 0.1%
Hudson City Bancorp, Inc.		11,261		129,783

Capital Goods 6.7%
Aecom Technology Corp. *		2,221		49,973
AGCO Corp. *		2,179		72,016
AMETEK, Inc.		2,448		105,240
Babcock & Wilcox Co. *		2,636		59,058
Bucyrus International, Inc.		1,729		99,400
Caterpillar, Inc.		13,177		858,613
Cummins, Inc.		4,152		308,950
Danaher Corp.		11,657		423,499
Deere & Co.		9,689		613,023
Donaldson Co., Inc.		1,631		68,339
Dover Corp.		4,342		194,348
Emerson Electric Co.		17,506		816,655
Fastenal Co.		3,164		143,234
First Solar, Inc. *		1,091		139,484
Flowserve Corp.		1,274		113,870
Fluor Corp.		4,095		182,883
Goodrich Corp.		2,880		197,222
Illinois Tool Works, Inc.		10,027		413,714
ITT Corp.		4,187		177,948
Jacobs Engineering Group, Inc. *		2,821		97,832
Joy Global, Inc.		2,342		132,885
KBR, Inc.		3,885		90,132
Lincoln Electric Holdings, Inc.		1,009		50,016
McDermott International, Inc. *		5,275		67,626
MSC Industrial Direct Co., Class A		1,001		44,615
Navistar International Corp. *		1,229		51,471
Oshkosh Corp. *		2,097		52,173
PACCAR, Inc.		8,078		331,117
Pall Corp.		2,639		90,227
Precision Castparts Corp.		3,260		368,967
Quanta Services, Inc. *		4,773		85,628
Rockwell Collins, Inc.		3,644		196,521
Roper Industries, Inc.		2,135		124,001
Spirit AeroSystems Holdings, Inc., Class A *		2,275		43,999
SunPower Corp., Class A *		2,252		24,344
Textron, Inc.		6,432		109,794
The Shaw Group, Inc. *		1,911		61,916
URS Corp. *		1,908		68,058
W.W. Grainger, Inc.		1,441		152,443

				7,281,234

Commercial & Professional Services 1.1%
Copart, Inc. *		1,729		57,143
Corrections Corp. of America *		2,639		58,876
Covanta Holding Corp.		3,003		43,273
Equifax, Inc.		2,927		86,259
FTI Consulting, Inc. *		1,054		34,550
IHS, Inc., Class A *		1,092		67,475
Iron Mountain, Inc.		4,405		89,333
Manpower, Inc.		1,858		78,965
Republic Services, Inc.		7,151		210,454
Robert Half International, Inc.		3,458		74,624
Stericycle, Inc. *		1,950		127,725
The Dun & Bradstreet Corp.		1,125		74,138
Towers Watson & Co., Class A		1,010		45,349
Verisk Analytics, Inc., Class A *		2,355		65,516
Waste Connections, Inc. *		1,832		69,158

				1,182,838

Consumer Durables & Apparel 0.9%
Coach, Inc.		7,158		256,543
Garmin Ltd.		2,730		72,645
Harman International Industries, Inc. *		1,645		51,275
NIKE, Inc., Class B		6,182		432,740
Polo Ralph Lauren Corp.		1,490		112,852
Pulte Group, Inc. *		7,594		60,980

				987,035

Consumer Services 2.4%
Apollo Group, Inc., Class A *		3,202		136,021
Burger King Holdings, Inc.		2,006		32,999
Career Education Corp. *		1,491		26,137
Chipotle Mexican Grill, Inc. *		728		109,804
Darden Restaurants, Inc.		3,185		131,413
DeVry, Inc.		1,409		53,697
Education Management Corp. *		360		2,905
Hyatt Hotels Corp., Class A *		904		34,045
International Game Technology		6,792		99,163
ITT Educational Services, Inc. *		770		41,010
Las Vegas Sands Corp. *		10,184		288,513
Marriott International, Inc., Class A		7,401		236,906
MGM Resorts International *		5,683		51,204
Starbucks Corp.		17,401		400,049

See financial notes 49

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Starwood Hotels & Resorts Worldwide, Inc.		4,083		190,799
Strayer Education, Inc.		308		44,592
Weight Watchers International, Inc.		770		21,960
Wendy’s/Arby’s Group, Inc., Class A		7,578		29,478
Wyndham Worldwide Corp.		4,095		94,963
Wynn Resorts Ltd.		2,032		163,800
Yum! Brands, Inc.		10,933		455,906

				2,645,364

Diversified Financials 3.1%
Affiliated Managers Group, Inc. *		1,014		65,109
AmeriCredit Corp. *		1,547		37,437
BlackRock, Inc.		943		133,859
CIT Group, Inc. *		4,061		148,957
CME Group, Inc.		1,506		373,608
Discover Financial Services		12,885		186,961
Eaton Vance Corp.		2,744		71,317
Franklin Resources, Inc.		3,656		352,841
IntercontinentalExchange, Inc. *		1,740		166,274
Jefferies Group, Inc.		2,612		58,796
Leucadia National Corp. *		4,728		100,943
Moody’s Corp.		4,656		98,428
MSCI, Inc., Class A *		2,648		79,175
Northern Trust Corp.		5,550		256,077
SEI Investments Co.		3,549		62,817
SLM Corp. *		11,121		122,887
State Street Corp.		11,469		402,333
T. Rowe Price Group, Inc.		5,956		260,754
TD Ameritrade Holding Corp. *		5,410		79,040
The Charles Schwab Corp. (a)		22,422		286,105
The NASDAQ OMX Group, Inc. *		3,731		66,822

				3,410,540

Energy 9.2%
Alpha Natural Resources, Inc. *		2,730		101,365
Anadarko Petroleum Corp.		11,568		532,012
Arch Coal, Inc.		3,795		85,425
Baker Hughes, Inc.		9,825		369,223
Cabot Oil & Gas Corp.		2,366		65,869
Cameron International Corp. *		5,733		210,860
Chesapeake Energy Corp.		14,864		307,387
Cimarex Energy Co.		1,911		125,018
Cobalt International Energy, Inc. *		1,456		11,881
Concho Resources, Inc. *		1,771		103,462
CONSOL Energy, Inc.		5,264		169,501
Continental Resources, Inc. *		728		29,499
Denbury Resources, Inc. *		9,116		134,370
Diamond Offshore Drilling, Inc.		1,496		87,037
El Paso Corp.		16,139		183,823
EOG Resources, Inc.		5,803		504,107
EXCO Resources, Inc.		3,913		52,630
FMC Technologies, Inc. *		2,826		174,788
Halliburton Co.		20,613		581,493
Helmerich & Payne, Inc.		2,317		85,822
Hess Corp.		6,955		349,489
Massey Energy Co.		2,356		67,735
Murphy Oil Corp.		4,345		232,718
Nabors Industries Ltd. *		6,694		104,962
National-Oilwell Varco, Inc.		9,676		363,721
Newfield Exploration Co. *		3,071		147,439
Noble Energy, Inc.		3,981		277,794
Occidental Petroleum Corp.		18,722		1,368,204
Oceaneering International, Inc. *		1,263		63,163
Patterson-UTI Energy, Inc.		3,549		52,383
Peabody Energy Corp.		6,163		263,776
Petrohawk Energy Corp. *		6,882		104,056
Plains Exploration & Production Co. *		3,185		76,058
Pride International, Inc. *		3,650		85,957
QEP Resources, Inc. *		4,000		116,120
Quicksilver Resources, Inc. *		2,730		33,306
Range Resources Corp.		3,730		126,111
Rowan Cos., Inc. *		2,808		72,194
Schlumberger Ltd.		31,541		1,682,081
Southwestern Energy Co. *		8,112		265,425
Ultra Petroleum Corp. *		3,458		134,897
Whiting Petroleum Corp. *		1,098		93,154

				9,996,315

Food & Staples Retailing 4.5%
Costco Wholesale Corp.		10,115		572,003
CVS Caremark Corp.		31,524		851,148
The Kroger Co.		14,099		278,173
Wal-Mart Stores, Inc.		49,182		2,465,985
Walgreen Co.		22,554		606,252
Whole Foods Market, Inc. *		3,210		111,676

				4,885,237

Food, Beverage & Tobacco 2.5%
Dean Foods Co. *		4,459		45,616
Flowers Foods, Inc.		2,095		54,135
Green Mountain Coffee Roasters, Inc. *		2,613		80,533
Hansen Natural Corp. *		1,638		73,775
PepsiCo, Inc.		37,269		2,391,924
Ralcorp Holdings, Inc. *		1,281		76,412

				2,722,395

Health Care Equipment & Services 7.6%
Aetna, Inc.		9,736		260,146
Alere, Inc. *		1,892		52,919
AmerisourceBergen Corp.		6,511		177,620
Baxter International, Inc.		13,955		593,925
Becton, Dickinson & Co.		5,052		344,496
Boston Scientific Corp. *		35,042		181,868
C.R. Bard, Inc.		2,215		170,179
CareFusion Corp. *		4,308		92,967
Cerner Corp. *		1,649		120,130
Community Health Systems, Inc. *		2,182		56,885
Coventry Health Care, Inc. *		3,344		64,706
DaVita, Inc. *		2,343		151,405
DENTSPLY International, Inc.		3,367		93,670
Edwards Lifesciences Corp. *		2,563		147,552
Express Scripts, Inc. *		11,734		499,868
Gen-Probe, Inc. *		1,146		51,604
Henry Schein, Inc. *		2,089		110,299
Hologic, Inc. *		5,811		82,458
Hospira, Inc. *		3,835		196,966
IDEXX Laboratories, Inc. *		1,304		72,072

50 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Intuitive Surgical, Inc. *		881		233,491
Kinetic Concepts, Inc. *		1,448		46,220
Laboratory Corp. of America Holdings *		2,379		172,763
Lincare Holdings, Inc.		2,263		52,094
McKesson Corp.		6,183		358,923
Medco Health Solutions, Inc. *		10,537		458,149
Medtronic, Inc.		25,709		809,319
Patterson Cos., Inc.		2,275		57,535
Quest Diagnostics, Inc.		3,540		153,990
ResMed, Inc. *		3,456		104,164
St. Jude Medical, Inc. *		7,441		257,235
Stryker Corp.		7,136		308,204
UnitedHealth Group, Inc.		26,536		841,722
Varian Medical Systems, Inc. *		2,942		156,632
WellPoint, Inc. *		9,851		489,398
Zimmer Holdings, Inc. *		4,813		227,029

				8,248,603

Household & Personal Products 1.6%
Avon Products, Inc.		9,945		289,399
Church & Dwight Co., Inc.		1,651		101,091
Colgate-Palmolive Co.		11,403		841,997
Energizer Holdings, Inc. *		1,592		100,376
Mead Johnson Nutrition Co.		4,682		244,354
The Estee Lauder Cos., Inc., Class A		2,730		153,071

				1,730,288

Insurance 3.2%
Berkshire Hathaway, Inc., Class B *		44,176		3,480,185
Brown & Brown, Inc.		2,639		50,247

				3,530,432

Materials 5.3%
Airgas, Inc.		1,587		104,425
Albemarle Corp.		2,070		82,986
Alcoa, Inc.		23,734		242,324
Allegheny Technologies, Inc.		2,163		88,077
AptarGroup, Inc.		1,456		60,642
Ball Corp.		2,104		117,992
Celanese Corp., Series A		3,572		95,372
CF Industries Holdings, Inc.		1,627		150,498
Cliffs Natural Resources, Inc.		3,205		196,114
Crown Holdings, Inc. *		3,785		105,450
Ecolab, Inc.		5,520		261,648
FMC Corp.		1,678		104,506
Freeport-McMoRan Copper & Gold, Inc.		9,923		714,258
Intrepid Potash, Inc. *		1,001		22,473
Martin Marietta Materials, Inc.		1,092		79,934
Monsanto Co.		12,440		654,966
Nalco Holding Co.		2,935		66,683
Newmont Mining Corp.		11,132		682,614
Nucor Corp.		6,595		242,564
Pactiv Corp. *		3,003		96,336
Praxair, Inc.		7,089		609,867
Reliance Steel & Aluminum Co.		1,461		54,422
Sigma-Aldrich Corp.		2,441		129,788
Southern Copper Corp.		4,864		147,087
Steel Dynamics, Inc.		4,955		67,884
The Lubrizol Corp.		1,547		144,351
The Mosaic Co.		3,446		202,142
United States Steel Corp.		3,276		139,263
Vulcan Materials Co.		2,756		101,311

				5,765,977

Media 3.2%
Cablevision Systems Corp., Class A		5,533		138,823
Clear Channel Outdoor Holdings, Inc., Class A *		910		9,146
Comcast Corp., Class A		65,360		1,118,963
DIRECTV, Class A *		21,556		817,404
Discovery Communications, Inc., Series A *		6,591		248,810
DISH Network Corp., Class A		4,864		87,309
DreamWorks Animation SKG, Inc., Class A *		1,583		46,904
John Wiley & Sons, Inc., Class A		1,188		42,281
Liberty Global, Inc., Series A *		5,683		156,396
Liberty Media - Starz, Series A *		1,183		70,672
Scripps Networks Interactive, Class A		2,000		80,360
Sirius XM Radio, Inc. *		88,230		84,357
The Interpublic Group of Cos., Inc. *		11,093		94,623
Viacom, Inc., Class B		12,383		389,074
Virgin Media, Inc.		6,874		143,048

				3,528,170

Pharmaceuticals, Biotechnology & Life Sciences 5.4%
Alexion Pharmaceuticals, Inc. *		2,072		117,006
Allergan, Inc.		7,112		436,819
Amgen, Inc. *		22,070		1,126,453
Amylin Pharmaceuticals, Inc. *		3,087		63,407
Biogen Idec, Inc. *		5,796		311,825
Celgene Corp. *		10,625		547,400
Cephalon, Inc. *		1,733		98,105
Charles River Laboratories International, Inc. *		1,557		43,985
Covance, Inc. *		1,502		56,971
Endo Pharmaceuticals Holdings, Inc. *		2,366		64,284
Furiex Pharmaceuticals, Inc. *		744		7,410
Genzyme Corp. *		6,186		433,701
Gilead Sciences, Inc. *		20,762		661,477
Human Genome Sciences, Inc. *		4,325		125,814
Illumina, Inc. *		2,829		121,336
King Pharmaceuticals, Inc. *		5,592		48,706
Life Technologies Corp. *		4,175		178,565
Mettler-Toledo International, Inc. *		753		83,274
Mylan, Inc. *		7,142		122,557
Myriad Genetics, Inc. *		2,184		34,201
PerkinElmer, Inc.		2,639		55,445
Perrigo Co.		1,915		109,136
Pharmaceutical Product Development, Inc.		2,548		58,528
Talecris Biotherapeutics Holdings Corp. *		1,411		30,957
Techne Corp.		861		49,706
Thermo Fisher Scientific, Inc. *		9,423		396,897
United Therapeutics Corp. *		1,138		52,598

See financial notes 51

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Valeant Pharmaceuticals International *		1,310		75,574
Vertex Pharmaceuticals, Inc. *		4,781		159,399
Waters Corp. *		2,113		127,879
Watson Pharmaceuticals, Inc. *		2,562		110,345

				5,909,760

Real Estate 1.2%
CB Richard Ellis Group, Inc., Class A *		6,721		110,359
Digital Realty Trust, Inc.		2,017		119,547
Public Storage		3,264		319,937
Simon Property Group, Inc.		6,668		603,121
Ventas, Inc.		3,623		182,998

				1,335,962

Retailing 5.8%
Abercrombie & Fitch Co., Class A		2,002		69,269
Advance Auto Parts, Inc.		2,005		109,212
Amazon.com, Inc. *		7,988		997,142
American Eagle Outfitters, Inc.		4,004		50,611
AutoZone, Inc. *		656		137,616
Bed Bath & Beyond, Inc. *		6,175		222,115
Best Buy Co., Inc.		8,051		252,721
CarMax, Inc. *		5,092		101,484
Dollar General Corp. *		829		22,640
Dollar Tree, Inc. *		3,030		137,350
Expedia, Inc.		4,773		109,111
Family Dollar Stores, Inc.		2,910		124,519
GameStop Corp., Class A *		3,482		62,432
Guess?, Inc.		1,365		44,103
Kohl’s Corp. *		6,593		309,739
Lowe’s Cos., Inc.		33,255		675,077
Netflix, Inc. *		1,050		131,796
Nordstrom, Inc.		3,822		110,532
O’Reilly Automotive, Inc. *		3,167		149,704
PetSmart, Inc.		2,708		86,358
Priceline.com, Inc. *		1,103		321,502
Ross Stores, Inc.		2,827		140,304
Sears Holdings Corp. *		1,124		69,576
Staples, Inc.		16,713		296,990
Target Corp.		15,540		795,026
The Sherwin-Williams Co.		2,167		152,513
The TJX Cos., Inc.		9,557		379,317
Tiffany & Co.		2,901		114,967
Urban Outfitters, Inc. *		3,094		93,810

				6,267,536

Semiconductors & Semiconductor Equipment 1.9%
Advanced Micro Devices, Inc. *		12,822		72,060
Altera Corp.		6,873		169,557
Applied Materials, Inc.		31,438		326,641
Broadcom Corp., Class A		10,062		301,558
Cree, Inc. *		2,288		122,500
Lam Research Corp. *		2,911		105,116
Linear Technology Corp.		4,790		137,233
LSI Corp. *		15,409		61,944
Marvell Technology Group Ltd. *		11,761		187,470
MEMC Electronic Materials, Inc. *		5,492		56,513
Micron Technology, Inc. *		19,710		127,425
NVIDIA Corp. *		13,025		121,523
ON Semiconductor Corp. *		9,819		60,681
Varian Semiconductor Equipment Associates, Inc. *		1,729		42,914
Xilinx, Inc.		6,320		152,628

				2,045,763

Software & Services 15.0%
Activision Blizzard, Inc.		13,009		139,066
Adobe Systems, Inc. *		12,308		341,670
Akamai Technologies, Inc. *		3,992		183,911
Alliance Data Systems Corp. *		1,209		67,934
ANSYS, Inc. *		2,101		81,477
Autodesk, Inc. *		5,248		145,632
Automatic Data Processing, Inc.		11,524		444,942
BMC Software, Inc. *		4,186		150,947
CA, Inc.		9,736		175,345
Citrix Systems, Inc. *		4,338		251,344
Cognizant Technology Solutions Corp., Class A *		6,859		395,113
DST Systems, Inc.		857		34,914
eBay, Inc. *		25,884		601,544
Electronic Arts, Inc. *		7,627		116,236
Equinix, Inc. *		1,026		93,582
FactSet Research Systems, Inc.		1,005		73,918
Fidelity National Information Services, Inc.		5,400		139,536
Fiserv, Inc. *		3,533		176,756
Genpact Ltd. *		2,366		33,100
Global Payments, Inc.		1,902		71,572
Google, Inc., Class A *		5,302		2,386,006
Hewitt Associates, Inc., Class A *		2,196		106,001
IAC/InterActiveCorp *		1,847		45,787
Intuit, Inc. *		6,661		285,091
Lender Processing Services, Inc.		2,184		64,057
MasterCard, Inc., Class A		2,212		438,772
McAfee, Inc. *		3,648		171,638
Microsoft Corp.		180,329		4,234,125
Nuance Communications, Inc. *		5,600		82,208
Oracle Corp.		88,439		1,935,045
Paychex, Inc.		7,412		184,485
Red Hat, Inc. *		4,277		147,770
Rovi Corp. *		2,316		100,769
SAIC, Inc. *		9,166		136,390
Salesforce.com, Inc. *		2,649		291,072
Symantec Corp. *		18,819		256,503
Total System Services, Inc.		4,500		63,900
VeriSign, Inc. *		4,352		126,774
Visa, Inc., Class A		11,553		796,926
VMware, Inc., Class A *		1,441		113,219
Western Union Co.		15,898		249,281
Yahoo!, Inc. *		30,218		395,251

				16,329,609

Technology Hardware & Equipment 14.7%
Agilent Technologies, Inc. *		8,074		217,756
Amphenol Corp., Class A		3,995		162,676
Apple, Inc. *		20,958		5,100,548
Arrow Electronics, Inc. *		2,730		62,462

52 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Brocade Communications Systems, Inc. *		10,183		51,119
Cisco Systems, Inc. *		133,331		2,673,287
Corning, Inc.		36,320		569,498
Dell, Inc. *		39,835		468,858
Dolby Laboratories, Inc., Class A *		1,261		69,885
EMC Corp. *		47,255		861,931
F5 Networks, Inc. *		1,823		159,385
FLIR Systems, Inc. *		3,726		93,597
Harris Corp.		2,990		125,789
Hewlett-Packard Co.		54,208		2,085,924
Ingram Micro, Inc., Class A *		3,974		59,848
Itron, Inc. *		910		49,140
Jabil Circuit, Inc.		4,591		47,058
Juniper Networks, Inc. *		12,094		328,957
Motorola, Inc. *		50,376		379,331
NCR Corp. *		3,640		46,774
NetApp, Inc. *		7,884		318,829
QUALCOMM, Inc.		37,940		1,453,481
SanDisk Corp. *		5,279		175,474
Seagate Technology plc *		11,135		112,798
Tellabs, Inc.		8,049		57,148
Teradata Corp. *		3,811		124,772
Trimble Navigation Ltd. *		2,730		76,795
Western Digital Corp. *		5,254		126,884

				16,060,004

Telecommunication Services 0.9%
American Tower Corp., Class A *		9,251		433,502
Clearwire Corp., Class A *		2,576		16,512
Crown Castle International Corp. *		5,824		239,483
MetroPCS Communications, Inc. *		5,683		50,806
NII Holdings, Inc. *		3,818		138,403
SBA Communications Corp., Class A *		2,639		94,476

				973,182

Transportation 2.6%
AMR Corp. *		7,594		46,399
C.H. Robinson Worldwide, Inc.		3,870		251,511
CSX Corp.		9,017		449,858
Delta Air Lines, Inc. *		18,000		188,280
Expeditors International of Washington, Inc.		5,044		199,692
FedEx Corp.		6,693		522,389
Hertz Global Holdings, Inc. *		4,186		35,623
J.B. Hunt Transport Services, Inc.		2,184		71,504
Kansas City Southern *		2,312		77,614
UAL Corp. *		4,068		86,201
Union Pacific Corp.		11,658		850,335

				2,779,406

Utilities 0.7%
Calpine Corp. *		7,958		101,226
EQT Corp.		3,374		109,992
ITC Holdings Corp.		1,119		64,857
NRG Energy, Inc. *		5,865		119,177
ONEOK, Inc.		2,284		98,007
Questar Corp.		4,000		65,120
The AES Corp. *		18,222		186,593

				744,972

Total Common Stock
(Cost $116,342,477)				108,618,577




Other Investment Company 0.2% of net assets

Money Fund 0.2%
State Street Institutional Liquid Reserves Fund - Institutional Class		213,684		213,684

Total Other Investment Company
(Cost $213,684)				213,684



End of Investments

At 8/31/10, the tax basis cost of the fund’s investments was $116,602,826 and the unrealized appreciation and depreciation were $3,187,415 and ($10,957,980), respectively, with a net unrealized depreciation of ($7,770,565).


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.

See financial notes 53

Schwab U.S. Large-Cap Growth ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on December 9, 2009, it has no prior report period.


*12/9/09-8/31/10**
Net investment income		$456,853
Net realized gains		418,970
Net unrealized losses	+	(7,723,900	)

Net decrease in net assets resulting from operations		(6,848,077	)

Distributions to Shareholders

Distributions from net investment income		$297,500

Transactions in Fund Shares


		*12/9/09-8/31/10**
			SHARES		VALUE
Shares Sold			4,800,001		$123,912,430
Shares Redeemed	+		(300,000	)	(7,821,149	)

Net transactions in fund shares			4,500,001		$116,091,281

Shares Outstanding and Net Assets

		*12/9/09-8/31/10**
			SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		4,500,001		108,945,704

End of period			4,500,001		$108,945,704


Net investment income not yet distributed					$159,353


*		Commencement of operations.

56 See financial notes

Schwab U.S. Large-Cap Value ETF™

Financial Statements

Financial Highlights


	12/9/09¹–
	8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.47
Net realized and unrealized gains (losses)		(0.78	)

Total from investment operations		(0.31	)
Less distributions:
Distributions from net investment income		(0.33	)

Net asset value at end of period		24.36

Total return (%)		(1.29	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.14	^3,4
Gross operating expenses		0.14	³
Net investment income (loss)		2.98	³
Portfolio turnover rate⁵		5	²
Net assets, end of period ($ x 1,000)		84,052

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate. Please see financial note 4 for more information.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 57

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Cost

Value

Holdings by Category

($)

.4%

Common Stock

87,792,769

83,552,337

.2%

Other Investment Company

131,990

.6%

Total Investments

87,924,759

83,684,327

.4%

Other Assets and
Liabilities, Net

368,040

100

.0%

Net Assets

84,052,367


	Number		Value
Security	of Shares		($)

Common Stock 99.4% of net assets

Automobiles & Components 1.2%
BorgWarner, Inc. *		1,834		80,054
Ford Motor Co. *		52,052		587,667
Harley-Davidson, Inc.		3,541		86,117
Johnson Controls, Inc.		10,225		271,270

				1,025,108

Banks 5.0%
BB&T Corp.		10,565		233,698
BOK Financial Corp.		420		18,665
Capitol Federal Financial		233		5,979
City National Corp.		718		34,780
Comerica, Inc.		2,720		93,595
Commerce Bancshares, Inc.		1,122		40,089
Cullen/Frost Bankers, Inc.		735		37,669
Fifth Third Bancorp		12,146		134,213
First Horizon National Corp. *		3,421		34,484
Huntington Bancshares, Inc.		10,915		57,740
KeyCorp		13,406		98,802
M&T Bank Corp.		1,284		109,962
Marshall & Ilsley Corp.		8,004		52,426
New York Community Bancorp, Inc.		6,717		106,733
People’s United Financial, Inc.		5,727		72,848
PNC Financial Services Group, Inc.		8,029		409,158
Regions Financial Corp.		18,149		116,698
SunTrust Banks, Inc.		7,613		171,216
TFS Financial Corp.		1,400		12,866
U.S. Bancorp		28,844		599,955
Wells Fargo & Co.		74,976		1,765,685

				4,207,261

Capital Goods 8.3%
3M Co.		9,954		781,887
Alliant Techsystems, Inc. *		492		32,423
Eaton Corp.		2,504		173,978
General Dynamics Corp.		4,914		274,545
General Electric Co.		163,211		2,363,295
Harsco Corp.		1,190		23,729
Honeywell International, Inc.		10,653		416,426
Hubbell, Inc., Class B		840		37,783
L-3 Communications Holdings, Inc.		1,803		120,080
Lockheed Martin Corp.		4,527		314,717
Masco Corp.		5,474		57,422
Northrop Grumman Corp.		4,187		226,600
Owens Corning, Inc. *		1,680		45,696
Parker Hannifin Corp.		2,428		143,640
Pentair, Inc.		1,472		44,307
Raytheon Co.		5,867		257,679
Rockwell Automation, Inc.		2,147		109,798
SPX Corp.		727		40,756
The Boeing Co.		10,295		629,333
United Technologies Corp.		13,064		851,903

				6,945,997

Commercial & Professional Services 0.5%
Avery Dennison Corp.		1,563		50,829
Cintas Corp.		2,001		51,005
Pitney Bowes, Inc.		3,123		60,087
R.R. Donnelley & Sons Co.		3,121		47,268
Waste Management, Inc.		6,870		227,328

				436,517

Consumer Durables & Apparel 1.1%
D.R. Horton, Inc.		4,212		43,215
Fortune Brands, Inc.		2,360		105,704
Hasbro, Inc.		2,014		81,285
Leggett & Platt, Inc.		2,178		41,752
Lennar Corp., Class A		2,421		31,885
Mattel, Inc.		5,474		114,899
Mohawk Industries, Inc. *		840		37,220
Newell Rubbermaid, Inc.		4,222		63,415
NVR, Inc. *		85		51,354
Stanley Black & Decker, Inc.		2,439		130,828
Toll Brothers, Inc. *		2,071		35,787
VF Corp.		1,332		94,066
Whirlpool Corp.		1,145		84,913

				916,323

Consumer Services 1.8%
Carnival Corp.		6,353		198,086
H&R Block, Inc.		4,876		62,657
McDonald’s Corp.		16,364		1,195,554
Penn National Gaming, Inc. *		980		27,616
Royal Caribbean Cruises Ltd. *		2,073		50,913

				1,534,826

Diversified Financials 10.2%
American Express Co.		16,246		647,728
Ameriprise Financial, Inc.		3,891		169,570
Bank of America Corp.		152,007		1,892,487
Bank of New York Mellon Corp.		18,454		447,878
Capital One Financial Corp.		6,973		263,998

58 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
CBOE Holdings, Inc. *		414		8,657
Citigroup, Inc. *		320,240		1,191,293
ETRADE Financial Corp.		3,108		38,570
Federated Investors, Inc., Class B		1,542		32,151
Invesco Ltd.		6,764		122,428
JPMorgan Chase & Co.		60,807		2,210,942
Legg Mason, Inc.		2,423		61,375
Morgan Stanley		19,485		481,085
NYSE Euronext		3,727		103,387
Raymond James Financial, Inc.		1,470		33,928
The Goldman Sachs Group, Inc.		6,513		891,890

				8,597,367

Energy 11.8%
Apache Corp.		5,147		462,458
Chevron Corp.		30,713		2,277,676
ConocoPhillips		21,021		1,102,131
Devon Energy Corp.		6,366		383,742
Exxon Mobil Corp.		77,931		4,610,398
Forest Oil Corp. *		1,697		44,326
Marathon Oil Corp.		10,845		330,664
Pioneer Natural Resources Co.		1,750		101,185
Southern Union Co.		1,761		39,622
Spectra Energy Corp.		9,938		202,139
Sunoco, Inc.		1,867		62,881
The Williams Cos., Inc.		8,784		159,254
Tidewater, Inc.		770		30,862
Valero Energy Corp.		8,634		136,158

				9,943,496

Food & Staples Retailing 0.5%
Safeway, Inc.		5,911		111,127
SUPERVALU, Inc.		3,191		31,016
Sysco Corp.		8,984		246,970

				389,113

Food, Beverage & Tobacco 9.0%
Altria Group, Inc.		31,396		700,759
Archer-Daniels-Midland Co.		8,984		276,528
Brown-Forman Corp., Class B		1,671		102,416
Bunge Ltd.		2,183		115,699
Campbell Soup Co.		3,151		117,406
Coca-Cola Enterprises, Inc.		4,988		141,958
ConAgra Foods, Inc.		6,843		147,740
Constellation Brands, Inc., Class A *		2,981		49,663
Dr. Pepper Snapple Group, Inc.		3,746		137,928
General Mills, Inc.		9,566		345,907
H.J. Heinz Co.		4,774		220,750
Hormel Foods Corp.		1,134		48,932
Kellogg Co.		3,936		195,540
Kraft Foods, Inc., Class A		24,787		742,371
Lorillard, Inc.		2,349		178,547
McCormick & Co., Inc.		1,837		73,241
Molson Coors Brewing Co., Class B		2,596		113,082
Philip Morris International, Inc.		28,315		1,456,524
Reynolds American, Inc.		2,563		139,786
Sara Lee Corp.		9,547		137,859
Smithfield Foods, Inc. *		2,353		37,954
The Coca-Cola Co.		32,575		1,821,594
The Hershey Co.		2,423		112,597
The J.M. Smucker Co.		1,821		106,492
Tyson Foods, Inc., Class A		4,422		72,432

				7,593,705

Health Care Equipment & Services 0.7%
Beckman Coulter, Inc.		1,050		47,922
Cardinal Health, Inc.		5,523		165,469
CIGNA Corp.		4,236		136,484
Humana, Inc. *		2,635		125,927
Omnicare, Inc.		1,892		36,326
Teleflex, Inc.		586		28,163
Universal Health Services, Inc., Class B		1,321		41,480

				581,771

Household & Personal Products 3.8%
Alberto-Culver Co.		1,330		41,296
Kimberly-Clark Corp.		6,355		409,262
The Clorox Co.		2,082		134,955
The Procter & Gamble Co.		44,034		2,627,509

				3,213,022

Insurance 5.3%
Aflac, Inc.		7,123		336,562
Alleghany Corp. *		99		29,467
Allied World Assurance Co. Holdings Ltd.		647		32,589
American Financial Group, Inc.		1,190		34,236
American International Group, Inc. *		1,839		62,397
American National Insurance Co.		215		16,460
Aon Corp.		3,595		130,283
Arch Capital Group Ltd. *		803		64,079
Assurant, Inc.		1,660		60,690
Assured Guaranty Ltd.		2,569		39,691
Axis Capital Holdings Ltd.		1,935		59,753
Cincinnati Financial Corp.		2,218		59,176
CNA Financial Corp. *		420		10,928
Everest Re Group Ltd.		914		72,334
Fidelity National Financial, Inc., Class A		3,471		50,364
First American Financial Corp.		1,871		27,747
Genworth Financial, Inc., Class A *		7,454		80,727
Hanover Insurance Group, Inc.		664		28,804
HCC Insurance Holdings, Inc.		1,822		45,969
Lincoln National Corp.		4,634		108,250
Loews Corp.		5,189		182,341
Markel Corp. *		150		49,158
Marsh & McLennan Cos., Inc.		8,249		195,666
MetLife, Inc.		8,844		332,534
Old Republic International Corp.		3,677		46,992
PartnerRe Ltd.		1,188		88,447
Principal Financial Group, Inc.		4,562		105,154
Prudential Financial, Inc.		7,063		357,176
Reinsurance Group of America, Inc.		1,120		48,989
RenaissanceRe Holdings Ltd.		846		48,044
The Allstate Corp.		7,691		212,272
The Chubb Corp.		5,004		275,821
The Hartford Financial Services Group, Inc.		6,780		136,685
The Progressive Corp.		9,684		191,743

See financial notes 59

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
The Travelers Cos., Inc.		7,554		369,995
Torchmark Corp.		1,260		62,181
Transatlantic Holdings, Inc.		980		46,717
Unum Group		5,052		101,293
Validus Holdings Ltd.		1,253		31,914
W.R. Berkley Corp.		2,008		52,911
White Mountains Insurance Group Ltd.		101		30,662
XL Group plc		5,192		92,989

				4,410,190

Materials 2.6%
Air Products & Chemicals, Inc.		3,002		222,238
Ashland, Inc.		943		43,812
Bemis Co., Inc.		1,610		46,481
E.I. du Pont de Nemours & Co.		13,738		560,098
Eastman Chemical Co.		1,050		64,627
Huntsman Corp.		2,931		26,701
International Flavors & Fragrances, Inc.		1,190		54,371
International Paper Co.		6,217		127,200
MeadWestvaco Corp.		2,593		56,424
Owens-Illinois, Inc. *		2,434		60,996
PPG Industries, Inc.		2,515		165,562
Sealed Air Corp.		2,421		49,655
Smurfit-Stone Container Corp. *		759		13,032
Sonoco Products Co.		1,472		46,294
The Dow Chemical Co.		17,478		425,939
The Scotts Miracle-Gro Co., Class A		700		33,061
The Valspar Corp.		1,400		42,168
Walter Energy, Inc.		790		56,912
Weyerhaeuser Co.		3,191		50,099

				2,145,670

Media 3.1%
CBS Corp., Class B		9,705		134,123
Gannett Co., Inc.		3,611		43,657
News Corp., Class A		35,468		445,833
Omnicom Group, Inc.		4,663		163,251
The McGraw-Hill Cos., Inc.		4,772		131,946
The Walt Disney Co.		27,273		888,827
The Washington Post Co., Class B		81		29,179
Time Warner Cable, Inc.		5,393		278,333
Time Warner, Inc.		17,485		524,200

				2,639,349

Pharmaceuticals, Biotechnology & Life Sciences 10.2%
Abbott Laboratories		23,330		1,151,102
Bristol-Myers Squibb Co.		25,924		676,098
Dendreon Corp. *		2,089		74,870
Eli Lilly & Co.		14,987		502,964
Forest Laboratories, Inc. *		4,632		126,407
Johnson & Johnson		42,301		2,412,003
Merck & Co., Inc.		47,709		1,677,448
Pfizer, Inc.		123,202		1,962,608

				8,583,500

Real Estate 2.6%
AMB Property Corp.		2,599		61,830
Annaly Capital Management, Inc.		9,453		164,293
AvalonBay Communities, Inc.		1,271		133,735
Boston Properties, Inc.		2,087		169,882
Brookfield Properties Corp.		3,891		56,264
Equity Residential		4,310		197,527
Federal Realty Investment Trust		912		72,313
HCP, Inc.		4,492		158,208
Health Care REIT, Inc.		1,899		87,240
Host Hotels & Resorts, Inc.		10,043		131,865
Kimco Realty Corp.		6,145		91,622
Liberty Property Trust		1,682		51,082
Nationwide Health Properties, Inc.		1,801		69,284
Piedmont Office Realty Trust, Inc., Class A		840		15,422
Plum Creek Timber Co., Inc.		2,491		85,865
ProLogis		7,203		78,153
Rayonier, Inc.		1,190		56,287
Realty Income Corp.		1,661		54,132
Regency Centers Corp.		1,247		45,466
SL Green Realty Corp.		1,176		70,889
The Macerich Co.		2,014		83,420
The St. Joe Co. *		1,400		33,712
Vornado Realty Trust		2,855		231,426

				2,199,917

Retailing 1.6%
AutoNation, Inc. *		1,120		25,290
Genuine Parts Co.		2,423		101,596
J.C. Penney Co., Inc.		3,123		62,460
Liberty Media Corp. - Interactive, Series A *		9,054		95,520
Limited Brands, Inc.		4,212		99,403
Macy’s, Inc.		6,423		124,863
The Gap, Inc.		5,815		98,215
The Home Depot, Inc.		25,671		713,911

				1,321,258

Semiconductors & Semiconductor Equipment 2.8%
Analog Devices, Inc.		4,562		127,189
Intel Corp.		85,121		1,508,344
KLA-Tencor Corp.		2,631		73,694
Maxim Integrated Products, Inc.		4,632		73,510
Microchip Technology, Inc.		2,773		76,784
National Semiconductor Corp.		3,611		45,535
Texas Instruments, Inc.		18,663		429,809

				2,334,865

Software & Services 0.3%
AOL, Inc. *		1,656		36,796
Broadridge Financial Solutions, Inc.		1,890		40,352
Computer Sciences Corp.		2,353		93,673
CoreLogic, Inc.		1,486		25,663
Synopsys, Inc. *		1,981		45,345

				241,829

Technology Hardware & Equipment 3.2%
Avnet, Inc. *		2,281		52,235
International Business Machines Corp.		19,640		2,420,237
Molex, Inc.		2,003		35,353

60 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Xerox Corp.		21,087		177,974

				2,685,799

Telecommunication Services 5.3%
AT&T, Inc.		90,896		2,456,919
CenturyLink, Inc.		4,588		165,902
Frontier Communications Corp.		15,132		116,970
Level 3 Communications, Inc. *		24,642		25,381
Qwest Communications International, Inc.		21,270		120,176
Sprint Nextel Corp. *		45,966		187,541
Telephone & Data Systems, Inc.		1,523		44,000
United States Cellular Corp. *		210		8,803
Verizon Communications, Inc.		43,412		1,281,088
Windstream Corp.		7,386		85,198

				4,491,978

Transportation 1.4%
Norfolk Southern Corp.		5,606		300,930
Ryder System, Inc.		849		32,576
Southwest Airlines Co.		11,335		125,252
United Parcel Service, Inc., Class B		10,849		692,166

				1,150,924

Utilities 7.1%
AGL Resources, Inc.		1,211		44,444
Allegheny Energy, Inc.		2,561		57,751
Alliant Energy Corp.		1,680		58,834
Ameren Corp.		3,613		101,417
American Electric Power Co., Inc.		7,263		257,183
American Water Works Co., Inc.		2,654		59,927
Aqua America, Inc.		2,071		41,171
Atmos Energy Corp.		1,400		39,620
CenterPoint Energy, Inc.		5,589		82,661
CMS Energy Corp.		3,471		60,743
Consolidated Edison, Inc.		4,292		203,999
Constellation Energy Group, Inc.		2,771		81,273
Dominion Resources, Inc.		9,132		390,484
DPL, Inc.		1,820		46,082
DTE Energy Co.		2,568		120,311
Duke Energy Corp.		19,899		342,064
Edison International		4,562		153,967
Energen Corp.		1,126		48,058
Entergy Corp.		2,869		226,192
Exelon Corp.		10,075		410,254
FirstEnergy Corp.		4,634		169,280
Integrys Energy Group, Inc.		1,199		58,092
MDU Resources Group, Inc.		2,641		49,677
Mirant Corp. *		2,211		21,447
National Fuel Gas Co.		1,052		45,215
NextEra Energy, Inc.		6,306		338,821
NiSource, Inc.		4,212		73,036
Northeast Utilities		2,631		76,220
NSTAR		1,612		61,304
NV Energy, Inc.		3,541		45,325
OGE Energy Corp.		1,470		57,404
Pepco Holdings, Inc.		3,331		59,791
PG&E Corp.		5,662		264,755
Pinnacle West Capital Corp.		1,540		61,369
PPL Corp.		7,590		206,144
Progress Energy, Inc.		4,367		187,388
Public Service Enterprise Group, Inc.		7,753		247,786
SCANA Corp.		1,680		65,570
Sempra Energy		3,360		171,091
Southern Co.		12,793		469,375
TECO Energy, Inc.		3,053		51,535
UGI Corp.		1,612		44,491
Vectren Corp.		1,192		29,252
Westar Energy, Inc.		1,390		33,318
Wisconsin Energy Corp.		1,662		92,640
Xcel Energy, Inc.		6,983		155,791

				5,962,552

Total Common Stock
(Cost $87,792,769)				83,552,337




Other Investment Company 0.2% of net assets

Money Fund 0.2%
State Street Institutional Liquid Reserves Fund - Institutional Class		131,990		131,990

Total Other Investment Company
(Cost $131,990)				131,990



End of Investments

At 8/31/10, the tax basis cost of the fund’s investments was $87,951,930 and the unrealized appreciation and depreciation were $1,288,225 and ($5,555,828), respectively, with a net unrealized depreciation ($4,267,603).


*		Non-income producing security.

See financial notes 61

Schwab U.S. Large-Cap Value ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on December 9, 2009, it has no prior report period.


*12/9/09-8/31/10**
Net investment income		$1,048,767
Net realized losses		(41,364	)
Net unrealized losses	+	(4,240,432	)

Net decrease in net assets resulting from operations		(3,233,029	)

Distributions to Shareholders

Distributions from net investment income		$572,500

Transactions in Fund Shares


		*12/9/09-8/31/10**
			SHARES		VALUE
Shares Sold			3,500,001		$89,183,566
Shares Redeemed	+		(50,000	)	(1,325,670	)

Net transactions in fund shares			3,450,001		$87,857,896

Shares Outstanding and Net Assets

		*12/9/09-8/31/10**
			SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		3,450,001		84,052,367

End of period			3,450,001		$84,052,367


Net investment income not yet distributed					$476,283


*		Commencement of operations.

64 See financial notes

Schwab U.S. Small-Cap ETF™

Financial Statements

Financial Highlights


	10/30/09¹–
	8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.23
Net realized and unrealized gains (losses)		1.45²

Total from investment operations		1.68
Less distributions:
Distributions from net investment income		(0.20	)

Net asset value at end of period		26.48

Total return (%)		6.67	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.14	^4,5
Gross operating expenses		0.14	⁴
Net investment income (loss)		1.05	⁴
Portfolio turnover rate⁶		8	³
Net assets, end of period ($ x 1,000)		193,310

¹ Commencement of operations.

² The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate. Please see financial note 4 for more information.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 65

Schwab U.S. Small-Cap ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Cost

Value

Holdings by Category

($)

.8%

Common Stock

214,865,970

192,859,962

.1%

Other Investment Company

191,661

.9%

Total Investments

215,057,631

193,051,623

.1%

Other Assets and
Liabilities, Net

257,985

100

.0%

Net Assets

193,309,608


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.4%
American Axle & Manufacturing Holdings, Inc. *		9,571		80,109
ArvinMeritor, Inc. *		13,166		172,080
Cooper Tire & Rubber Co.		9,531		154,307
Dana Holding Corp. *		21,942		225,125
Dorman Products, Inc. *		1,976		46,337
Drew Industries, Inc. *		2,813		53,813
Exide Technologies *		8,105		33,960
Federal-Mogul Corp. *		3,800		58,121
Fuel Systems Solutions, Inc. *		2,191		71,054
Gentex Corp.		21,468		377,193
Modine Manufacturing Co. *		7,242		71,986
Superior Industries International, Inc.		3,798		55,375
Tenneco, Inc. *		9,170		226,682
Tesla Motors, Inc. *		2,077		40,792
Thor Industries, Inc.		5,466		127,576
TRW Automotive Holdings Corp. *		12,904		448,543
WABCO Holdings, Inc. *		10,009		352,917
Winnebago Industries, Inc. *		4,536		38,919

				2,634,889

Banks 6.9%
1st Source Corp.		2,220		36,008
Arrow Financial Corp.		1,683		38,372
Associated Banc-Corp		26,938		324,872
Astoria Financial Corp.		13,914		167,803
BancFirst Corp.		1,100		40,920
BancorpSouth, Inc.		12,211		155,690
Bank Mutual Corp.		7,378		37,554
Bank of Hawaii Corp.		7,372		329,234
Bank of the Ozarks, Inc.		2,127		78,146
BankFinancial Corp.		3,109		27,981
Beneficial Mutual Bancorp, Inc. *		5,760		48,038
Berkshire Hills Bancorp, Inc.		2,220		39,261
Boston Private Financial Holdings, Inc.		10,680		66,964
Brookline Bancorp, Inc.		9,253		86,608
Camden National Corp.		1,072		32,685
Capital City Bank Group, Inc.		1,989		21,760
CapitalSource, Inc.		46,188		233,249
Cardinal Financial Corp.		4,457		40,915
Cathay General Bancorp		12,056		115,617
Centerstate Banks, Inc.		3,697		31,868
Chemical Financial Corp.		3,962		76,546
Citizens Republic Bancorp, Inc. *		61,672		48,104
City Holding Co.		2,526		72,117
Clifton Savings Bancorp, Inc.		1,683		13,817
CoBiz Financial, Inc.		5,787		30,845
Columbia Banking System, Inc.		4,410		78,542
Community Bank System, Inc.		5,148		116,242
Community Trust Bancorp, Inc.		2,192		57,737
CVB Financial Corp.		14,833		101,309
Danvers Bancorp, Inc.		2,985		44,984
Dime Community Bancshares		4,870		60,826
Doral Financial Corp. *		11,452		15,460
East West Bancorp, Inc.		22,971		335,836
ESSA Bancorp, Inc.		1,989		22,237
F.N.B. Corp.		18,019		140,008
First Bancorp		2,650		32,171
First BanCorp Puerto Rico *		52,603		19,153
First Busey Corp.		9,094		38,922
First Citizens BancShares, Inc., Class A		893		149,997
First Commonwealth Financial Corp.		12,412		61,439
First Community Bancshares, Inc.		2,526		32,611
First Financial Bancorp		8,968		143,040
First Financial Bankshares, Inc.		3,222		143,927
First Financial Corp.		1,761		50,611
First Financial Holdings, Inc.		2,650		23,956
First Financial Northwest, Inc.		7,098		29,386
First Interstate BancSystem, Inc.		1,329		15,177
First Merchants Corp.		3,969		30,680
First Midwest Bancorp, Inc.		11,281		123,865
First Niagara Financial Group, Inc.		32,592		367,964
FirstMerit Corp.		16,791		290,484
Flagstar Bancorp, Inc. *		6,213		14,166
Flushing Financial Corp.		4,565		49,439
Fulton Financial Corp.		30,551		252,962
Glacier Bancorp, Inc.		11,045		152,863
Great Southern Bancorp, Inc.		1,404		28,192
Hancock Holding Co.		4,856		132,180
Heartland Financial USA, Inc.		2,220		31,191
Home Bancshares, Inc.		3,953		85,148
Hudson Valley Holding Corp.		1,898		30,861
IBERIABANK Corp.		4,191		204,311
Independent Bank Corp.		3,291		69,012
International Bancshares Corp.		8,192		127,795
Investors Bancorp, Inc. *		7,368		78,248
Kearny Financial Corp.		3,291		28,632
Lakeland Financial Corp.		2,221		41,177
MB Financial, Inc.		8,255		123,660
Meridian Interstate Bancorp, Inc. *		1,683		17,857
MGIC Investment Corp. *		31,057		224,232
Nara Bancorp, Inc. *		5,300		31,641
National Penn Bancshares, Inc.		19,909		115,671
NBT Bancorp, Inc.		5,330		108,839

66 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
NewAlliance Bancshares, Inc.		15,799		193,380
Northfield Bancorp, Inc.		3,262		35,556
Northwest Bancshares, Inc.		7,039		75,669
Ocwen Financial Corp. *		11,727		106,598
Old National Bancorp		13,789		127,135
Oriental Financial Group, Inc.		4,996		66,197
Oritani Financial Corp.		2,641		24,852
Orrstown Financial Services, Inc.		1,088		22,163
PacWest Bancorp		5,001		85,317
Park National Corp.		1,835		110,192
Pinnacle Financial Partners, Inc. *		5,148		44,067
Popular, Inc. *		99,227		254,021
PrivateBancorp, Inc.		11,296		118,156
Prosperity Bancshares, Inc.		7,179		204,243
Provident Financial Services, Inc.		8,919		102,301
Provident New York Bancorp		5,857		47,266
Radian Group, Inc.		20,472		129,588
Renasant Corp.		3,291		44,132
Republic Bancorp, Inc., Class A		1,608		31,227
Rockville Financial, Inc.		1,253		14,560
Roma Financial Corp.		2,952		30,228
S&T Bancorp, Inc.		4,259		72,275
S.Y. Bancorp, Inc.		1,837		43,555
Sandy Spring Bancorp, Inc.		3,712		54,307
SCBT Financial Corp.		1,912		54,970
Signature Bank *		6,372		232,833
Simmons First National Corp., Class A		2,373		60,227
Southside Bancshares, Inc.		2,500		45,350
StellarOne Corp.		3,569		36,921
Sterling Bancorp		4,050		35,235
Sterling Bancshares, Inc.		16,383		81,260
Suffolk Bancorp		1,530		36,031
Susquehanna Bancshares, Inc.		20,194		159,735
SVB Financial Group *		6,435		239,189
Synovus Financial Corp.		67,017		138,055
TCF Financial Corp.		20,809		297,153
Texas Capital Bancshares, Inc. *		5,636		86,231
The PMI Group, Inc. *		23,547		72,525
Tompkins Financial Corp.		1,292		47,468
TowneBank		4,339		62,048
TriCo Bancshares		2,344		32,511
TrustCo Bank Corp.		11,922		63,425
Trustmark Corp.		8,794		167,702
UMB Financial Corp.		5,076		161,823
Umpqua Holdings Corp.		17,819		185,318
Union First Market Bankshares Corp.		2,900		33,640
United Bankshares, Inc.		6,756		155,456
United Community Banks, Inc. *		14,903		36,959
United Financial Bancorp, Inc.		2,373		31,941
Univest Corp. of Pennsylvania		2,653		42,448
Valley National Bancorp		25,220		328,617
ViewPoint Financial Group		2,366		21,294
Washington Federal, Inc.		17,391		248,170
Washington Trust Bancorp, Inc.		2,192		39,653
Webster Financial Corp.		10,274		165,309
WesBanco, Inc.		3,952		60,268
Westamerica Bancorp		4,565		231,354
Western Alliance Bancorp *		10,602		64,884
Westfield Financial, Inc.		4,391		33,284
Whitney Holding Corp.		15,134		112,446
Wilmington Trust Corp.		14,268		125,558
Wilshire Bancorp, Inc.		3,545		21,979
Wintrust Financial Corp.		4,709		135,431
WSFS Financial Corp.		1,100		39,567
Zions Bancorp		24,922		459,312

				13,390,180

Capital Goods 9.7%
3D Systems Corp. *		2,937		36,977
A.O. Smith Corp.		3,875		198,981
A123 Systems, Inc. *		11,503		75,345
AAON, Inc.		2,220		49,262
AAR CORP. *		6,066		93,174
Aceto Corp.		4,027		22,712
Actuant Corp., Class A		10,680		211,678
Acuity Brands, Inc.		6,742		261,185
Advanced Battery Technologies, Inc. *		8,914		31,021
Aerovironment, Inc. *		2,111		47,751
Aircastle Ltd.		7,033		54,928
Albany International Corp., Class A		4,028		71,497
Altra Holdings, Inc. *		4,258		54,800
American Railcar Industries, Inc. *		1,134		13,098
American Science & Engineering, Inc.		1,417		100,565
American Superconductor Corp. *		6,551		176,156
American Woodmark Corp.		1,530		23,378
Ameron International Corp.		1,281		72,197
Ampco-Pittsburgh Corp.		1,253		26,914
Apogee Enterprises, Inc.		4,383		39,622
Applied Industrial Technologies, Inc.		6,144		164,659
Applied Signal Technology, Inc.		2,067		40,596
Armstrong World Industries, Inc. *		2,823		110,944
Astec Industries, Inc. *		2,861		73,528
AZZ, Inc.		1,969		78,642
Badger Meter, Inc.		2,348		87,580
Baldor Electric Co.		6,633		232,686
Barnes Group, Inc.		6,909		105,086
BE Aerospace, Inc. *		14,786		398,483
Beacon Roofing Supply, Inc. *		7,186		100,101
Belden, Inc.		7,340		160,746
Blount International, Inc. *		6,144		71,209
Brady Corp., Class A		7,369		189,825
Briggs & Stratton Corp.		7,828		142,078
Broadwind Energy, Inc. *		8,346		13,938
Builders FirstSource, Inc. *		7,375		14,824
Capstone Turbine Corp. *		36,710		23,494
Carlisle Cos., Inc.		9,513		266,840
Cascade Corp.		1,360		42,459
Ceradyne, Inc. *		4,102		89,588
Chart Industries, Inc. *		4,536		72,213
CIRCOR International, Inc.		2,679		74,610
CLARCOR, Inc.		7,940		267,102
Colfax Corp. *		4,293		53,620
Columbus McKinnon Corp. *		2,985		38,208
Comfort Systems USA, Inc.		6,144		64,082
Crane Co.		7,980		270,522
Cubic Corp.		2,498		95,399
Curtiss-Wright Corp.		7,063		187,805
DigitalGlobe, Inc. *		4,261		130,685
Douglas Dynamics, Inc. *		1,632		18,540
Ducommun, Inc.		1,608		30,874
Dycom Industries, Inc. *		5,674		45,619
Dynamic Materials Corp.		1,989		27,210
EMCOR Group, Inc. *		10,079		229,196

See financial notes 67

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Encore Wire Corp.		2,983		54,559
Ener1, Inc. *		10,304		32,664
Energy Conversion Devices, Inc. *		7,367		33,225
Energy Recovery, Inc. *		5,329		16,920
EnerSys *		6,332		139,747
EnPro Industries, Inc. *		3,110		84,934
ESCO Technologies, Inc.		4,180		130,207
Esterline Technologies Corp. *		4,594		211,324
Evergreen Solar, Inc. *		31,009		20,776
Federal Signal Corp.		7,741		40,795
Force Protection, Inc. *		10,957		42,458
Franklin Electric Co., Inc.		2,985		94,535
FreightCar America, Inc.		1,837		42,784
FuelCell Energy, Inc. *		27,561		31,144
Furmanite Corp. *		5,788		25,004
Gardner Denver, Inc.		8,105		386,933
GATX Corp.		6,372		173,956
GenCorp, Inc. *		8,917		39,056
Generac Holdings, Inc. *		2,956		35,827
General Cable Corp. *		8,105		180,336
GeoEye, Inc. *		3,423		124,734
Gibraltar Industries, Inc. *		4,029		30,620
Global Power Equipment Group, Inc. *		1,898		29,704
Graco, Inc.		9,356		261,126
GrafTech International Ltd. *		19,383		272,525
Graham Corp.		1,608		22,785
Granite Construction, Inc.		5,330		117,313
Great Lakes Dredge & Dock Co.		6,165		31,102
Griffon Corp. *		7,568		80,902
GT Solar International, Inc. *		9,803		75,777
H&E Equipment Services, Inc. *		3,898		26,545
HEICO Corp., Class A		4,380		134,291
Hexcel Corp. *		14,870		253,682
Houston Wire & Cable Co.		2,633		23,802
IDEX Corp.		12,637		376,456
II-VI, Inc. *		4,027		138,489
InsituForm Technologies, Inc., Class A *		6,066		123,504
Interline Brands, Inc. *		5,024		81,188
John Bean Technologies Corp.		4,383		65,175
Kaman Corp.		3,953		84,476
Kaydon Corp.		5,150		166,912
Kennametal, Inc.		12,452		313,790
L.B. Foster Co., Class A *		1,531		39,224
Ladish Co., Inc. *		2,345		58,367
Lawson Products, Inc.		2,061		27,947
Layne Christensen Co. *		3,109		77,321
Lennox International, Inc.		8,103		343,486
Lindsay Corp.		1,985		73,187
MasTec, Inc. *		7,646		74,013
Michael Baker Corp. *		1,251		41,245
Moog, Inc., Class A *		6,436		200,803
Mueller Industries, Inc.		5,789		136,505
Mueller Water Products, Inc., Class A		24,282		57,548
MYR Group, Inc. *		2,609		36,343
NACCO Industries, Inc., Class A		848		65,754
Nordson Corp.		4,759		305,385
Northwest Pipe Co. *		1,406		21,020
Orbital Sciences Corp. *		8,948		116,235
Orion Marine Group, Inc. *		4,181		46,911
Otter Tail Corp.		4,995		92,557
Pike Electric Corp. *		2,803		22,704
Polypore International, Inc. *		3,595		97,137
Powell Industries, Inc. *		1,224		34,835
Primoris Services Corp.		4,707		27,913
Quanex Building Products Corp.		5,734		90,597
Raven Industries, Inc.		2,670		90,006
RBC Bearings, Inc. *		3,443		100,845
Regal-Beloit Corp.		6,097		337,286
Robbins & Myers, Inc.		4,028		95,302
RSC Holdings, Inc. *		7,522		44,982
Rush Enterprises, Inc., Class A *		5,148		65,354
Sauer-Danfoss, Inc. *		1,684		27,382
Seaboard Corp.		49		78,890
Simpson Manufacturing Co., Inc.		5,996		132,152
Snap-On, Inc.		8,940		368,596
Standex International Corp.		1,838		43,248
Sterling Construction Co., Inc. *		2,497		27,317
Sun Hydraulics Corp.		1,914		42,682
TAL International Group, Inc.		1,914		40,806
Taser International, Inc. *		9,713		35,307
Tecumseh Products Co., Class A *		2,679		31,371
Teledyne Technologies, Inc. *		5,636		203,911
Tennant Co.		2,650		82,786
Terex Corp. *		16,764		305,272
Textainer Group Holdings Ltd.		2,804		76,549
The Gorman-Rupp Co.		2,240		57,568
The Greenbrier Cos., Inc. *		3,130		36,527
The Manitowoc Co., Inc.		20,078		183,914
The Middleby Corp. *		2,855		156,996
The Timken Co.		11,994		392,324
The Toro Co.		5,345		266,716
Thomas & Betts Corp. *		8,207		303,249
Titan International, Inc.		5,550		56,277
Titan Machinery, Inc. *		2,344		35,019
TransDigm Group, Inc.		5,746		332,636
Tredegar Corp.		3,800		62,396
Trex Co., Inc. *		2,192		43,950
Trinity Industries, Inc.		12,297		210,525
Triumph Group, Inc.		2,576		170,995
Tutor Perini Corp. *		4,182		82,636
United Rentals, Inc. *		9,536		107,280
Universal Forest Products, Inc.		2,920		75,657
USG Corp. *		10,623		129,282
Valence Technology, Inc. *		35,465		28,017
Valmont Industries, Inc.		3,260		218,518
Vicor Corp.		3,263		44,083
Wabtec Corp.		7,478		318,039
Watsco, Inc.		4,309		221,267
Watts Water Technologies, Inc., Class A		4,565		137,133
WESCO International, Inc. *		6,594		212,854
Woodward Governor Co.		9,098		237,640

				18,764,893

Commercial & Professional Services 2.7%
ABM Industries, Inc.		6,728		131,936
Acacia Research - Acacia Technologies *		5,289		79,441
Acco Brands Corp. *		8,411		48,868
Administaff, Inc.		3,597		77,767
American Reprographics Co. *		5,310		35,046
APAC Customer Services, Inc. *		4,870		24,691

68 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
ATC Technology Corp. *		3,138		75,720
Bowne & Co., Inc.		6,449		71,390
CBIZ, Inc. *		7,648		45,353
CDI Corp.		1,990		22,069
Cenveo, Inc. *		9,100		49,959
Clean Harbors, Inc. *		3,588		216,895
Consolidated Graphics, Inc. *		1,531		60,796
CoStar Group, Inc. *		3,123		128,886
Courier Corp.		1,758		23,030
CRA International, Inc. *		1,683		26,760
Deluxe Corp.		7,980		133,505
EnergySolutions, Inc.		12,211		55,926
EnerNOC, Inc. *		2,836		92,397
Ennis, Inc.		4,028		61,991
Exponent, Inc. *		2,558		78,889
Fuel Tech, Inc. *		2,803		15,388
G&K Services, Inc., Class A		2,833		56,915
Healthcare Services Group, Inc.		6,067		126,012
Heidrick & Struggles International, Inc.		2,679		46,534
Herman Miller, Inc.		8,815		144,742
Higher One Holdings, Inc. *		1,411		16,353
Hill International, Inc. *		4,258		16,308
HNI Corp.		5,789		135,289
Huron Consulting Group, Inc. *		3,292		60,737
ICF International, Inc. *		1,989		41,948
Innerworkings, Inc. *		5,176		28,106
Interface, Inc. Class A		8,564		109,790
KAR Auction Services, Inc. *		3,594		43,523
Kelly Services, Inc., Class A *		4,383		45,759
Kforce, Inc. *		5,607		59,266
Kimball International, Inc., Class B		4,105		21,223
Knoll, Inc.		7,493		100,556
Korn/Ferry International *		7,187		93,575
M&F Worldwide Corp. *		1,914		44,405
McGrath Rentcorp		3,801		76,362
Metalico, Inc. *		5,609		17,556
Mine Safety Appliances Co.		4,773		108,824
Mistras Group, Inc. *		2,391		25,345
Mobile Mini, Inc. *		5,552		79,005
Monster Worldwide, Inc. *		19,461		214,655
Navigant Consulting, Inc. *		7,828		77,497
On Assignment, Inc. *		5,722		24,891
Quad Graphics, Inc. *		4,406		185,889
Resources Connection, Inc.		6,975		77,353
RINO International Corp. *		1,402		20,679
Rollins, Inc.		8,105		165,990
Schawk, Inc.		1,914		29,093
School Specialty, Inc. *		2,498		32,549
SFN Group, Inc. *		8,256		44,913
Standard Parking Corp. *		2,389		37,388
Steelcase, Inc., Class A		11,587		71,955
Sykes Enterprises, Inc. *		6,134		73,363
Team, Inc. *		2,985		43,671
Tetra Tech, Inc. *		9,294		168,686
The Advisory Board Co. *		2,374		96,242
The Brink’s Co.		7,521		141,921
The Corporate Executive Board Co.		5,330		149,453
The Geo Group, Inc. *		10,156		224,448
The Standard Register Co.		8,547		24,530
TrueBlue, Inc. *		6,880		74,235
United Stationers, Inc. *		3,720		166,991
US Ecology, Inc.		2,679		36,300
Viad Corp.		3,110		49,293
Volt Information Sciences, Inc. *		1,683		10,637
VSE Corp.		608		17,073

				5,314,531

Consumer Durables & Apparel 3.7%
American Apparel, Inc. *		18,415		14,364
American Greetings Corp., Class A		5,789		111,728
Beazer Homes USA, Inc. *		9,267		32,064
Blyth, Inc.		1,029		39,225
Brookfield Homes Corp. *		1,530		9,792
Brunswick Corp.		13,761		174,902
Callaway Golf Co.		10,143		63,394
Carter’s, Inc. *		9,263		206,935
Cavco Industries, Inc. *		1,064		35,655
Columbia Sportswear Co.		2,260		105,339
Crocs, Inc. *		12,488		156,100
CSS Industries, Inc.		1,168		18,034
Deckers Outdoor Corp. *		6,004		260,994
Eastman Kodak Co. *		40,211		140,336
Ethan Allen Interiors, Inc.		4,182		56,415
Fossil, Inc. *		7,349		349,004
Furniture Brands International, Inc. *		5,482		25,491
G-III Apparel Group Ltd. *		2,280		54,994
Hanesbrands, Inc. *		14,618		349,955
Helen of Troy Ltd. *		4,412		98,189
Hovnanian Enterprises, Inc., Class A *		7,797		26,666
Iconix Brand Group, Inc. *		11,264		171,607
iRobot Corp. *		3,138		51,997
JAKKS Pacific, Inc. *		4,411		65,724
Jarden Corp.		14,358		386,805
Jones Apparel Group, Inc.		13,455		206,938
K-Swiss, Inc., Class A *		4,106		46,685
KB HOME		11,688		120,503
Kenneth Cole Productions, Inc., Class A *		1,224		14,786
La-Z-Boy, Inc. *		8,105		54,304
Leapfrog Enterprises, Inc. *		6,143		28,872
Liz Claiborne, Inc. *		14,986		62,941
M.D.C Holdings, Inc.		5,608		149,285
M/I Homes, Inc. *		2,804		26,442
MaidenForm Brands, Inc. *		3,619		96,519
Marine Products Corp. *		2,344		12,142
Meritage Homes Corp. *		4,717		84,246
Movado Group, Inc. *		2,803		28,422
National Presto Industries, Inc.		765		76,515
Oxford Industries, Inc.		2,220		43,778
Perry Ellis International, Inc. *		1,520		27,907
Phillips-Van Heusen Corp.		8,081		369,140
Polaris Industries, Inc.		5,050		269,316
Pool Corp.		7,645		141,050
Quiksilver, Inc. *		20,187		72,471
RC2 Corp. *		3,263		60,072
Sealy Corp. *		7,185		17,028
Skechers U.S.A., Inc., Class A *		5,282		134,533
Skyline Corp.		1,071		19,610
Smith & Wesson Holding Corp. *		9,074		34,028
Standard Pacific Corp. *		16,408		57,264
Steven Madden Ltd. *		3,815		131,350
Tempur-Pedic International, Inc. *		10,542		282,526
The Ryland Group, Inc.		6,478		104,361

See financial notes 69

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
The Timberland Co., Class A *		6,891		110,738
The Warnaco Group, Inc. *		6,919		289,768
True Religion Apparel, Inc. *		4,028		70,812
Tupperware Brands Corp.		9,695		381,401
Under Armour, Inc., Class A *		5,760		206,611
UniFirst Corp.		2,056		80,719
Universal Electronics, Inc. *		2,128		40,709
Volcom, Inc. *		2,679		41,766
Weyco Group, Inc.		1,343		31,466
Wolverine World Wide, Inc.		7,798		197,055

				7,229,788

Consumer Services 3.6%
AFC Enterprises, Inc. *		4,027		43,290
Ambassadors Group, Inc.		3,109		34,121
American Public Education, Inc. *		2,804		69,679
Ameristar Casinos, Inc.		3,722		61,078
Bally Technologies, Inc. *		8,417		264,715
Biglari Holdings, Inc. *		214		62,146
BJ’s Restaurants, Inc. *		3,139		75,148
Bob Evans Farms, Inc.		4,842		123,713
Boyd Gaming Corp. *		8,919		61,898
Bridgepoint Education, Inc. *		2,957		38,204
Brinker International, Inc.		15,594		245,606
Buffalo Wild Wings, Inc. *		2,804		117,263
California Pizza Kitchen, Inc. *		3,800		58,368
Cambium Learning Group, Inc. *		7,554		21,453
Capella Education Co. *		2,294		143,559
CEC Entertainment, Inc. *		3,419		107,254
Choice Hotels International, Inc.		5,047		165,945
Churchill Downs, Inc.		1,877		64,513
Coinstar, Inc. *		4,449		193,532
Corinthian Colleges, Inc. *		13,753		67,115
Cracker Barrel Old Country Store, Inc.		3,568		159,168
Denny’s Corp. *		15,184		36,214
DineEquity, Inc. *		2,313		73,831
Domino’s Pizza, Inc. *		6,756		86,612
Gaylord Entertainment Co. *		5,455		142,703
Grand Canyon Education, Inc. *		2,498		42,691
Hillenbrand, Inc.		9,713		184,838
International Speedway Corp., Class A		4,412		100,991
Interval Leisure Group, Inc. *		6,220		77,812
Isle of Capri Casinos, Inc. *		2,803		19,845
Jack in the Box, Inc. *		8,620		173,952
K12, Inc. *		4,709		108,966
Krispy Kreme Doughnuts, Inc. *		9,376		37,129
Landry’s Restaurants, Inc. *		1,100		26,785
Life Time Fitness, Inc. *		6,424		218,223
Lincoln Educational Services Corp. *		2,879		31,439
Matthews International Corp., Class A		4,709		148,286
Morgans Hotel Group Co. *		4,532		28,280
National American University Holdings, Inc.		3,527		17,247
Orient-Express Hotels Ltd., Class A *		16,292		140,763
P.F. Chang’s China Bistro, Inc.		3,435		147,052
Panera Bread Co., Class A *		4,883		390,347
Papa John’s International, Inc. *		3,179		75,692
Peet’s Coffee & Tea, Inc. *		2,067		70,857
Pinnacle Entertainment, Inc. *		9,378		91,904
Pre-Paid Legal Services, Inc. *		1,063		58,093
Red Robin Gourmet Burgers, Inc. *		2,218		41,100
Regis Corp.		8,948		150,058
Ruby Tuesday, Inc. *		9,009		82,973
Scientific Games Corp., Class A *		10,957		111,871
Service Corp. International		39,628		304,739
Shuffle Master, Inc. *		8,412		66,875
Six Flags Entertainment Corp. *		4,265		161,260
Sonic Corp. *		9,532		73,110
Sotheby’s		10,428		277,489
Speedway Motorsports, Inc.		2,191		29,184
Steiner Leisure Ltd. *		2,108		75,066
Stewart Enterprises, Inc., Class A		13,178		62,727
Texas Roadhouse, Inc. *		8,180		108,467
The Cheesecake Factory, Inc. *		8,715		195,129
The Marcus Corp.		3,291		36,201
Universal Technical Institute, Inc.		3,719		57,459
Vail Resorts, Inc. *		5,609		185,265
WMS Industries, Inc. *		9,124		322,442

				7,049,735

Diversified Financials 2.1%
Advance America Cash Advance Centers, Inc.		7,979		26,730
Artio Global Investors, Inc.		3,875		53,669
Asset Acceptance Capital Corp. *		1,683		6,446
BGC Partners, Inc., Class A		6,067		31,306
Calamos Asset Management, Inc., Class A		3,109		29,411
Cardtronics, Inc. *		4,101		56,799
Cash America International, Inc.		4,537		138,968
Cohen & Steers, Inc.		3,110		66,367
CompuCredit Holdings Corp.		4,994		21,824
Cowen Group, Inc., Class A *		5,266		18,062
Credit Acceptance Corp. *		918		52,005
Dollar Financial Corp. *		3,819		73,859
Duff & Phelps Corp., Class A		3,595		35,914
Encore Capital Group, Inc. *		2,191		43,404
Epoch Holding Corp.		2,280		22,595
Evercore Partners, Inc., Class A		2,698		66,074
EZCORP, Inc., Class A *		7,034		126,471
FBR Capital Markets Corp. *		6,221		21,276
Financial Engines, Inc. *		1,570		20,975
First Cash Financial Services, Inc. *		4,170		99,496
GAMCO Investors, Inc., Class A		612		21,604
GFI Group, Inc.		10,144		45,445
Gleacher & Co., Inc. *		10,956		18,406
GLG Partners, Inc. *		26,914		120,306
Green Dot Corp., Class A *		438		19,824
Greenhill & Co., Inc.		4,581		322,640
Interactive Brokers Group, Inc., Class A *		6,053		97,998
International Assets Holding Corp. *		2,128		34,835
Investment Technology Group, Inc. *		6,544		86,970
Janus Capital Group, Inc.		28,873		262,167
KBW, Inc. *		5,454		119,824
Knight Capital Group, Inc., Class A *		13,893		165,049
LaBranche & Co., Inc. *		6,735		26,199
Life Partners Holdings, Inc.		1,099		16,232
MarketAxess Holdings, Inc.		4,382		67,001
MF Global Holdings Ltd. *		18,879		124,601
Nelnet, Inc., Class A		4,564		99,997
NewStar Financial, Inc. *		4,382		29,403

70 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
optionsXpress Holdings, Inc. *		7,034		100,164
Penson Worldwide, Inc. *		3,262		15,038
PHH Corp. *		8,509		157,502
PICO Holdings, Inc. *		3,025		84,458
Piper Jaffray Cos., Inc. *		3,248		89,710
Portfolio Recovery Associates, Inc. *		2,649		168,741
Pzena Investment Management, Inc., Class A		3,942		24,716
Stifel Financial Corp. *		5,402		233,799
SWS Group, Inc.		5,176		37,319
The First Marblehead Corp. *		9,840		20,172
The Student Loan Corp.		612		11,414
TradeStation Group, Inc. *		5,147		30,213
Waddell & Reed Financial, Inc., Class A		13,354		307,275
Westwood Holdings Group, Inc.		918		28,091
World Acceptance Corp. *		2,200		89,650

				4,088,414

Energy 5.7%
Allis-Chalmers Energy, Inc. *		6,573		25,437
Alon USA Energy, Inc.		1,836		9,951
American Oil & Gas, Inc. *		8,811		60,355
Apco Oil & Gas International, Inc.		1,378		35,828
Atlas Energy, Inc. *		12,178		331,242
ATP Oil & Gas Corp. *		6,727		76,755
Atwood Oceanics, Inc. *		8,767		219,876
Basic Energy Services, Inc. *		3,722		26,724
Berry Petroleum Co., Class A		7,231		196,322
Bill Barrett Corp. *		6,392		208,124
BPZ Resources, Inc. *		16,412		64,827
Brigham Exploration Co. *		18,174		278,426
Bristow Group, Inc. *		5,330		175,890
Bronco Drilling Co., Inc. *		3,574		14,082
Cal Dive International, Inc. *		14,755		67,430
CARBO Ceramics, Inc.		3,122		236,429
Carrizo Oil & Gas, Inc. *		4,799		100,587
Cheniere Energy, Inc. *		7,798		18,871
Clayton Williams Energy, Inc. *		1,377		63,039
Clean Energy Fuels Corp. *		6,066		87,654
Cloud Peak Energy, Inc. *		5,019		79,401
Complete Production Services, Inc. *		10,056		177,388
Comstock Resources, Inc. *		7,187		156,461
Contango Oil & Gas Co. *		2,088		91,559
Crosstex Energy, Inc. *		7,187		53,399
CVR Energy, Inc. *		8,614		61,332
Dawson Geophysical Co. *		1,224		29,572
Delek US Holdings, Inc.		2,194		14,722
Delta Petroleum Corp. *		28,190		19,451
DHT Holding, Inc.		7,799		30,182
Dresser-Rand Group, Inc. *		12,734		452,312
Dril-Quip, Inc. *		4,738		250,498
Energy Partners Ltd. *		5,418		59,219
Exterran Holdings, Inc. *		9,636		213,245
Frontier Oil Corp.		16,011		187,489
Gastar Exploration Ltd. *		6,880		20,640
General Maritime Corp.		12,884		57,591
Global Geophysical Services, Inc. *		3,790		22,399
Global Industries Ltd. *		16,258		74,218
GMX Resources, Inc. *		4,564		19,397
Goodrich Petroleum Corp. *		4,181		55,524
Green Plains Renewable Energy, Inc. *		2,633		24,487
Gulf Island Fabrication, Inc.		1,837		27,335
Gulfmark Offshore, Inc., Class A *		4,028		108,595
Gulfport Energy Corp. *		4,181		47,538
Hallador Energy Co.		3,133		34,369
Harvest Natural Resources, Inc. *		5,301		37,160
Helix Energy Solutions Group, Inc. *		14,833		134,980
Hercules Offshore, Inc. *		18,143		38,826
Holly Corp.		6,924		180,093
Hornbeck Offshore Services, Inc. *		3,722		58,808
Houston American Energy Corp.		2,785		25,065
International Coal Group, Inc. *		22,199		101,449
ION Geophysical Corp. *		18,069		61,796
Isramco, Inc. *		503		25,603
James River Coal Co. *		4,052		64,103
Key Energy Services, Inc. *		19,033		152,454
Kodiak Oil & Gas Corp. *		18,279		44,966
Lufkin Industries, Inc.		4,543		175,632
Mariner Energy, Inc. *		15,858		362,990
Matrix Service Co. *		4,381		37,282
McMoRan Exploration Co. *		13,170		186,882
Newpark Resources, Inc. *		13,916		121,487
Northern Oil and Gas, Inc. *		6,836		95,977
Oasis Petroleum, Inc. *		6,577		108,323
Oil States International, Inc. *		7,643		315,121
Overseas Shipholding Group, Inc.		4,178		134,532
OYO Geospace Corp. *		760		37,430
Parker Drilling Co. *		18,145		65,866
Patriot Coal Corp. *		11,842		121,736
Penn Virginia Corp.		6,953		96,925
Petroleum Development Corp. *		2,956		79,516
PetroQuest Energy, Inc. *		8,813		52,702
PHI, Inc. *		2,191		31,769
Pioneer Drilling Co. *		7,605		41,371
Rentech, Inc. *		33,621		23,535
Resolute Energy Corp. *		7,033		75,112
Rex Energy Corp. *		5,266		59,558
Rosetta Resources, Inc. *		8,258		162,683
RPC, Inc.		5,149		83,980
SandRidge Energy, Inc. *		57,033		230,413
SEACOR Holdings, Inc. *		3,507		275,896
Seahawk Drilling, Inc. *		1,531		11,023
Ship Finance International Ltd.		6,574		115,111
SM Energy Co.		9,690		368,123
Stone Energy Corp. *		6,326		71,547
Superior Energy Services, Inc. *		12,182		261,913
Superior Well Services, Inc. *		3,769		83,408
Swift Energy Co. *		5,902		159,059
T-3 Energy Services, Inc. *		1,990		43,939
Teekay Corp.		6,582		160,008
Tesco Corp. *		4,995		49,550
Tesoro Corp.		21,976		246,790
TETRA Technologies, Inc. *		11,876		99,640
Unit Corp. *		7,347		250,312
USEC, Inc. *		17,687		83,129
VAALCO Energy, Inc. *		8,769		49,896
Venoco, Inc. *		3,109		55,029
W&T Offshore, Inc.		5,652		51,094
Warren Resources, Inc. *		11,414		35,155
Western Refining, Inc. *		8,563		37,335
Willbros Group, Inc. *		6,178		48,374

See financial notes 71

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
World Fuel Services Corp.		9,144		233,538

				11,082,166

Food & Staples Retailing 0.9%
Arden Group, Inc., Class A		182		15,921
BJ’s Wholesale Club, Inc. *		8,364		350,954
Casey’s General Stores, Inc. *		7,823		294,301
Ingles Markets, Inc., Class A		1,914		28,289
Nash Finch Co.		2,067		81,171
PriceSmart, Inc.		2,515		64,912
Rite Aid Corp. *		95,667		83,383
Ruddick Corp.		6,544		211,829
Spartan Stores, Inc.		3,593		46,961
Susser Holdings Corp. *		1,608		18,669
The Andersons, Inc.		2,823		101,148
The Great Atlantic & Pacific Tea Co., Inc. *		5,635		17,130
The Pantry, Inc. *		3,568		67,150
United Natural Foods, Inc. *		6,219		216,048
Village Super Market, Inc., Class A		765		19,837
Weis Markets, Inc.		1,752		61,600
Winn-Dixie Stores, Inc. *		8,564		56,180

				1,735,483

Food, Beverage & Tobacco 1.7%
Alico, Inc.		640		13,184
Alliance One International, Inc. *		13,943		48,800
B&G Foods, Inc.		7,521		80,324
Cal-Maine Foods, Inc.		2,065		61,289
Calavo Growers, Inc.		2,071		40,654
Central European Distribution Corp. *		9,908		226,695
Chiquita Brands International, Inc. *		6,910		86,790
Coca-Cola Bottling Co. Consolidated		553		27,501
Corn Products International, Inc.		11,558		394,475
Darling International, Inc. *		13,024		97,940
Del Monte Foods Co.		31,060		405,022
Diamond Foods, Inc.		3,230		136,403
Dole Food Co., Inc. *		5,636		48,695
Farmer Brothers Co.		919		13,059
Fresh Del Monte Produce, Inc. *		6,601		145,024
J&J Snack Foods Corp.		2,110		79,652
Lancaster Colony Corp.		3,154		143,728
Lance, Inc.		5,024		108,066
Limoneira Co.		1,352		22,200
National Beverage Corp.		1,531		21,955
Pilgrim’s Pride Corp. *		6,923		43,338
Sanderson Farms, Inc.		3,293		141,632
Seneca Foods Corp., Class A *		1,368		34,145
Smart Balance, Inc. *		9,837		35,807
The Boston Beer Co., Inc., Class A *		838		55,065
The Hain Celestial Group, Inc. *		6,190		138,285
Tootsie Roll Industries, Inc.		3,673		86,719
TreeHouse Foods, Inc. *		5,470		227,005
Universal Corp.		3,819		136,186
Vector Group Ltd.		6,602		125,768

				3,225,406

Health Care Equipment & Services 6.8%
Abaxis, Inc. *		3,416		61,693
ABIOMED, Inc. *		5,149		46,598
Accretive Health, Inc. *		1,525		14,350
Accuray, Inc. *		8,126		53,469
AGA Medical Holdings, Inc. *		2,191		29,907
Air Methods Corp. *		1,761		64,241
Align Technology, Inc. *		11,354		181,948
Alimera Sciences, Inc. *		3,841		32,841
Alliance HealthCare Services, Inc. *		4,537		19,055
Allscripts Healthcare Solutions, Inc. *		23,728		396,495
Almost Family, Inc. *		1,244		31,436
Alphatec Holdings, Inc. *		9,860		20,312
Amedisys, Inc. *		4,411		101,982
American Medical Systems Holdings, Inc. *		11,598		211,316
AMERIGROUP Corp. *		8,032		296,381
AMN Healthcare Services, Inc. *		5,149		22,913
AmSurg Corp. *		4,578		76,315
Analogic Corp.		1,942		80,554
AngioDynamics, Inc. *		3,875		59,171
ArthroCare Corp. *		3,263		84,707
Assisted Living Concepts, Inc., Class A *		1,608		43,705
athenahealth, Inc. *		4,752		128,019
Atrion Corp.		244		33,975
Bio-Reference Labs, Inc. *		3,765		74,622
BioScrip, Inc. *		7,847		38,136
Brookdale Senior Living, Inc. *		8,574		114,892
Cantel Medical Corp.		2,067		29,703
CardioNet, Inc. *		3,874		16,968
Catalyst Health Solutions, Inc. *		6,011		240,981
Centene Corp. *		8,005		161,861
Chemed Corp.		3,545		176,895
Clarient, Inc. *		9,421		31,089
Computer Programs & Systems, Inc.		1,761		71,954
Conceptus, Inc. *		3,875		53,533
CONMED Corp. *		4,537		83,980
Continucare Corp. *		4,913		15,967
CorVel Corp. *		1,100		40,458
Cross Country Healthcare, Inc. *		4,564		33,819
CryoLife, Inc. *		4,535		23,537
Cyberonics, Inc. *		4,105		87,970
Dexcom, Inc. *		6,840		83,790
Emdeon, Inc., Class A *		6,778		69,475
Emergency Medical Services Corp., Class A *		4,699		225,787
Emeritus Corp. *		3,110		47,832
Genoptix, Inc. *		2,651		45,624
Gentiva Health Services, Inc. *		4,536		93,215
Greatbatch, Inc. *		3,597		78,954
Haemonetics Corp. *		3,944		205,404
Hanger Orthopedic Group, Inc. *		4,843		63,201
Health Management Associates, Inc., Class A *		38,003		237,519
Health Net, Inc. *		15,634		373,340
HEALTHSOUTH Corp. *		14,475		235,363
Healthspring, Inc. *		8,183		169,879
Healthways, Inc. *		5,327		66,588
Hill-Rom Holdings, Inc.		9,837		315,768
HMS Holdings Corp. *		4,455		232,462
ICU Medical, Inc. *		1,797		64,027
Immucor, Inc. *		10,707		188,443
Insulet Corp. *		5,024		66,417

72 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Integra LifeSciences Holdings Corp. *		3,272		113,767
Invacare Corp.		4,995		114,385
IPC The Hospitalist Co. *		2,373		55,433
IRIS International, Inc. *		2,804		21,521
Kensey Nash Corp. *		1,502		39,833
Kindred Healthcare, Inc. *		6,144		72,192
Landauer, Inc.		1,439		80,872
LHC Group, Inc. *		2,296		45,943
LifePoint Hospitals, Inc. *		8,564		260,517
Magellan Health Services, Inc. *		5,192		227,462
MAKO Surgical Corp. *		3,952		41,259
Masimo Corp.		8,348		190,000
MedAssets, Inc. *		7,062		139,969
MedCath Corp. *		2,649		21,166
Medidata Solutions, Inc. *		3,137		53,831
MEDNAX, Inc. *		7,326		339,487
MedQuist, Inc.		1,833		13,473
MELA Sciences, Inc. *		3,393		23,344
Meridian Bioscience, Inc.		6,295		115,073
Merit Medical Systems, Inc. *		4,409		69,574
Micrus Endovascular Corp. *		2,128		49,816
Molina Healthcare, Inc. *		2,067		52,419
MWI Veterinary Supply, Inc. *		1,752		93,031
National Healthcare Corp.		1,377		47,796
Natus Medical, Inc. *		4,412		53,253
Neogen Corp. *		3,416		99,816
NuVasive, Inc. *		6,077		178,360
NxStage Medical, Inc. *		4,107		64,767
Omnicell, Inc. *		5,023		56,032
OraSure Technologies, Inc. *		7,367		24,900
Orthofix International N.V. *		2,650		70,755
Orthovita, Inc. *		12,208		20,021
Owens & Minor, Inc.		9,724		259,242
Palomar Medical Technologies, Inc. *		2,956		26,131
PharMerica Corp. *		4,718		36,612
PSS World Medical, Inc. *		8,993		165,111
Psychiatric Solutions, Inc. *		8,239		274,771
Quality Systems, Inc.		2,804		157,164
Quidel Corp. *		4,181		50,548
RehabCare Group, Inc. *		3,922		64,948
Res-Care, Inc. *		4,027		49,935
RTI Biologics, Inc. *		8,793		18,641
Select Medical Holdings Corp. *		8,981		64,214
Sirona Dental Systems, Inc. *		6,332		199,585
Skilled Healthcare Group, Inc., Class A *		12,210		41,026
SonoSite, Inc. *		2,269		66,073
Stereotaxis, Inc. *		6,330		19,940
STERIS Corp.		8,403		241,754
Sun Healthcare Group, Inc. *		10,220		82,782
SurModics, Inc. *		2,526		30,388
Symmetry Medical, Inc. *		5,707		51,306
Synovis Life Technologies, Inc. *		1,759		24,626
Team Health Holdings, Inc. *		2,073		26,141
Tenet Healthcare Corp. *		74,727		292,930
The Cooper Cos., Inc.		7,039		283,953
The Ensign Group, Inc.		1,989		33,097
Thoratec Corp. *		8,919		287,192
TomoTherapy, Inc. *		8,764		26,993
Triple-S Management Corp., Class B *		3,262		51,931
Unilife Corp. *		7,899		38,705
Universal American Financial Corp.		6,299		86,989
VCA Antech, Inc. *		13,111		259,204
Volcano Corp. *		6,602		145,904
WellCare Health Plans, Inc. *		6,601		163,771
West Pharmaceutical Services, Inc.		5,148		173,076
Wright Medical Group, Inc. *		5,913		78,466
Zoll Medical Corp. *		3,255		85,997

				13,060,049

Household & Personal Products 0.9%
Central Garden & Pet Co., Class A *		9,564		89,328
Elizabeth Arden, Inc. *		4,258		69,703
Herbalife Ltd.		9,401		522,508
Inter Parfums, Inc.		2,220		36,452
Medifast, Inc. *		1,978		52,852
NBTY, Inc. *		8,943		487,304
Nu Skin Enterprises, Inc., Class A		8,030		205,327
Prestige Brands Holdings, Inc. *		6,908		51,119
Revlon, Inc., Class A *		1,761		19,107
Spectrum Brands Holdings, Inc. *		2,920		74,489
USANA Health Sciences, Inc. *		1,557		66,173
WD-40 Co.		2,374		83,494

				1,757,856

Insurance 3.2%
Ambac Financial Group, Inc. *		46,804		25,555
American Equity Investment Life Holding Co.		9,101		86,369
American Physicians Capital, Inc.		1,201		49,649
AMERISAFE, Inc. *		2,985		52,446
AmTrust Financial Services, Inc.		3,722		50,805
Argo Group International Holdings Ltd.		4,842		147,536
Arthur J. Gallagher & Co.		15,862		394,171
Aspen Insurance Holdings Ltd.		11,325		321,630
Baldwin & Lyons, Inc., Class B		1,475		32,730
Citizens, Inc. *		5,608		37,798
CNA Surety Corp. *		2,498		41,866
CNO Financial Group, Inc. *		38,922		184,101
Crawford & Co., Class B *		10,731		28,652
Delphi Financial Group, Inc., Class A		7,216		160,917
Donegal Group, Inc., Class A		2,067		22,654
eHealth, Inc. *		3,722		37,704
EMC Insurance Group, Inc.		814		16,752
Employers Holdings, Inc.		6,504		95,349
Endurance Specialty Holdings Ltd.		7,603		280,095
Enstar Group Ltd. *		1,100		76,582
Erie Indemnity Co., Class A		4,506		236,565
FBL Financial Group, Inc., Class A		2,067		47,541
First Mercury Financial Corp.		2,344		21,354
Flagstone Reinsurance Holdings S.A.		5,607		56,463
FPIC Insurance Group, Inc. *		1,538		46,678
Global Indemnity plc *		2,275		37,583
Greenlight Capital Re Ltd., Class A *		4,689		108,410
Harleysville Group, Inc.		1,989		63,409
Hilltop Holdings, Inc. *		6,574		64,885
Horace Mann Educators Corp.		6,164		101,090
Infinity Property & Casualty Corp.		2,068		95,852
Kansas City Life Insurance Co.		612		18,642
Maiden Holdings Ltd.		9,531		69,862
MBIA, Inc. *		24,586		230,125
Meadowbrook Insurance Group, Inc.		8,298		71,280

See financial notes 73

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Mercury General Corp.		4,106		161,037
Montpelier Re Holdings Ltd.		11,981		189,779
National Financial Partners Corp. *		6,574		69,947
National Interstate Corp.		1,071		20,574
National Western Life Insurance Co., Class A		335		42,900
OneBeacon Insurance Group Ltd., Class A		3,569		46,575
Platinum Underwriters Holdings Ltd.		7,091		285,129
PMA Capital Corp., Class A *		5,147		35,566
Presidential Life Corp.		3,416		29,514
Primerica, Inc.		2,924		61,492
ProAssurance Corp. *		5,022		265,915
Protective Life Corp.		13,821		258,176
RLI Corp.		2,727		143,058
Safety Insurance Group, Inc.		2,364		96,333
Seabright Holdings, Inc.		3,444		24,349
Selective Insurance Group, Inc.		8,333		123,828
StanCorp Financial Group, Inc.		7,376		262,807
State Auto Financial Corp.		2,220		31,036
Stewart Information Services Corp.		2,679		27,942
Symetra Financial Corp.		14,612		156,933
The Navigators Group, Inc. *		2,078		86,923
The Phoenix Cos., Inc. *		17,710		31,524
Tower Group, Inc.		6,193		132,902
United Fire & Casualty Co.		3,597		72,767
Unitrin, Inc.		7,018		167,028
Universal Insurance Holdings, Inc.		3,089		12,850

				6,249,984

Materials 5.7%
A. Schulman, Inc.		4,685		85,126
A.M. Castle & Co. *		2,956		41,207
AK Steel Holding Corp.		17,177		218,835
Allied Nevada Gold Corp. *		12,200		286,090
AMCOL International Corp.		4,103		107,170
American Vanguard Corp.		3,799		25,111
Arch Chemicals, Inc.		3,875		119,040
Balchem Corp.		4,400		107,580
Boise, Inc. *		13,050		89,784
Brush Engineered Materials, Inc. *		3,110		74,795
Buckeye Technologies, Inc.		6,066		72,064
Cabot Corp.		7,760		220,617
Calgon Carbon Corp. *		8,795		109,762
Carpenter Technology Corp.		6,884		213,473
Cellu Tissue Holdings, Inc. *		3,401		25,916
Century Aluminum Co. *		8,806		88,060
Clearwater Paper Corp. *		1,752		119,066
Coeur d’Alene Mines Corp. *		13,689		234,903
Commercial Metals Co.		17,685		230,436
Compass Minerals International, Inc.		5,021		360,257
Cytec Industries, Inc.		7,518		356,579
Deltic Timber Corp.		1,806		73,739
Domtar Corp.		6,575		394,631
Eagle Materials, Inc.		6,670		153,076
Ferro Corp. *		13,401		143,391
Glatfelter		7,215		73,809
Graham Packaging Co., Inc. *		2,650		29,627
Graphic Packaging Holding Co. *		12,869		39,250
Greif, Inc., Class A		5,301		301,362
H.B. Fuller Co.		7,412		140,754
Haynes International, Inc.		1,836		53,758
Headwaters, Inc. *		9,513		29,205
Hecla Mining Co. *		37,303		213,373
Horsehead Holding Corp. *		6,881		54,498
Innophos Holdings, Inc.		2,633		76,805
Kaiser Aluminum Corp.		2,347		86,651
KapStone Paper and Packaging Corp. *		6,482		73,830
Koppers Holdings, Inc.		3,262		65,240
Kraton Performance Polymers, Inc. *		1,628		43,989
Kronos Worldwide, Inc. *		1,314		40,024
Louisiana-Pacific Corp. *		19,929		132,727
LSB Industries, Inc. *		2,832		46,955
Metals USA Holdings Corp. *		1,535		17,990
Minerals Technologies, Inc.		2,871		153,886
Molycorp, Inc. *		3,358		56,247
Myers Industries, Inc.		5,147		32,786
Neenah Paper, Inc.		2,345		34,518
NewMarket Corp.		1,710		171,906
NL Industries, Inc.		3,884		29,596
Noranda Aluminium Holding Corp. *		1,800		14,346
Olin Corp.		10,559		189,112
Olympic Steel, Inc.		1,475		32,509
OM Group, Inc. *		4,842		123,955
Omnova Solutions, Inc. *		6,786		41,395
Packaging Corp. of America		15,857		353,453
PolyOne Corp. *		13,502		131,644
Rock-Tenn Co., Class A		5,958		287,056
Rockwood Holdings, Inc. *		7,952		205,559
Royal Gold, Inc.		8,151		399,970
RPM International, Inc.		20,037		338,625
RTI International Metals, Inc. *		4,717		130,189
Schnitzer Steel Industries, Inc., Class A		3,518		155,636
Schweitzer-Mauduit International, Inc.		2,894		155,813
Sensient Technologies Corp.		7,646		212,024
Silgan Holdings, Inc.		7,905		236,280
Solutia, Inc. *		18,854		255,283
Spartech Corp. *		4,870		43,489
Stepan Co.		1,209		67,039
Stillwater Mining Co. *		7,338		100,531
STR Holdings, Inc. *		6,508		134,520
Temple-Inland, Inc.		16,718		266,318
Texas Industries, Inc.		3,533		106,838
Titanium Metals Corp. *		13,455		243,805
TPC Group, Inc. *		2,645		45,970
United States Lime & Minerals, Inc. *		304		11,631
US Gold Corp. *		14,370		74,293
Valhi, Inc.		2,232		39,774
W.R. Grace & Co. *		9,290		235,037
Wausau Paper Corp. *		7,950		50,324
Westlake Chemical Corp.		2,821		73,120
Worthington Industries, Inc.		10,169		144,603
Zep, Inc.		3,444		59,616
Zoltek Cos., Inc. *		4,384		37,308

				10,946,559

Media 1.7%
Arbitron, Inc.		4,106		104,457
Ascent Media Corp., Class A *		2,217		59,205
Belo Corp., Class A *		14,372		75,166
Cinemark Holdings, Inc.		9,095		132,878

74 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
CKX, Inc. *		10,145		47,580
Crown Media Holdings, Inc., Class A *		10,540		22,556
Dex One Corp. *		7,799		66,447
Entercom Communications Corp., Class A *		3,849		21,170
Entravision Communications Corp., Class A *		7,899		12,322
Fisher Communications, Inc. *		918		15,312
Harte-Hanks, Inc.		6,066		62,055
Journal Communications, Inc., Class A *		6,726		26,635
Knology, Inc. *		4,871		57,137
Lamar Advertising Co., Class A *		9,072		237,777
Liberty Media Corp. - Capital, Series A *		13,306		599,835
LIN TV Corp., Class A *		4,305		17,177
Live Nation Entertainment, Inc. *		22,088		190,840
Madison Square Garden, Inc., Class A *		9,111		178,439
Martha Stewart Living Omnimedia, Class A *		4,105		17,816
Mediacom Communications Corp., Class A *		6,218		35,940
Meredith Corp.		5,601		163,885
Morningstar, Inc. *		3,318		134,213
National CineMedia, Inc.		6,575		104,477
PRIMEDIA, Inc.		3,415		10,757
ReachLocal, Inc. *		1,978		25,734
Regal Entertainment Group, Class A		12,211		150,317
Scholastic Corp.		4,259		99,788
Sinclair Broadcast Group, Inc., Class A *		7,797		46,626
SuperMedia, Inc. *		2,345		21,199
The Dolan Media Co. *		4,313		39,550
The E.W. Scripps Co., Class A *		5,192		35,254
The McClatchy Co., Class A *		8,811		23,613
The New York Times Co., Class A *		15,188		109,050
Valassis Communications, Inc. *		7,795		228,471
Value Line, Inc.		1,497		19,790
Warner Music Group Corp. *		8,487		35,476
World Wrestling Entertainment, Inc., Class A		4,181		58,618

				3,287,562

Pharmaceuticals, Biotechnology & Life Sciences 4.3%
Abraxis BioScience, Inc. *		918		67,326
Acorda Therapeutics, Inc. *		5,804		174,816
Acura Pharmaceuticals, Inc. *		1,530		3,733
Aedea Biosciences, Inc. *		2,049		41,267
Affymax, Inc. *		1,915		10,762
Affymetrix, Inc. *		11,110		45,662
Akorn, Inc. *		8,562		29,282
Albany Molecular Research, Inc. *		3,597		21,834
Alkermes, Inc. *		14,561		193,079
Allos Therapeutics, Inc. *		12,488		45,581
Alnylam Pharmaceuticals, Inc. *		5,608		76,830
AMAG Pharmaceuticals, Inc. *		3,286		82,807
Arena Pharmaceuticals, Inc. *		16,285		106,015
ARIAD Pharmaceuticals, Inc. *		17,102		59,857
ArQule, Inc. *		4,535		23,673
Array BioPharma, Inc. *		6,754		18,168
Auxilium Pharmaceuticals, Inc. *		7,364		190,801
AVEO Pharmaceuticals, Inc. *		1,368		11,929
Bio-Rad Laboratories, Inc., Class A *		2,993		247,012
BioCryst Pharmaceuticals, Inc. *		4,717		22,359
Biodel, Inc. *		2,497		9,289
BioMarin Pharmaceutical, Inc. *		15,695		318,452
BioMimetic Therapeutics, Inc. *		2,280		20,794
Bruker Corp. *		11,327		134,678
Cadence Pharmaceuticals, Inc. *		4,994		39,453
Cambrex Corp. *		4,311		17,977
Caraco Pharmaceutical Laboratories Ltd. *		4,469		24,535
Celera Corp. *		12,718		83,939
Cell Therapeutics, Inc. *		90,840		33,611
Cepheid, Inc. *		9,380		137,980
Clinical Data, Inc. *		2,345		35,058
Codexis, Inc. *		3,048		24,719
Cubist Pharmaceuticals, Inc. *		9,072		199,856
Cumberland Pharmaceuticals, Inc. *		2,354		11,888
Cypress Bioscience, Inc. *		6,065		19,651
Cytori Therapeutics, Inc. *		6,243		28,156
Dionex Corp. *		2,749		199,302
Durect Corp. *		12,186		25,347
Dyax Corp. *		15,135		34,508
Emergent Biosolutions, Inc. *		2,498		45,364
Enzo Biochem, Inc. *		5,990		21,205
Enzon Pharmaceuticals, Inc. *		8,260		84,748
eResearchTechnology, Inc. *		7,646		56,619
Exelixis, Inc. *		16,718		49,485
Genomic Health, Inc. *		2,546		36,815
GenVec, Inc. *		18,887		8,688
Geron Corp. *		15,486		71,545
GTx, Inc. *		2,191		6,902
Halozyme Therapeutics, Inc. *		12,181		93,063
Hi-Tech Pharmacal Co., Inc. *		1,520		26,372
Idenix Pharmaceuticals, Inc. *		6,445		38,734
ImmunoGen, Inc. *		10,402		55,755
Immunomedics, Inc. *		10,443		29,867
Impax Laboratories, Inc. *		8,356		130,939
Incyte Corp. *		17,532		219,501
Inspire Pharmaceuticals, Inc. *		10,599		51,405
InterMune, Inc. *		7,058		73,544
Ironwood Pharmaceuticals, Inc. *		2,650		24,565
Isis Pharmaceuticals, Inc. *		14,692		115,185
Jazz Pharmaceuticals, Inc. *		3,757		33,437
Kendle International, Inc. *		2,373		18,581
Lexicon Pharmaceuticals, Inc. *		36,676		52,630
Ligand Pharmaceuticals, Inc., Class B *		16,415		23,966
Luminex Corp. *		6,579		94,343
MannKind Corp. *		10,143		56,344
MAP Pharmaceuticals, Inc. *		2,498		27,016
Martek Biosciences Corp. *		5,177		112,962
Maxygen, Inc. *		3,799		20,970
Medicis Pharmaceutical Corp., Class A		9,424		259,160
Medivation, Inc. *		5,329		50,812
Metabolix, Inc. *		3,800		43,016
Micromet, Inc. *		12,338		75,755
Momenta Pharmaceuticals, Inc. *		6,066		87,654
Nabi Biopharmaceuticals *		7,159		34,721
Nektar Therapeutics *		14,604		187,077
Neurocrine Biosciences, Inc. *		8,272		44,503

See financial notes 75

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Novavax, Inc. *		12,572		25,270
NPS Pharmaceuticals, Inc. *		8,998		58,577
Obagi Medical Products, Inc. *		2,432		25,560
Onyx Pharmaceuticals, Inc. *		9,728		234,348
Opko Health, Inc. *		21,910		45,354
Optimer Pharmaceuticals, Inc. *		5,341		42,942
Orexigen Therapeutics, Inc. *		5,453		23,993
Osiris Therapeutics, Inc. *		2,958		19,316
Pain Therapeutics, Inc. *		5,482		31,001
Par Pharmaceutical Cos., Inc. *		5,454		143,822
PAREXEL International Corp. *		9,121		181,417
PDL BioPharma, Inc.		18,756		106,159
Pharmacyclics, Inc. *		5,722		40,397
Pharmasset, Inc. *		4,414		107,216
POZEN, Inc. *		3,874		26,227
Progenics Pharmaceuticals, Inc. *		4,258		17,202
Questcor Pharmaceuticals, Inc. *		7,973		77,258
Regeneron Pharmaceuticals, Inc. *		10,040		220,679
Rigel Pharmaceuticals, Inc. *		8,180		64,049
Salix Pharmaceuticals Ltd. *		8,856		335,288
Sangamo BioSciences, Inc. *		6,598		19,563
Santarus, Inc. *		7,394		16,784
Savient Pharmaceuticals, Inc. *		10,444		150,602
Seattle Genetics, Inc. *		12,882		147,499
Sequenom, Inc. *		9,560		58,603
SIGA Technologies, Inc. *		5,329		39,941
StemCells, Inc. *		19,364		14,542
Sucampo Pharmaceuticals, Inc., Class A *		6,284		21,051
Synta Pharmaceuticals Corp. *		4,096		11,346
Targacept, Inc. *		2,832		58,821
The Medicines Co. *		8,258		94,967
Theravance, Inc. *		9,665		116,850
Vanda Pharmaceuticals, Inc. *		3,597		22,553
ViroPharma, Inc. *		12,279		153,979
VIVUS, Inc. *		12,641		71,295
XenoPort, Inc. *		4,586		26,415
ZymoGenetics, Inc. *		7,814		39,070

				8,225,190

Real Estate 9.6%
Acadia Realty Trust		6,297		112,968
Alexander’s, Inc.		584		177,857
Alexandria Real Estate Equities, Inc.		6,899		478,584
American Campus Communities, Inc.		9,850		293,431
American Capital Agency Corp.		4,702		128,082
Anworth Mortgage Asset Corp.		17,832		121,436
Apartment Investment & Management Co., Class A		18,191		371,824
Ashford Hospitality Trust *		8,222		66,023
Associated Estates Realty Corp.		4,917		66,675
Avatar Holdings, Inc. *		1,225		21,340
BioMed Realty Trust, Inc.		17,749		303,330
Brandywine Realty Trust		20,335		223,482
BRE Properties, Inc.		9,965		407,369
Camden Property Trust		10,284		470,596
CapLease, Inc.		8,334		42,837
Capstead Mortgage Corp.		10,953		127,274
CBL & Associates Properties, Inc.		21,365		260,653
Cedar Shopping Centers, Inc.		7,910		43,663
Chimera Investment Corp.		110,190		433,047
Cogdell Spencer, Inc.		7,764		47,982
Colonial Properties Trust		10,159		161,122
Colony Financial, Inc.		2,360		41,819
CommonWealth REIT		10,077		243,057
Corporate Office Properties Trust		9,245		333,744
Cousins Properties, Inc.		14,115		92,736
CreXus Investment Corp.		2,586		30,851
Cypress Sharpridge Investments, Inc.		4,251		57,261
DCT Industrial Trust, Inc.		32,748		151,623
Developers Diversified Realty Corp.		29,376		304,335
DiamondRock Hospitality Co. *		23,562		206,403
Douglas Emmett, Inc.		18,870		304,184
Duke Realty Corp.		38,443		430,946
DuPont Fabros Technology, Inc.		8,884		219,524
EastGroup Properties, Inc.		4,255		149,989
Education Realty Trust, Inc.		8,944		61,177
Entertainment Properties Trust		7,227		311,411
Equity Lifestyle Properties, Inc.		4,725		244,424
Equity One, Inc.		6,600		105,534
Essex Property Trust, Inc.		4,688		495,850
Extra Space Storage, Inc.		13,222		202,164
FelCor Lodging Trust, Inc. *		14,473		57,603
First Industrial Realty Trust, Inc. *		8,944		38,012
First Potomac Realty Trust		5,625		83,419
Forest City Enterprises, Inc., Class A *		18,648		210,163
Forestar Group, Inc. *		5,607		83,432
Franklin Street Properties Corp.		11,415		133,898
Getty Realty Corp.		3,462		85,961
Glimcher Realty Trust		10,684		63,463
Government Properties Income Trust		3,942		101,191
Hatteras Financial Corp.		5,636		163,331
Healthcare Realty Trust, Inc.		9,696		226,983
Hersha Hospitality Trust		18,841		89,306
Highwoods Properties, Inc.		11,070		346,270
Home Properties, Inc.		5,646		285,123
Hospitality Properties Trust		19,216		375,673
Hudson Pacific Properties, Inc. *		2,017		33,281
Inland Real Estate Corp.		11,598		89,421
Invesco Mortgage Capital		3,979		83,241
Investors Real Estate Trust		11,596		95,087
iStar Financial, Inc. *		15,342		53,544
Jones Lang LaSalle, Inc.		6,365		480,621
Kennedy-Wilson Holdings, Inc. *		4,995		49,450
Kilroy Realty Corp.		8,212		255,475
Kite Realty Group Trust		9,838		41,024
LaSalle Hotel Properties		10,866		228,947
Lexington Realty Trust		16,957		113,103
LTC Properties, Inc.		3,598		88,799
Mack-Cali Realty Corp.		12,317		379,979
Medical Properties Trust, Inc.		16,682		164,151
MFA Financial, Inc.		43,537		320,868
Mid-America Apartment Communities, Inc.		4,689		264,788
National Health Investors, Inc.		3,577		149,948
National Retail Properties, Inc.		12,996		316,583
NorthStar Realty Finance Corp.		11,137		35,416
OMEGA Healthcare Investors, Inc.		14,477		310,532
Parkway Properties, Inc.		3,416		49,942
Pebblebrook Hotel Trust *		5,548		98,422
Pennsylvania Real Estate Investment Trust		8,088		84,600
Pennymac Mortgage Investment Trust		2,650		46,296

76 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Post Properties, Inc.		7,463		189,560
Potlatch Corp.		6,219		208,336
PS Business Parks, Inc.		2,957		166,390
Ramco-Gershenson Properties Trust		5,818		60,740
Redwood Trust, Inc.		10,986		151,717
Saul Centers, Inc.		1,236		51,096
Senior Housing Properties Trust		19,787		464,994
Sovran Self Storage, Inc.		4,256		160,749
Starwood Property Trust, Inc.		7,448		141,661
Sun Communities, Inc.		2,779		79,507
Sunstone Hotel Investors, Inc. *		15,518		132,989
Tanger Factory Outlet Centers, Inc.		6,297		291,047
Taubman Centers, Inc.		8,500		352,665
Tejon Ranch Co. *		2,228		47,323
U-Store-It Trust		12,942		103,536
UDR, Inc.		25,264		519,933
Universal Health Realty Income Trust		1,761		56,017
Urstadt Biddle Properties, Class A		2,832		51,996
Urstadt Biddle Properties		1,755		27,396
Walter Investment Management Corp.		4,104		66,526
Washington Real Estate Investment Trust		9,407		288,230
Weingarten Realty Investors		18,637		376,095
Winthrop Realty Trust		2,633		36,072

				18,548,528

Retailing 4.9%
1-800-FLOWERS.COM, Inc., Class A *		13,092		20,816
99 Cents Only Stores *		7,215		126,262
Aaron’s, Inc.		11,469		186,830
Aeropostale, Inc. *		14,692		312,940
America’s Car-Mart, Inc. *		1,672		41,800
AnnTaylor Stores Corp. *		9,225		141,419
Asbury Automotive Group, Inc. *		5,044		60,175
Audiovox Corp., Class A *		2,805		17,756
Barnes & Noble, Inc.		6,067		91,854
bebe stores, Inc.		5,448		30,999
Big 5 Sporting Goods Corp.		2,985		35,417
Big Lots, Inc. *		12,637		395,033
Blue Nile, Inc. *		2,227		91,441
Brown Shoe Co., Inc.		6,756		71,073
Cabela’s, Inc. *		6,574		102,423
Charming Shoppes, Inc. *		15,646		52,727
Chico’s FAS, Inc.		27,188		224,301
Christopher & Banks Corp.		5,788		37,275
Citi Trends, Inc. *		2,383		53,856
Coldwater Creek, Inc. *		9,225		39,760
Collective Brands, Inc. *		9,852		127,386
Conn’s, Inc. *		5,309		23,094
Core-Mark Holding Co., Inc. *		1,530		39,612
Dick’s Sporting Goods, Inc. *		13,398		327,849
Dillard’s, Inc., Class A		8,642		189,001
Drugstore.Com, Inc. *		10,684		16,774
DSW, Inc., Class A *		2,250		53,437
Express, Inc. *		2,574		35,032
Foot Locker, Inc.		24,049		282,335
Fred’s, Inc., Class A		5,515		60,775
Gaiam, Inc., Class A		2,650		14,230
Genesco, Inc. *		3,720		93,893
Group 1 Automotive, Inc. *		3,722		93,943
Haverty Furniture Cos., Inc.		2,937		28,225
hhgregg, Inc. *		3,417		64,581
Hibbett Sports, Inc. *		4,432		102,734
Hot Topic, Inc.		7,032		36,496
HSN, Inc. *		6,219		163,497
J. Crew Group, Inc. *		8,130		247,884
Jo-Ann Stores, Inc. *		4,243		172,520
Jos. A. Bank Clothiers, Inc. *		4,243		154,978
Kirkland’s, Inc. *		1,824		20,812
LKQ Corp. *		21,776		405,034
Lumber Liquidators Holdings, Inc. *		2,511		50,295
MarineMax, Inc. *		3,393		22,258
Monro Muffler Brake, Inc.		3,109		130,205
New York & Co., Inc. *		4,382		8,150
NutriSystem, Inc.		4,842		85,025
Office Depot, Inc. *		43,015		146,681
OfficeMax, Inc. *		13,197		128,539
Orbitz Worldwide, Inc. *		3,369		16,980
Overstock.com, Inc. *		2,526		35,490
Pacific Sunwear Of California, Inc. *		10,144		38,243
Penske Automotive Group, Inc. *		7,161		86,004
PetMed Express, Inc.		3,597		55,574
Pier 1 Imports, Inc. *		16,406		100,077
RadioShack Corp.		19,465		359,713
Rent-A-Center, Inc.		10,126		203,330
Retail Ventures, Inc. *		1,838		15,513
Rue21, Inc. *		2,431		51,270
Saks, Inc. *		21,652		170,834
Sally Beauty Holdings, Inc. *		14,974		129,226
Select Comfort Corp. *		8,355		45,117
Shoe Carnival, Inc. *		1,368		22,613
Shutterfly, Inc. *		4,158		92,432
Signet Jewelers Ltd. *		13,296		351,546
Sonic Automotive, Inc., Class A *		5,454		48,050
Stage Stores, Inc.		6,067		67,708
Stamps.com, Inc. *		1,914		21,896
Stein Mart, Inc. *		4,258		30,764
Systemax, Inc.		793		9,334
The Buckle, Inc.		4,181		100,135
The Cato Corp., Class A		4,144		95,105
The Children’s Place Retail Stores, Inc. *		2,988		130,456
The Dress Barn, Inc. *		10,774		224,638
The Finish Line, Inc., Class A		7,837		103,448
The Gymboree Corp. *		4,591		172,759
The Men’s Wearhouse, Inc.		7,340		141,515
The Pep Boys-Manny, Moe & Jack		7,827		70,600
The Talbots, Inc. *		5,461		54,501
The Wet Seal, Inc., Class A *		15,369		46,414
Tractor Supply Co.		5,639		383,339
Ulta Salon, Cosmetics & Fragrance, Inc. *		5,454		123,533
Vitacost.com, Inc. *		3,651		20,446
Vitamin Shoppe, Inc. *		1,977		48,259
Williams-Sonoma, Inc.		14,985		389,011
Zumiez, Inc. *		3,263		48,521

				9,563,826

Semiconductors & Semiconductor Equipment 4.1%
Actel Corp. *		4,106		58,716
Advanced Analogic Technologies, Inc. *		6,925		22,437

See financial notes 77

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Advanced Energy Industries, Inc. *		5,553		78,353
Amkor Technology, Inc. *		17,608		89,273
ANADIGICS, Inc. *		10,141		40,716
Applied Micro Circuits Corp. *		10,374		111,832
Atheros Communications *		10,662		262,925
Atmel Corp. *		62,513		362,575
ATMI, Inc. *		4,871		62,227
Brooks Automation, Inc. *		9,557		64,796
Cabot Microelectronics Corp. *		3,667		109,753
Cavium Networks, Inc. *		6,893		166,397
Ceva, Inc. *		3,089		37,377
Cirrus Logic, Inc. *		9,225		139,482
Cohu, Inc.		3,513		40,329
Conexant Systems, Inc. *		12,356		18,410
Cymer, Inc. *		4,708		138,556
Cypress Semiconductor Corp. *		25,526		270,193
Diodes, Inc. *		5,327		78,573
DSP Group, Inc. *		3,568		24,013
Entegris, Inc. *		20,488		78,879
Entropic Communications, Inc. *		8,051		61,268
Exar Corp. *		5,912		32,161
Fairchild Semiconductor International, Inc. *		19,599		151,500
FEI Co. *		5,761		95,978
FormFactor, Inc. *		7,827		54,946
Hittite Microwave Corp. *		2,955		125,735
Integrated Device Technology, Inc. *		25,004		128,020
International Rectifier Corp. *		10,995		201,758
Intersil Corp., Class A		18,880		188,706
IXYS Corp. *		3,952		37,386
Kopin Corp. *		10,532		29,648
Kulicke & Soffa Industries, Inc. *		10,450		59,983
Lattice Semiconductor Corp. *		17,991		74,663
LTX-Credence Corp. *		22,633		48,887
MaxLinear, Inc., Class A *		2,260		25,764
Micrel, Inc.		6,755		59,748
Microsemi Corp. *		12,798		179,172
MKS Instruments, Inc. *		6,909		119,249
Monolithic Power Systems, Inc. *		5,483		89,976
Netlogic Microsystems, Inc. *		8,885		214,573
Novellus Systems, Inc. *		15,224		354,719
OmniVision Technologies, Inc. *		7,962		163,221
Pericom Semiconductor Corp. *		4,001		33,808
PMC-Sierra, Inc. *		35,163		243,328
Power Integrations, Inc.		4,341		118,900
Rambus, Inc. *		17,838		318,052
RF Micro Devices, Inc. *		38,201		186,421
Rubicon Technology, Inc. *		2,407		58,996
Rudolph Technologies, Inc. *		4,761		37,636
Semtech Corp. *		9,683		160,689
Sigma Designs, Inc. *		4,866		46,227
Silicon Image, Inc. *		11,725		42,445
Silicon Laboratories, Inc. *		7,089		270,374
Skyworks Solutions, Inc. *		27,497		491,096
Spansion, Inc., Class A *		3,078		45,339
Standard Microsystems Corp. *		3,416		61,898
Supertex, Inc. *		1,761		38,760
Teradyne, Inc. *		27,693		248,683
Tessera Technologies, Inc. *		7,799		118,545
Trident Microsystems, Inc. *		10,294		15,647
TriQuint Semiconductor, Inc. *		23,828		165,605
Ultratech, Inc. *		3,445		57,221
Veeco Instruments, Inc. *		6,311		209,715
Volterra Semiconductor Corp. *		4,250		85,213
Zoran Corp. *		8,030		64,882

				7,872,353

Software & Services 7.6%
ACI Worldwide, Inc. *		5,350		101,597
Actuate Corp. *		6,938		27,683
Acxiom Corp. *		12,410		153,822
Advent Software, Inc. *		2,296		114,042
Ancestry.com, Inc. *		3,017		58,077
Archipelago Learning, Inc. *		1,294		13,522
ArcSight, Inc. *		4,785		183,744
Ariba, Inc. *		13,885		214,801
Art Technology Group, Inc. *		24,138		84,242
Aspen Technology, Inc. *		9,837		94,238
Blackbaud, Inc.		6,624		137,912
Blackboard, Inc. *		5,306		175,576
Bottomline Technologies, Inc. *		4,825		67,598
BroadSoft, Inc. *		2,306		18,840
CACI International, Inc., Class A *		4,718		192,542
Cadence Design Systems, Inc. *		41,686		283,465
Cass Information Systems, Inc.		1,224		40,147
CIBER, Inc. *		9,864		27,027
CommVault Systems, Inc. *		6,296		154,567
Compuware Corp. *		35,340		253,741
comScore, Inc. *		3,597		65,429
Concur Technologies, Inc. *		6,575		307,513
Constant Contact, Inc. *		4,009		71,040
Convergys Corp. *		16,845		170,640
CSG Systems International, Inc. *		5,197		95,105
DealerTrack Holdings, Inc. *		5,761		84,946
Deltek, Inc. *		5,606		40,083
DemandTec, Inc. *		2,803		20,910
Dice Holdings, Inc. *		3,721		23,442
Digital River, Inc. *		6,197		163,415
DivX, Inc. *		4,994		38,429
EarthLink, Inc.		16,718		143,106
Ebix, Inc. *		4,874		90,851
Echo Global Logistics, Inc. *		2,315		29,076
Epicor Software Corp. *		7,674		52,106
EPIQ Systems, Inc.		4,996		62,200
Euronet Worldwide, Inc. *		7,493		105,501
Exlservice Holdings, Inc. *		2,345		38,950
Fair Isaac Corp.		7,370		165,014
FalconStor Software, Inc. *		5,176		16,253
Forrester Research, Inc. *		2,192		67,272
Fortinet, Inc. *		6,609		134,758
Gartner, Inc. *		9,993		286,599
Global Cash Access Holdings, Inc. *		5,178		18,744
GSI Commerce, Inc. *		8,766		199,602
Heartland Payment Systems, Inc.		5,789		81,914
iGate Corp.		3,722		58,398
Informatica Corp. *		13,893		446,799
InfoSpace, Inc. *		5,606		39,298
Integral Systems, Inc. *		2,652		17,928
Interactive Intelligence, Inc. *		1,976		29,462
Internap Network Services Corp. *		8,181		33,665
Internet Brands, Inc., Class A *		4,900		50,715
Internet Capital Group, Inc. *		5,722		48,151
IntraLinks Holdings, Inc. *		876		11,388

78 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
j2 Global Communications, Inc. *		7,062		152,327
Jack Henry & Associates, Inc.		12,943		304,678
JDA Software Group, Inc. *		6,521		149,787
Kenexa Corp. *		3,138		34,957
Lawson Software, Inc. *		22,402		170,255
Limelight Networks, Inc. *		6,755		26,750
Lionbridge Technologies, Inc. *		8,917		39,770
Liquidity Services, Inc. *		2,373		30,541
LivePerson, Inc. *		7,156		51,165
LogMeIn, Inc. *		2,244		73,536
LoopNet, Inc. *		4,994		52,637
Manhattan Associates, Inc. *		3,380		88,032
ManTech International Corp., Class A *		3,324		117,636
Marchex, Inc., Class B		3,568		14,308
MAXIMUS, Inc.		2,700		145,017
Mentor Graphics Corp. *		15,522		141,095
MICROS Systems, Inc. *		12,385		471,869
MicroStrategy, Inc., Class A *		1,485		115,726
ModusLink Global Solutions, Inc. *		7,035		40,873
MoneyGram International, Inc. *		13,605		27,482
Monotype Imaging Holdings, Inc. *		3,799		28,094
Motricity, Inc. *		2,516		18,518
Move, Inc. *		24,560		46,173
NCI, Inc., Class A *		1,071		20,510
NetScout Systems, Inc. *		5,023		79,514
NetSuite, Inc. *		4,317		82,023
NeuStar, Inc., Class A *		11,501		254,632
NIC, Inc.		8,411		60,896
Novell, Inc. *		53,596		301,210
OpenTable, Inc. *		2,350		125,255
OPNET Technologies, Inc.		1,989		31,327
Parametric Technology Corp. *		17,970		306,389
Pegasystems, Inc.		2,405		52,670
Perficient, Inc. *		4,843		42,037
Progress Software Corp. *		6,619		176,794
QLIK Technologies, Inc. *		1,460		27,200
Quest Software, Inc. *		9,866		211,428
QuinStreet, Inc. *		1,530		16,417
Rackspace Hosting, Inc. *		16,086		316,733
Radiant Systems, Inc. *		4,535		81,222
RealD, Inc. *		1,130		18,882
RealNetworks, Inc. *		14,067		37,981
RealPage, Inc. *		1,410		23,646
Renaissance Learning, Inc.		1,071		8,568
RightNow Technologies, Inc. *		3,568		59,657
Rosetta Stone, Inc. *		1,761		30,043
S1 Corp. *		8,640		42,077
Sapient Corp.		14,757		153,916
SAVVIS, Inc. *		6,317		110,611
Smith Micro Software, Inc. *		4,841		37,034
Solarwinds, Inc. *		4,858		70,052
Solera Holdings, Inc.		10,783		427,869
Sonic Solutions, Inc. *		4,305		34,655
Sourcefire, Inc. *		3,444		87,374
SRA International, Inc., Class A *		6,339		122,026
SS&C Technologies Holdings, Inc. *		1,570		22,121
SuccessFactors, Inc. *		8,793		185,532
Synchronoss Technologies, Inc. *		2,985		46,148
Syntel, Inc.		3,569		137,389
Take-Two Interactive Software, Inc. *		13,146		109,375
Taleo Corp., Class A *		6,286		161,110
TechTarget *		5,053		22,435
TeleCommunication Systems, Inc., Class A *		6,602		20,334
TeleNav, Inc. *		3,557		19,919
TeleTech Holdings, Inc. *		4,891		62,018
Terremark Worldwide, Inc. *		6,726		56,364
The Knot, Inc. *		4,841		34,177
The Ultimate Software Group, Inc. *		3,820		125,754
THQ, Inc. *		10,753		38,173
TIBCO Software, Inc. *		25,814		374,045
TiVo, Inc. *		17,703		139,146
TNS, Inc. *		3,815		57,301
Tyler Technologies, Inc. *		5,483		94,911
Unisys Corp. *		5,889		131,678
United Online, Inc.		13,981		68,926
ValueClick, Inc. *		12,676		138,168
VASCO Data Security International, Inc. *		4,180		24,934
VeriFone Systems, Inc. *		11,751		284,139
Verint Systems, Inc. *		2,212		52,159
Vocus, Inc. *		2,804		41,555
WebMD Health Corp. *		7,472		380,624
Websense, Inc. *		6,039		117,459
Wright Express Corp. *		5,894		189,256

				14,632,909

Technology Hardware & Equipment 6.0%
3PAR, Inc. *		5,301		170,268
Acme Packet, Inc. *		5,633		189,269
ADC Telecommunications, Inc. *		15,216		192,787
ADTRAN, Inc.		9,666		303,802
Agilysys, Inc. *		2,498		10,841
Anaren, Inc. *		2,241		30,522
Anixter International, Inc. *		4,563		209,350
Arris Group, Inc. *		19,076		155,851
Aruba Networks, Inc. *		10,090		185,353
Aviat Networks, Inc. *		9,405		37,056
Avid Technology, Inc. *		4,412		48,885
AVX Corp.		8,105		100,745
Bel Fuse, Inc., Class B		1,683		31,186
Benchmark Electronics, Inc. *		9,828		137,887
BigBand Networks, Inc. *		7,032		18,986
Black Box Corp.		2,647		74,645
Blue Coat Systems, Inc. *		6,528		122,922
Brightpoint, Inc. *		10,964		65,345
Calix, Inc. *		2,793		33,963
Checkpoint Systems, Inc. *		6,144		112,681
Ciena Corp. *		14,399		179,556
Cogent, Inc. *		7,368		81,048
Cognex Corp.		5,636		109,902
Coherent, Inc. *		3,694		137,232
CommScope, Inc. *		14,527		272,381
Compellent Technologies, Inc. *		2,957		45,153
Comtech Telecommunications Corp. *		4,412		89,872
Comverge, Inc. *		3,238		21,468
CTS Corp.		5,301		42,620
Daktronics, Inc.		5,761		53,059
DG Fastchannel, Inc. *		3,877		61,412
Diebold, Inc.		10,374		269,102
Digi International, Inc. *		3,953		29,964
DTS, Inc. *		2,641		92,567
Echelon Corp. *		5,148		38,945

See financial notes 79

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
EchoStar Corp., Class A *		6,372		118,902
Electro Rent Corp.		2,804		33,171
Electro Scientific Industries, Inc. *		3,952		42,879
Electronics for Imaging, Inc. *		7,062		75,175
EMS Technologies, Inc. *		2,373		34,456
Emulex Corp. *		12,793		122,045
Extreme Networks, Inc. *		13,610		37,291
Fabrinet *		1,901		23,211
FARO Technologies, Inc. *		2,373		43,521
Finisar Corp. *		10,482		134,065
Harmonic, Inc. *		15,062		87,510
Hughes Communications, Inc. *		1,377		32,001
Hutchinson Technology, Inc. *		3,597		10,323
Hypercom Corp. *		7,231		22,633
ICx Technologies, Inc. *		1,838		14,061
Imation Corp. *		5,023		42,997
Infinera Corp. *		15,063		127,132
Insight Enterprises, Inc. *		7,187		94,437
InterDigital, Inc. *		6,909		170,791
Intermec, Inc. *		7,120		74,831
Intevac, Inc. *		3,089		29,098
IPG Photonics Corp. *		4,028		87,246
Isilon Systems, Inc. *		4,180		83,391
Ixia *		5,302		59,860
JDS Uniphase Corp. *		33,974		312,221
KEMET Corp. *		12,636		34,117
L-1 Identity Solutions, Inc. *		13,178		118,470
Lexmark International, Inc., Class A *		12,270		429,327
Littelfuse, Inc. *		3,444		128,255
Loral Space & Communications, Inc. *		1,836		98,299
Maxwell Technologies, Inc. *		3,569		40,187
Mercury Computer Systems, Inc. *		3,697		40,926
Meru Networks, Inc. *		2,186		27,981
Methode Electronics, Inc.		5,914		52,812
MTS Systems Corp.		2,527		67,345
Multi-Fineline Electronix, Inc. *		1,641		34,198
National Instruments Corp.		9,514		274,289
Netezza Corp. *		7,747		150,757
NETGEAR, Inc. *		5,599		118,251
Newport Corp. *		5,607		53,098
Novatel Wireless, Inc. *		4,870		28,295
Oclaro, Inc. *		7,537		77,179
Oplink Communications, Inc. *		3,241		50,949
Opnext, Inc. *		17,547		24,215
OSI Systems, Inc. *		2,526		74,719
Park Electrochemical Corp.		2,797		66,848
Plantronics, Inc.		7,662		209,249
Plexus Corp. *		6,038		138,995
Polycom, Inc. *		12,962		369,158
Power-One, Inc. *		12,720		129,490
QLogic Corp. *		17,828		265,548
Quantum Corp. *		31,440		45,274
Riverbed Technology, Inc. *		8,760		336,034
Rofin-Sinar Technologies, Inc. *		4,973		101,449
Rogers Corp. *		2,694		72,199
Sanmina-SCI Corp. *		12,335		111,385
ScanSource, Inc. *		4,181		104,358
SeaChange International, Inc. *		4,537		35,116
ShoreTel, Inc. *		3,138		14,498
Silicon Graphics International Corp. *		4,411		26,179
Smart Modular Technologies (WWH), Inc. *		6,726		31,545
Sonus Networks, Inc. *		32,288		95,573
STEC, Inc. *		5,455		60,878
Stratasys, Inc. *		3,136		71,219
Super Micro Computer, Inc. *		3,697		33,402
Sycamore Networks, Inc.		2,958		64,839
Symmetricom, Inc. *		6,786		34,473
Synaptics, Inc. *		5,135		135,667
SYNNEX Corp. *		3,604		83,108
Tech Data Corp. *		8,090		292,858
Technitrol, Inc.		6,143		22,791
Tekelec *		10,449		114,521
TTM Technologies, Inc. *		8,143		67,261
Universal Display Corp. *		5,289		104,246
UTStarcom, Inc. *		18,322		34,629
ViaSat, Inc. *		4,855		169,682
Vishay Intertechnology, Inc. *		26,910		206,938
Vishay Precision Group, Inc. *		1,920		27,821
X-Rite, Inc. *		7,059		23,224
Zebra Technologies Corp., Class A *		8,994		257,408

				11,551,405

Telecommunication Services 1.0%
AboveNet, Inc. *		3,800		196,156
Alaska Communications Systems Group, Inc.		6,757		65,273
Atlantic Tele-Network, Inc.		1,530		65,254
Cbeyond, Inc. *		3,875		46,306
Cincinnati Bell, Inc. *		32,057		75,334
Cogent Communications Group, Inc. *		6,623		57,752
Consolidated Communications Holdings, Inc.		3,668		63,603
General Communication, Inc., Class A *		6,145		55,366
Global Crossing Ltd. *		4,842		59,557
ICO Global Communications (Holdings) Ltd. *		25,667		34,394
Iridium Communications, Inc. *		6,188		53,650
Leap Wireless International, Inc. *		9,713		100,724
Neutral Tandem, Inc. *		5,301		59,901
NTELOS Holdings Corp.		4,536		73,392
PAETEC Holding Corp. *		20,336		83,378
Premiere Global Services, Inc. *		9,560		47,418
Shenandoah Telecommunications Co.		3,598		60,770
SureWest Communications *		2,191		13,475
Syniverse Holdings, Inc. *		10,805		222,259
tw telecom, Inc. *		23,239		407,496
USA Mobility, Inc.		3,445		49,470
Vonage Holdings Corp. *		15,494		33,467

				1,924,395

Transportation 2.6%
AirTran Holdings, Inc. *		21,330		96,198
Alaska Air Group, Inc. *		5,467		241,805
Alexander & Baldwin, Inc.		6,448		218,200
Allegiant Travel Co.		2,063		77,631
AMERCO *		918		74,184
American Commercial Lines, Inc. *		1,530		42,947
Arkansas Best Corp.		3,919		80,810
Atlas Air Worldwide Holdings, Inc. *		2,679		116,108
Avis Budget Group, Inc. *		16,105		146,878

80 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Baltic Trading Ltd.		2,633		29,437
Celadon Group, Inc. *		3,393		39,732
Con-way, Inc.		8,373		219,456
Continental Airlines, Inc., Class B *		21,762		486,163
Dollar Thrifty Automotive Group, Inc. *		4,195		197,333
Eagle Bulk Shipping, Inc. *		10,016		46,975
Forward Air Corp.		4,536		108,047
Genco Shipping & Trading Ltd. *		4,383		65,920
Genesee & Wyoming, Inc., Class A *		5,968		231,618
Hawaiian Holdings, Inc. *		8,030		39,347
Heartland Express, Inc.		8,390		122,158
Horizon Lines, Inc., Class A		4,841		19,316
Hub Group, Inc., Class A *		5,913		157,167
JetBlue Airways Corp. *		37,760		215,610
Kirby Corp. *		8,761		322,668
Knight Transportation, Inc.		9,225		173,799
Landstar System, Inc.		7,821		281,399
Marten Transport Ltd. *		2,373		46,772
Old Dominion Freight Line, Inc. *		7,032		163,916
Pacer International, Inc. *		5,456		27,935
Patriot Transportation Holding, Inc. *		228		17,034
RailAmerica, Inc. *		3,568		35,609
Republic Airways Holdings, Inc. *		5,482		38,538
Roadrunner Transportation Systems, Inc. *		1,845		21,642
SkyWest, Inc.		8,736		111,297
Universal Truckload Services, Inc. *		2,110		28,358
US Airways Group, Inc. *		24,866		224,789
UTI Worldwide, Inc.		15,272		213,961
Werner Enterprises, Inc.		8,104		161,594

				4,942,351

Utilities 3.0%
ALLETE, Inc.		4,568		162,484
American States Water Co.		2,788		92,924
Avista Corp.		8,564		178,731
Black Hills Corp.		5,962		181,424
California Water Service Group		2,952		102,759
Central Vermont Public Service Corp.		1,683		33,374
CH Energy Group, Inc.		2,566		108,131
Chesapeake Utilities Corp.		1,712		58,961
Cleco Corp.		9,741		275,963
Connecticut Water Service, Inc.		1,225		27,710
Dynegy, Inc. *		15,983		78,796
El Paso Electric Co. *		6,816		156,427
Great Plains Energy, Inc.		21,073		389,640
Hawaiian Electric Industries, Inc.		14,170		340,363
IDACORP, Inc.		7,329		256,955
MGE Energy, Inc.		3,722		138,905
Middlesex Water Co.		2,191		35,954
New Jersey Resources Corp.		6,886		256,228
Nicor, Inc.		7,034		297,468
Northwest Natural Gas Co.		4,181		189,985
NorthWestern Corp.		5,485		154,238
Ormat Technologies, Inc.		2,804		77,278
Piedmont Natural Gas Co., Inc.		10,491		286,195
PNM Resources, Inc.		12,335		141,112
Portland General Electric Co.		11,578		231,328
RRI Energy, Inc. *		54,685		189,757
SJW Corp.		2,228		51,489
South Jersey Industries, Inc.		4,689		220,336
Southwest Gas Corp.		7,010		220,465
The Empire District Electric Co.		6,234		122,311
The Laclede Group, Inc.		3,239		107,859
UIL Holdings Corp.		4,652		123,231
Unisource Energy Corp.		5,607		182,396
Unitil Corp.		1,672		35,580
WGL Holdings, Inc.		7,790		274,753

				5,781,510

Total Common Stock
(Cost $214,865,970)				192,859,962




Other Investment Company 0.1% of net assets

Money Fund 0.1%
State Street Institutional Liquid Reserves Fund - Institutional Class		191,661		191,661

Total Other Investment Company
(Cost $191,661)				191,661



End of Investments

At 8/31/10, the tax basis cost of the fund’s investments was $215,156,417 and the unrealized appreciation and depreciation were $5,132,592 and $(27,237,386), respectively, with a net unrealized depreciation of $(22,104,794).


*		Non-income producing security.

See financial notes 81

Schwab U.S. Small-Cap ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.


*10/30/09-8/31/10**
Net investment income		$1,132,581
Net realized gains		5,754,921
Net unrealized losses	+	(22,006,008	)

Net decrease in net assets resulting from operations		(15,118,506	)

Distributions to Shareholders

Distributions from net investment income		$881,000

Transactions in Fund Shares


		*10/30/09-8/31/10**
			SHARES		VALUE
Shares Sold			9,300,001		$265,207,908
Shares Redeemed	+		(2,000,000	)	(55,898,794	)

Net transactions in fund shares			7,300,001		$209,309,114

Shares Outstanding and Net Assets

		*10/30/09-8/31/10**
			SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		7,300,001		193,309,608

End of period			7,300,001		$193,309,608


Net investment income not yet distributed					$256,193


*		Commencement of operations.

84 See financial notes

Schwab U.S. ETFs

Financial Notes

1. Business Structure of the Funds

Each of the funds discussed in this report is a series of Schwab Strategic Trust (the “trust”), a no-load, open-end management investment company. The trust is organized as a Delaware statutory 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 including the funds discussed in this report, which are highlighted:



Schwab Strategic Trust (organized January 27, 2009) Schwab U.S. Broad Market ETF Schwab U.S. Large-Cap ETF Schwab U.S. Large-Cap Growth ETF Schwab U.S. Large-Cap Value ETF Schwab U.S. Small-Cap ETF		Schwab International Equity ETF Schwab International Small-Cap ETF Schwab Emerging Markets Equity ETF Schwab U.S. TIPS ETF Schwab Short-Term U.S. Treasury ETF Schwab Intermediate-Term U.S. Treasury ETF

The funds issue and redeem shares at their NAV only in large blocks of shares, typically 50,000 shares or more (“Creation Units”). These transactions are usually in exchange for a basket of securities and an amount of cash. As a practical matter, only institutions purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

Fund shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of the shares of each fund will approximate its NAV, there may be times when the market price and the NAV vary significantly.

Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF and Schwab U.S. Small-Cap ETF commenced operations on October 30, 2009. Schwab U.S. Large-Cap Growth ETF and Schwab U.S. Large-Cap Value ETF commenced operations on December 9, 2009.

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation:

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the funds pursuant to the procedures.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values as determined by those funds in accordance with the 1940 Act for a given day.

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 inputs to valuation techniques used to measure the fair value.

Schwab U.S. ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements).

If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The funds do not adjust the quoted price for such investments, even in situations where the funds hold a large position and a sale could reasonably impact the quoted price.

	•	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. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the funds’ investments as of August 31, 2010:

Schwab U.S. Broad Market ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$271,274,844		$—		$—		$271,274,844
Other Investment Company(a)		473,428		—		—		473,428

Total		$271,748,272		$—		$—		$271,748,272

Schwab U.S. ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Schwab U.S. Large-Cap ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$272,066,546		$—		$—		$272,066,546
Other Investment Company(a)		668,488		—		—		668,488

Total		$272,735,034		$—		$—		$272,735,034

Schwab Large-Cap Growth ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$108,618,577		$—		$—		$108,618,577
Other Investment Company(a)		213,684		—		—		213,684

Total		$108,832,261		$—		$—		$108,832,261

Schwab U.S. Large-Cap Value ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$83,552,337		$—		$—		$83,552,337
Other Investment Company(a)		131,990		—		—		131,990

Total		$83,684,327		$—		$—		$83,684,327

Schwab U.S. Small-Cap ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$192,859,962		$—		$—		$192,859,962
Other Investment Company(a)		191,661		—		—		191,661

Total		$193,051,623		$—		$—		$193,051,623


*		The fund had no Other Financial Instruments.
(a)		As categorized in Portfolio Holdings.

In January 2010, the Financial Accounting Standards Board issued new guidance requiring reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements of Level 3 securities on a gross basis. The new and revised disclosures are required to be implemented for annual and interim periods beginning after December 15, 2009, except for the disclosures surrounding purchases, sales, issuances and settlements of Level 3 fair value measurements on a gross basis, which are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years.

Schwab U.S. ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

The funds have adopted the new guidance for the current period ended August 31, 2010. There were no significant transfers between Level 1 and Level 2 for the period ended August 31, 2010. Management is currently evaluating the impact of the adoption of the other provisions of the new guidance on the funds’ financial statements.

(b) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

(c) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date.

(d) Expenses:

Expenses that are specific to a fund are charged directly to that fund. Expenses that are common to all funds within the trust generally are allocated among the funds in proportion to their average daily net assets. The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

(e) Distributions to Shareholders:

The funds declare distributions from net investment income every quarter and net realized capital gains, if any, once a year.

(f) Accounting Estimates:

The accounting policies described in this report conform with accounting principles generally accepted in the United States of America. 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 funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net 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.

(h) 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 to the fund to be remote.

3. Risk factors:

Investing in the funds may involve certain risks, as described in the funds’ prospectus, including, but not limited to, those described below:

Stock markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of the investments in a fund will fluctuate, which means that the investors could lose money.

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. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response.

Schwab U.S. ETFs

Financial Notes (continued)

3. Risk factors (continued):

In addition, the equity market tends to move in cycles which may cause stock prices to fall over short or extended periods of time.

Historically, small and mid company stocks have been riskier than large company stocks. Stock prices of smaller companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. Smaller companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — bonds, large-cap stocks and mid-cap stocks — a fund’s performance, to the extent invested in small-cap stocks, also will lag those other types of investments.

The funds are not actively managed. Therefore, the funds follow the stocks included in the index during upturns as well as downturns. Because of its indexing strategy, the funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of the fund’s expenses, the funds’ performance is normally below that of the index.

Certain funds may not fully replicate the index and may hold securities not included in the index. As a result, these funds are 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. Because these funds use a sampling approach, they may not track the return of the index as well as they would if the funds purchased all of the equity securities in the index.

The funds’ returns may not match the return of their indices. For example, differences between a fund’s securities and those in the index, rounding of prices, changes to the index and regulatory requirements may cause tracking error, the divergence of a fund’s performance from that of its index. A fund may not be able to invest in certain securities in its benchmark index, or match the securities’ weighting to the benchmark, due to regulatory, operational or liquidity constraints, which may result in tracking error. A fund may attempt to offset the effects of not being invested in certain index securities by making substitute investments, but these efforts may not be successful. A fund also incurs fees and expenses while the index does not, which may result in tracking error.

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 and could cause the fund to lose more than the principal amount invested. In addition, investments in derivatives may involve leverage, which means a small percentage of assets invested in derivatives can have a disproportionately larger impact on the fund.

To the extent that the funds or the indices portfolios are concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, the funds may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.

A particular investment may be difficult to purchase or sell. The funds may be unable to sell illiquid securities at an advantageous time or price.

A fund may lend its portfolio securities to brokers, dealers, and other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

Fund shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of the shares of the fund will approximate the fund’s NAV, there may be times when the market price and the NAV vary significantly. Investors may pay more than NAV when they buy shares of the fund in the secondary market, and may receive less than NAV when they sell those shares in the secondary market.

An investment in a fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency.

Please refer to the funds’ prospectus for a complete description of the principal risks of investing in the funds.

Schwab U.S. ETFs

Financial Notes (continued)

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement (Advisory Agreement) between it and the trust.

For its advisory and administrative services to each fund, the investment adviser is entitled to receive an annual fee payable monthly based on the fund’s average daily net assets described as follows:

Effective June 14, 2010, the expense ratio is:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Market ETF

Large-Cap ETF

Growth ETF

Value ETF

Small-Cap ETF

0.06%

0.08%

0.13%

Prior to June 14, 2010, the rate was:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Market ETF

Large-Cap ETF

Growth ETF

Value ETF

Small-Cap ETF

0.08%

0.15%

The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

Prior to December 14, 2009, the Trust had a Distribution and Shareholder Services (12b-1) Plan (the “Plan”) pursuant to which the fund was subject to an annual 12b-1 fee up to 0.25% of its average daily net assets. The Board had determined that no such fees would be charged under the plan until November 14, 2011. However, on December 14, 2009, the Board of Trustees of the Trust approved the termination of the Plan.

The funds may engage in certain transactions involving affiliates, including investing in outstanding shares of The Charles Schwab Corporation. Below is a summary of investing and income activity involving The Charles Schwab Corporation during the period ended August 31, 2010:


	Balance
	of Shares							Balance				Realized			Dividends
	Held at							of Shares		Market		Gain (Loss)			Received
	Beginning		Gross		Gross			Held at		Value at		During			During
Fund	of Period¹		Additions		Sales			8/31/2010		8/31/2010		Period			Period

Schwab U.S. Broad Market ETF		—		24,378		(2,244	)		22,134		$282,430		($1,815	)		$3,084
Schwab U.S. Large-Cap ETF		—		26,826		(944	)		25,882		330,254		610			3,283
Schwab U.S. Large-Cap Growth ETF		—		23,634		(1,212	)		22,422		286,105		267			2,949


¹		Schwab U.S. Broad Market ETF and Schwab U.S. Large-Cap ETF commenced operations on October 30, 2009. Schwab U.S. Large-Cap Growth ETF commenced operations on December 9, 2009.

The funds may engage in direct transactions with certain other Schwab ETFs when practical. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and officers. During the period ended August 31, 2010, there were no security transactions with other Schwab ETFs.

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions within the Schwab Funds including Schwab ETFs. All loans are for temporary or emergency purposes only. The interest rate charged on the loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund lending facility is subject to the oversight and periodic review of the Board of Trustees of the Schwab Funds. The funds had no interfund borrowing or lending activity during the period.

Schwab U.S. ETFs

Financial Notes (continued)

5. Other Service Providers:

SEI Investments Distribution Co. (the “Distributor”) is the principal underwriter and distributor of shares of the funds.

State Street Bank and Trust Company serves as the funds’ transfer agent. As part of these services, the transfer agent maintains records pertaining to the sale, redemption and transfer of the funds’ shares.

State Street Bank and Trust Company also serves as custodian and accountant for the funds. The custodian is responsible for the daily safekeeping of securities and cash held or sold by the funds. The funds’ accountant maintains all books and records related to the funds’ transactions.

6. Board of Trustees:

Trustees may include people who are officers and/or directors of the investment adviser or an affiliate. 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 period. The trust did not pay any of these persons for their service as trustees.

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2010, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab U.S. Broad Market ETF		$6,168,166		$4,060,116
Schwab U.S. Large-Cap ETF		7,479,074		5,239,055
Schwab U.S. Large-Cap Growth ETF		5,616,560		4,345,440
Schwab U.S. Large-Cap Value ETF		3,061,881		2,507,169
Schwab U.S. Small-Cap ETF		14,600,863		10,326,746

8. In-Kind Transactions:

The consideration for the purchase of Creation Units of a fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes an optimized representation of the securities involved in a relevant fund’s underlying index, and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

The in-kind transactions for the period ended August 31, 2010 were as follows:


	In-kind Purchases		In-kind Sales

Schwab U.S. Broad Market ETF		$317,020,286		$27,898,783
Schwab U.S. Large-Cap ETF		300,208,038		10,696,598
Schwab U.S. Large-Cap Growth ETF		123,192,815		7,788,668
Schwab U.S. Large-Cap Value ETF		88,612,931		1,300,266
Schwab U.S. Small-Cap ETF		262,535,024		55,086,984

For the period ended August 31, 2010, certain funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). 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 paid-in-capital 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 for the period ended August 31, 2010 are disclosed in the funds’ Statements of Operations.

Schwab U.S. ETFs

Financial Notes (continued)

9. Federal Income Taxes:

As of August 31, 2010, the components of distributable earnings on a tax-basis were as follows:


	Schwab U.S.						Schwab U.S.			Schwab U.S.
	Broad			Schwab U.S.			Large-Cap			Large-Cap			Schwab U.S.
	Market ETF			Large-Cap ETF			Growth ETF			Value ETF			Small-Cap ETF

Undistributed ordinary income		$965,625			$1,133,977			$159,353			$476,283			$258,341
Unrealized appreciation		5,695,830			5,352,629			3,187,415			1,288,225			5,132,592
Unrealized depreciation		(26,099,833	)		(25,279,706	)		(10,957,980	)		(5,555,828	)		(27,237,386	)
Net unrealized appreciation/(depreciation)		(20,404,003	)		(19,927,077	)		(7,770,565	)		(4,267,603	)		(22,104,794	)

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 and Real Estate Investment Trusts (REITS).

For tax purposes, net realized capital losses occurring after October 31, may be deferred and treated as occurring on the first day of the following fiscal year. As of August 31, 2010, capital losses deferred for each fund were as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Market ETF

Large-Cap ETF

Growth ETF

Value ETF

Small-Cap ETF

Deferred capital losses

$132,136

$115,105

$90,359

$113,939

$374,065

The tax-basis components of distributions paid during the current period were:


	Schwab U.S.				Schwab U.S.		Schwab U.S.
	Broad		Schwab U.S.		Large-Cap		Large-Cap		Schwab U.S.
	Market ETF		Large-Cap ETF		Growth ETF		Value ETF		Small-Cap ETF

Ordinary income		$1,831,500		$1,572,500		$297,500		$572,500		$881,000
Long-term capital gains		—		—		—		—		—
Return of capital		—		—		—		—		—

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 are due primarily to differing treatment for items such as short-term capital gains and losses; in-kind transactions; capital losses related to wash sales and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

The permanent book and tax basis differences may result in reclassifications between capital accounts and other accounts as required. The adjustments have no impact on net assets or the results of operations. As of August 31, 2010, the funds made the following reclassifications:


	Schwab U.S.						Schwab U.S.			Schwab U.S.
	Broad			Schwab U.S.			Large-Cap			Large-Cap			Schwab U.S.
	Market ETF			Large-Cap ETF			Growth ETF			Value ETF			Small-Cap ETF

Capital shares		$1,862,818			$1,212,147			$555,994			$99,730			$6,221,012
Undistributed net investment income		136			33			—			16			4,612
Net realized capital gains and losses		(1,862,954	)		(1,212,180	)		(555,994	)		(99,746	)		(6,225,624	)

Management has reviewed the funds’ tax positions taken for its open income tax period ended August 31, 2010, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2010, the funds did not incur any interest or penalties.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:

Schwab U.S. Broad Market ETF

Schwab U.S. Large-Cap ETF

Schwab U.S. Large-Cap Growth ETF

Schwab U.S. Large-Cap Value ETF

Schwab U.S. Small-Cap ETF

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF and Schwab U.S. Small-Cap ETF (five of the portfolios constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2010, and the results of their operations, changes in their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 18, 2010

Other Information (unaudited)

Frequency Distribution of Discounts and Premiums
Bid/Offer Midpoint vs. NAV as of August 31, 2010

The following charts are provided to show the frequency at which the daily market price on the NYSE Arca, Inc. (“Exchange”), the secondary market for shares of each fund, was at a discount or premium to such fund’s daily NAV. The market price of each fund generally is determined using the midpoint between the highest bid and lowest offer on the Exchange, as of the time that the fund’s NAV is calculated (referred to as the “Bid/Offer Midpoint”). Each fund’s Bid/Offer Midpoint may at times be at, above or below its NAV. The discount or premium is the percentage difference between the NAV and the Bid/Offer Midpoint of a Fund. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of NAV. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Bid/Offer Midpoint of each fund will fluctuate in accordance with changes in its NAV, as well as supply and demand.

Schwab U.S. Broad Market ETF
Frequency Distribution of Discount and Premiums
Bid/Offer Midpoint vs. NAV

Bid/Offer Midpoint Above NAV

Bid/Offer Midpoint Below NAV

50-99

100-199

>200

50-99

100-199

>200

Basis Points

Commencement of trading (11/3/09) through 8/31/10

—

Schwab U.S. Large-Cap ETF
Frequency Distribution of Discount and Premiums
Bid/Offer Midpoint vs. NAV

Bid/Offer Midpoint Above NAV

Bid/Offer Midpoint Below NAV

50-99

100-199

>200

50-99

100-199

>200

Basis Points

Commencement of trading (11/3/09) through 8/31/10

—

Schwab U.S. Large-Cap Growth ETF
Frequency Distribution of Discount and Premiums
Bid/Offer Midpoint vs. NAV

Bid/Offer Midpoint Above NAV

Bid/Offer Midpoint Below NAV

50-99

100-199

>200

50-99

100-199

>200

Basis Points

Commencement of trading (12/11/10) through 8/31/10

—

Schwab U.S. Large-Cap Value ETF
Frequency Distribution of Discount and Premiums
Bid/Offer Midpoint vs. NAV

Bid/Offer Midpoint Above NAV

Bid/Offer Midpoint Below NAV

50-99

100-199

>200

50-99

100-199

>200

Basis Points

Commencement of trading (12/11/10) through 8/31/10

—

Trustees and Officers

The tables below give information about the trustees and officers for the Schwab Strategic Trust which includes the funds covered in this report. The “Fund Complex” includes the Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 84 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-800-435-4000.

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired. Consulting Managing Director, PIMCO (investment adviser) (January 2003 – December 2008); Managing Director, PIMCO (February 1999 – December 2002); President and Trustee, PIMCO Funds and PIMCO Variable Insurance Trust (investments) (February 1994 – May 2005).	11	Independent Director and Chairman of Corporate Governance/Nominating Committee, PS Business Parks, Inc. (2005 – present). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Trustee and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Trustee, PCIM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Mark A. Goldfarb 1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G Financial Services (financial services) (May 1987 – present).	11	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (June 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	11	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc., and The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	84	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Randall W. Merk 1954 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2009.)		Executive Vice President and President, Investment Management Services, Charles Schwab & Co., Inc. (August 2004 – present); Executive Vice President, Charles Schwab & Co., Inc. (2002 – present); Director, President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (August 2007-present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC (Sept. 2002 – present); President and Chief Executive Officer, Schwab Funds (July 2007 – present); Trustee (June 2006 – Dec. 2009), President and Chief Executive Officer (July 2007 – March 2008, July 2010 – present), Laudus Funds; President and Chief Executive Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc. and Excelsior Funds Trust (June 2006 – June 2007).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc. (November 2004 – present); Treasurer and Chief Financial Officer, Laudus Funds (2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Koji E. Felton 1961 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc. (July 2000 – present); Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc. (June 1998 – present); Secretary and Chief Legal Officer, Schwab Funds (Nov. 1998 – present); Vince President and Assistant Clerk, Laudus Funds (Feb. 2010 – present); Chief Legal Officer and Secretary, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).

Officers of the Trust (continued)


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Catherine MacGregor 1964 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President and Assistant Secretary, Schwab Funds (Dec. 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds.


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. (2004 – present); Vice President, Schwab Funds (June 2007 – present); Vice President (Oct. 2005 – present), Anti-Money Laundering Officer (Oct. 2005 – Feb. 2009), Laudus Funds.


¹		Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The Trust’s retirement policy requires that independent trustees retire by December 31 of the year in which the Trustee turns 72 or the Trustee’s twentieth year of service as an independent trustee, whichever comes first.
²		Mr. Bettinger is an Interested Trustee because he is an employee of Schwab and/or the investment adviser. In addition to his employment with the investment adviser and Schwab, Mr. Bettinger also owns stock of The Charles Schwab Corporation.
³		The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

100

Glossary

ask See “offer.”

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage to help offset risks and rewards, based on your goals, time horizon and risk tolerance.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

authorized participant (AP) A large institutional investor that places orders for creation units with the funds’ distributor.

beta A historical measure of an investment’s volatility relative to a market index (usually the S&P 500^®). The index is defined as having a beta of 1.00. Investments with a beta higher than 1.00 have been more volatile than the index; those with a beta of less than 1.00 have been less volatile.

bid The highest price at which someone is willing to buy a security.

cap, capitalization See “market cap.”

capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.

commencement of operations The date that the first NAV was calculated.

creation unit (C.U.) A basket of securities that is delivered by an authorized participant (AP) to the fund equal to the current holdings of the ETF, plus a designated cash component. In return, the APs receive a large block of ETF shares (typically 50,000 shares), which investors can then buy and sell in the secondary market.

exchange A marketplace, or any organization or group that provides or maintains a marketplace for trading securities, options, futures, or commodities.

expense ratio The amount that is taken from the fund’s assets each year to cover the operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.

inception date The date that the shares began trading in the secondary market.

indicative optimized portfolio value (IOPV) A calculation disseminated by the stock exchange that approximates the fund’s NAV every 15 seconds throughout the trading day.

liquidity The ability to convert a security or asset quickly into cash.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

market price return The return based on the change in market price per share of the fund over a given time period. Market price returns assume that dividends and capital gain distributions have been reinvested in the fund at market price.

median market cap The midpoint of the range of market caps of the stocks held by a fund. There are different ways of calculating median market cap. With a simple median, half of the stocks in the fund’s portfolio would be larger than the median, and half would be smaller. With a weighted median (the type that is calculated for these funds).

net asset value (NAV) The value of one share of a fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.

NAV return The return based on the change in NAV of the fund over a given time period. NAV returns assume that dividends and capital gain distributions have been reinvested in the fund.

offer (ask) The lowest price at which an individual is willing to sell a security.

open The price at which a security opened for trading on a given day.

outstanding shares, shares outstanding When speaking of the fund, indicates all shares currently held by investors.

price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

primary market The market that deals with the issuance of new securities.

sampling If a fund uses a sampling method, the fund will not fully replicate the benchmark index and may hold securities not included in the index. A fund that utilizes a sampling approach may not track the return of the index.

secondary market The market in which investors purchase securities from other investors rather than directly from the issuing companies. Organized exchanges facilitate the trading of securities in the secondary market.

spread The gap between bid and ask prices of a security.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

tracking error The difference between the performance of the fund and its benchmark index, positive or negative.

101

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

At The Charles Schwab Corporation and its affiliates and subsidiaries (“Schwab,” “us,” or “we”), we’re committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect, how we use and share that information, and your ability to limit certain information sharing. This Privacy Notice applies to customers; retirement, other employee benefit, or stock option plan participants (“participants” includes beneficiaries under the plan and certain other employees); and other consumers with whom we have a relationship, as well as to former customers and participants. Throughout this Privacy Notice (for the purposes of this Privacy Notice only), “customers” includes retirement plan participants and other consumers with whom we have a relationship, unless specifically noted otherwise. The information we collect and how we may use it may vary depending upon the product, service, or Schwab affiliate involved. For example, Schwab may have an agreement or policy with investment advisors, employers, or plan sponsors that further limits the sharing of your personal information.

How We Collect Information About You

We collect personal information about you in a number of ways.


•	APPLICATION AND REGISTRATION INFORMATION.

We collect personal information from you when you open an account, enroll in one of our services, or participate in a Schwab promotion. We may also receive personal information from your employer or retirement or other employee benefit plan sponsor where Schwab has been hired to provide services to your company’s benefit, stock option, or similar plan. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity, employment, or creditworthiness, or to better understand your financial needs. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments, and investment experience.


•	TRANSACTION AND EXPERIENCE INFORMATION.

Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions, and history. This information allows us to administer your account and provide the services you or your employer or plan sponsor have requested.


•	WEBSITE USAGE.

When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please click the Privacy link on the Schwab website(s) you use.

How We Share and Use Your Information

We may share your information with outside companies and other third parties in certain circumstances, including:


•	To help us process transactions for your account;

•	When we use other companies to provide services for us, such as printing and mailing your account statements;

•	When we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).

Certain Schwab affiliates and subsidiaries may also enter into a joint-marketing agreement with another financial institution in order to provide you with a Schwab-branded financial product or service.

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected, and is accessed only by authorized individuals who are trained regarding Schwab’s privacy and information safeguarding practices. Schwab maintains physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information. To learn more about our security measures and the measures you need to take, please click the Privacy link on the Schwab website(s) you use.

Contact Us

To change your privacy preferences, provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Schwab ETF^tm direct investors: 1-800-435-4000

102

Schwab ETFs^tmare designed to be low-cost, diversified investments. Each fund follows broad market indices and provides exposure to specific segments of the market making them solid investment options for the core portions of an investor portfolio. The list to the right shows all currently available Schwab ETFs.

Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-800-435-4000 for a prospectus and brochure for any Schwab ETF. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab ETFs’ website at www.schwabetfs.com, the SEC’s website at http://www.sec.gov, or by contacting Schwab ETFs at 1-800-435-4000.

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 Schwab ETFs’ website at www.schwabetfs.com or the SEC’s website at http://www.sec.gov.

Schwab ETFs

U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

Schwab U.S. Large-Cap Growth ETF^tm

Schwab U.S. Large-Cap Value ETF^tm

Schwab U.S. Small-Cap ETF^tm

International ETFs

Schwab International Equity ETF^tm

Schwab International Small-Cap Equity ETF^tm

Schwab Emerging Markets Equity ETF^tm

Fixed Income ETFs

Schwab Short-Term U.S. Treasury ETF^tm

Schwab Intermediate-Term U.S. Treasury ETF^tm

Schwab U.S. TIPS ETF^tm

In This Report



Performance at a Glance		1

From the President		2

Fund Management		3

Schwab International Equity ETF™		4

Schwab International Small-Cap Equity ETF™		6

Schwab Emerging Markets Equity ETF™		8

Fund Expenses		10

Financial Statements		11

Financial Notes		61

Report of Independent Registered Public Accounting Firm		71

Other Federal Tax Information		72

Other Information		73

Trustees and Officers		74

Glossary		77

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO).

Performance at a Glance


*Total Return from Inception to August 31, 2010**


Schwab International Equity ETF^tm (Ticker Symbol: SCHF)

NAV Return¹			-3.33%
Market Price Return¹			-3.42%
FTSE Developed ex-US Index			-3.02%
ETF Category: Morningstar Foreign Large-Cap Blend²			-3.32%

Performance Details			pages 4-5



Schwab International Small-Cap Equity ETF^tm (Ticker Symbol: SCHC)

NAV Return¹			-5.88%
Market Price Return¹			-5.52%
FTSE Developed Small Cap ex-US Liquid Index			-5.11%
ETF Category: Morningstar Foreign Small/Mid Growth²			-5.26%

Performance Details			pages 6-7



Schwab Emerging Markets Equity ETF^tm (Ticker Symbol: SCHE)

NAV Return¹			-2.68%
Market Price Return¹			-2.40%
FTSE All-Emerging Index			-1.92%
ETF Category: Morningstar Diversified Emerging Markets²			-2.10%

Performance Details			pages 8-9

Index ownership — “FTSE^®” is a trademark of The Financial Times Limited (“FT”) and the London Exchange plc (the “Exchange”) and is used by the fund under license. Schwab ETFs are not sponsored, endorsed, sold or promoted by FT or the Exchange and FT and the Exchange do not make any representation regarding the advisability of investing in shares of the fund.


*	Inception represents the date that the shares began trading in the secondary market. For the Schwab International Equity ETF, total returns are since inception date of 11/3/09. For the Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF, total returns are since inception date of 1/14/10. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.

¹	The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

²	The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

Schwab International ETFs 1

From the President

Randall W. Merk is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

We are pleased to provide you this first annual report for the Schwab international equity Exchange-Traded Funds (ETFs). The content covers the period from the inception date of each fund through August 31, 2010, and includes information about the performance and management of the three international equity ETFs.

All three of the international equity ETFs had returns that were consistent with their respective indices for the reporting period. For details about each fund’s performance, please see the managers’ discussion and analysis in the following pages. If you have any questions about the Schwab ETFs or any of our mutual funds, we are always available at 1-800-435-4000, and additional resources may be found on schwab.com.

Thank you for investing with us.

Sincerely,

2 Schwab International ETFs

Fund Management



		Dustin Lewellyn, CFA, a managing director of the Adviser, oversees the Adviser’s management of ETFs. Prior to joining the firm in May 2009, he worked for two years as director of ETF product management and development at a major financial institution focused on asset and wealth management. Prior to that, he was a portfolio manager for institutional clients at a financial services firm for three years. In addition, he held roles in portfolio operations and product management at a large asset management firm for more than six years.

		Agnes Hong, CFA, a managing director and portfolio manager of the Adviser, has day-to-day responsibility for co-management of the funds. Prior to joining the firm in September 2009, she worked for more than five years as a portfolio manager for a major asset management firm.

		Ferian Juwono, CFA, a managing director and portfolio manager of the Adviser, has day-to-day responsibility for co-management of the funds. Prior to joining the firm in May 2010, he was a portfolio manager at a major asset management firm for three years. Before that position, he was a senior business analyst at a major financial firm for nearly two years. In addition, he was a senior financial analyst at a regional banking firm for four years.

Schwab International ETFs 3

Schwab International Equity ETF™

The Schwab International Equity ETF seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed ex-US Index. The index includes the top 90% of market capitalization companies from eligible Global Equity ex U.S. Investable Stock (GEIS) securities in developed markets, as defined by FTSE. The index is comprised of approximately 85% large-cap and 15% mid-cap stocks. The fund invests in a representative sample of securities included in the index that collectively has a similar profile to the index. Due to the use of representative sampling, the fund may or may not hold all of the securities included in the index.

During the reporting period that began with the fund’s inception date of November 3, 2009, and ended August 31, 2010, the fund’s market price return was -3.42% and its NAV return was -3.33%. (For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.) The index returned -3.02% during the same period.

The overall return of the fund and index was weighed down by the global economic recession and the European sovereign debt crisis. The equity market went through dramatic shifts in investor sentiment. The index advanced early in the year as global economic recovery began to gain momentum. However, it fell sharply between April and June as market conditions changed and a sovereign debt crisis in Greece spread to other European markets. Markets rebounded slightly when a large-scale European bailout was announced in early summer, but were unable to fully recover from the earlier losses.

Performance for the index varied across countries. Developed Asian economies fared better than the rest and posted solid gains with the exception of Japan. The best country performer during the reporting period was Singapore, up 18%, largely due to export-driven recoveries as China’s stimulus effort benefited economies in the Pacific Rim.

European markets dragged down the index during the period with many countries posting double-digit losses. Greece’s heavy debt burden, compounded by a downgrade in its credit rating, drove the Greek equity market down 55%, the worst country performer for the reporting period.

Five of the fund’s ten largest holdings generated negative returns, led by energy producers British Petroleum of the United Kingdom (UK) and Total of France. British Petroleum was the worst performer in the index, plunging 37% after one of its deepwater oil rigs exploded in the Gulf of Mexico, causing the largest marine oil spill in the history of the petroleum industry. Financials was the second worst performing sector, affected by the heightened uncertainty about financial sector exposure to sovereign risk, as well as increased funding costs in Europe. British bank, HSBC, and Spanish bank, Banco Santander, both posted double-digit negative returns. Swiss food company, Nestle, and UK telecom company, Vodafone Group, posted the biggest gains.

As of 8/31/10:

Statistics


Number of Holdings		824
Weighted Average Market Cap ($ x 1,000,000)		$42,249
Price/Earnings Ratio (P/E)		19.0
Price/Book Ratio (P/B)		1.4
Portfolio Turnover Rate²		6%

Sector Weightings % of Investments


Financials		25.6%
Industrials		11.8%
Materials		10.9%
Consumer Staples		10.1%
Consumer Discretionary		9.3%
Energy		8.4%
Health Care		6.8%
Information Technology		5.7%
Telecommunication Services		5.6%
Utilities		5.5%
Other		0.3%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Nestle S.A. - Reg’d		1.7%
HSBC Holdings plc		1.5%
Vodafone Group plc		1.1%
Novartis AG - Reg’d		1.0%
Samsung Electronics Co., Ltd. GDR - Reg’d		1.0%
Total S.A.		1.0%
BP plc		1.0%
BHP Billiton Ltd.		1.0%
Banco Santander S.A.		0.8%
Roche Holding AG		0.8%
Total		10.9%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

4 Schwab International ETFs

Schwab International Equity ETF^tm

Performance Summary as of 8/31/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when sold or redeemed, 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.schwabetfs.com.

November 3, 2009 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab International Equity ETF^tm (11/3/09)
NAV Return³		-3.33	%
Market Price Return³		-3.42	%
FTSE Developed ex-US Index		-3.02	%
ETF Category: Morningstar Foreign Large Blend⁴		-3.32	%

Fund Expense Ratio⁵: 0.13%

Style Assessment⁶

Country Weightings % of Investments


Japan		18.1%
United Kingdom		16.6%
France		8.5%
Canada		8.2%
Australia		7.3%
Switzerland		7.2%
Germany		6.4%
Republic of Korea		4.0%
Spain		3.5%
Netherlands		3.5%
Other Countries		16.7%
Total		100.0%

International investing may involve risk of capital loss from unfavorable fluctuation in currency vales, from differences in generally accepted accounting principals, or from economic or political instability in other nations.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus. Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab International ETFs 5

Schwab International Small-Cap Equity ETF™

The Schwab International Small-Cap Equity ETF seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex-US Liquid Index. The index includes the bottom 10% of market capitalization from eligible Global Equity ex U.S. Investable Stock (GEIS) securities with a minimum float-adjusted market capitalization of $150M in developed markets, as defined by FTSE. The fund invests in a representative sample of securities included in the index that collectively has a similar profile to the index. Due to the use of representative sampling, the fund may or may not hold all of the securities included in the index.

During the reporting period that began with the fund’s inception date of January 14, 2010, and ended August 31, 2010, the fund’s market price return was -5.52% and its NAV return was -5.88%. (For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.) The index returned -5.11% during the same period.

The European sovereign debt crisis and a lack of confidence in the global financial system drove the negative returns in the fund and index. The only region posting a positive return in the index was North America. Gaining 2% during the period, Canada escaped much of the fallout from the global debt crisis and was the top contributor to the fund’s performance. Greece and Portugal were the worst country performers, down 34% and 24% respectively. The European debt crisis and the subsequent credit rating downgrades to Greece and Portugal led to further equity market declines.

Eight of the top ten holdings in the fund had positive performance for the period. British technology company, ARM Holdings, and Canadian gold mining company, Red Back Mining, were the two top performers. Two Canadian energy producers, Niko Resources and Crescent Point Energy, posted negative returns.

As of 8/31/10:

Statistics


Number of Holdings		927
Weighted Average Market Cap ($ x 1,000,000)		$2,410
Price/Earnings Ratio (P/E)		40.3
Price/Book Ratio (P/B)		1.4
Portfolio Turnover Rate²		7%

Sector Weightings % of Investments


Industrials		22.9%
Financials		17.8%
Materials		15.8%
Consumer Discretionary		14.4%
Information Technology		7.9%
Energy		7.5%
Consumer Staples		5.4%
Health Care		4.9%
Utilities		2.4%
Telecommunication Services		0.9%
Other		0.1%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Eldorado Gold Corp.		0.7%
Silver Wheaton Corp.		0.6%
Red Back Mining, Inc.		0.5%
IAMGOLD Corp.		0.5%
Ivanhoe Mines Ltd.		0.5%
Tim Hortons, Inc.		0.5%
Crescent Point Energy Corp.		0.4%
Niko Resources, Ltd.		0.4%
ARM Holdings plc		0.4%
Pacific Rubiales Energy Corp.		0.4%
Total		4.9%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

6 Schwab International ETFs

Schwab International Small-Cap Equity ETF^tm

Performance Summary as of 8/31/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when sold or redeemed, 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.schwabetfs.com.

January 14, 2010 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab International Small-Cap Equity ETF^tm (1/14/10)
NAV Return³		-5.88	%
Market Price Return³		-5.52	%
FTSE Developed Small Cap ex-US Liquid Index		-5.11	%
ETF Category: Morningstar Foreign Small/Mid Growth⁴		-5.26	%

Fund Expense Ratio⁵: 0.35%

Style Assessment⁶

Country Weightings % of Investments


Canada		19.3%
United Kingdom		17.1%
Japan		13.2%
Australia		5.9%
Switzerland		5.9%
Germany		4.6%
France		4.4%
Sweden		4.2%
Hong Kong		3.6%
Republic of Korea		2.9%
Other Countries		18.9%
Total		100.0%

Investments in smaller companies typically exhibit higher volatility.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab International ETFs 7

Schwab Emerging Markets Equity ETF™

The Schwab Emerging Markets Equity ETF seeks to track as closely as possible, before fees and expenses, the total return of the FTSE All-Emerging Index. The index includes the top 90% of market capitalization from eligible Global Equity ex U.S. Investable Stock (GEIS) securities in emerging markets, as defined by FTSE. The index is comprised of approximately 85% large cap and 15% mid cap stocks. The fund invests in a representative sample of securities included in the index that collectively has a similar profile to the index. Due to the use of representative sampling, the fund may or may not hold all of the securities included in the index.

During the reporting period that began with the fund’s inception date of January 14, 2010, and ended August 31, 2010, the fund’s market price return was -2.40% and its NAV return was -2.68%. (For an explanation of market price and NAV returns, please refer to footnote 3 on the following page.). The index returned -1.92% during the same period.

The global economic downturn and reduced risk appetite led the decline in the index. Despite the negative returns, emerging markets performed better than developed markets as a group, with their lower public debt and more robust growth prospects.

Colombia was the best performer, up over 30% for the period. As a top-performing equity market over the past decade, Colombia continued to surge ahead based on new infrastructure development, commodity exports and a growing middle class.

Eastern Europe experienced the highest regional decline. Hungary was the worst performer, plummeting more than 20% during the reporting period on concern over the euro-zone debt contagion, as well as reduction of its credit outlook by Standard & Poor’s after talks broke down with the International Monetary Fund and the European Union (EU) on a review of the country’s 20-billion Euro rescue loan.

Seven of the fund’s ten largest holdings generated negative returns for the reporting period, led by energy producers Petroleo Brasileiro of Brazil and Gazprom of Russia. China Mobile, the fund’s largest holding, generated positive returns, as well as the fund’s top two bank holdings, China Construction Bank and Itau Unibanco of Brazil.

As of 8/31/10:

Statistics


Number of Holdings		482
Weighted Average Market Cap ($ x 1,000,000)		$49,137
Price/Earnings Ratio (P/E)		16.0
Price/Book Ratio (P/B)		1.6
Portfolio Turnover Rate²		23%

Sector Weightings % of Investments


Financials		26.6%
Energy		15.9%
Materials		14.9%
Telecommunication Services		9.1%
Information Technology		8.6%
Consumer Staples		7.0%
Industrials		7.0%
Consumer Discretionary		4.8%
Utilities		3.9%
Health Care		1.0%
Other		1.2%
Total		100.0%

Top Equity Holdings % of Net Assets¹


China Mobile Ltd.		1.9%
Petroleo Brasileiro S.A. ADR		1.7%
Vale S.A. ADR - Preferred		1.6%
Gazprom ADR		1.6%
Itau Unibanco Holding S.A. ADR		1.5%
America Movil S.A.B. de C.V., Series L		1.5%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		1.4%
Vale S.A. ADR - Common		1.4%
China Construction Bank Corp., H Shares		1.3%
Petroleo Brasileiro S.A. ADR		1.3%
Total		15.2%

Manager views and portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		This list is not a recommendation of any security by the investment adviser.
²		Not annualized.

8 Schwab International ETFs

Schwab Emerging Markets Equity ETF^tm

Performance Summary as of 8/31/10

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when sold or redeemed, 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.schwabetfs.com.

January 14, 2010 – August 31, 2010
Performance of a Hypothetical
$10,000 Investment¹

Total Returns^1,2


Fund and Inception Date	Since Inception*


Fund: Schwab Emerging Markets Equity ETF^tm (1/14/10)
NAV Return³		-2.68	%
Market Price Return³		-2.40	%
FTSE All-Emerging Index		-1.92	%
ETF Category: Morningstar Diversified Emerging Markets⁴		-2.10	%

Fund Expense Ratio⁵: 0.25%

Style Assessment⁶

Country Weightings % of Investments


Brazil		18.6%
China		17.3%
India		12.0%
Taiwan		11.7%
South Africa		9.3%
Russia		7.9%
Mexico		5.1%
Malaysia		4.6%
Indonesia		2.6%
Chile		2.1%
Other Countries		8.8%
Total		100.0%

Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		Source for category information: Morningstar, Inc.
³		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
⁴		The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁵		As stated in the prospectus. Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
⁶		Source: Morningstar, Inc. This style assessment is the result of evaluating the fund based on a ten-factor model for value and growth characteristics. The fund’s market capitalization placement is determined by the geometric mean of its holdings’ market capitalizations. The assessment reflects the fund’s portfolio as of 8/31/10, which may have changed since then, and is not a precise indication of risk or performance—past, present, or future.

Schwab International ETFs 9

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 3/01/10		at 8/31/10		3/01/10–8/31/10

Schwab International Equity ETF^tm*
Actual Return		0.14%	$	1,000	$	973.80	$	0.70
Hypothetical 5% Return		0.14%	$	1,000	$	1,024.50	$	0.71


Schwab International Small-Cap Equity ETF^tm
Actual Return		0.35%	$	1,000	$	1,012.50	$	1.78
Hypothetical 5% Return		0.35%	$	1,000	$	1,023.44	$	1.79


Schwab Emerging Markets Equity ETF^tm*
Actual Return		0.30%	$	1,000	$	1,050.60	$	1.55
Hypothetical 5% Return		0.30%	$	1,000	$	1,023.82	$	1.53


*		Effective June 14, 2010, the annual operating expense was reduced. See financial note 4 for more information.
¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights, which covers the period since commencement of operations through 8/31/10.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

10 Schwab International ETFs

Schwab International Equity ETF™

Financial Statements

Financial Highlights


	10/30/09¹–
	8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.38
Net realized and unrealized gains (losses)		(1.52	)

Total from investment operations		(1.14	)
Less distributions:
Distributions from net investment income		(0.04	)

Net asset value at end of period		23.82

Total return (%)		(4.57	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.14	^3,4
Gross operating expenses		0.14	³
Net investment income (loss)		2.94	³
Portfolio turnover rate⁵		6	²
Net assets, end of period ($ x 1,000)		285,869

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate. Please see financial note 4 for more information.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

See financial notes 11

Schwab International Equity ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.2%	Common Stock		301,904,708		283,462,328
	0	.3%	Other Investment Company		901,164		901,164
	0	.2%	Preferred Stock		654,052		672,897


	99	.7%	Total Investments		303,459,924		285,036,389
	0	.3%	Other Assets and Liabilities, Net				832,585


	100	.0%	Net Assets				285,868,974


	Number		Value
Security	of Shares		($)

Common Stock 99.2% of net assets

Australia 7.3%


Banks 2.0%
Australia & New Zealand Banking Group Ltd.		60,480		1,216,025
Bank of Queensland Ltd.		5,760		50,395
Bendigo & Adelaide Bank Ltd.		11,280		84,635
Commonwealth Bank of Australia		39,360		1,762,129
National Australia Bank Ltd.		54,720		1,129,923
Westpac Banking Corp.		74,880		1,446,239

				5,689,346


Capital Goods 0.1%
CSR Ltd.		24,240		36,785
GWA International Ltd.		21,000		55,512
Leighton Holdings Ltd.		2,760		75,416

				167,713


Commercial & Professional Services 0.1%
Brambles Ltd.		41,880		218,433
Spotless Group Ltd.		18,600		33,276

				251,709


Consumer Durables & Apparel 0.0%
Billabong International Ltd.		6,480		43,603


Consumer Services 0.2%
Aristocrat Leisure Ltd.		13,080		43,308
Crown Ltd.		16,320		120,272
Flight Centre Ltd.		2,280		39,856
TABCORP Holdings Ltd.		32,760		186,320
Tatts Group Ltd.		96,120		204,468

				594,224


Diversified Financials 0.2%
ASX Ltd.		5,400		139,911
Challenger Financial Services Group Ltd.		11,280		37,850
IOOF Holdings Ltd.		10,200		59,555
Macquarie Group Ltd.		7,200		240,057

				477,373


Energy 0.4%
New Hope Corp., Ltd.		9,600		39,561
Origin Energy Ltd.		23,280		315,986
Paladin Energy Ltd. *		16,560		54,682
Santos Ltd.		21,600		272,996
Woodside Petroleum Ltd.		12,969		483,308
WorleyParsons Ltd.		5,880		108,700

				1,275,233


Food & Staples Retailing 0.6%
Metcash Ltd.		37,080		144,884
Wesfarmers Ltd.		24,000		682,704
Wesfarmers Ltd., Price Protected Shares		5,160		147,746
Woolworths Ltd.		31,200		770,883

				1,746,217


Food, Beverage & Tobacco 0.2%
Coca-Cola Amatil Ltd.		22,800		242,097
Foster’s Group Ltd.		61,800		333,331
Goodman Fielder Ltd.		61,200		72,991

				648,419


Health Care Equipment & Services 0.1%
Cochlear Ltd.		960		59,128
Sonic Healthcare Ltd.		7,560		74,353

				133,481


Insurance 0.3%
AMP Ltd.		46,440		208,323
AXA Asia Pacific Holdings Ltd.		30,120		147,446
Insurance Australia Group Ltd.		61,680		188,850
QBE Insurance Group Ltd.		17,160		251,856
Suncorp-Metway Ltd.		16,200		120,397

				916,872


Materials 1.8%
Adelaide Brighton Ltd.		13,560		39,587
Alumina Ltd.		51,120		78,031
Amcor Ltd.		44,760		268,513
BHP Billiton Ltd.		82,200		2,710,657
BlueScope Steel Ltd. *		47,400		90,283
Boral Ltd.		14,280		55,924
DuluxGroup Ltd. *		8,280		19,161
Fortescue Metals Group Ltd. *		55,080		229,432
Iluka Resources Ltd. *		21,000		103,735
Incitec Pivot Ltd.		46,560		139,655
Newcrest Mining Ltd.		13,200		437,638
OneSteel Ltd.		30,000		76,900
Orica Ltd.		8,280		184,609
OZ Minerals Ltd. *		65,880		71,537
Rio Tinto Ltd.		10,920		681,229
Sims Metal Management Ltd.		5,520		81,557

				5,268,448


Media 0.0%
Consolidated Media Holdings Ltd.		18,360		53,273

12 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSL Ltd.		16,080		471,724


Real Estate 0.6%
CFS Retail Property Trust		101,280		174,429
Commonwealth Property Office Fund		136,200		114,558
Dexus Property Group		147,960		109,304
Goodman Group		121,800		68,839
GPT Group		51,072		135,915
Lend Lease Group		16,961		104,767
Mirvac Group		77,640		92,599
Stockland		70,200		246,177
Westfield Group		61,680		686,778

				1,733,366


Retailing 0.0%
Harvey Norman Holdings Ltd.		27,960		85,856


Software & Services 0.0%
Computershare Ltd.		15,360		129,739


Telecommunication Services 0.1%
Telstra Corp., Ltd.		88,320		216,175


Transportation 0.3%
Asciano Group *		61,440		91,597
Intoll Group		88,560		116,263
MAP Group		23,650		62,307
Qantas Airways Ltd. *		37,200		83,106
Toll Holdings Ltd.		28,800		155,595
Transurban Group		53,520		231,985

				740,853


Utilities 0.1%
AGL Energy Ltd.		15,120		202,133

				20,845,757

Austria 0.3%


Banks 0.1%
Erste Group Bank AG		6,729		244,935
Raiffeisen International Bank Holding AG		3,480		142,639

				387,574


Capital Goods 0.0%
Strabag SE		1,320		27,740


Energy 0.1%
OMV AG		4,320		139,569


Insurance 0.0%
Vienna Insurance Group AG		1,080		50,993


Materials 0.1%
Voestalpine AG		4,440		132,160


Real Estate 0.0%
Immofinanz AG *		22,136		72,585


Telecommunication Services 0.0%
Telekom Austria AG		5,280		67,710


Utilities 0.0%
EVN AG		1,920		30,698
Verbund AG		1,680		59,892

				90,590

				968,921

Belgium 0.8%


Banks 0.1%
Dexia S.A. *		24,308		101,611
KBC GROEP N.V. *		5,160		214,844

				316,455


Diversified Financials 0.1%
Compagnie Nationale a Portefeuille/Nationale Portefeuille Maatschappij		840		38,049
Groupe Bruxelles Lambert S.A.		2,160		159,801

				197,850


Food & Staples Retailing 0.1%
Colruyt S.A.		480		119,205
Delhaize Group		2,880		193,705

				312,910


Food, Beverage & Tobacco 0.3%
Anheuser-Busch InBev N.V.		18,720		976,550


Insurance 0.1%
Ageas		67,920		172,559


Materials 0.1%
Solvay S.A.		840		76,344
Umicore		2,040		71,119

				147,463


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
UCB S.A.		3,480		99,560


Telecommunication Services 0.0%
Belgacom S.A.		2,880		102,929

				2,326,276

Canada 8.2%


Banks 2.1%
Bank of Montreal		12,000		662,822
Bank of Nova Scotia		24,000		1,153,467
Canadian Imperial Bank of Commerce		12,000		815,867
Royal Bank of Canada		36,000		1,721,761
The Toronto-Dominion Bank		24,000		1,623,857

				5,977,774


Capital Goods 0.2%
Bombardier, Inc., B Shares		48,000		199,859
Finning International, Inc.		12,000		231,819

				431,678


Energy 2.2%
Cameco Corp.		12,000		292,812
Canadian Natural Resources Ltd.		22,800		733,380
Cenovus Energy, Inc.		24,000		645,717
Enbridge, Inc.		12,000		596,990
EnCana Corp.		24,000		658,320
Husky Energy, Inc.		12,000		279,533
Imperial Oil Ltd.		12,000		442,481
Nexen, Inc.		12,000		222,254
Suncor Energy, Inc.		36,000		1,090,786
Talisman Energy, Inc.		24,000		377,437
TransCanada Corp.		24,000		855,254

				6,194,964

See financial notes 13

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Food & Staples Retailing 0.1%
Shoppers Drug Mart Corp.		12,000		408,609


Food, Beverage & Tobacco 0.1%
Saputo, Inc.		12,000		381,826


Insurance 0.6%
Great-West Lifeco, Inc.		12,000		275,707
Manulife Financial Corp.		48,000		534,309
Power Corp. of Canada		12,000		295,850
Power Financial Corp.		12,000		320,382
Sun Life Financial, Inc.		12,000		281,784

				1,708,032


Materials 1.6%
Barrick Gold Corp.		24,000		1,124,209
Goldcorp, Inc.		24,000		1,064,566
Kinross Gold Corp.		12,000		202,898
Potash Corp. of Saskatchewan, Inc.		12,000		1,766,774
Teck Resources Ltd., Class B		12,000		401,407
Yamana Gold, Inc.		12,000		121,536

				4,681,390


Media 0.2%
Shaw Communications, Inc., B Shares		12,000		246,111
Thomson Reuters Corp.		12,000		416,711

				662,822


Real Estate 0.2%
Brookfield Asset Management, Inc., Class A		12,000		308,792
Brookfield Properties Corp.		24,000		343,902

				652,694


Software & Services 0.1%
CGI Group, Inc., A Shares *		12,000		165,874


Technology Hardware & Equipment 0.2%
Research In Motion Ltd. *		12,000		514,278


Telecommunication Services 0.3%
BCE, Inc.		12,000		375,524
Rogers Communications, Inc., B Shares		12,000		416,486

				792,010


Transportation 0.3%
Canadian National Railway Co.		12,000		732,255

				23,304,206

China 0.4%


Consumer Durables & Apparel 0.1%
Li Ning Co., Ltd.		60,000		193,225


Food, Beverage & Tobacco 0.2%
China Huiyuan Juice Group Ltd.		60,000		43,427
China Yurun Food Group Ltd.		120,000		436,588
People’s Food Holdings Ltd.		120,000		58,463
Want Want China Holdings Ltd.		240,000		194,382

				732,860


Retailing 0.1%
Parkson Retail Group Ltd.		120,000		199,936


Software & Services 0.0%
Alibaba.com Ltd.		14,000		27,285


Technology Hardware & Equipment 0.0%
Foxconn International Holdings Ltd. *		120,000		80,067

				1,233,373

Denmark 0.9%


Banks 0.2%
Danske Bank A/S *		19,680		439,155


Capital Goods 0.1%
FLSmidth & Co. A/S		1,320		78,203
Vestas Wind Systems A/S *		5,640		211,075

				289,278


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		3,240		306,182
Danisco A/S		960		69,479

				375,661


Health Care Equipment & Services 0.0%
Coloplast A/S, B Shares		360		38,415
William Demant Holding A/S *		720		48,999

				87,414


Insurance 0.0%
Tryg A/S		600		32,269


Materials 0.1%
Novozymes A/S, B Shares		1,080		127,230


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Novo Nordisk A/S, B Shares		12,840		1,104,874

				2,455,881

Finland 1.0%


Automobiles & Components 0.1%
Nokian Renkaat Oyj		3,360		96,596


Capital Goods 0.2%
Kone Oyj, B Shares		5,760		265,667
Metso Oyj		1,680		61,558
Wartsila Oyj		2,880		154,027

				481,252


Energy 0.0%
Neste Oil Oyj		5,040		68,027


Food & Staples Retailing 0.0%
Kesko Oyj, B Shares		2,040		79,441


Insurance 0.1%
Sampo Oyj, A Shares		15,240		368,210


Materials 0.2%
Outokumpu Oyj		5,160		84,600
Rautaruukki Oyj		3,840		67,594
Stora Enso Oyj, R Shares		18,480		142,919
UPM-Kymmene Oyj		14,280		196,556

				491,669


Media 0.0%
Sanoma Oyj		1,800		33,401


Technology Hardware & Equipment 0.3%
Nokia Oyj		94,440		809,592


Utilities 0.1%
Fortum Oyj		14,760		340,855

				2,769,043

14 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

France 8.4%


Automobiles & Components 0.2%
Compagnie Generale des Etablissements Michelin, B Shares		3,240		241,349
PSA Peugeot S.A. *		5,040		132,788
Renault S.A. *		6,120		249,369

				623,506


Banks 1.0%
BNP Paribas		25,320		1,588,749
Credit Agricole S.A.		19,800		250,264
Natixis *		23,520		128,539
Societe Generale		18,480		943,714

				2,911,266


Capital Goods 1.0%
Alstom S.A.		6,960		332,956
Bouygues S.A.		6,600		268,718
Compagnie de Saint-Gobain		12,960		478,333
Eiffage S.A.		1,560		71,357
Legrand S.A.		1,560		47,515
Safran S.A.		4,920		121,247
Schneider Electric S.A.		6,000		638,195
Thales S.A.		1,800		57,719
Vallourec S.A.		2,880		248,134
Vinci S.A.		12,120		533,360
Wendel		840		43,142

				2,840,676


Commercial & Professional Services 0.1%
Bureau Veritas S.A.		1,800		109,810
Edenred *		7,200		124,451
Societe BIC S.A.		1,080		79,393

				313,654


Consumer Durables & Apparel 0.6%
Christian Dior S.A.		2,280		231,300
Hermes International		2,160		392,571
LVMH Moet Hennessy Louis Vuitton S.A.		9,960		1,161,685

				1,785,556


Consumer Services 0.2%
Accor S.A.		7,200		221,542
Sodexo		4,560		262,798

				484,340


Diversified Financials 0.0%
Eurazeo		1,001		58,535


Energy 1.1%
Compagnie Generale De Geophysique-Veritas *		3,840		65,154
Technip S.A.		2,640		173,436
Total S.A.		60,120		2,817,219

				3,055,809


Food & Staples Retailing 0.4%
Carrefour S.A.		19,080		868,868
Casino Guichard Perrachon S.A.		1,560		126,673

				995,541


Food, Beverage & Tobacco 0.4%
Danone S.A.		14,760		795,485
Pernod Ricard S.A.		5,658		443,615

				1,239,100


Health Care Equipment & Services 0.1%
Essilor International S.A.		4,320		262,968


Household & Personal Products 0.2%
L’Oreal S.A.		6,480		646,507


Insurance 0.4%
AXA S.A.		54,497		849,510
CNP Assurances		4,320		73,573
SCOR SE		4,200		91,627

				1,014,710


Materials 0.3%
Air Liquide S.A.		6,392		666,648
Eramet		240		61,052
Lafarge S.A.		5,400		249,509

				977,209


Media 0.4%
Eutelsat Communications		1,560		56,249
JC Decaux S.A. *		1,320		31,632
Lagardere S.C.A.		3,120		112,715
PagesJaunes Groupe		2,520		24,018
Publicis Groupe		3,240		136,096
Societe Television Francaise 1		3,840		57,077
Vivendi		30,720		718,792

				1,136,579


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Sanofi-Aventis		24,480		1,408,479


Real Estate 0.2%
Gecina S.A.		600		59,999
Klepierre		2,160		66,147
Unibail-Rodamco SE *		2,280		431,188

				557,334


Retailing 0.1%
PPR		2,400		313,416


Software & Services 0.1%
Atos Origin S.A. *		1,560		60,512
Cap Gemini S.A.		3,480		147,548
Dassault Systemes S.A.		1,200		72,574

				280,634


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		68,160		176,201


Telecommunication Services 0.3%
France Telecom S.A.		45,240		922,264


Transportation 0.0%
Air France-KLM *		2,400		31,631


Utilities 0.7%
Electricite de France		8,160		325,959
GDF Suez		41,880		1,300,611
Suez Environnement S.A.		9,840		158,828
Veolia Environnement		12,600		294,177

				2,079,575

				24,115,490

See financial notes 15

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Germany 6.2%


Automobiles & Components 0.6%
Bayerische Motoren Werke AG		8,520		451,169
Daimler AG - Reg’d *		27,360		1,333,900
Volkswagen AG		600		54,714

				1,839,783


Banks 0.1%
Commerzbank AG *		24,720		195,168
Deutsche Postbank AG *		2,640		80,209

				275,377


Capital Goods 0.9%
GEA Group AG		5,160		107,487
Hochtief AG		1,560		103,516
MAN SE		3,840		331,334
Siemens AG - Reg’d		23,520		2,145,701

				2,688,038


Consumer Durables & Apparel 0.1%
Adidas AG		5,760		294,035
Puma AG Rudolf Dassler Sport		240		65,337

				359,372


Consumer Services 0.0%
TUI AG *		8,760		88,578


Diversified Financials 0.5%
Deutsche Bank AG - Reg’d		16,800		1,058,630
Deutsche Boerse AG		5,400		330,940

				1,389,570


Food & Staples Retailing 0.1%
Metro AG		5,280		269,599


Health Care Equipment & Services 0.1%
Celesio AG		1,440		29,283
Fresenius Medical Care AG & Co. KGaA		4,320		245,316

				274,599


Household & Personal Products 0.1%
Beiersdorf AG		1,920		102,941
Henkel AG & Co. KGaA		2,040		82,203

				185,144


Insurance 0.7%
Allianz SE - Reg’d		11,520		1,185,070
Hannover Rueckversicherung AG - Reg’d		1,560		69,404
Muenchener Rueckversicherungs - Gesellschaft AG - Reg’d		4,920		630,310

				1,884,784


Materials 0.8%
BASF SE		18,600		984,238
HeidelbergCement AG		5,040		202,737
K&S AG		4,808		252,251
Lanxess AG		1,920		84,334
Linde AG		3,000		338,962
Salzgitter AG		1,200		73,031
ThyssenKrupp AG		9,600		263,483
Wacker Chemie AG		360		54,768

				2,253,804


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Bayer AG		21,240		1,300,618
Merck KGaA		1,560		135,893

				1,436,511


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG *		24,600		137,599


Software & Services 0.4%
SAP AG		25,080		1,098,268


Telecommunication Services 0.4%
Deutsche Telekom AG - Reg’d		77,040		1,017,326


Transportation 0.1%
Deutsche Lufthansa AG - Reg’d *		4,440		70,284
Deutsche Post AG - Reg’d		21,120		346,402

				416,686


Utilities 0.7%
E.ON AG		50,400		1,422,361
RWE AG		10,200		669,963

				2,092,324

				17,707,362

Greece 0.2%


Banks 0.2%
Alpha Bank A.E. ADR *		90,720		157,853
National Bank of Greece S.A. ADR *		102,480		253,126

				410,979


Food, Beverage & Tobacco 0.0%
Coca Cola Hellenic Bottling Co. S.A. ADR		3,840		89,702


Telecommunication Services 0.0%
Hellenic Telecommunications Organization S.A. ADR		22,440		75,174

				575,855

Hong Kong 3.2%


Banks 0.4%
BOC Hong Kong Holdings Ltd.		120,000		315,485
Dah Sing Banking Group Ltd. *		98,400		151,044
Hang Seng Bank Ltd.		24,000		329,524
The Bank of East Asia Ltd.		72,000		270,283

				1,066,336


Capital Goods 0.5%
China High Speed Transmission Equipment Group Co., Ltd.		120,000		267,815
Hutchison Whampoa Ltd.		120,000		887,832
Johnson Electric Holdings Ltd.		134,000		59,261
Noble Group Ltd.		170,181		197,227

				1,412,135


Consumer Durables & Apparel 0.0%
C C Land Holdings Ltd.		120,000		48,133
Techtronic Industries Co., Ltd.		60,000		52,298

				100,431


Consumer Services 0.1%
China Travel International Investment Hong Kong Ltd. *		240,000		52,452
Galaxy Entertainment Group Ltd. *		120,000		92,563

16 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Sands China Ltd. *		48,000		73,803
The Hongkong & Shanghai Hotels Ltd.		60,000		101,048

				319,866


Diversified Financials 0.2%
Hong Kong Exchanges & Clearing Ltd.		36,000		565,096


Energy 0.0%
Mongolia Energy Co., Ltd. *		120,000		47,670


Food, Beverage & Tobacco 0.1%
China Mengniu Dairy Co., Ltd.		74,000		204,538


Household & Personal Products 0.2%
Hengan International Group Co., Ltd.		60,000		531,465


Materials 0.1%
Huabao International Holdings Ltd.		120,000		173,093


Real Estate 1.1%
Cheung Kong (Holdings) Ltd.		10,000		126,374
Hongkong Land Holdings Ltd.		120,000		644,400
Hopewell Holdings Ltd.		60,000		188,211
Kowloon Development Co., Ltd.		25,000		26,001
New World Development Co., Ltd.		120,000		192,222
Sino Land Co., Ltd.		30,000		52,375
Sun Hung Kai Properties Ltd.		120,000		1,680,016
The Link REIT		60,000		175,869

				3,085,468


Retailing 0.2%
Belle International Holdings Ltd.		120,000		210,118
Esprit Holdings Ltd.		36,148		202,617
GOME Electrical Appliances Holdings Ltd. *		480,000		146,249
Lifestyle International Holdings Ltd.		60,000		129,896

				688,880


Semiconductors & Semiconductor Equipment 0.0%
ASM Pacific Technology Ltd.		12,000		97,114


Technology Hardware & Equipment 0.1%
Lenovo Group Ltd.		240,000		137,610


Transportation 0.2%
Hopewell Highway Infrastructure Ltd.		780,000		596,645

				9,026,347

Ireland 0.4%


Banks 0.1%
Allied Irish Banks plc *		36,720		35,936
The Governor & Company of the Bank of Ireland *		96,120		94,066

				130,002


Commercial & Professional Services 0.1%
Experian plc		23,640		225,806


Food, Beverage & Tobacco 0.0%
Kerry Group plc, A Shares		2,760		90,905


Materials 0.1%
CRH plc		18,960		295,793


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Elan Corp. plc *		18,240		80,674
Shire plc		12,600		272,271

				352,945


Transportation 0.0%
Ryanair Holdings plc *		11,021		53,647

				1,149,098

Israel 0.6%


Banks 0.1%
Bank Hapoalim B.M. *		27,360		111,883
Bank Leumi Le-Israel *		16,200		67,055
Israel Discount Bank, A Shares *		21,120		37,331

				216,269


Capital Goods 0.0%
Elbit Systems Ltd.		840		41,917
Ormat Industries Ltd.		6,360		47,105

				89,022


Materials 0.1%
Israel Chemicals Ltd.		11,280		142,589
Makhteshim-Agan Industries Ltd.		8,040		27,662
The Israel Corp., Ltd. *		120		96,756

				267,007


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Teva Pharmaceutical Industries Ltd.		21,600		1,093,757


Telecommunication Services 0.0%
Bezeq Israeli Telecommunication Corp., Ltd.		39,480		87,297

				1,753,352

Italy 2.6%


Automobiles & Components 0.1%
Fiat S.p.A.		12,840		150,869
Pirelli & C S.p.A.		11,571		77,060

				227,929


Banks 0.8%
Banca Carige S.p.A.		25,680		54,603
Banca Monte dei Paschi di Siena S.p.A. *		74,760		89,695
Banca Popolare di Milano Scarl		16,080		70,099
Banco Popolare Societa Cooperatira		17,160		96,780
Intesa Sanpaolo		223,440		629,018
UniCredit S.p.A.		478,107		1,125,368
Unione di Banche Italiane S.c.p.A.		15,960		140,368

				2,205,931


Capital Goods 0.0%
Finmeccanica S.p.A.		10,680		107,572


Consumer Durables & Apparel 0.1%
Bulgari S.p.A.		5,400		40,012
Luxottica Group S.p.A.		4,680		108,492

				148,504


Consumer Services 0.0%
Autogrill S.p.A. *		5,520		63,842
Lottomatica S.p.A.		4,080		55,744

				119,586

See financial notes 17

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.0%
EXOR S.p.A.		2,280		42,104
Mediobanca S.p.A. *		11,640		91,870

				133,974


Energy 0.6%
Eni S.p.A.		68,280		1,359,850
Saipem S.p.A.		8,400		294,871

				1,654,721


Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.		28,200		68,062


Insurance 0.3%
Assicurazioni Generali S.p.A.		39,720		720,380


Media 0.0%
Mediaset S.p.A.		21,360		132,751


Telecommunication Services 0.2%
Telecom Italia S.p.A.		301,200		408,458
Telecom Italia S.p.A. - RSP		108,120		119,345

				527,803


Transportation 0.1%
Atlantia S.p.A.		8,809		166,482


Utilities 0.4%
A2A S.p.A.		46,680		65,379
Enel S.p.A.		183,360		876,236
Snam Rete Gas S.p.A.		40,920		190,087
Terna-Rete Elettrica Nazionale S.p.A.		37,560		151,445

				1,283,147

				7,496,842

Japan 18.0%


Automobiles & Components 1.9%
Bridgestone Corp.		12,000		208,360
Denso Corp.		12,000		325,545
Honda Motor Co., Ltd.		36,000		1,191,425
Isuzu Motors Ltd.		6,000		19,936
Mazda Motor Corp.		10,000		22,389
Mitsubishi Motors Corp. *		240,000		305,824
NHK Spring Co., Ltd.		5,000		41,503
Nissan Motor Co., Ltd. *		60,000		458,735
Nok Corp.		12,000		181,065
Sumitomo Rubber Industries Ltd.		12,000		108,896
Suzuki Motor Corp.		12,000		238,085
Takata Corp.		2,000		42,896
Toyota Auto Body Co., Ltd.		12,000		180,493
Toyota Motor Corp.		60,000		2,043,587
Yamaha Motor Co., Ltd. *		12,000		161,343

				5,530,082


Banks 1.3%
Aozora Bank Ltd.		120,000		161,486
Hokuhoku Financial Group, Inc.		120,000		210,075
Mitsubishi UFJ Financial Group, Inc.		300,000		1,432,655
Mizuho Financial Group, Inc.		264,000		405,574
Mizuho Trust & Banking Co., Ltd. *		120,000		97,178
Resona Holdings, Inc.		24,000		237,799
Sapporo Hokuyo Holdings, Inc.		24,000		113,183
Shinsei Bank Ltd. *		120,000		91,461
Sumitomo Mitsui Financial Group, Inc.		36,000		1,072,240

				3,821,651


Capital Goods 2.3%
COMSYS Holdings Corp.		12,000		102,894
Daikin Industries Ltd.		12,000		409,003
Fanuc Ltd.		12,000		1,289,032
IHI Corp.		120,000		212,933
ITOCHU Corp.		24,000		196,070
JS Group Corp.		12,000		229,510
JTEKT Corp.		12,000		98,464
Kawasaki Heavy Industries Ltd.		120,000		320,114
Komatsu Ltd.		36,000		730,975
Mitsubishi Corp.		36,000		771,704
Mitsubishi Electric Corp.		2,000		15,958
Mitsubishi Heavy Industries Ltd.		120,000		433,012
Mitsui & Co., Ltd.		36,000		468,596
Sojitz Corp.		60,000		96,463
Sumitomo Corp.		36,000		412,862
Sumitomo Electric Industries Ltd.		24,000		258,092
THK Co., Ltd.		12,000		197,785
Toyota Tsusho Corp.		12,000		171,776
Ushio, Inc.		12,000		202,930

				6,618,173


Commercial & Professional Services 0.2%
Kokuyo Co., Ltd.		12,000		92,033
Secom Co., Ltd.		12,000		522,329

				614,362


Consumer Durables & Apparel 1.0%
Haseko Corp. *		60,000		50,018
Makita Corp.		12,000		341,408
NAMCO BANDAI Holdings, Inc.		12,000		114,041
Nikon Corp.		12,000		199,643
Panasonic Corp.		72,000		915,755
Sanyo Electric Co., Ltd. *		120,000		195,784
Sega Sammy Holdings, Inc.		12,000		178,206
Sony Corp.		24,000		676,813
Sumitomo Forestry Co., Ltd.		12,000		86,031

				2,757,699


Diversified Financials 0.6%
Acom Co., Ltd.		3,600		54,362
Credit Saison Co., Ltd.		12,000		152,483
Daiwa Securities Group, Inc.		120,000		487,317
Matsui Securities Co., Ltd.		12,000		68,596
Mitsubishi UFJ Lease & Finance Co., Ltd.		2,400		85,459
Monex Group, Inc.		120		48,160
Nomura Holdings, Inc.		96,000		540,765
ORIX Corp.		3,600		270,954
Promise Co., Ltd.		12,000		94,177
SBI Holdings, Inc.		120		14,905
Takefuji Corp.		12,000		28,867

				1,846,045


Energy 0.1%
JX Holdings, Inc. *		51,400		259,540
Showa Shell Sekiyu K.K.		12,000		86,888

				346,428


Food & Staples Retailing 0.3%
Aeon Co., Ltd.		24,000		256,377
Seven & I Holdings Co., Ltd.		24,000		548,768
Uny Co., Ltd.		12,000		88,174

				893,319

18 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Food, Beverage & Tobacco 0.5%
Asahi Breweries Ltd.		12,000		226,509
Japan Tobacco, Inc.		120		372,562
Kagome Co., Ltd.		12,000		234,655
Kewpie Corp.		12,000		151,768
Yakult Honsha Co., Ltd.		12,000		358,700

				1,344,194


Household & Personal Products 0.1%
Kao Corp.		12,000		279,100


Insurance 0.7%
MS&AD Insurance Group Holdings, Inc.		24,000		537,906
Sony Financial Holdings, Inc.		120		392,998
T&D Holdings, Inc.		12,000		228,367
The Dai-ichi Life Insurance Co., Ltd.		240		283,816
Tokio Marine Holdings, Inc.		24,000		644,230

				2,087,317


Materials 1.2%
Hitachi Chemical Co., Ltd.		12,000		208,217
JFE Holdings, Inc.		12,000		354,555
JSR Corp.		12,000		176,921
Kobe Steel Ltd.		120,000		248,660
Mitsubishi Chemical Holdings Corp.		60,000		284,387
Nippon Steel Corp.		120,000		395,856
Nitto Denko Corp.		12,000		384,995
Shin-Etsu Chemical Co., Ltd.		12,000		555,913
Showa Denko K.K.		120,000		212,933
Sumitomo Metal Industries Ltd.		120,000		281,529
Tokyo Steel Manufacturing Co., Ltd.		12,000		131,190
Toyo Seikan Kaisha Ltd.		12,000		191,068

				3,426,224


Media 0.2%
Dentsu, Inc.		12,000		273,669
Hakuhodo DY Holdings, Inc.		2,400		112,183
Toho Co., Ltd.		12,000		194,927

				580,779


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Astellas Pharma, Inc.		12,000		414,862
Chugai Pharmaceutical Co., Ltd.		12,000		204,930
Daiichi Sankyo Co., Ltd.		12,000		239,943
Dainippon Sumitomo Pharma Co., Ltd.		12,000		99,607
Eisai Co., Ltd.		12,000		433,012
Shionogi & Co., Ltd.		12,000		209,503
Takeda Pharmaceutical Co., Ltd.		12,000		551,626

				2,153,483


Real Estate 0.1%
Leopalace21 Corp. *		24,000		51,733
Mitsubishi Estate Co., Ltd.		2,000		30,082
Mitsui Fudosan Co., Ltd.		3,000		48,696
NTT Urban Development Corp.		120		93,605
Sumitomo Real Estate Sales Co., Ltd.		1,200		50,661
Sumitomo Realty & Development Co., Ltd.		2,000		38,180

				312,957


Retailing 0.3%
DeNA Co., Ltd.		1,900		56,975
Isetan Mitsukoshi Holdings Ltd.		24,000		252,948
Marui Group Co., Ltd.		12,000		80,600
USS Co., Ltd.		1,200		88,603
Yamada Denki Co., Ltd.		4,800		298,964

				778,090


Semiconductors & Semiconductor Equipment 0.4%
Advantest Corp.		12,000		227,796
Elpida Memory, Inc. *		12,000		144,194
Sumco Corp. *		12,000		204,216
Tokyo Electron Ltd.		12,000		563,058

				1,139,264


Software & Services 0.4%
KONAMI Corp.		12,000		193,212
Nintendo Co., Ltd.		500		139,216
Nomura Research Institute Ltd.		12,000		233,369
NTT Data Corp.		120		375,563
Yahoo! Japan Corp.		360		129,689

				1,071,049


Technology Hardware & Equipment 1.8%
Alps Electric Co., Ltd. *		12,000		82,744
Brother Industries Ltd.		12,000		128,903
Canon, Inc.		36,000		1,468,381
FUJIFILM Holdings Corp.		12,000		364,416
Hitachi Ltd. *		120,000		485,888
Hoya Corp.		12,000		264,666
Kyocera Corp.		12,000		1,020,364
Murata Manufacturing Co., Ltd.		12,000		570,204
OMRON Corp.		12,000		255,377
Toshiba Corp. *		120,000		564,487
Yokogawa Electric Corp.		12,000		74,741

				5,280,171


Telecommunication Services 0.8%
KDDI Corp.		120		578,778
Nippon Telegraph & Telephone Corp.		12,000		518,042
NTT DoCoMo, Inc.		480		812,862
SOFTBANK Corp.		12,000		344,552

				2,254,234


Transportation 1.3%
All Nippon Airways Co., Ltd. *		120,000		434,441
Central Japan Railway Co.		120		968,917
East Japan Railway Co.		12,000		777,421
Kintetsu Corp.		120,000		401,572
Tokyu Corp.		120,000		548,767
West Japan Railway Co.		120		445,874

				3,576,992


Utilities 1.7%
Chubu Electric Power Co., Inc.		12,000		316,256
Electric Power Development Co., Ltd.		12,000		386,424
Hokkaido Electric Power Co., Inc.		12,000		270,239
Hokuriku Electric Power Co.		12,000		287,245
Kyushu Electric Power Co., Inc.		12,000		285,531
Osaka Gas Co., Ltd.		120,000		453,019
Shikoku Electric Power Co., Inc.		12,000		371,990
The Chugoku Electric Power Co., Inc.		12,000		262,522
The Kansai Electric Power Co., Inc.		24,000		615,649
The Tokyo Electric Power Co., Inc.		24,000		699,107
Tohoku Electric Power Co., Inc.		12,000		278,385
Tokyo Gas Co., Ltd.		120,000		560,200

				4,786,567

				51,498,180

See financial notes 19

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Luxembourg 0.4%


Energy 0.1%
Tenaris S.A.		10,080		171,414


Materials 0.2%
ArcelorMittal		28,200		825,234


Media 0.1%
SES		8,040		185,107

				1,181,755

Netherlands 3.5%


Capital Goods 0.3%
Koninklijke (Royal) Philips Electronics N.V.		26,160		735,114


Commercial & Professional Services 0.1%
Randstad Holding N.V. *		4,680		174,427


Diversified Financials 0.3%
ING Groep N.V. CVA *		93,962		838,097


Energy 1.5%
Fugro N.V. CVA		2,040		115,169
Royal Dutch Shell plc, A Shares		86,760		2,310,809
Royal Dutch Shell plc, B Shares		66,360		1,701,682
SBM Offshore N.V.		3,960		60,421

				4,188,081


Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		34,800		429,685


Food, Beverage & Tobacco 0.4%
Heineken Holding N.V.		1,800		69,501
Heineken N.V.		4,560		204,814
Unilever N.V. CVA		36,840		989,579

				1,263,894


Insurance 0.1%
AEGON N.V. *		48,360		248,188


Materials 0.2%
Akzo Nobel N.V.		5,520		292,307
James Hardie Industries N.V. CDI *		12,840		60,912
Koninklijke DSM N.V.		4,440		185,063

				538,282


Media 0.1%
Reed Elsevier N.V.		16,680		200,398
Wolters Kluwer N.V.		7,200		134,792

				335,190


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
QIAGEN N.V. *		5,640		101,609


Real Estate 0.0%
Corio N.V.		1,920		110,493


Semiconductors & Semiconductor Equipment 0.1%
ASML Holding N.V.		5,400		135,032
STMicroelectronics N.V.		7,920		52,947

				187,979


Telecommunication Services 0.2%
Koninklijke (Royal) KPN N.V.		38,160		554,834


Transportation 0.1%
TNT N.V.		7,320		186,346

				9,892,219

New Zealand 0.2%


Consumer Services 0.0%
Sky City Entertainment Group Ltd.		42,480		85,409


Health Care Equipment & Services 0.0%
Fisher & Paykel Healthcare Corp., Ltd.		20,640		42,077


Materials 0.1%
Fletcher Building Ltd.		39,840		209,882


Real Estate 0.0%
Kiwi Income Property Trust		61,200		41,159


Retailing 0.0%
The Warehouse Group Ltd.		11,640		28,867


Telecommunication Services 0.0%
Telecom Corp. of New Zealand Ltd.		47,760		68,924


Transportation 0.1%
Auckland International Airport Ltd.		69,600		97,516

				573,834

Norway 0.8%


Banks 0.1%
DnB NOR A.S.A.		25,248		279,412


Capital Goods 0.1%
Orkla A.S.A.		24,000		201,155


Energy 0.3%
Aker Solutions A.S.A.		2,520		27,848
Seadrill Ltd.		8,400		196,198
Statoil A.S.A.		36,000		677,826

				901,872


Insurance 0.0%
Storebrand A.S.A. *		15,240		75,696


Materials 0.2%
Norsk Hydro A.S.A.		31,289		149,394
Yara International A.S.A.		6,000		241,672

				391,066


Telecommunication Services 0.1%
Telenor A.S.A.		23,880		350,594

				2,199,795

Papua N.Guinea 0.1%


Energy 0.1%
Oil Search Ltd.		37,320		195,978

Portugal 0.3%


Banks 0.0%
Banco Comercial Portugues S.A. - Reg’d		152,640		122,219


Energy 0.0%
Galp Energia, SGPS, S.A., B Shares		8,160		132,955

20 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A.		18,360		203,408


Media 0.0%
Zon Multimedia Servicos de Telecomunicacoes e Multimedia, SGPS, S.A.		8,640		34,920


Telecommunication Services 0.1%
Portugal Telecom, SGPS, S.A. - Reg’d		13,680		160,652


Transportation 0.0%
Brisa Auto-Estradas de Portugal S.A.		6,480		40,849


Utilities 0.1%
EDP - Energias de Portugal S.A.		84,840		258,786

				953,789

Republic of Korea 4.0%


Automobiles & Components 0.2%
Halla Climate Control Corp.		250		3,764
Hyundai Mobis		378		68,418
Hyundai Motor Co.		1,481		174,795
Kia Motors Corp.		8,250		211,944

				458,921


Banks 0.9%
KB Financial Group, Inc. ADR		27,120		1,104,869
Shinhan Financial Group Co., Ltd. ADR		18,000		1,379,520

				2,484,389


Capital Goods 0.2%
Daelim Industrial Co., Ltd.		842		52,954
Daewoo International Corp.		1,690		47,011
Doosan Corp.		675		67,562
Doosan Infracore Co., Ltd. *		690		11,108
Hyundai Heavy Industries Co., Ltd.		300		66,061
Hyundai Mipo Dockyard Co., Ltd.		70		9,371
LS Corp.		453		44,397
Samsung C&T Corp.		1,691		79,550
Samsung Engineering Co., Ltd.		515		56,702
Samsung Heavy Industries Co., Ltd.		2,560		56,905
STX Corp. *		1,340		24,142

				515,763


Diversified Financials 0.0%
Daewoo Securities Co., Ltd.		1,690		31,082
Hyundai Securities Co., Ltd.		3,940		47,159
Korea Investment Holdings Co., Ltd.		250		6,558
Woori Investment & Securities Co., Ltd.		1,950		28,545

				113,344


Energy 0.0%
SK Energy Co., Ltd.		157		16,697


Insurance 0.0%
Dongbu Insurance Co., Ltd.		2,450		68,969


Materials 0.8%
Hanwha Chemical Corp.		1,000		22,395
Hanwha Corp.		2,890		107,390
Honam Petrochemical Corp.		44		6,863
Hyundai Steel Co.		200		18,016
Korea Zinc Co., Ltd.		39		8,669
LG Chem Ltd.		603		173,522
OCI Co., Ltd.		88		27,305
POSCO ADR		17,760		1,793,050

				2,157,210


Retailing 0.0%
Hyundai Department Store Co., Ltd.		156		15,614
Lotte Midopa Co., Ltd.		3,100		30,124

				45,738


Semiconductors & Semiconductor Equipment 1.0%
Hynix Semiconductor, Inc. *		6,640		116,860
Samsung Electronics Co., Ltd. GDR - Reg’d		9,000		2,830,500

				2,947,360


Software & Services 0.0%
Daum Communications Corp. *		76		4,456


Technology Hardware & Equipment 0.3%
LG Display Co., Ltd. ADR		53,520		753,562
Samsung Electro-Mechanics Co., Ltd.		807		76,735

				830,297


Telecommunication Services 0.3%
KT Corp. ADR		21,240		396,551
SK Telecom Co., Ltd. ADR		28,200		451,764

				848,315


Transportation 0.0%
Hanjin Shipping Holdings Co., Ltd. *		740		9,413
Korean Air Lines Co., Ltd. *		799		48,584

				57,997


Utilities 0.3%
Korea Electric Power Corp. ADR *		70,080		862,685

				11,412,141

Singapore 1.4%


Banks 0.3%
Oversea-Chinese Banking Corp., Ltd.		120,000		767,993


Capital Goods 0.2%
Singapore Technologies Engineering Ltd.		120,000		283,458
Yangzijiang Shipbuilding Holdings Ltd.		120,000		140,843

				424,301


Food & Staples Retailing 0.1%
Olam International Ltd.		120,000		236,510


Food, Beverage & Tobacco 0.2%
Golden Agri-Resources Ltd.		360,000		148,815
Wilmar International Ltd.		120,000		554,514

				703,329


Health Care Equipment & Services 0.0%
Parkway Holdings Ltd. (a)		25,000		72,894


Real Estate 0.3%
Allgreen Properties Ltd.		49,000		36,894
CapitaCommercial Trust		120,000		124,013
Capitaland Ltd.		120,000		346,350
CapitaMall Trust		120,000		171,846
Keppel Land Ltd.		33,000		94,515
Wing Tai Holdings Ltd.		37,000		44,246
Yanlord Land Group Ltd.		120,000		155,901

				973,765

See financial notes 21

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		240,000		545,656


Transportation 0.1%
ComfortDelGro Corp., Ltd.		120,000		131,985
Neptune Orient Lines Ltd. *		120,000		169,189
Singapore Post Ltd.		120,000		100,982

				402,156

				4,126,604

Spain 3.5%


Banks 1.3%
Banco Bilbao Vizcaya Argentaria S.A.		81,360		983,997
Banco de Sabadell S.A.		31,388		152,190
Banco Popular Espanol S.A.		28,841		172,501
Banco Santander S.A.		208,800		2,453,917

				3,762,605


Capital Goods 0.1%
ACS, Actividades de Construccion y Servicios S.A.		6,480		269,515
Gamesa Corporacion Tecnologica S.A. *		5,040		33,950
Zardoya Otis S.A.		3,646		57,043

				360,508


Diversified Financials 0.1%
Corporacion Financiera Alba S.A.		960		40,142
Criteria Caixacorp S.A.		32,160		151,437

				191,579


Energy 0.3%
Repsol YPF S.A.		31,440		719,855


Insurance 0.0%
Mapfre S.A.		25,701		74,051


Materials 0.0%
Acerinox S.A.		5,760		91,106


Media 0.0%
Gestevision Telecinco S.A.		2,760		28,027


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Grifols S.A.		5,760		67,270


Retailing 0.1%
Industria de Diseno Textil S.A.		6,120		409,523


Software & Services 0.0%
Indra Sistemas S.A.		3,840		64,446


Telecommunication Services 0.9%
Telefonica S.A.		108,720		2,418,109


Transportation 0.1%
Abertis Infraestructuras S.A.		6,648		110,517
Ferrovial S.A.		11,760		103,638

				214,155


Utilities 0.6%
Acciona S.A.		840		66,501
EDP Renovaveis S.A. *		14,040		78,336
Enagas		5,400		95,741
Endesa S.A.		3,000		69,889
Gas Natural SDG S.A.		12,840		194,767
Iberdrola Renovables S.A.		28,680		94,080
Iberdrola S.A.		135,720		959,063
Red Electrica Corporacion S.A.		1,800		74,396

				1,632,773

				10,034,007

Sweden 2.7%


Banks 0.7%
Nordea Bank AB		94,560		849,979
Skandinaviska Enskilda Banken AB, A Shares		53,640		335,436
Svenska Handelsbanken AB, A Shares		18,480		483,921
Swedbank AB, A Shares *		16,200		182,325

				1,851,661


Capital Goods 0.8%
AB SKF, B Shares		12,840		231,180
Alfa Laval AB		13,200		193,783
Assa Abloy AB, B Shares		12,120		242,883
Atlas Copco AB, A Shares		17,400		265,357
Atlas Copco AB, B Shares		10,440		143,633
Sandvik AB		22,320		265,134
Scania AB, B Shares		10,320		190,989
Skanska AB, B Shares		12,840		197,906
Volvo AB, A Shares *		14,280		157,035
Volvo AB, B Shares *		33,360		387,902

				2,275,802


Commercial & Professional Services 0.1%
Securitas AB, B Shares		21,480		198,325


Consumer Durables & Apparel 0.0%
Electrolux AB, Series B		4,800		92,805


Diversified Financials 0.1%
Industrivarden AB, A Shares		6,960		83,337
Investor AB, B Shares		18,360		317,862

				401,199


Food, Beverage & Tobacco 0.1%
Swedish Match AB		15,240		352,139


Materials 0.1%
Boliden AB		4,560		51,816
Holmen AB, B Shares		3,600		95,540
SSAB AB, A Shares		5,400		74,146
Svenska Cellulosa AB, B Shares		13,800		184,055

				405,557


Retailing 0.2%
Hennes & Mauritz AB, B Shares		14,520		476,363


Technology Hardware & Equipment 0.3%
Telefonaktiebolaget LM Ericsson, B Shares		77,400		752,965


Telecommunication Services 0.3%
Tele2 AB, B Shares		13,320		240,365
TeliaSonera AB		73,560		530,469

				770,834

				7,577,650

Switzerland 7.1%


Capital Goods 0.6%
ABB Ltd. - Reg’d *		61,560		1,191,132

22 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Geberit AG - Reg’d		1,440		232,331
Schindler Holding AG		1,440		143,716
Schindler Holding AG - Reg’d		2,040		201,083

				1,768,262


Commercial & Professional Services 0.2%
Adecco S.A. - Reg’d		5,880		274,516
SGS S.A. - Reg’d		240		347,929

				622,445


Consumer Durables & Apparel 0.4%
Compagnie Financiere Richemont S.A., A Shares		15,000		583,728
Swatch Group AG		1,080		348,071
Swatch Group AG - Reg’d		3,240		192,035

				1,123,834


Diversified Financials 1.1%
Credit Suisse Group AG - Reg’d		29,880		1,313,954
GAM Holding Ltd. *		4,560		56,888
Julius Baer Group Ltd.		6,480		228,845
Pargesa Holding S.A.		1,560		101,846
UBS AG - Reg’d *		87,360		1,480,123

				3,181,656


Food, Beverage & Tobacco 1.7%
Nestle S.A. - Reg’d		95,280		4,942,532


Health Care Equipment & Services 0.1%
Sonova Holding AG - Reg’d		1,080		138,355


Insurance 0.5%
Baloise Holding AG - Reg’d		1,680		136,189
Swiss Life Holding AG - Reg’d *		720		75,195
Swiss Reinsurance Co., Ltd. - Reg’d		5,520		229,184
Zurich Financial Services AG		3,720		830,580

				1,271,148


Materials 0.5%
Givaudan S.A. - Reg’d		360		344,379
Holcim Ltd. - Reg’d		5,160		310,923
Syngenta AG - Reg’d		3,000		693,491

				1,348,793


Pharmaceuticals, Biotechnology & Life Sciences 1.9%
Lonza Group AG - Reg’d		1,920		159,527
Novartis AG - Reg’d		55,800		2,935,828
Roche Holding AG		18,000		2,449,704

				5,545,059


Telecommunication Services 0.1%
Swisscom AG - Reg’d		720		280,331


Transportation 0.0%
Kuehne & Nagel International AG - Reg’d		1,200		125,325


Utilities 0.0%
BKW FMB Energie AG		1,200		82,663

				20,430,403

United Kingdom 16.6%


Banks 2.9%
Barclays plc		300,120		1,394,834
HSBC Holdings plc		430,680		4,260,731
Lloyds Banking Group plc *		992,402		1,059,878
Royal Bank of Scotland Group plc *		497,040		340,547
Standard Chartered plc		51,240		1,376,958

				8,432,948


Capital Goods 0.5%
BAE Systems plc		81,000		366,869
Bunzl plc		6,480		70,809
Cobham plc		23,400		75,164
European Aeronautic Defence & Space Co. *		8,520		188,037
Invensys plc		18,480		65,381
Rolls-Royce Group plc *		38,760		330,019
Smiths Group plc		7,440		130,926
Tomkins plc		18,240		90,827
Wolseley plc *		7,800		150,927

				1,468,959


Commercial & Professional Services 0.1%
Capita Group plc		15,000		162,066
G4S plc		34,080		132,201
Hays plc		37,080		51,404
Rentokil Initial plc *		53,520		77,155

				422,826


Consumer Durables & Apparel 0.1%
Burberry Group plc		11,880		155,196


Consumer Services 0.5%
Carnival plc		6,840		222,548
Compass Group plc		54,000		442,766
Intercontinental Hotels Group plc		12,000		181,109
Ladbrokes plc		33,960		68,373
PartyGaming plc *		9,120		36,723
Thomas Cook Group plc		29,520		82,436
TUI Travel plc		23,640		73,137
Whitbread plc		7,080		151,902
William Hill plc		27,840		71,626

				1,330,620


Diversified Financials 0.2%
3i Group plc		25,800		103,333
ICAP plc		20,040		126,278
Man Group plc		44,040		140,920
Provident Financial plc		6,720		85,619
Schroders plc		3,720		78,498
Schroders plc, Non-Voting Shares		3,600		61,415

				596,063


Energy 1.7%
AMEC plc		7,920		111,619
BG Group plc		80,400		1,296,834
BP plc		463,920		2,713,675
Cairn Energy plc *		28,800		206,884
Petrofac Ltd.		1,560		33,590
Tullow Oil plc		21,480		402,094

				4,764,696


Food & Staples Retailing 0.6%
J Sainsbury plc		47,040		264,024
Tesco plc		194,400		1,215,859
William Morrison Supermarkets plc		63,360		282,397

				1,762,280


Food, Beverage & Tobacco 1.8%
Associated British Foods plc		8,880		144,392
British American Tobacco plc		48,000		1,634,771
Diageo plc		60,000		976,547

See financial notes 23

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Imperial Tobacco Group plc		23,760		657,302
SABMiller plc		28,560		815,110
Tate & Lyle plc		13,200		82,994
Unilever plc		31,440		832,073

				5,143,189


Health Care Equipment & Services 0.1%
Smith & Nephew plc		23,880		198,921


Household & Personal Products 0.4%
Reckitt Benckiser Group plc		20,400		1,023,041


Insurance 0.8%
Admiral Group plc		3,240		75,789
Aviva plc		70,560		411,002
Legal & General Group plc		157,800		224,698
Old Mutual plc		141,600		277,037
Prudential plc		70,320		611,704
Resolution Ltd.		113,318		440,969
RSA Insurance Group plc		73,800		139,624
Standard Life plc		51,120		160,118

				2,340,941


Materials 2.4%
Anglo American plc *		33,720		1,212,689
Antofagasta plc		6,240		98,971
BHP Billiton plc		54,240		1,526,766
Eurasian Natural Resources Corp.		10,080		131,372
Fresnillo plc		4,920		82,421
Johnson Matthey plc		4,920		120,153
Kazakhmys plc		7,680		136,447
Lonmin plc *		5,280		123,995
Randgold Resources Ltd.		2,040		190,625
Rexam plc		24,840		115,522
Rio Tinto plc		39,960		2,026,681
Vedanta Resources plc		3,840		111,483
Xstrata plc		58,920		929,086

				6,806,211


Media 0.4%
Aegis Group plc		19,560		33,849
British Sky Broadcasting Group plc		27,720		301,415
Daily Mail & General Trust plc, A Shares		5,280		36,655
ITV plc *		109,680		94,398
Pearson plc		17,040		254,686
Reed Elsevier plc		25,080		201,978
United Business Media Ltd.		4,440		37,668
WPP plc		29,280		290,703

				1,251,352


Pharmaceuticals, Biotechnology & Life Sciences 1.4%
AstraZeneca plc		35,520		1,762,188
GlaxoSmithKline plc		126,840		2,380,224

				4,142,412


Real Estate 0.3%
British Land Co. plc		32,880		230,634
Capital & Counties Properties plc *		25,920		46,967
Capital Shopping Centres Group		25,920		132,018
Hammerson plc		25,440		140,599
Land Securities Group plc		18,840		177,061
SEGRO plc		23,640		98,243

				825,522


Retailing 0.2%
Home Retail Group plc		16,560		55,636
Kingfisher plc		49,920		156,897
Marks & Spencer Group plc		33,840		180,002
Next plc		3,240		98,595

				491,130


Software & Services 0.1%
Autonomy Corp. plc *		5,880		140,977
Logica plc		40,440		67,435
The Sage Group plc		30,840		116,078

				324,490


Telecommunication Services 1.4%
BT Group plc		179,280		367,013
Cable & Wireless Communications plc		86,520		74,996
Cable & Wireless Worldwide plc		80,520		82,666
Inmarsat plc		10,440		107,343
TalkTalk Telecom Group plc *		24,600		49,037
Vodafone Group plc		1,320,600		3,189,566

				3,870,621


Utilities 0.7%
Centrica plc		115,680		578,347
Drax Group plc		14,160		86,376
International Power plc		38,160		217,819
National Grid plc		76,262		643,467
Scottish & Southern Energy plc		20,520		361,101
Severn Trent plc		5,280		105,087
United Utilities Group plc		13,200		115,738

				2,107,935

				47,459,353

United States 0.1%


Health Care Equipment & Services 0.1%
Synthes, Inc.		1,800		198,817

Total Common Stock
(Cost $301,904,708)				283,462,328




Other Investment Company 0.3% of net assets

United States 0.3%
State Street Institutional Liquid Reserves Fund - Institutional Class		901,164		901,164

Total Other Investment Company
(Cost $901,164)				901,164




Preferred Stock 0.2% of net assets

Germany 0.2%


Automobiles & Components 0.1%
Porsche Automobil Holding SE		1,560		72,834
Volkswagen AG		3,282		327,569

				400,403

24 See financial notes

Schwab International Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Health Care Equipment & Services 0.0%
Fresenius SE		1,440		102,746


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		3,600		169,748

Total Preferred Stock
(Cost $654,052)				672,897



End of Investments

At 8/31/10, the tax basis cost of the fund’s investments was $303,724,905 and the unrealized appreciation and depreciation were $6,694,561 and ($25,383,077), respectively, with a net unrealized depreciation of ($18,688,516).


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
GDR —		Global Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

See financial notes 25

Schwab International Equity ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on October 30, 2009, it has no prior report period.


*10/30/09-8/31/10**
Net investment income		$4,258,111
Net realized losses		(1,629,858	)
Net unrealized losses	+	(18,425,496	)

Net decrease in net assets resulting from operations		(15,797,243	)

Distributions to Shareholders

Distributions from net investment income		$132,000

Transactions in Fund Shares


		*10/30/09-8/31/10**
			SHARES	VALUE
Shares Sold			12,000,001	$301,798,217
Shares Redeemed	+		—	—

Net transactions in fund shares			12,000,001	$301,798,217

Shares Outstanding and Net Assets

		*10/30/09-8/31/10**
			SHARES	NET ASSETS
Beginning of period			—	$—
Total increase	+		12,000,001	285,868,974

End of period			12,000,001	$285,868,974


Net investment income not yet distributed				$4,098,948


*		Commencement of operations.

28 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	98	.7%	Common Stock		59,982,861		58,100,578
	0	.4%	Other Investment Companies		263,123		253,344
	0	.3%	Preferred Stock		135,903		151,809
		—%	Warrants		637		1,612


	99	.4%	Total Investments		60,382,524		58,507,343
	0	.6%	Other Assets and Liabilities, Net				340,364


	100	.0%	Net Assets				58,847,707


	Number		Value
Security	of Shares		($)

Common Stock 98.7% of net assets

Australia 5.9%


Capital Goods 0.4%
Boart Longyear Group		24,162		62,581
Bradken Ltd.		7,525		50,500
Crane Group Ltd.		5,650		40,431
Macmahon Holdings Ltd.		68,325		36,183
Monadelphous Group Ltd.		1,825		24,284
UGL Ltd.		3,575		45,820

				259,799


Commercial & Professional Services 0.5%
Cabcharge Australia Ltd.		8,975		38,423
Campbell Brothers Ltd.		2,925		82,970
SAI Global Ltd.		12,527		47,052
Seek Ltd.		7,250		46,848
Transfield Services Ltd.		20,675		60,542

				275,835


Consumer Durables & Apparel 0.1%
G.U.D Holdings Ltd.		6,300		54,111


Consumer Services 0.1%
Invocare Ltd.		11,975		68,320


Diversified Financials 0.0%
Platinum Asset Management Ltd.		4,300		18,792


Energy 0.8%
AWE Ltd. *		27,775		38,565
Beach Energy Ltd.		77,450		45,152
Carnarvon Petroleum Ltd. *		83,075		24,770
Centennial Coal Co., Ltd.		21,275		114,183
Dart Energy Ltd. *		13,285		9,341
Karoon Gas Australia Ltd. *		6,850		40,483
Linc Energy Ltd. *		33,525		49,384
Riversdale Mining Ltd. *		9,850		79,867
Roc Oil Co., Ltd. *		124,550		39,908
Whitehaven Coal Ltd.		10,325		54,955

				496,608


Food, Beverage & Tobacco 0.2%
GrainCorp Ltd.		14,625		89,427


Health Care Equipment & Services 0.3%
Healthscope Ltd.		15,650		85,665
Primary Health Care Ltd.		12,575		36,151
Ramsay Health Care Ltd.		5,725		74,497

				196,313


Materials 1.3%
Andean Resources Ltd. *		19,025		84,158
Atlas Iron Ltd. *		29,500		54,876
Coal of Africa Ltd. *		32,100		37,856
CuDeco Ltd. *		8,492		16,024
Gindalbie Metals Ltd. *		37,875		30,003
Independence Group NL		10,500		51,120
Kingsgate Consolidated Ltd.		3,750		33,444
Lynas Corp., Ltd. *		108,125		94,312
MacArthur Coal Ltd.		7,625		76,553
Mount Gibson Iron Ltd. *		49,300		76,350
Murchison Metals Ltd. *		28,100		34,765
PanAust Ltd. *		139,425		73,216
St Barbara Ltd. *		108,600		31,414
Sundance Resources Ltd. *		304,775		39,333

				733,424


Media 0.1%
Austar United Communications Ltd. *		38,975		31,915


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Biota Holdings Ltd. *		34,850		28,847
Pharmaxis Ltd. *		22,150		40,021

				68,868


Real Estate 0.7%
Abacus Property Group		115,900		42,294
Bunnings Warehouse Property Trust		38,600		63,387
Centro Retail Group, REIT *		200,525		28,556
Charter Hall Retail REIT		109,025		57,738
Cromwell Group		55,125		35,571
FKP Property Group		66,050		44,973
ING Industrial Fund		165,550		67,043
ING Office Fund		161,550		86,273

				425,835


Retailing 0.5%
Automotive Holdings Group		18,075		37,806
David Jones Ltd.		23,650		103,775
JB Hi-Fi Ltd.		3,675		68,101
Pacific Brands Ltd. *		74,025		68,851
Wotif.com Holdings Ltd.		6,225		24,378

				302,911


Semiconductors & Semiconductor Equipment 0.1%
Silex Systems Ltd. *		13,375		53,570


Software & Services 0.2%
carsales.com.au Ltd.		5,275		24,414
Iress Market Technology Ltd.		5,800		39,904
Oakton Ltd.		15,675		41,576

				105,894

30 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.1%
TPG Telecom Ltd.		17,800		27,725


Transportation 0.2%
ConnectEast Group		235,325		84,827
Virgin Blue Holdings Ltd. *		189,850		58,297

				143,124


Utilities 0.2%
APA Group		22,275		74,149
Infigen Energy		55,900		32,837

				106,986

				3,459,457

Austria 1.0%


Automobiles & Components 0.1%
Semperit AG Holding		1,375		45,437


Capital Goods 0.3%
Andritz AG		1,450		88,458
Wienerberger AG *		5,625		73,064

				161,522


Consumer Services 0.1%
bwin Interactive Entertainment AG		1,525		73,099


Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG		1,000		52,681


Materials 0.1%
Mayr Melnhof Karton AG		350		33,420
RHI AG *		1,975		52,876

				86,296


Real Estate 0.2%
CA Immobilien Anlagen AG *		5,050		59,690
Conwert Immobilien Invest SE		4,875		56,587
Sparkassen Immobilien AG *		6,025		39,819

				156,096


Transportation 0.1%
Oesterreichische Post AG		1,525		39,539

				614,670

Belgium 1.8%


Capital Goods 0.2%
Bekaert N.V.		650		132,179


Diversified Financials 0.5%
Ackermans & van Haaren N.V.		1,225		83,311
Banque Nationale de Belgique		25		118,738
RHJ International *		6,975		56,203
Sofina S.A.		850		65,758

				324,010


Health Care Equipment & Services 0.2%
AGFA-Gevaert N.V. *		7,450		51,130
Omega Pharma S.A.		1,050		38,240

				89,370


Materials 0.2%
Nyrstar		5,175		55,577
Tessenderlo Chemie N.V.		1,500		42,513

				98,090


Real Estate 0.2%
Befimmo S.C.A.		875		65,613
Cofinimmo		625		74,946

				140,559


Retailing 0.1%
S.A. D’ieteren N.V.		150		70,709


Technology Hardware & Equipment 0.1%
EVS Broadcast Equipment S.A.		900		45,526


Telecommunication Services 0.2%
Telenet Group Holding N.V. *		2,975		89,044


Utilities 0.1%
Elia System Operator S.A./N.V.		1,925		65,520

				1,055,007

Canada 19.2%


Automobiles & Components 0.1%
Linamar Corp.		2,500		43,325
Martinrea International, Inc. *		2,500		18,123

				61,448


Banks 0.2%
Canadian Western Bank		2,500		57,205
Genworth MI Canada, Inc.		2,500		61,893

				119,098


Capital Goods 0.6%
Aecon Group, Inc.		2,500		27,360
ATS Automation Tooling Systems, Inc. *		5,000		28,415
CAE, Inc.		12,500		117,808
Russel Metals, Inc.		2,500		44,779
Superior Plus Corp.		5,000		54,954
Toromont Industries Ltd.		2,500		63,065

				336,381


Commercial & Professional Services 0.4%
IESI-BFC Ltd.		2,500		59,197
Ritchie Bros Auctioneers, Inc.		5,000		91,762
Stantec, Inc. *		2,500		60,299
Transcontinental, Inc., Class A		2,500		28,485

				239,743


Consumer Durables & Apparel 0.4%
Dorel Industries, Inc., Class B		2,500		82,056
Gildan Activewear, Inc. *		5,000		137,150

				219,206


Consumer Services 0.5%
Great Canadian Gaming Corp. *		5,000		33,104
Tim Hortons, Inc.		7,500		265,860

				298,964


Diversified Financials 0.8%
AGF Management Ltd., Class B		2,500		33,760
CI Financial Corp.		7,500		139,260
Dundee Corp., Class A *		2,500		26,422
DundeeWealth, Inc.		2,500		30,478
GMP Capital, Inc.		2,500		23,679
Onex Corp.		5,000		131,664
TMX Group, Inc.		2,500		66,512

				451,775

See financial notes 31

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Energy 3.3%
Advantage Oil & Gas Ltd. *		7,500		44,873
Bankers Petroleum Ltd. *		10,000		63,957
Birchcliff Energy Ltd. *		5,000		42,106
BlackPearl Resources, Inc. *		10,000		28,602
Calfrac Well Services Ltd.		2,500		55,681
Celtic Exploration Ltd. *		5,000		53,594
Connacher Oil and Gas Ltd. *		22,500		25,320
Corridor Resources, Inc. *		5,000		23,585
Crescent Point Energy Corp.		7,500		264,102
Crew Energy, Inc. *		2,500		38,683
Denison Mines Corp. *		22,500		30,384
Ensign Energy Services, Inc.		7,500		81,376
Mullen Group Ltd.		2,500		32,518
Niko Resources Ltd.		2,500		246,753
NuVista Energy Ltd.		5,000		49,702
OPTI Canada, Inc. *		17,500		16,903
Pacific Rubiales Energy Corp. *		10,000		235,851
Paramount Resources Ltd., A Shares *		2,500		46,537
Pason Systems, Inc.		2,500		27,664
PetroBakken Energy Ltd., A Shares		2,500		47,194
Petrobank Energy & Resources Ltd. *		2,500		86,698
Progress Energy Resources Corp.		7,500		82,571
Savanna Energy Services Corp. *		5,000		25,836
ShawCor Ltd., Class A		2,500		63,066
Trican Well Service Ltd.		5,000		66,770
Trinidad Drilling Ltd.		5,000		23,444
Uranium One, Inc. *		27,500		90,777
UTS Energy Corp. *		22,500		74,694

				1,969,241


Food & Staples Retailing 0.8%
Alimentation Couche-Tard, Inc., B Shares		5,000		107,329
Empire Co., Ltd., A Shares		2,500		127,632
Metro, Inc., A Shares		5,000		211,656
The Jean Coutu Group PJC, Inc., A Shares		5,000		41,028

				487,645


Food, Beverage & Tobacco 0.4%
Cott Corp. *		5,000		34,557
Maple Leaf Foods, Inc.		5,000		49,374
Viterra, Inc. *		17,500		137,853

				221,784


Health Care Equipment & Services 0.1%
CML Healthcare Income Fund		5,000		52,515


Insurance 0.5%
Industrial Alliance Insurance & Financial Services, Inc.		2,500		70,568
Intact Financial Corp.		5,000		208,093

				278,661


Materials 7.4%
Alamos Gold, Inc.		5,000		79,524
Aura Minerals, Inc. *		5,000		17,396
Aurizon Mines Ltd. *		7,500		49,866
Canfor Corp. *		5,000		38,168
Capstone Mining Corp. *		10,000		24,007
CCL Industries, Inc., Class B		2,500		72,185
Centerra Gold, Inc. *		7,500		105,289
Consolidated Thompson Iron Mines Ltd. *		10,000		78,773
Detour Gold Corp. *		2,500		74,671
Eastern Platinum Ltd. *		30,000		30,103
Eldorado Gold Corp.		20,000		392,742
Equinox Minerals Ltd. *		27,500		122,755
European Goldfields Ltd. *		7,500		66,957
First Quantum Minerals Ltd.		2,500		144,136
Franco-Nevada Corp.		5,000		149,154
Fronteer Gold, Inc. *		5,000		37,136
Gabriel Resources Ltd. *		7,500		35,026
Gammon Gold, Inc. *		7,500		53,735
Harry Winston Diamond Corp. *		2,500		25,156
HudBay Minerals, Inc.		7,500		103,812
IAMGOLD Corp.		15,000		281,333
Inmet Mining Corp.		2,500		119,731
Ivanhoe Mines Ltd. *		15,000		267,267
Lake Shore Gold Corp. *		12,500		44,427
Lundin Mining Corp. *		17,500		69,583
Methanex Corp.		5,000		106,719
Minefinders Corp. *		2,500		23,069
New Gold, Inc. *		17,500		110,775
Northern Dynasty Minerals Ltd. *		2,500		17,208
Northgate Minerals Corp. *		12,500		37,746
Novagold Resources, Inc. *		7,500		55,845
Osisko Mining Corp. *		10,000		133,071
Pan American Silver Corp.		5,000		124,302
Quadra Fnx Mining Ltd. *		8,980		98,192
Red Back Mining, Inc. *		10,000		298,495
Rubicon Minerals Corp. *		5,000		20,631
SEMAFO, Inc. *		10,000		81,962
Sherritt International Corp.		12,500		80,297
Silver Standard Resources, Inc. *		2,500		44,029
Silver Wheaton Corp. *		15,000		338,303
Silvercorp Metals, Inc.		5,000		36,667
Taseko Mines Ltd. *		7,500		33,057
Thompson Creek Metals Co., Inc. *		5,000		42,810
Ventana Gold Corp. *		2,500		19,975
West Fraser Timber Co., Ltd.		2,500		86,768
Western Coal Corp. *		15,000		56,267

				4,329,120


Media 0.6%
Astral Media, Inc.		2,500		84,893
Cogeco Cable, Inc.		2,500		83,978
Groupe Aeroplan, Inc.		10,000		106,344
Quebecor, Inc., Class B		2,500		76,335

				351,550


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Biovail Corp.		7,500		171,543
MDS, Inc. *		5,000		47,639

				219,182


Real Estate 1.5%
Allied Properties Real Estate Investment Trust		2,500		48,999
Boardwalk Real Estate Investment Trust		2,500		104,539
Calloway Real Estate Investment Trust		2,500		54,180
Canadian Apartment Properties Real Estate Investment Trust		2,500		39,035
Canadian Real Estate Investment Trust		2,500		73,076

32 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Chartwell Seniors Housing Real Estate Investment Trust, REIT		5,000		39,762
Cominar Real Estate Investment Trust		2,500		48,155
Dundee Real Estate Investment Trust, REIT		2,500		59,619
Extendicare Real Estate Investment Trust		5,000		46,748
First Capital Realty, Inc.		3,700		51,075
H&R Real Estate Investment Trust		5,000		89,792
InnVest Real Estate Investment Trust		5,000		29,681
Morguard Real Estate Investment Trust		2,500		31,838
Primaris Retail Real Estate Investment Trust		2,500		45,084
RioCan Real Estate Investment Trust		7,500		146,856

				908,439


Retailing 0.2%
Reitmans Canada Ltd., A Shares		2,500		44,052
RONA, inc. *		7,500		88,972

				133,024


Software & Services 0.4%
MacDonald, Dettwiler & Associates Ltd. *		2,500		109,345
Open Text Corp. *		2,500		110,048

				219,393


Technology Hardware & Equipment 0.1%
Celestica, Inc. *		10,000		75,397


Transportation 0.0%
TransForce, Inc.		2,500		22,671


Utilities 0.5%
ATCO Ltd., Class I		2,500		120,153
Emera, Inc.		2,500		61,425
Fortis, Inc.		5,000		138,275

				319,853

				11,315,090

China 0.9%


Capital Goods 0.1%
China Automation Group Ltd.		125,000		78,743


Consumer Durables & Apparel 0.1%
China Hongxing Sports Ltd.		425,000		51,764


Consumer Services 0.1%
Ajisen China Holdings Ltd.		75,000		112,618


Food, Beverage & Tobacco 0.1%
Synear Food Holdings Ltd. *		200,000		34,694


Health Care Equipment & Services 0.1%
Golden Meditech Holdings Ltd. *		300,000		51,295


Retailing 0.1%
Intime Department Store Group Co., Ltd.		25,000		30,726


Software & Services 0.1%
Kingsoft Corp., Ltd.		75,000		35,482


Technology Hardware & Equipment 0.2%
AAC Acoustic Technologies Holdings, Inc.		50,000		91,277
China Wireless Technologies Ltd.		108,000		44,708

				135,985

				531,307

Cyprus 0.1%


Energy 0.1%
ProSafe SE		10,000		48,112

Denmark 1.1%


Banks 0.2%
Jyske Bank A/S *		2,800		92,503
Sydbank A/S *		3,300		69,864

				162,367


Capital Goods 0.1%
NKT Holding A/S		950		36,024


Consumer Durables & Apparel 0.1%
Bang & Olufsen A/S *		2,275		18,061
IC Companys A/S		1,000		35,342

				53,403


Energy 0.1%
Torm A/S *		5,400		38,188


Health Care Equipment & Services 0.1%
GN Store Nord A/S *		10,650		68,732


Insurance 0.1%
Topdanmark A/S *		725		83,552


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
ALK-Abello A/S		575		29,795


Software & Services 0.1%
SimCorp A/S		325		44,002


Transportation 0.2%
DSV A/S		8,250		131,136

				647,199

Finland 2.2%


Capital Goods 0.8%
Cargotec Corp., B Shares		1,825		59,425
Cramo Oyj *		2,225		35,009
Konecranes Oyj		2,450		74,888
Outotec Oyj		1,750		59,140
Ramirent Oyj		4,200		37,313
Ruukki Group Oyj *		13,275		30,201
Uponor Oyj		2,425		33,748
Vacon Oyj		1,150		52,617
YIT Oyj		3,875		80,572

				462,913


Commercial & Professional Services 0.1%
Lassila & Tikanoja Oyj		2,125		37,001
Poyry Oyj		2,900		40,101

				77,102


Consumer Durables & Apparel 0.1%
Amer Sports Oyj, A Shares		6,475		67,810


Diversified Financials 0.2%
Pohjola Bank plc		9,275		101,908

See financial notes 33

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Materials 0.3%
Huhtamaki Oyj		4,900		57,419
Kemira Oyj		2,575		30,927
M-real Oyj, B Shares *		13,000		46,097
Talvivaara Mining Co. plc *		8,000		48,308

				182,751


Media 0.1%
Alma Media Corp.		4,325		35,070


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Orion Oyj, Class B		3,650		66,894


Real Estate 0.1%
Citycon Oyj		11,675		39,618
Sponda Oyj *		12,050		46,251

				85,869


Retailing 0.1%
Stockmann Oyj Abp, B Shares		1,675		53,306


Software & Services 0.1%
Tieto Oyj		3,475		57,327


Telecommunication Services 0.2%
Elisa Oyj *		6,175		122,745

				1,313,695

France 4.3%


Automobiles & Components 0.2%
Faurecia *		1,575		27,414
Valeo S.A. *		3,325		116,381

				143,795


Capital Goods 0.6%
Mersen		1,300		44,941
Nexans S.A.		1,300		78,134
Rexel S.A. *		3,650		51,214
Saft Groupe S.A.		1,100		34,790
Zodiac Aerospace		2,025		122,070

				331,149


Commercial & Professional Services 0.2%
Derichebourg S.A. *		8,775		38,476
Seche Environnement S.A.		600		41,179
Teleperformance		2,775		67,152

				146,807


Consumer Durables & Apparel 0.2%
Beneteau *		2,150		28,637
Nexity		1,350		41,514
SEB S.A.		950		70,029

				140,180


Diversified Financials 0.0%
Financiere Marc de Lacharriere S.A.		750		28,349


Energy 0.3%
Bourbon S.A.		2,650		101,411
Etablissements Maurel et Prom		5,050		55,538

				156,949


Food & Staples Retailing 0.1%
Rallye S.A.		1,275		43,339


Food, Beverage & Tobacco 0.1%
Remy Cointreau S.A.		1,025		56,923


Insurance 0.0%
April Group		875		21,163


Materials 0.4%
Arkema		2,650		110,673
Rhodia S.A.		4,375		82,461
S.A. des Ciments Vicat		450		27,289

				220,423


Media 0.5%
Canal +		5,725		39,284
Havas S.A.		19,800		91,097
IPSOS		1,600		59,725
M6-Metropole Television		3,925		82,085

				272,191


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Boiron S.A.		750		26,366
Stallergenes		500		36,756
Virbac S.A.		375		44,567

				107,689


Real Estate 0.3%
Fonciere Des Regions		1,050		98,219
Mercialys		1,100		36,048
Societe Immobiliere de Location pour l’Industrie et le Commerce		500		55,223

				189,490


Semiconductors & Semiconductor Equipment 0.1%
Silicon-On-Insulator Technologies *		3,575		30,411


Software & Services 0.2%
Alten		1,650		40,998
Altran Technologies S.A. *		7,575		27,766
Groupe Steria SCA		1,375		33,972
UbiSoft Entertainment *		4,900		42,497

				145,233


Technology Hardware & Equipment 0.4%
Gemalto N.V.		3,625		124,394
Ingenico S.A.		1,518		37,120
Neopost S.A.		1,375		97,444

				258,958


Transportation 0.3%
Groupe Eurotunnel S.A. - Reg’d		20,225		150,708


Utilities 0.2%
Rubis		675		59,709
Sechilienne S.A.		1,775		46,506

				106,215

				2,549,972

Germany 4.3%


Automobiles & Components 0.2%
ElringKlinger AG		2,950		76,317
Leoni AG *		1,825		47,932

				124,249


Banks 0.1%
Aareal Bank AG *		1,850		34,187


Capital Goods 1.5%
Bauer AG		875		35,498
Bilfinger Berger AG		1,225		73,245

34 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Conergy AG *		30,375		23,279
Demag Cranes AG *		1,075		32,927
Deutz AG *		10,000		59,989
Gildemeister AG		3,150		38,525
Heidelberger Druckmaschinen AG *		3,500		27,224
Kloeckner & Co. SE *		1,600		31,448
Krones AG *		875		47,347
KUKA AG *		2,450		38,845
MTU Aero Engines Holding AG		1,575		87,867
Nordex SE *		2,550		23,720
Pfeiffer Vacuum Technology AG		525		40,896
Rheinmetall AG		575		31,921
Roth & Rau AG *		1,100		27,765
SGL Carbon SE *		2,975		92,712
SMA Solar Technology AG		300		32,524
Tognum AG		4,700		86,764
Vossloh AG		550		55,062

				887,558


Commercial & Professional Services 0.1%
Interseroh SE		550		30,058


Consumer Durables & Apparel 0.1%
Gerry Weber International AG		1,275		40,139
Rational AG		200		36,336

				76,475


Diversified Financials 0.1%
MLP AG		4,675		43,380


Health Care Equipment & Services 0.1%
Rhoen Klinikum AG		2,800		61,600


Materials 0.4%
Aurubis AG		1,950		77,684
Fuchs Petrolub AG		650		60,315
Symrise AG		4,500		111,526

				249,525


Media 0.1%
Axel Springer AG		425		49,694
Sky Deutschland AG *		19,950		24,671

				74,365


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Morphosys AG *		1,900		39,603
Stada Arzneimittel AG		2,625		80,387

				119,990


Real Estate 0.3%
Alstria Office AG		2,850		30,861
Deutsche Euroshop AG		2,000		59,366
Deutsche Wohnen AG *		4,500		43,907
IVG Immobilien AG *		5,125		33,676

				167,810


Retailing 0.4%
BayWa AG		1,075		39,799
Douglas Holding AG		1,975		84,993
Fielmann AG		575		47,546
Praktiker Bau- und Heimwerkermaerkte Holding AG		4,900		37,864

				210,202


Semiconductors & Semiconductor Equipment 0.2%
Aixtron AG		3,750		93,415


Software & Services 0.3%
Software AG		850		89,439
United Internet AG - Reg’d		5,200		66,849
Wirecard AG		3,850		44,831

				201,119


Technology Hardware & Equipment 0.1%
Wincor Nixdorf AG		1,475		85,981


Telecommunication Services 0.1%
Freenet AG		5,075		51,169


Utilities 0.0%
MVV Energie AG		475		18,715

				2,529,798

Greece 0.2%


Banks 0.0%
National Bank of Greece S.A. ADR *		10,300		25,441


Food, Beverage & Tobacco 0.2%
Coca Cola Hellenic Bottling Co. S.A. ADR		3,975		92,856

				118,297

Hong Kong 3.6%


Automobiles & Components 0.3%
Minth Group Ltd.		50,000		80,607
Xinyi Glass Holdings Co., Ltd.		150,000		76,943

				157,550


Capital Goods 0.2%
China State Construction International Holdings Ltd.		50,000		25,776
CIMC Enric Holdings Ltd. *		60,000		27,769
New Times Energy Corp., Ltd. *		1,800,000		47,670

				101,215


Consumer Durables & Apparel 0.2%
Ports Design Ltd.		25,000		61,001
Skyworth Digital Holdings Ltd.		50,000		26,162
Stella International Holdings Ltd.		25,000		46,860

				134,023


Consumer Services 0.3%
REXLot Holdings Ltd.		625,000		53,031
SJM Holdings Ltd.		125,000		120,364

				173,395


Diversified Financials 0.0%
China Daye Non-Ferrous Metals Mining Ltd. *		360,000		20,364


Energy 0.1%
Brightoil Petroleum Holdings Ltd. *		114,000		46,019


Food, Beverage & Tobacco 0.1%
China Green Holdings Ltd.		75,000		70,676


Health Care Equipment & Services 0.1%
Mingyuan Medicare Development Co., Ltd.		750,000		76,171


Materials 0.6%
AMVIG Holdings Ltd.		100,000		64,279
China Grand Forestry Green Resources Group Ltd. *		500,000		14,206

See financial notes 35

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
China Mining Resources Group Ltd. *		2,950,000		80,401
Fufeng Group Ltd.		50,000		32,140
Sino-Forest Corp. *		10,000		172,270

				363,296


Media 0.0%
VODone Ltd.		100,000		28,926


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Sino Biopharmaceutical		100,000		33,940


Real Estate 0.3%
Champion Real Estate Investment Trust		150,000		73,664
GZI Real Estate Investment Trust		200,000		97,191

				170,855


Retailing 0.3%
Dah Chong Hong Holdings Ltd.		25,000		20,023
Giordano International Ltd.		100,000		55,795
Hengdeli Holdings Ltd.		100,000		46,667
Kai Yuan Holdings Ltd. *		1,100,000		37,475

				159,960


Software & Services 0.2%
G-Resources Group Ltd. *		975,000		47,005
Hi Sun Technology China Ltd. *		75,000		26,226
Nan Hai Corp., Ltd. *		3,750,000		26,997

				100,228


Technology Hardware & Equipment 0.3%
Digital China Holdings Ltd.		50,000		77,778
Inspur International Ltd.		625,000		51,424
Ju Teng International Holdings Ltd.		60,000		31,549
Wasion Group Holdings Ltd.		50,000		36,639

				197,390


Transportation 0.2%
Pacific Basin Shipping Ltd.		150,000		102,012
Road King Infrastructure Ltd.		25,000		20,441

				122,453


Utilities 0.3%
China Oil and Gas Group Ltd. *		500,000		53,995
China Water Affairs Group Ltd.		300,000		106,062

				160,057

				2,116,518

Ireland 0.9%


Capital Goods 0.4%
Charter International plc		6,550		61,407
DCC plc		3,750		94,177
Grafton Group plc		12,900		44,153
Kingspan Group plc *		8,575		59,396

				259,133


Consumer Services 0.1%
Paddy Power plc		1,500		52,217


Food, Beverage & Tobacco 0.1%
C&C Group plc		16,400		64,198


Health Care Equipment & Services 0.1%
United Drug plc		15,275		44,108


Insurance 0.1%
Irish Life & Permanent Group Holdings plc *		15,100		27,828


Materials 0.1%
Smurfit Kappa Group plc *		5,350		45,897


Media 0.0%
Independent News & Media plc *		23,327		19,656

				513,037

Israel 0.1%


Semiconductors & Semiconductor Equipment 0.0%
Mellanox Technologies Ltd. *		1,550		25,081


Telecommunication Services 0.1%
B Communications Ltd. *		1,200		26,159

				51,240

Italy 1.8%


Banks 0.1%
Banca Piccolo Credito Valtellinese Scarl		9,875		44,837
Credito Emiliano S.p.A.		4,850		28,725

				73,562


Capital Goods 0.4%
C.I.R. S.p.A-Compagnie Industriali Riunite *		22,625		39,366
Danieli & C Officine Meccaniche S.p.A.		3,175		31,879
Impregilo S.p.A. *		22,775		57,689
Prysmian S.p.A.		7,425		116,733

				245,667


Consumer Durables & Apparel 0.2%
Geox S.p.A.		4,975		23,490
Indesit Co. S.p.A.		3,100		29,944
Tod’s S.p.A.		700		54,616

				108,050


Diversified Financials 0.1%
Azimut Holding S.p.A.		5,816		50,153
Banca Generali S.p.A.		3,150		34,210

				84,363


Energy 0.1%
ERG S.p.A.		3,975		49,181


Food, Beverage & Tobacco 0.1%
Davide Campari-Milano S.p.A.		15,100		78,349


Health Care Equipment & Services 0.1%
DiaSorin S.p.A.		1,100		44,681


Insurance 0.2%
Milano Assicurazioni S.p.A.		16,575		28,839
Societa Cattolica di Assicurazioni S.c.r.l.		2,800		65,907

				94,746


Materials 0.1%
Italmobiliare S.p.A.		1,650		32,043


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		5,775		45,543


Software & Services 0.0%
Tiscali S.p.A. *		190,325		24,093

36 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
Ansaldo STS S.p.A.		3,537		42,459


Utilities 0.2%
ACEA S.p.A. *		4,225		46,985
Hera S.p.A.		29,475		53,832
Iren S.p.A.		30,750		48,305

				149,122

				1,071,859

Japan 13.1%


Automobiles & Components 0.3%
Nissin Kogyo Co., Ltd.		7,500		109,325
TS Tech Co., Ltd.		5,000		72,287

				181,612


Banks 0.9%
Kiyo Holdings, Inc.		75,000		102,715
The Bank of Iwate Ltd.		2,500		116,262
The Chiba Kogyo Bank Ltd. *		10,000		60,617
The Fukui Bank Ltd.		25,000		86,043
The Oita Bank Ltd.		25,000		81,874
The Yachiyo Bank Ltd.		2,500		54,484

				501,995


Capital Goods 3.5%
Aica Kogyo Co., Ltd.		7,500		83,959
Central Glass Co., Ltd.		25,000		90,806
Chudenko Corp.		5,000		54,007
Daifuku Co., Ltd.		12,500		58,950
Furukawa Co., Ltd. *		50,000		48,232
Futaba Corp.		5,000		77,290
Hanwa Co., Ltd.		25,000		90,508
Hitachi Zosen Corp.		50,000		67,881
Hoshizaki Electric Co., Ltd.		2,500		44,569
Inaba Denki Sangyo Co., Ltd.		2,500		57,848
Iseki & Co., Ltd. *		25,000		66,690
Iwatani Corp.		25,000		69,072
Komori Corp.		7,500		71,811
Kyowa Exeo Corp.		7,500		65,559
Meidensha Corp.		25,000		75,325
Nachi-Fujikoshi Corp.		25,000		61,331
Nichias Corp.		25,000		103,311
Noritake Co., Ltd.		25,000		78,302
Noritz Corp.		5,000		95,808
Oiles Corp.		5,000		76,218
Okumura Corp.		25,000		82,768
OSG Corp.		7,500		70,204
Sanwa Holdings Corp.		25,000		73,538
SHO-BOND Holdings Co., Ltd.		2,500		52,251
Sintokogio Ltd.		10,000		67,048
Taikisha Ltd.		5,000		78,361
Toyo Tanso Co., Ltd.		2,500		121,025
Tsubakimoto Chain Co.		25,000		91,104

				2,073,776


Commercial & Professional Services 0.5%
Daiseki Co., Ltd.		2,500		45,463
Duskin Co., Ltd.		5,000		89,615
Mitsubishi Pencil Co., Ltd.		5,000		81,398
Park24 Co., Ltd.		7,500		81,011

				297,487


Consumer Durables & Apparel 0.6%
Foster Electric Co., Ltd.		2,500		53,620
Mizuno Corp.		25,000		112,242
Pioneer Corp. *		20,000		59,307
Sangetsu Co., Ltd.		2,500		53,412
Tomy Co., Ltd.		7,500		57,878

				336,459


Consumer Services 0.5%
Accordia Golf Co., Ltd.		100		98,607
Doutor Nichires Holdings Co., Ltd.		7,500		99,410
Saizeriya Co., Ltd.		5,000		97,416

				295,433


Diversified Financials 0.6%
Fuyo General Lease Co., Ltd.		2,500		65,678
IBJ Leasing Co., Ltd.		2,500		50,792
Ichiyoshi Securities Co., Ltd.		12,500		83,512
Japan Securities Finance Co., Ltd.		10,000		56,806
Tokai Tokyo Financial Holdings, Inc.		25,000		82,768

				339,556


Food, Beverage & Tobacco 0.7%
Fuji Oil Co., Ltd.		5,000		77,171
Hokuto Corp.		2,500		56,419
Megmilk Snow Brand Co., Ltd.		7,500		141,479
Morinaga Milk Industry Co., Ltd.		25,000		108,074

				383,143


Health Care Equipment & Services 0.1%
Toho Holdings Co., Ltd.		5,000		72,109


Household & Personal Products 0.4%
Fancl Corp.		5,000		81,517
Mandom Corp.		2,500		67,316
Unihair Co., Ltd. *		7,500		88,871

				237,704


Materials 2.4%
Adeka Corp.		7,500		76,545
Earth Chemical Co., Ltd.		2,500		79,612
FP Corp.		2,500		135,465
Fujimi, Inc.		2,500		34,208
Kureha Corp.		25,000		127,129
Nifco, Inc.		5,000		111,171
Nippon Light Metal Co., Ltd. *		50,000		79,790
Nippon Soda Co., Ltd.		25,000		80,981
NOF Corp.		25,000		103,013
Sakai Chemical Industry Co., Ltd.		25,000		94,677
Sanyo Special Steel Co., Ltd. *		25,000		115,220
Toagosei Co., Ltd.		25,000		94,677
Tokyo Ohka Kogyo Co., Ltd.		5,000		80,505
Toyo Ink Manufacturing Co., Ltd.		25,000		91,699
Yodogawa Steel Works Ltd.		25,000		94,677

				1,399,369


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
ASKA Pharmaceutical Co., Ltd.		25,000		168,810
Nichi-iko Pharmaceutical Co., Ltd.		2,500		90,658

				259,468


Real Estate 0.1%
Hulic Co., Ltd.		7,500		51,626


Retailing 0.4%
EDION Corp.		10,000		68,953

See financial notes 37

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
K’s Holdings Corp.		2,700		58,360
Tsutsumi Jewelry Co., Ltd.		5,000		115,875

				243,188


Semiconductors & Semiconductor Equipment 0.1%
Sanken Electric Co., Ltd. *		25,000		79,195


Software & Services 0.4%
eAccess Ltd.		100		72,883
Fuji Soft, Inc.		5,000		75,801
Net One Systems Co., Ltd.		50		57,640

				206,324


Technology Hardware & Equipment 0.6%
HORIBA Ltd.		2,500		59,545
Hosiden Corp.		7,500		69,936
Nichicon Corp.		7,500		80,386
Ryosan Co., Ltd.		2,500		63,713
Ryoyo Electro Corp.		10,000		90,747

				364,327


Transportation 0.6%
Hitachi Transport System, Ltd.		5,000		73,002
Japan Airport Terminal Co., Ltd.		5,000		85,626
Sankyu, Inc.		25,000		95,570
The Sumitomo Warehouse Co., Ltd.		25,000		119,685

				373,883

				7,696,654

Liechtenstein 0.1%


Banks 0.1%
Liechtensteinische Landesbank AG		550		36,341

Luxembourg 0.1%


Commercial & Professional Services 0.1%
Regus plc		36,150		38,391


Real Estate 0.0%
GAGFAH S.A.		4,200		30,149

				68,540

Netherlands 2.3%


Capital Goods 0.6%
Aalberts Industries N.V.		5,075		72,080
Arcadis N.V.		2,350		47,847
Heijmans N.V. *		1,400		20,818
Imtech N.V.		3,200		90,146
Koninklijke BAM Groep N.V.		9,425		47,316
Koninklijke Boskalis Westminster N.V.		2,175		81,382

				359,589


Commercial & Professional Services 0.1%
USG People N.V. *		3,875		49,397


Consumer Durables & Apparel 0.1%
Koninklijke Ten Cate N.V.		1,750		44,416
TomTom N.V. *		3,500		18,759

				63,175


Diversified Financials 0.1%
BinckBank N.V.		3,650		47,225
SNS REAAL N.V. *		7,950		33,697

				80,922


Food & Staples Retailing 0.1%
Sligro Food Group N.V.		1,550		45,585


Food, Beverage & Tobacco 0.3%
CSM		3,150		82,152
Nutreco Holding N.V.		1,725		100,389

				182,541


Health Care Equipment & Services 0.1%
Mediq N.V.		3,075		50,552


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Crucell N.V. *		3,750		70,681


Real Estate 0.4%
Eurocommercial Properties N.V.		1,975		76,233
Nieuwe Steen Investments Funds N.V.		2,525		46,051
VastNed Retail N.V.		1,000		54,244
Wereldhave N.V.		975		80,621

				257,149


Semiconductors & Semiconductor Equipment 0.1%
ASM International N.V. *		1,925		42,656


Software & Services 0.1%
Exact Holding		1,775		41,002
Unit 4 Agresso N.V.		1,875		41,631

				82,633


Technology Hardware & Equipment 0.1%
TKH Group N.V.		2,225		43,832


Transportation 0.1%
Koninklijke Vopak N.V. *		800		32,226

				1,360,938

New Zealand 0.4%


Consumer Durables & Apparel 0.1%
Fisher & Paykel Appliances Holdings Ltd. *		101,650		36,317


Energy 0.0%
New Zealand Oil & Gas Ltd.		24,750		19,939


Insurance 0.1%
TOWER Ltd.		41,700		54,044


Real Estate 0.0%
Goodman Property Trust		51,225		33,374


Transportation 0.1%
Mainfreight Ltd.		12,975		60,446


Utilities 0.1%
Infratil Ltd.		35,925		41,023

				245,143

Norway 1.6%


Banks 0.1%
SpareBank 1 SMN		5,000		39,246
SpareBank 1 SR Bank		5,000		39,643

				78,889


Capital Goods 0.1%
Veidekke A.S.A.		5,000		32,890

38 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Commercial & Professional Services 0.1%
Tomra Systems A.S.A.		12,500		70,110


Diversified Financials 0.0%
ABG Sundal Collier Holding A.S.A.		28,825		27,480


Energy 0.8%
Aker A.S.A., Class A		2,500		44,092
Det Norske Oljeselskap A.S.A. *		6,275		19,043
DNO International A.S.A. *		47,900		64,654
Fred Olsen Energy A.S.A.		1,250		36,207
Frontline Ltd.		2,500		66,615
Golar LNG Ltd.		2,500		25,224
Norwegian Energy Co. *		14,700		28,495
Petroleum Geo-Services A.S.A. *		7,500		67,568
Sevan Marine A.S.A. *		25,425		23,855
Songa Offshore SE *		10,000		30,841
TGS Nopec Geophysical Co. A.S.A.		4,114		55,432

				462,026


Food, Beverage & Tobacco 0.2%
Cermaq A.S.A. *		5,000		51,639
Marine Harvest A.S.A.		111,775		85,461

				137,100


Media 0.1%
Schibsted A.S.A.		3,075		70,357


Real Estate 0.1%
Norwegian Property A.S.A. *		25,000		36,426


Software & Services 0.1%
Atea A.S.A.		5,000		32,096

				947,374

Peru 0.1%


Materials 0.1%
Hochschild Mining plc		7,450		40,120

Portugal 0.3%


Capital Goods 0.1%
Mota-Engil, SGPS, S.A.		11,800		33,309
Sonae		47,275		51,372

				84,681


Materials 0.1%
Portucel-Empresa Produtora de Pasta e Papel S.A.		16,300		45,162
Semapa-Sociedade de Investimento e Gestao, SGPS, S.A.		3,925		39,957

				85,119


Utilities 0.1%
Redes Energeticas Nacionais S.A.		8,600		29,293

				199,093

Republic of Korea 2.9%


Automobiles & Components 0.0%
S&T Daewoo Co., Ltd. *		600		13,037
S&T Dynamics Co., Ltd.		600		10,359

				23,396


Banks 0.6%
KB Financial Group, Inc. ADR		3,875		157,867
Shinhan Financial Group Co., Ltd. ADR		2,500		191,600

				349,467


Capital Goods 0.1%
Kumho Electric Co., Ltd.		200		6,456
LG International Corp.		600		17,741
Sung Kwang Bend Co., Ltd.		620		11,532

				35,729


Commercial & Professional Services 0.0%
Korea Plant Service & Engineering Co., Ltd.		280		14,363


Consumer Services 0.1%
Hana Tour Service, Inc.		514		22,251
Hotel Shilla Co., Ltd.		400		9,392

				31,643


Diversified Financials 0.1%
Hanwha Securities Co.		800		4,771
Tong Yang Securities, Inc.		4,000		32,597

				37,368


Food, Beverage & Tobacco 0.1%
Daesang Corp. *		1,800		10,810
Orion Corp.		115		37,457

				48,267


Insurance 0.1%
Hanwha General Insurance Co., Ltd. *		1,200		9,269
Hyundai Marine & Fire Insurance Co., Ltd.		2,000		35,032
Meritz Fire & Marine Insurance Co., Ltd.		2,400		14,533

				58,834


Materials 0.4%
Korea Kumho Petrochemical *		770		39,948
OCI Materials Co., Ltd.		220		20,718
Poongsan Corp.		600		18,767
POSCO ADR		1,725		174,156
SK Chemicals Co., Ltd.		380		19,810

				273,399


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Celltrion, Inc. *		2,160		37,204


Retailing 0.0%
CJ O Shopping Co., Ltd. *(a)		100		10,710


Semiconductors & Semiconductor Equipment 0.2%
Jusung Engineering Co., Ltd. *		1,100		16,515
Samsung Electronics Co., Ltd. GDR - Reg’d		225		70,763
Seoul Semiconductor Co., Ltd.		1,440		43,840

				131,118


Software & Services 0.0%
Korea Digital Communications Corp. *		3,740		9,562
Posco ICT Co., Ltd. *		1,370		10,627

				20,189


Technology Hardware & Equipment 0.4%
Ace Digitech Co., Ltd. *		340		6,154
Daeduck Electronics Co.		2,400		13,132
Humax Co., Ltd.		3,635		39,415
LG Display Co., Ltd. ADR		8,825		124,256
LG Innotek Co., Ltd.		260		28,626

See financial notes 39

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
SFA Engineering Corp.		200		6,039

				217,622


Telecommunication Services 0.3%
KT Corp. ADR		4,450		83,082
SK Telecom Co., Ltd. ADR		5,950		95,319

				178,401


Transportation 0.1%
Asiana Airlines *		6,140		42,712


Utilities 0.3%
Korea Electric Power Corp. ADR *		13,350		164,339

				1,674,761

Singapore 1.5%


Consumer Services 0.1%
Raffles Education Corp., Ltd. *		300,000		59,792


Energy 0.2%
Ezra Holdings Ltd. (a)		50,000		65,328
Straits Asia Resources Ltd.		50,000		76,770

				142,098


Food, Beverage & Tobacco 0.1%
Indofood Agri Resources Ltd. *		50,000		84,889


Materials 0.1%
OM Holdings Ltd.		33,850		45,945


Real Estate 0.6%
CDL Hospitality Trusts		50,000		73,817
Ho Bee Investment Ltd.		50,000		53,518
Mapletree Logistics Trust		125,000		77,508
Suntec Real Estate Investment Trust		125,000		131,025

				335,868


Retailing 0.1%
Oceanus Group Ltd. *		225,000		52,318


Transportation 0.2%
Singapore Airport Terminal Services Ltd.		50,000		102,975


Utilities 0.1%
Hyflux Ltd.		25,000		55,363

				879,248

South Africa 0.2%


Materials 0.2%
Aquarius Platinum Ltd.		21,475		92,084
Great Basin Gold Ltd. *		15,000		32,072

				124,156

Spain 1.7%


Banks 0.1%
Banco Pastor S.A.		6,350		31,959


Capital Goods 0.3%
Abengoa S.A.		2,000		48,042
Construcciones y Auxiliar de Ferrocarriles S.A.		150		63,751
Obrascon Huarte Lain S.A.		3,350		83,876

				195,669


Commercial & Professional Services 0.1%
Prosegur, Compania de Seguridad S.A.		1,350		68,974


Consumer Services 0.1%
NH Hoteles S.A. *		12,100		43,521
Sol Melia S.A.		4,325		34,301

				77,822


Diversified Financials 0.1%
Bolsas y Mercados Espanoles S.A.		3,425		89,324


Energy 0.1%
Tecnicas Reunidas S.A.		750		38,186


Food, Beverage & Tobacco 0.3%
Ebro Puleva S.A.		5,100		89,514
Viscofan S.A.		2,725		80,280

				169,794


Insurance 0.1%
Grupo Catalana Occidente S.A.		2,700		45,743


Materials 0.1%
Grupo Empresarial Ence S.A. *		9,800		27,775
Tubacex S.A. *		9,275		27,231

				55,006


Media 0.0%
Antena 3 de Television S.A.		3,975		27,028


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Almirall S.A.		2,525		25,641
Faes Farma S.A.		9,959		33,162
Zeltia S.A. *		10,750		43,516

				102,319


Transportation 0.2%
Iberia Lineas Aereas de Espana S.A. *		29,875		96,633

				998,457

Sweden 4.1%


Capital Goods 0.7%
Cardo AB		1,400		43,214
Hexagon AB, B Shares		6,975		114,321
Lindab International AB *		4,225		45,516
NCC AB, B Shares		3,775		62,333
Peab AB		8,950		53,552
Trelleborg AB, B Shares		10,325		68,840

				387,776


Commercial & Professional Services 0.2%
Intrum Justitia AB		3,725		37,905
Loomis AB, B Shares		6,300		63,254
Niscayah Group AB		27,450		35,196

				136,355


Consumer Durables & Apparel 0.2%
Husqvarna AB, A Shares		8,500		53,535
JM AB		2,875		45,347

				98,882


Consumer Services 0.2%
Betsson AB *		2,900		36,789
Rezidor Hotel Group AB *		10,175		43,625
SkiStar AB		2,425		40,717

				121,131

40 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.7%
Avanza Bank Holding AB		1,850		52,084
Investment AB Oresund		3,275		42,213
Kinnevik Investment AB, B Shares		8,175		148,963
L.E. Lundbergforetagen AB, B Shares		950		46,918
Ratos AB, B Shares		4,700		126,009

				416,187


Energy 0.1%
Lundin Petroleum AB *		10,725		59,982


Food & Staples Retailing 0.2%
Axfood AB		2,225		63,577
Hakon Invest AB		4,125		61,509

				125,086


Food, Beverage & Tobacco 0.1%
AarhusKarlshamn AB		3,025		59,718


Health Care Equipment & Services 0.4%
Elekta AB, B Shares		2,475		71,628
Getinge AB, B Shares		8,850		178,193

				249,821


Materials 0.1%
Billerud AB		5,375		30,922
Hoganas AB, B Shares		1,875		51,007

				81,929


Media 0.2%
Modern Times Group, B Shares		2,325		134,100


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		9,900		77,303


Real Estate 0.6%
Castellum AB		7,550		77,546
Fabege AB		8,875		62,315
Hufvudstaden AB, A Shares		5,300		46,238
Kungsleden AB		7,675		50,297
Wallenstam AB, B Shares		2,400		46,973
Wihlborgs Fastigheter AB		2,475		53,561

				336,930


Retailing 0.1%
Clas Ohlson AB, B Shares		1,675		25,737
Mekonomen AB		1,850		46,060

				71,797


Technology Hardware & Equipment 0.1%
Axis Communications AB		3,325		38,459


Transportation 0.1%
SAS AB *		10,253		36,308

				2,431,764

Switzerland 5.6%


Automobiles & Components 0.1%
Rieter Holding AG - Reg’d *		225		65,902


Banks 0.5%
Banque Cantonale Vaudoise - Reg’d		125		59,788
Basler Kantonalbank		450		62,352
St Galler Kantonalbank AG - Reg’d		100		45,365
Valiant Holding AG - Reg’d		725		142,140

				309,645


Capital Goods 1.3%
Belimo Holding AG - Reg’d		50		73,718
Bobst Group AG - Reg’d *		1,125		42,382
Bucher Industries AG - Reg’d		575		75,022
Georg Fischer AG - Reg’d *		225		82,877
Huber & Suhner AG - Reg’d		1,125		57,692
Implenia AG - Reg’d *		1,625		44,872
Kaba Holding AG, B Shares - Reg’d		250		69,896
Meyer Burger Technology AG *		1,725		47,548
OC Oerlikon Corp. AG *		8,400		31,562
Schweiter Technologies AG		100		61,440
Sulzer AG - Reg’d		1,350		134,068
Von Roll Holding AG		5,700		29,681

				750,758


Consumer Durables & Apparel 0.3%
Forbo Holding AG - Reg’d		150		78,328
Metall Zug AG, B Shares - Reg’d		25		73,447
Schulthess Group - Reg’d		875		27,786

				179,561


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d		125		44,255
Orascom Development Holding AG *		550		28,395

				72,650


Diversified Financials 0.2%
Bank Sarasin & Cie AG, B Shares - Reg’d		1,800		65,325
Partners Group Holding AG		225		31,331
Vontobel Holding AG - Reg’d		1,650		48,817

				145,473


Energy 0.1%
Petroplus Holdings AG *		3,425		38,506


Food, Beverage & Tobacco 0.4%
Aryzta AG		3,500		150,148
Barry Callebaut AG - Reg’d *		100		69,280

				219,428


Health Care Equipment & Services 0.2%
Galenica AG - Reg’d		225		96,246


Insurance 0.2%
Helvetia Holding AG - Reg’d		275		90,040


Materials 0.5%
Clariant AG - Reg’d *		9,275		119,459
Ems-Chemie Holding AG - Reg’d		675		98,122
Ferrexpo plc		9,375		43,081
Sika AG		25		43,984

				304,646


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Acino Holding AG - Reg’d		425		39,713
Tecan Group AG - Reg’d		625		38,215

				77,928


Real Estate 0.7%
Allreal Holding AG - Reg’d		425		53,314
Intershop Holdings AG		150		43,343
Mobimo Holding AG - Reg’d *		325		56,442
PSP Swiss Property AG - Reg’d *		2,125		143,972
Swiss Prime Site AG - Reg’d *		1,800		117,426

				414,497

See financial notes 41

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Retailing 0.2%
Dufry Group - Reg’d *		725		69,640
Valora Holding AG - Reg’d		250		67,308

				136,948


Software & Services 0.1%
Temenos Group AG - Reg’d *		2,200		56,627


Technology Hardware & Equipment 0.4%
Ascom Holding AG - Reg’d *		4,175		45,497
Kudelski S.A.		2,500		62,870
Logitech International S.A. - Reg’d *		7,425		110,496

				218,863


Transportation 0.2%
Flughafen Zuerich AG - Reg’d		125		41,605
Panalpina Welttransport Holding AG - Reg’d *		800		77,318

				118,923

				3,296,641

United Kingdom 17.0%


Automobiles & Components 0.3%
GKN plc *		67,700		150,662


Banks 0.1%
Paragon Group of Cos. plc		17,200		35,845


Capital Goods 2.6%
Ashtead Group plc		29,950		35,420
Balfour Beatty plc		26,425		97,348
Bodycote plc		14,600		50,644
Carillion plc		17,700		82,643
Chemring Group plc		1,450		57,986
Chloride Group plc		14,725		84,798
Cookson Group plc *		12,425		80,050
Fenner plc		10,775		33,733
IMI plc		11,750		123,340
Keller Group plc		4,275		37,549
Kier Group plc		2,450		37,278
Meggitt plc		27,800		113,779
Melrose plc		21,875		86,571
Morgan Crucible Co. plc		16,400		48,999
Qinetiq Group plc		30,725		50,952
Senior plc		28,200		49,408
SIG plc *		30,000		42,949
Speedy Hire plc		45,650		14,383
Spirax-Sarco Engineering plc		3,175		77,294
The Weir Group plc		7,900		146,548
Travis Perkins plc *		8,775		102,766
Ultra Electronics Holdings plc		2,875		73,746

				1,528,184


Commercial & Professional Services 2.0%
Aggreko plc		10,275		224,084
Babcock International Group plc		15,729		122,199
Connaught plc		8,425		2,182
De La Rue plc		4,525		48,681
Homeserve plc		13,500		94,425
Intertek Group plc		6,050		156,583
ITE Group plc		16,250		38,086
Michael Page International plc		14,550		88,710
Mitie Group plc		17,600		52,800
Mouchel Group plc		10,725		19,203
RPS Group plc		13,250		34,639
Serco Group plc		18,375		164,360
The Davis Service Group plc		8,975		52,485
WS Atkins plc		5,775		60,354

				1,158,791


Consumer Durables & Apparel 0.7%
Barratt Developments plc *		43,800		64,657
Bellway plc		5,625		45,214
Bovis Homes Group plc *		7,550		40,961
Pace plc		14,000		44,217
Persimmon plc *		13,150		73,403
Redrow plc *		18,475		30,382
Taylor Wimpey plc *		143,300		56,953
The Berkeley Group Holdings plc *		6,050		76,153

				431,940


Consumer Services 0.9%
Dignity plc		3,525		38,411
Domino’s Pizza UK & IRL plc		6,125		40,497
Enterprise Inns plc *		27,725		37,497
Greene King plc		10,050		63,791
J.D. Wetherspoon plc		6,700		43,125
Marston’s plc		32,675		46,804
Millennium & Copthorne Hotels plc		8,175		61,062
Mitchells & Butlers plc *		17,775		79,196
Punch Taverns plc *		36,250		44,821
Rank Group plc		25,350		43,207
Restaurant Group plc		10,300		38,166

				536,577


Diversified Financials 1.5%
Aberdeen Asset Management plc		41,750		86,367
Ashmore Group plc		9,900		44,140
BlueBay Asset Management plc		6,525		28,881
Close Brothers Group plc		5,800		59,323
F&C Asset Management plc		34,400		33,308
Henderson Group plc		27,000		51,829
IG Group Holdings plc		14,800		118,735
Intermediate Capital Group plc		18,900		79,300
International Personal Finance		13,350		49,037
Investec plc		19,300		139,501
London Stock Exchange Group plc		7,625		77,403
Rathbone Brothers		3,150		41,731
Tullett Prebon plc		10,000		56,865

				866,420


Energy 1.3%
Acergy S.A.		5,000		76,943
Dana Petroleum plc *		4,175		116,332
Heritage Oil plc		7,150		35,219
Hunting plc		6,875		63,873
JKX Oil & Gas plc		8,500		38,668
John Wood Group plc		15,525		86,709
Premier Oil plc *		4,875		113,585
Salamander Energy plc *		9,200		31,220
SOCO International plc *		13,200		95,430
Subsea 7, Inc. *		5,000		79,683
Wellstream Holdings plc		5,875		49,210

				786,872


Food, Beverage & Tobacco 0.2%
Britvic plc		9,200		68,209
Dairy Crest Group plc		7,200		40,700

42 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Premier Foods plc *		125,075		30,756

				139,665


Health Care Equipment & Services 0.2%
SSL International plc		6,900		123,120


Household & Personal Products 0.1%
McBride plc		9,075		19,457
PZ Cussons plc		8,825		44,324

				63,781


Insurance 0.9%
Amlin plc		18,400		114,926
Beazley plc		30,725		52,794
Brit Insurance Holdings N.V.		4,377		64,579
Catlin Group Ltd.		14,800		74,812
Hiscox Ltd.		15,325		86,463
Jardine Lloyd Thompson Group plc		6,225		55,346
Lancashire Holdings Ltd.		8,175		67,030
St James’s Place plc		7,525		29,549

				545,499


Materials 0.8%
Croda International plc		4,550		89,509
DS Smith plc		21,850		45,503
Filtrona plc		14,100		50,968
Mondi plc		15,875		114,282
Petropavlovsk plc		7,550		123,578
Victrex plc		3,750		62,014

				485,854


Media 0.4%
Informa plc		23,975		141,346
Rightmove plc		5,125		50,962
Trinity Mirror plc *		16,750		28,317
Yell Group plc *		120,800		26,846

				247,471


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
BTG plc *		13,825		42,708
Genus plc		3,550		39,556
Hikma Pharmaceuticals plc		5,600		65,841

				148,105


Real Estate 0.7%
Atrium European Real Estate Ltd.		9,125		48,118
Big Yellow Group plc		7,650		34,249
Derwent London plc		3,425		74,221
Grainger plc		16,225		27,280
Great Portland Estates plc		13,350		64,897
Helical Bar plc		6,525		28,580
Savills plc		7,350		35,086
Shaftesbury plc		9,250		59,282
Unite Group plc *		8,725		25,210

				396,923


Retailing 0.9%
Carpetright plc		2,375		26,445
Debenhams plc *		59,200		52,543
DSG International plc *		164,850		61,085
GaliForm plc *		33,050		32,001
Game Group plc		22,675		23,088
Halfords Group plc		9,100		67,663
HMV Group plc		28,875		26,405
Inchcape plc *		20,366		80,129
Kesa Electricals plc		28,175		57,678
Mothercare plc		4,675		37,937
N Brown Group plc		12,175		41,896
WH Smith plc		7,825		49,019

				555,889


Semiconductors & Semiconductor Equipment 0.5%
ARM Holdings plc		42,175		237,755
CSR plc *		6,975		30,112

				267,867


Software & Services 0.8%
Aveva Group plc		3,275		71,826
Dimension Data Holdings plc		67,450		124,812
Fidessa Group plc		2,075		43,722
Micro Focus International plc		8,950		41,458
Misys plc *		22,150		93,140
Telecity Group plc *		7,525		55,744
Xchanging plc		13,850		27,544

				458,246


Technology Hardware & Equipment 0.8%
Electrocomponents plc		20,925		67,857
Halma plc		16,700		70,403
Laird plc		17,425		34,868
Premier Farnell plc		18,725		64,349
Rotork plc		3,650		88,409
Spectris plc		5,500		74,259
Spirent Communications plc		30,000		59,201

				459,346


Transportation 0.8%
BBA Aviation plc		14,325		39,013
easyJet plc *		12,300		65,899
FirstGroup plc		19,000		101,591
Forth Ports plc		2,250		45,058
Go-Ahead Group plc		2,000		33,658
National Express Group plc *		23,800		81,862
Stagecoach Group plc		29,350		77,676

				444,757


Utilities 0.3%
Northumbrian Water Group plc		14,350		72,802
Pennon Group plc		12,125		106,778

				179,580

				10,011,394

United States 0.3%


Health Care Equipment & Services 0.2%
SXC Health Solutions Corp. *		1,000		78,267


Materials 0.1%
Golden Star Resources Ltd. *		10,000		46,983
Jaguar Mining, Inc. *		5,000		29,446

				76,429

				154,696

Total Common Stock
(Cost $59,982,861)				58,100,578

See financial notes 43

Schwab International Small-Cap Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Other Investment Companies 0.4% of net assets

Guernsey 0.0%
FCPT Ltd.		16,227		22,383

Luxembourg 0.1%
ProLogis European Properties *		7,800		46,196

Switzerland 0.2%
BB Biotech AG		1,050		56,901
Schroder ImmoPLUS		75		75,444

				132,345

United States 0.1%
State Street Institutional Liquid Reserves Fund - Institutional Class		52,420		52,420

Total Other Investment Companies
(Cost $263,123)				253,344




Preferred Stock 0.3% of net assets

Germany 0.3%


Consumer Durables & Apparel 0.1%
Hugo Boss AG		950		40,985


Materials 0.1%
Fuchs Petrolub AG		425		41,938


Media 0.1%
ProSiebenSat.1 Media AG		3,825		68,886

Total Preferred Stock
(Cost $135,903)				151,809




Warrants 0.0% of net assets

France 0.0%


Energy 0.0%
Etablissements Maurel et Prom *		4,040		580

Hong Kong 0.0%


Capital Goods 0.0%
New Times Energy Corp., Ltd. *		205,714		1,032

Total Warrants
(Cost $637)				1,612



End of Investments

At 8/31/10, the tax basis cost of the fund’s investments was $60,772,743 and the unrealized appreciation and depreciation were $2,886,261 and ($5,151,661), respectively, with a net unrealized depreciation of ($2,265,400).


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust

44 See financial notes

Schwab Emerging Markets Equity ETF™

Financial Statements

Financial Highlights


	1/13/10¹–
	8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.27
Net realized and unrealized gains (losses)		(0.97	)

Total from investment operations		(0.70	)

Net asset value at end of period		24.30

Total return (%)		(2.80	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.30	^3,4
Gross operating expenses		0.30	³
Net investment income (loss)		2.94	³
Portfolio turnover rate⁵		23	²
Net assets, end of period ($ x 1,000)		148,222

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended August 31, 2010 is a blended rate. Please see financial note 4 for more information.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in kind creations or redemptions.

48 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings as of August 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	91	.9%	Common Stock		137,122,162		136,240,498
	7	.5%	Preferred Stock		11,809,360		11,128,906
	0	.3%	Other Investment Company		464,482		464,482
		—%	Rights		—		—


	99	.7%	Total Investments		149,396,004		147,833,886
	0	.3%	Other Assets and Liabilities, Net				387,719


	100	.0%	Net Assets				148,221,605


	Number		Value
Security	of Shares		($)

Common Stock 91.9% of net assets

Brazil 11.0%


Banks 1.8%
Banco Bradesco S.A. ADR		87,230		1,537,865
Banco do Brasil S.A.		42,700		693,347
Banco Santander Brasil S.A. ADR		37,393		470,404

				2,701,616


Capital Goods 0.3%
Empresa Brasileira de Aeronautica S.A. ADR *		9,150		226,829
Weg S.A.		18,300		177,371

				404,200


Consumer Durables & Apparel 0.3%
Cyrela Brazil Realty S.A.		12,200		151,844
MRV Engenharia e Participacoes S.A.		12,200		101,901
PDG Realty S.A. Empreendimentos e Participacoes		24,400		250,963

				504,708


Diversified Financials 0.5%
BM&F BOVESPA S.A.		91,500		667,750


Energy 1.7%
OGX Petroleo e Gas Participacoes S.A. *		30,500		363,089
Petroleo Brasileiro S.A. ADR		57,950		1,932,632
Ultrapar Participacoes S.A. ADR		4,514		250,843

				2,546,564


Food, Beverage & Tobacco 0.8%
BRF - Brasil Foods S.A. ADR *		38,369		517,598
Companhia de Bebidas das Americas ADR		1,220		115,534
Cosan S.A. Industria e Comercio		6,100		79,608
JBS S.A.		24,400		103,640
Marfrig Alimentos S.A. *		12,200		118,248
Souza Cruz S.A.		6,100		281,533

				1,216,161


Household & Personal Products 0.5%
Hypermarcas S.A. *		6,100		80,443
Natura Cosmeticos S.A.		24,400		588,455

				668,898


Materials 2.7%
Braskem S.A. ADR *		6,100		109,434
Companhia Siderurgica Nacional S.A. ADR		49,634		766,845
Duratex S.A. *		12,200		123,812
Fibria Celulose S.A. ADR *		6,100		93,086
Gerdau S.A. *		6,100		60,445
Gerdau S.A. ADR *		35,868		481,349
MMX Mineracao e Metalicos S.A. *		12,200		87,294
Usinas Siderurgicas de Minas Gerais S.A.		6,100		160,469
Vale S.A. ADR *		77,043		2,060,900

				3,943,634


Media 0.1%
NET Servicos de Comunicacao S.A. ADR *		12,688		161,518


Retailing 0.1%
Lojas Renner S.A.		6,100		197,195


Software & Services 0.4%
Cielo S.A.		24,400		208,672
Redecard S.A.		24,400		333,875

				542,547


Telecommunication Services 0.5%
Brasil Telecom S.A. ADR *		5,551		106,745
Tele Norte Leste Participacoes S.A.		6,100		105,901
Tele Norte Leste Participacoes S.A. ADR		12,200		165,432
Tim Participacoes S.A. *		18,300		72,931
Tim Participacoes S.A. ADR		7,320		209,279
Vivo Participacoes S.A. ADR		6,100		146,400

				806,688


Transportation 0.5%
All America Latina Logistica S.A.		30,500		281,533
Companhia de Concessoes Rodoviarias		18,300		420,474
LLX Logistica S.A. *		12,200		61,906

				763,913


Utilities 0.8%
Centrais Eletricas Brasileiras S.A. ADR		10,736		132,697
Companhia de Saneamento Basico do Estado de Sao Paulo ADR *		2,440		92,720
Companhia Energetica de Minas Gerais ADR		20,130		332,548
Companhia Paranaense de Energia ADR		6,100		135,664
CPFL Energia S.A. ADR		2,013		143,487
EDP - Energias do Brasil S.A.		6,100		130,385
Light S.A.		6,100		76,026

See financial notes 49

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Tractebel Energia S.A.		12,200		161,581

				1,205,108

				16,330,500

Chile 2.1%


Banks 0.3%
Banco de Chile ADR		1,860		150,921
Banco Santander Chile ADR		1,860		160,555
Corpbanca S.A.		7,695,394		92,761

				404,237


Capital Goods 0.3%
Empresas Copec S.A.		22,692		395,016


Food & Staples Retailing 0.2%
Cencosud S.A.		37,759		226,486


Materials 0.5%
Cap S.A.		5,978		236,670
Empresas CMPC S.A.		4,636		212,205
Sociedad Quimica y Minera de Chile S.A. ADR		6,527		278,377

				727,252


Retailing 0.2%
S.A.C.I. Falabella S.A.		44,103		368,337


Transportation 0.1%
Lan Airlines S.A. ADR		6,100		163,114


Utilities 0.5%
Colbun S.A.		558,943		155,568
Empresa Nacional de Electricidad S.A. ADR		6,676		342,679
Enersis S.A. ADR		12,200		268,400

				766,647

				3,051,089

China 17.3%


Automobiles & Components 0.3%
Dongfeng Motor Group Co., Ltd., H Shares		122,000		189,466
Great Wall Motor Co., Ltd., H Shares		30,500		65,482
Guangzhou Automobile Group Co., Ltd., H Shares *		115,662		135,758

				390,706


Banks 4.6%
Agricultural Bank of China Ltd., H Shares *		366,000		165,155
Bank of China Ltd., H Shares		2,684,000		1,349,160
Bank of Communications Co., Ltd., H Shares		490,150		520,491
China CITIC Bank Corp., Ltd., H Shares		549,000		356,425
China Construction Bank Corp., H Shares		2,379,000		1,963,512
China Merchants Bank Co., Ltd., H Shares		213,520		548,452
China Minsheng Banking Corp., Ltd., H Shares		366,100		332,283
Industrial & Commercial Bank of China Ltd., H Shares		2,257,000		1,639,397

				6,874,875


Capital Goods 1.1%
Beijing Enterprises Holdings Ltd.		30,500		215,658
China Communications Construction Co., Ltd., H Shares		244,000		215,502
China International Marine Containers (Group) Co., Ltd., B Shares		103,700		149,981
China National Materials Co., Ltd., H Shares		122,000		93,635
China Railway Construction Corp., Ltd., H Shares		152,500		194,485
China Railway Group Ltd., H Shares		244,000		177,546
Citic Pacific Ltd.		61,000		124,847
CSR Corp., Ltd., H Shares		122,000		103,202
Metallurgical Corp. of China Ltd., H Shares *		183,000		79,519
Shanghai Industrial Holdings Ltd.		61,000		297,217

				1,651,592


Energy 3.1%
China Coal Energy Co., H Shares		183,000		257,849
China Oilfield Services Ltd., H Shares		122,000		155,588
China Petroleum & Chemical Corp., H Shares		976,000		771,665
China Shenhua Energy Co., Ltd., H Shares		91,500		332,310
CNOOC Ltd.		671,000		1,154,204
Inner Mongolia Yitai Coal Co., Ltd., B Shares		48,800		269,474
Kunlun Energy Co., Ltd.		122,000		151,196
PetroChina Co., Ltd., H Shares		1,098,000		1,189,965
Yanzhou Coal Mining Co., Ltd., H Shares		122,000		250,321

				4,532,572


Food, Beverage & Tobacco 0.1%
China Agri-Industries Holdings Ltd.		61,000		74,187


Health Care Equipment & Services 0.1%
Sinopharm Group Co., H Shares		48,800		185,702


Insurance 1.7%
China Life Insurance Co., Ltd., H Shares		366,000		1,397,467
China Pacific Insurance (Group) Co., Ltd., H Shares		48,800		175,350
China Taiping Insurance Holdings Co., Ltd. *		61,000		189,779
PICC Property & Casualty Co., Ltd., H Shares *		244,000		279,180
Ping An Insurance (Group) Co., of China Ltd., H Shares (a)		64,500		533,596

				2,575,372


Materials 0.9%
Aluminum Corp. of China Ltd., H Shares *		244,000		193,858
Angang Steel Co., Ltd., H Shares		122,000		173,154
Anhui Conch Cement Co., Ltd., H Shares		24,000		85,466
BBMG Corp., H Shares		61,000		78,421
China Bluechemical Ltd., H Shares		244,000		159,352

50 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
China National Building Material Co., Ltd., H Shares		122,000		222,089
Jiangxi Copper Co., Ltd., H Shares		61,000		132,062
Sinofert Holdings Ltd. *		244,000		127,356
Zijin Mining Group Co., Ltd., H Shares		244,000		169,390

				1,341,148


Real Estate 0.9%
China Overseas Land & Investment Ltd.		244,000		520,717
China Resources Land Ltd.		122,000		233,382
China Vanke Co., Ltd., B Shares		128,100		156,451
Guangzhou R&F Properties Co., Ltd., H Shares		48,800		71,018
Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd., B Shares		67,100		107,964
Sino-Ocean Land Holdings Ltd.		213,500		149,863
Yuexiu Property Co., Ltd. *		366,000		82,342

				1,321,737


Retailing 0.3%
China Resources Enterprise Ltd.		122,000		508,170


Technology Hardware & Equipment 0.2%
BYD Co., Ltd., H Shares		30,500		175,663
ZTE Corp., H Shares		36,600		135,277

				310,940


Telecommunication Services 2.7%
China Mobile Ltd.		274,500		2,789,641
China Telecom Corp., Ltd., H Shares		976,000		471,783
China Unicom (Hong Kong) Ltd.		488,000		672,541

				3,933,965


Transportation 0.9%
Air China Ltd., H Shares *		244,000		260,359
China COSCO Holdings Co., Ltd., H Shares *		152,500		158,215
China Merchants Holdings International Co., Ltd.		122,000		412,496
China Shipping Container Lines Co., Ltd., H Shares *		305,000		105,476
China Shipping Development Co., Ltd., H Shares		122,000		161,548
Cosco Pacific Ltd.		122,000		160,920
Zhejiang Expressway Co., Ltd., H Shares		122,000		108,692

				1,367,706


Utilities 0.4%
China Longyuan Power Group Corp., H Shares *		122,000		123,121
China Resources Power Holdings Co., Ltd.		122,000		269,142
Datang International Power Generation Co., Ltd., H Shares		366,000		144,923

				537,186

				25,605,858

Colombia 0.9%


Banks 0.4%
Bancolombia S.A. ADR		10,187		654,311


Diversified Financials 0.1%
Corporacion Financiera Colombiana S.A.		7,052		124,880


Energy 0.4%
Ecopetrol S.A. ADR		16,165		626,070

				1,405,261

Czech Republic 0.5%


Banks 0.1%
Komercni Banka A/S		793		153,440


Materials 0.0%
Unipetrol A/S *		6,100		70,192


Telecommunication Services 0.1%
Telefonica O2 Czech Republic A/S		3,294		74,202


Utilities 0.3%
CEZ A/S		11,651		489,746

				787,580

Egypt 0.7%


Banks 0.2%
Commercial International Bank GDR		49,410		333,517


Capital Goods 0.3%
Orascom Construction Industries GDR		9,699		423,846


Telecommunication Services 0.2%
Orascom Telecom Holding SAE GDR - Reg’d *		54,485		252,266

				1,009,629

Hungary 0.5%


Banks 0.2%
OTP Bank Nyrt. plc *		13,481		285,660


Energy 0.1%
MOL Hungarian Oil and Gas Nyrt. *		2,623		243,675


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt.		671		139,216


Telecommunication Services 0.1%
Magyar Telekom Telecommunications plc		33,916		103,225

				771,776

India 11.9%


Automobiles & Components 0.4%
Bajaj Auto Ltd.		5,795		337,549
Hero Honda Motors Ltd.		4,331		165,363
Mahindra & Mahindra Ltd.		11,346		151,473

				654,385


Banks 2.1%
Axis Bank Ltd.		15,738		444,639
Bank of Baroda		5,891		100,657
Canara Bank Ltd.		16,226		175,782
HDFC Bank Ltd.		10,309		467,017
Housing Development Finance Corp., Ltd.		51,850		689,955

See financial notes 51

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
ICICI Bank Ltd.		26,962		560,648
Oriental Bank of Commerce		16,348		146,989
State Bank of India		7,015		412,340
Union Bank of India Ltd.		13,923		97,674

				3,095,701


Capital Goods 1.4%
ABB Ltd.		5,551		91,773
Adani Enterprises Ltd.		10,126		142,171
Aditya Birla Nuvo Ltd.		4,697		81,379
Bharat Heavy Electricals Ltd.		6,832		349,080
Crompton Greaves Ltd.		18,858		118,865
Jaiprakash Associates Ltd.		73,993		171,376
Larsen & Toubro Ltd.		20,923		805,517
Siemens India Ltd.		8,967		131,522
Suzlon Energy Ltd. *		47,580		46,629
Tata Motors Ltd.		8,052		172,680

				2,110,992


Diversified Financials 0.4%
Bajaj Holdings & Investment Ltd.		7,015		111,548
Infrastructure Development Finance Co., Ltd.		57,096		215,688
Kotak Mahindra Bank Ltd.		7,686		134,897
Reliance Capital Ltd.		6,100		98,217

				560,350


Energy 1.9%
Bharat Petroleum Corp., Ltd.		8,967		145,733
Cairn India Ltd. *		23,668		167,296
Essar Oil Ltd. *		61,244		160,140
Hindustan Petroleum Corp., Ltd.		16,958		190,273
Indian Oil Corp., Ltd.		16,836		146,850
Oil & Natural Gas Corp., Ltd.		13,847		392,685
Reliance Industries Ltd.		73,749		1,435,942
The Great Eastern Shipping Co., Ltd.		20,618		129,958

				2,768,877


Food, Beverage & Tobacco 0.8%
ITC Ltd.		260,226		904,761
Nestle India Ltd.		1,586		102,834
United Spirits Ltd.		3,904		118,738

				1,126,333


Household & Personal Products 0.1%
Colgate-Palmolive (India) Ltd.		4,880		85,514
Hindustan Unilever Ltd.		23,424		131,661

				217,175


Materials 1.3%
Hindalco Industries Ltd.		78,995		279,774
Jindal Steel & Power Ltd.		20,923		303,615
JSW Steel Ltd.		7,076		169,830
NMDC Ltd.		18,300		93,465
Sesa Goa Ltd.		21,045		142,179
Steel Authority of India Ltd.		31,659		125,250
Sterlite Industries (India) Ltd. ADR		27,267		351,199
Tata Chemicals Ltd.		16,348		137,276
Tata Steel Ltd.		25,498		283,166

				1,885,754


Media 0.1%
Zee Entertainment Enterprises Ltd.		15,982		98,002


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Cipla Ltd.		31,842		205,105
Dr. Reddys Laboratories Ltd.		5,002		144,972
Lupin Ltd.		18,910		143,554
Piramal Healthcare Ltd.		11,773		124,750
Sun Pharmaceutical Industries Ltd.		3,477		130,831

				749,212


Real Estate 0.2%
DLF Ltd.		24,217		155,655
Unitech Ltd.		89,182		147,499

				303,154


Software & Services 1.5%
HCL Technologies Ltd.		11,956		96,965
Infosys Technologies Ltd.		27,206		1,567,352
Mphasis Ltd.		6,771		89,388
Tata Consultancy Services Ltd.		14,884		266,956
Wipro Ltd. ADR		19,304		247,670

				2,268,331


Telecommunication Services 0.5%
Bharti Airtel Ltd.		74,420		517,728
Idea Cellular Ltd. *		80,764		123,533
Reliance Communications Ltd.		45,750		151,576

				792,837


Utilities 0.7%
Adani Power Ltd. *		30,256		87,732
GAIL India Ltd.		20,252		199,313
GMR Infrastructure Ltd. *		74,115		87,996
NTPC Ltd.		28,853		120,466
Power Grid Corp. of India Ltd.		34,221		79,078
Reliance Infrastructure Ltd.		6,954		146,826
Reliance Natural Resources Ltd. *		71,614		56,557
Reliance Power Ltd. *		34,038		109,697
Tata Power Co., Ltd.		6,100		158,206

				1,045,871

				17,676,974

Indonesia 2.6%


Automobiles & Components 0.5%
PT Astra International Tbk		152,500		803,431


Banks 0.6%
PT Bank Central Asia Tbk		579,500		372,009
PT Bank Mandiri Tbk		213,500		139,419
PT Bank Rakyat Indonesia		305,000		313,946

				825,374


Capital Goods 0.2%
PT United Tractors Tbk		122,000		248,456


Energy 0.3%
PT Bumi Resources Tbk		945,500		173,717
PT Tambang Batubara Bukit Asam Tbk		61,000		118,151
PT Adaro Energy Tbk		427,000		89,795

				381,663


Food, Beverage & Tobacco 0.2%
PT Astra Agro Lestari Tbk		30,500		66,334
PT Gudang Garam Tbk		30,500		133,005
PT Indofood Sukses Makmur Tbk		274,500		138,237

				337,576

52 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		91,500		163,049


Materials 0.3%
PT Indocement Tunggal Prakarsa Tbk		91,500		178,747
PT International Nickel Indonesia Tbk		152,500		72,157
PT Semen Gresik (Persero) Tbk		122,000		117,476

				368,380


Telecommunication Services 0.3%
PT Telekomunikasi Indonesia Tbk		488,000		467,205


Utilities 0.1%
PT Perusahaan Gas Negara		488,000		216,049

				3,811,183

Malaysia 4.6%


Automobiles & Components 0.1%
UMW Holdings Berhad		61,000		128,292


Banks 1.5%
Alliance Financial Group Berhad		103,700		101,448
CIMB Group Holdings Berhad		256,200		636,796
Hong Leong Bank Berhad		36,600		103,100
Malayan Banking Berhad		244,000		652,346
Public Bank Berhad - Foreign Market		165,441		642,121
RHB Capital Berhad		36,600		77,558

				2,213,369


Capital Goods 0.6%
Gamuda Berhad		140,300		154,689
IJM Corp. Berhad		73,200		116,396
Sime Darby Berhad		207,400		551,851

				822,936


Consumer Services 0.4%
Berjaya Sports Toto Berhad		79,300		104,616
Genting Berhad		134,200		404,120
Genting Malaysia Berhad		170,800		164,370

				673,106


Diversified Financials 0.2%
AMMB Holdings Berhad		128,100		231,042


Food, Beverage & Tobacco 0.5%
British American Tobacco Malaysia Berhad		6,100		87,667
IOI Corp. Berhad		231,800		387,792
Kuala Lumpur Kepong Berhad		30,500		164,836
PPB Group Berhad		30,500		166,002

				806,297


Real Estate 0.1%
SP Setia Berhad		73,200		101,001


Telecommunication Services 0.5%
Axiata Group Berhad *		311,100		443,133
Digi.com Berhad		18,300		144,270
Maxis Berhad		109,800		188,240

				775,643


Transportation 0.3%
MISC Berhad		85,960		240,775
PLUS Expressways Berhad		122,000		163,281

				404,056


Utilities 0.4%
Petronas Gas Berhad		36,600		122,461
Tanjong plc		12,200		82,885
Tenaga Nasional Berhad		54,900		155,000
YTL Corp. Berhad		61,000		143,065
YTL Power International Berhad		146,400		104,966

				608,377

				6,764,119

Mexico 5.1%


Banks 0.4%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		97,600		350,233
Grupo Financiero Inbursa S.A.B. de C.V., O Shares		85,400		311,710

				661,943


Capital Goods 0.3%
Alfa S.A.B., A Shares		18,300		124,942
Grupo Carso S.A.B. de C.V., Series A1		54,900		243,390

				368,332


Food & Staples Retailing 0.5%
Wal-Mart de Mexico S.A.B. de C.V., Series V		305,000		693,348


Food, Beverage & Tobacco 0.5%
Fomento Economico Mexicano S.A.B. de C.V.		103,700		507,798
Grupo Bimbo S.A.B. de C.V., Series A		18,300		126,179
Grupo Modelo S.A.B. de C.V., Series C		30,500		162,214

				796,191


Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares		24,400		141,821


Materials 1.1%
Cemex S.A.B. de C.V., Series CPO *		482,072		376,160
Grupo Mexico S.A.B. de C.V., Series B		390,400		1,005,836
Industrias Penoles S.A.B. de C.V.		7,625		159,896
Mexichem S.A.B. de C.V.		42,700		110,403

				1,652,295


Media 0.3%
Grupo Televisa S.A., Series CPO		134,200		498,089


Retailing 0.1%
Grupo Elektra S.A.B. de C.V.		3,965		126,680


Telecommunication Services 1.7%
America Movil S.A.B. de C.V., Series L		933,300		2,189,009
Telefonos de Mexico S.A.B. de C.V., L Series		463,600		323,704

				2,512,713


Transportation 0.1%
Grupo Aeroportuario del Pacifico S.A.B. de C.V., B Shares		42,700		122,115

				7,573,527

Morocco 0.1%


Telecommunication Services 0.1%
Maroc Telecom		11,224		189,584

See financial notes 53

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Pakistan 0.1%


Energy 0.1%
Oil & Gas Development Co., Ltd. GDR - Reg’d (a)		6,832		114,709

Peru 0.6%


Banks 0.2%
Credicorp Ltd.		3,111		327,433


Materials 0.4%
Companhia de Minas Buenaventura S.A. ADR		11,773		486,696

				814,129

Philippines 0.4%


Banks 0.1%
Bank of the Philippine Islands		106,279		112,464


Capital Goods 0.1%
SM Investments Corp.		13,420		139,940


Real Estate 0.1%
Ayala Land, Inc.		366,000		132,328


Telecommunication Services 0.1%
Philippine Long Distance Telephone Co.		2,440		131,360


Utilities 0.0%
Manila Electric Co.		24,400		96,287

				612,379

Poland 1.3%


Banks 0.6%
Bank Handlowy w Warszawie S.A.		2,623		64,926
Bank Pekao S.A.		5,490		268,120
Bank Zachodni WBK S.A.		1,159		69,198
Getin Holding S.A. *		30,683		93,595
Powszechna Kasa Oszczednosci Bank Polski S.A.		27,267		330,099

				825,938


Energy 0.1%
Polski Koncern Naftowy Orlen S.A. *		12,383		153,020


Insurance 0.1%
Powszechny Zaklad Ubezpieczen S.A. *		1,830		219,566


Materials 0.2%
KGHM Polska Miedz S.A.		6,954		236,208


Telecommunication Services 0.1%
Telekomunikacja Polska S.A.		29,463		160,461


Utilities 0.2%
Polska Grupa Energetyczna S.A. *		46,238		335,713

				1,930,906

Russia 7.9%


Banks 1.0%
Sberbank GDR - Reg’d		4,270		1,221,065
VTB Bank OJSC GDR - Reg’d		46,909		242,051

				1,463,116


Consumer Durables & Apparel 0.0%
PIK Group GDR - Reg’d *		10,980		37,881


Energy 5.1%
Gazprom ADR		112,179		2,322,105
Gazprom Neft JSC ADR		14,213		265,072
LUKOIL ADR		30,439		1,622,399
NovaTek OAO GDR - Reg’d		7,320		537,288
Rosneft Oil Co. GDR *		102,297		648,563
Surgutneftegas ADR		173,667		1,632,470
Tatneft ADR		13,603		406,457
TMK OAO GDR - Reg’d *		4,758		74,130

				7,508,484


Materials 1.1%
Magnitogorsk Iron & Steel Works GDR - Reg’d *		9,455		104,856
Mining & Metallurgical Co., Norilsk Nickel ADR *		37,210		630,709
Novolipetsk Steel GDR - Reg’d		9,333		271,590
Polymetal GDR - Reg’d *		7,747		91,957
Polyus Gold Co. ADR		7,625		187,194
Severstal GDR - Reg’d *		13,664		164,515
Uralkali GDR - Reg’d		10,919		252,775

				1,703,596


Telecommunication Services 0.4%
Mobile TeleSystems ADR		12,200		254,492
Rostelecom ADR		6,100		147,010
Sistema JSFC GDR - Reg’d		9,089		234,042

				635,544


Utilities 0.3%
Federal Hydrogenerating Co. ADR *		75,030		390,156

				11,738,777

South Africa 9.3%


Banks 1.0%
ABSA Group Ltd.		16,714		279,294
Nedbank Group Ltd.		11,895		226,361
Standard Bank Group Ltd.		73,505		1,041,721

				1,547,376


Capital Goods 0.5%
Aveng Ltd.		24,034		123,824
Barloworld Ltd.		13,847		80,370
Bidvest Group Ltd.		16,104		297,375
Murray & Roberts Holdings Ltd.		22,509		126,648
Reunert Ltd.		10,492		81,779

				709,996


Consumer Durables & Apparel 0.1%
Steinhoff International Holdings Ltd. *		78,812		200,883


Consumer Services 0.1%
Sun International Ltd. *		6,405		75,333


Diversified Financials 0.9%
African Bank Investments Ltd.		41,846		183,820
FirstRand Ltd.		197,884		518,604
Investec Ltd.		15,433		115,982
Remgro Ltd.		23,485		316,816

54 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
RMB Holdings Ltd.		44,713		202,052

				1,337,274


Energy 0.7%
Sasol Ltd.		26,962		1,026,645


Food & Staples Retailing 0.5%
Massmart Holdings Ltd.		9,882		164,071
Pick n Pay Stores Ltd.		12,932		77,812
Shoprite Holdings Ltd.		25,071		307,280
The Spar Group Ltd.		10,858		123,732

				672,895


Food, Beverage & Tobacco 0.3%
AVI Ltd.		23,729		80,429
Tiger Brands Ltd. *		7,686		188,353
Tongaat Hulett Ltd.		7,015		97,915

				366,697


Health Care Equipment & Services 0.1%
Netcare Ltd. *		67,771		121,562


Insurance 0.3%
Discovery Holdings Ltd.		19,642		93,287
Metropolitan Holdings Ltd.		40,748		88,062
Sanlam Ltd.		101,565		320,568

				501,917


Materials 2.3%
AECI Ltd.		7,442		68,661
African Rainbow Minerals Ltd.		4,392		91,868
Anglo Platinum Ltd. *		4,758		393,826
AngloGold Ashanti Ltd.		17,019		730,070
ArcelorMittal South Africa Ltd. *		7,686		85,866
Exxaro Resources Ltd.		4,087		63,413
Gold Fields Ltd.		35,258		506,707
Harmony Gold Mining Co., Ltd.		24,705		256,102
Impala Platinum Holdings Ltd.		29,951		706,569
Kumba Iron Ore Ltd.		4,392		199,641
Nampak Ltd.		39,223		94,923
Pretoria Portland Cement Co., Ltd.		28,731		116,977
Sappi Ltd. *		30,927		146,548

				3,461,171


Media 0.5%
Naspers Ltd., N Shares		18,361		741,286


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Adcock Ingram Holdings Ltd.		9,577		78,686
Aspen Pharmacare Holdings Ltd. *		20,008		228,136

				306,822


Real Estate 0.2%
Fountainhead Property Trust		105,530		97,006
Growthpoint Properties Ltd.		96,868		221,297

				318,303


Retailing 0.5%
Foschini Ltd.		13,481		129,770
Imperial Holdings Ltd.		10,925		151,231
Mr. Price Group Ltd.		16,653		111,536
Truworths International Ltd.		22,265		176,743
Woolworths Holdings Ltd.		42,151		140,584

				709,864


Telecommunication Services 1.1%
MTN Group Ltd.		84,058		1,373,283
Telkom South Africa Ltd.		33,428		152,280
Vodacom Group (Pty) Ltd.		20,374		170,406

				1,695,969

				13,793,993

Taiwan 11.6%


Automobiles & Components 0.2%
Cheng Shin Rubber Industry Co., Ltd.		74,500		151,400
Yulon Motor Co., Ltd.		61,000		88,928

				240,328


Banks 1.2%
Chang Hwa Commercial Bank		244,000		138,628
China Development Financial Holding Corp. *		677,710		185,538
Chinatrust Financial Holding Co., Ltd.		519,232		290,948
E.Sun Financial Holding Co., Ltd. *		253,703		113,649
First Financial Holding Co., Ltd.		312,625		180,544
Hua Nan Financial Holdings Co., Ltd.		321,775		188,842
Mega Financial Holding Co., Ltd.		427,000		257,927
SinoPac Financial Holdings Co., Ltd.		427,000		149,958
Taiwan Cooperative Bank		335,500		209,465

				1,715,499


Capital Goods 0.2%
Far Eastern New Century Corp.		186,660		217,928
Walsin Lihwa Corp. *		244,000		115,015

				332,943


Consumer Durables & Apparel 0.1%
Pou Chen Corp.		185,580		149,755
Tatung Co., Ltd. *		427,000		71,446

				221,201


Diversified Financials 0.5%
Capital Securities Corp. *		195,599		85,484
Fubon Financial Holding Co., Ltd. *		320,233		373,375
Polaris Securities Co., Ltd.		183,000		81,406
Yuanta Financial Holding Co., Ltd.		366,000		207,941

				748,206


Energy 0.1%
Formosa Petrochemical Corp.		61,000		136,914


Food, Beverage & Tobacco 0.2%
Uni-President Enterprises Corp.		201,300		232,820


Insurance 0.3%
Cathay Financial Holding Co., Ltd.		254,800		366,682
Shin Kong Financial Holding Co., Ltd. *		366,000		121,680

				488,362


Materials 1.7%
Asia Cement Corp.		125,660		112,974
China Steel Corp.		499,352		472,322
Formosa Chemicals & Fibre Corp.		183,000		406,743
Formosa Plastics Corp.		305,000		676,001
Nan Ya Plastics Corp.		305,000		588,406
Taiwan Cement Corp.		122,000		112,159
Taiwan Fertilizer Co., Ltd.		61,000		186,614

				2,555,219

See financial notes 55

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Semiconductors & Semiconductor Equipment 2.6%
Advanced Semiconductor Engineering, Inc.		261,183		179,780
Epistar Corp.		35,000		90,248
Inotera Memories, Inc. *		122,000		58,841
Macronix International Co., Ltd.		183,000		97,401
MediaTek, Inc.		61,099		832,544
Siliconware Precision Industries Co. ADR		30,500		136,335
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		226,859		2,134,743
United Microelectronics Corp. ADR		101,321		260,395

				3,790,287


Technology Hardware & Equipment 4.0%
Acer, Inc.		122,086		286,216
Asustek Computer, Inc.		30,800		205,276
AU Optronics Corp. ADR		42,700		367,647
Chicony Electronics Co., Ltd.		63,150		113,352
Chimei Innolux Corp.		317,902		328,481
Compal Electronics, Inc.		186,610		209,131
Delta Electronics, Inc.		61,000		231,364
Foxconn Technology Co., Ltd.		69,540		199,281
HannStar Display Corp. *		427,000		78,245
Hon Hai Precision Industry Co., Ltd.		478,240		1,686,993
HTC Corp.		63,500		1,159,627
Inventec Co., Ltd.		189,450		93,146
Largan Precision Co., Ltd.		4,000		72,173
Lite-On Technology Corp.		122,609		141,233
Pegatron Corp. *		87,441		109,458
Quanta Computer, Inc.		122,000		185,091
Synnex Technology International Corp.		67,053		137,731
Unimicron Technology Corp.		122,000		193,089
Wistron Corp.		127,034		198,677

				5,996,211


Telecommunication Services 0.5%
Chunghwa Telecom Co., Ltd. ADR		18,300		376,431
Far EasTone Telecommunications Co., Ltd.		122,000		158,051
Taiwan Mobile Co., Ltd.		122,000		239,932

				774,414

				17,232,404

Thailand 1.8%


Banks 0.7%
Bangkok Bank Public Co., Ltd. NVDR		48,800		230,005
Bank of Ayudhya Public Co., Ltd. NVDR		231,800		161,471
Kasikornbank Public Co., Ltd. NVDR		73,200		253,785
Krung Thai Bank Public Co., Ltd. NVDR		292,800		134,728
Siam Commercial Bank Public Co., Ltd. NVDR		91,500		278,491

				1,058,480


Energy 0.6%
Banpu Public Co., Ltd. NVDR		6,100		119,291
IRPC PCL NVDR		738,100		94,813
PTT Aromatics & Refining PCL NVDR		128,100		95,783
PTT Exploration & Production Public Co., Ltd. NVDR		54,900		251,738
PTT PCL NVDR		36,600		309,922

				871,547


Food & Staples Retailing 0.1%
CP ALL PCL NVDR		140,300		178,205


Food, Beverage & Tobacco 0.2%
Charoen Pokphand Foods Public Co., Ltd. NVDR		237,900		193,847


Materials 0.1%
The Siam Cement Public Co., Ltd. NVDR		18,300		173,088


Telecommunication Services 0.1%
Advanced Info Service Public Co., Ltd. NVDR		54,900		161,832

				2,636,999

Turkey 1.6%


Banks 0.9%
Akbank T.A.S.		73,177		389,214
Asya Katilim Bankasi A/S		52,094		115,620
Turkiye Garanti Bankasi A/S		58,621		284,848
Turkiye Halk Bankasi A/S		22,997		187,250
Turkiye Is Bankasi, C Shares		73,566		270,517
Yapi ve Kredi Bankasi A/S *		47,397		141,920

				1,389,369


Capital Goods 0.2%
Enka Insaat ve Sanayi A/S		27,492		100,191
Koc Holding A/S		53,802		210,205

				310,396


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		33,733		152,838


Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S		5,734		128,958


Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S		4,392		120,406


Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/S		11,468		154,372


Materials 0.1%
Eregli Demir ve Celik Fabrikalari TAS (Erdemir) *		45,750		132,783

				2,389,122

Total Common Stock
(Cost $137,122,162)				136,240,498

56 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Other Investment Company 0.3% of net assets

United States 0.3%
State Street Institutional Liquid Reserves Fund - Institutional Class		464,482		464,482

Total Other Investment Company
(Cost $464,482)				464,482




Preferred Stock 7.5% of net assets

Brazil 7.5%


Banks 2.1%
Itau Unibanco Holding S.A. ADR		104,920		2,263,125
Itausa - Investimentos Itau S.A.		128,100		898,332

				3,161,457


Energy 1.7%
Petroleo Brasileiro S.A. ADR		85,400		2,524,424


Food & Staples Retailing 0.1%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR		3,050		214,781


Food, Beverage & Tobacco 0.9%
Companhia de Bebidas das Americas ADR		11,468		1,269,393


Materials 2.3%
Bradespar S.A.		12,200		254,579
Klabin S.A.		30,500		85,208
Metalurgica Gerdau S.A.		12,200		195,943
Suzano Papel e Celulose S.A.		14,150		128,757
Usinas Siderurgicas de Minas Gerais S.A., A Shares		12,200		306,261
Vale S.A. ADR *		100,650		2,377,353

				3,348,101


Retailing 0.1%
Lojas Americanas S.A.		18,300		154,313


Utilities 0.3%
AES Tiete S.A.		6,100		74,148
Centrais Eletricas Brasileiras S.A. ADR		12,200		178,730
Companhia Energetica de Sao Paulo, B Shares		6,100		88,790
Eletropaulo Metropolitana S.A., B Shares		6,100		114,769

				456,437

Total Preferred Stock
(Cost $11,809,360)				11,128,906




Rights 0.0% of net assets

Brazil 0.0%


Food, Beverage & Tobacco 0.0%
Marfrig Alimentos S.A. *		7		—

Total Rights
(Cost $—)				—



End of Investments

At 8/31/10, the tax basis cost of the fund’s investments was $149,701,917 and the unrealized appreciation and depreciation were $6,162,005 and ($8,030,036), respectively, with a net unrealized depreciation of ($1,868,031).


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered

See financial notes 57

Schwab Emerging Markets Equity ETF

Statement of

Operations

For January 13, 2010* through August 31, 2010



Investment Income

Dividends (net of foreign withholding tax of $231,948)		$1,784,347
Interest	+	1,025

Total investment income		1,785,372

Expenses

Investment adviser and administrator fees		166,655

Total expenses	−	166,655

Net investment income		1,618,717

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(880,760	)
Net realized losses on foreign currency transactions**	+	(848,023	)

Net realized losses		(1,728,783	)
Net unrealized losses on investments (net of foreign capital gain tax of $136,688)		(1,698,806	)
Net unrealized gains on foreign currency translations	+	314

Net unrealized losses	+	(1,698,492	)

Net realized and unrealized losses		(3,427,275	)

Net decrease in net assets resulting from operations		($1,808,558	)


*		Commencement of operations.
**		Includes foreign currency acquisition costs on Brazilian Real of $456,552

See financial notes 59

Schwab International ETFs

Financial Notes

1. Business Structure of the Funds



Schwab Strategic Trust (organized January 27, 2009)		Schwab U.S. Large-Cap Growth ETF
Schwab International Equity ETF		Schwab U.S. Large-Cap Value ETF
Schwab International Small-Cap Equity ETF		Schwab U.S. Small-Cap ETF
Schwab Emerging Markets Equity ETF		Schwab U.S. TIPS ETF
Schwab U.S. Broad Market ETF		Schwab Short-Term U.S. Treasury ETF
Schwab U.S. Large-Cap ETF		Schwab Intermediate-Term U.S. Treasury ETF

Schwab International Equity ETF commenced operations on October 30, 2009. Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF commenced operations on January 13, 2010.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds used in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation:

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the funds pursuant to the procedures.

	•	Forward contracts: valued based on that day’s exchange rates.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values as determined by those funds in accordance with the 1940 Act for a given day.

Schwab International ETFs

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 securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The funds do not adjust the quoted price for such investments, even in situations where the funds hold a large position and a sale could reasonably impact the quoted price.

	•	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. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.

Schwab International Equity ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$279,335,724		$—		$—		$279,335,724
Singapore(a)		4,053,710		—		—		4,053,710
Health Care Equipment & Services		—		—		72,894		72,894
Other Investment Company		901,164		—		—		901,164
Preferred Stock(a)		672,897		—		—		672,897

Total		$284,963,495		$—		$72,894		$285,036,389

Schwab International ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Net

Balance

Net

Change in

Balance

as of

Realized

Unrealized

Net

Gross

as of

October 30,

Gain

Gains

Purchases

Transfers

August 31,

Investments in Securities

2009

(Losses)

(Sales)

out

2010

Common Stock

Singapore

$—

$13,151

$59,743

$—

$72,894

Total

$—

$13,151

$59,743

$—

$72,894

Schwab International Small-Cap Equity ETF


	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$55,546,569		$—		$—		$55,546,569
Republic of Korea(a)		1,664,051		—		—		1,664,051
Retailing		—		—		10,710		10,710
Singapore(a)		737,150		—		—		737,150
Energy		76,770		—		65,328		142,098
Other Investment Companies(a)		253,344		—		—		253,344
Preferred Stock(a)		151,809		—		—		151,809
Warrants(a)		1,612		—		—		1,612

Total		$58,431,305		$—		$76,038		$58,507,343

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


					Net
	Balance		Net		Change in									Balance
	as of		Realized		Unrealized			Net		Gross		Gross		as of
	January 13,		Gain		Gains			Purchases		Transfers		Transfers		August 31,
Investments in Securities	2010		(Losses)		(Losses)			(Sales)		in		out		2010

Common Stock
Republic of Korea		$—		$—		$588			$10,122		$—		$—		$10,710
Singapore		$—		$—		($14,229	)		$79,557		$—		$—		$65,328

Total		$—		$—		($13,641	)		$89,679		$—		$—		$76,038

Schwab International ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Schwab Emerging Markets Equity ETF


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$110,519,931		$—		$—		$110,519,931
China(a)		23,220,265		—		—		23,220,265
Insurance		1,851,997		—		533,596		2,385,593
Pakistan(a)
Energy		—		—		114,709		114,709
Other Investment Company(a)		464,482		—		—		464,482
Preferred Stock(a)		11,128,906		—		—		11,128,906

Total		$147,185,581		$—		$648,305		$147,833,886

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


					Net
	Balance		Net		Change in									Balance
	as of		Realized		Unrealized			Net		Gross		Gross		as of
	January 13,		Gain		Gains			Purchases		Transfers		Transfers		August 31,
Investments in Securities	2010		(Losses)		(Losses)			(Sales)		in		out		2010

Common Stock
China		$—		$—		($3,208	)		$536,804		$—		$—		$533,596
Pakistan		$—		$—		$12,024			$102,685		$—		$—		$114,709

Total		$—		$—		$8,816			$639,489		$—		$—		$648,305


*		The fund had no Other Financial Instruments.
(a)		As categorized in Portfolio Holdings.

All net realized and change in unrealized gains (losses) on Level 3 investments in the tables above are reflected on the accompanying Statements of Operations. Changes in net unrealized gains (losses) for Level 3 investments held by the funds at August 31, 2010 are as follows:


Schwab International Equity ETF	$13,151
Schwab International Small-Cap Equity ETF	(13,641	)
Schwab Emerging Markets Equity ETF	8,816

Schwab International ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(b) Security Transactions:

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 gains and losses arise 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. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. 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 forwards 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.

(c) Investment Income:

(d) Expenses:

(e) Distributions to Shareholders:

The funds declare distributions from net investment income and net realized capital gains, if any, once a year.

(f) Accounting Estimates:

(g) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net 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.

(h) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges, capital gains on investments on currency repatriation. 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

Schwab International ETFs

Financial Notes (continued)

2. Significant Accounting Policies (continued):

paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of August 31, 2010, if any, are reflected in the funds’ Statement of Assets and Liabilities.

(i) Indemnification:

3. Risk factors:

Investing in the funds may involve certain risks, as described in the funds’ prospectus, including, but not limited to, those described below:

The funds’ investments in securities of foreign issuers involve certain risks that are 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, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. The securities of some foreign issuers may be less liquid and, at times, more volatile than securities of comparable U.S. companies. The funds may also experience more rapid or extreme changes in value as compared to a fund that invests solely in securities of U.S. companies because the securities’ markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. There also is the risk that the cost of buying, selling, and holding foreign securities, including brokerage, tax, and custody costs, may be higher than those involved in domestic transactions.

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 and reporting requirements, unreliable securities valuation and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the funds’ investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.

Schwab International ETFs

Financial Notes (continued)

3. Risk factors (continued):

Foreign securities also include ADRs, which are U.S. dollar-denominated receipts issued by U.S. banks or trust companies that represent shares of foreign-based corporations, and GDRs, which are similar to ADRs, but are shares of foreign-based corporations generally issued by international banks in one or more markets around the world. In addition, foreign securities include EDRs, similar to GDRs, but which are generally issued by European banks that trade on exchanges outside of a bank’s home country. Investment in ADRs, GDRs and EDRs may be less liquid than the underlying shares in their primary trading market and GDRs, many of which are issued by companies in emerging markets, may be more volatile.

The funds may not fully replicate the index and may hold securities not included in the index. As a result, the funds are 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. Because the funds use a sampling approach, they may not track the return of the index as well as they would if the funds purchased all of the equity securities in the index.

A particular investment may be difficult to purchase or sell. The funds may be unable to sell illiquid securities at an advantageous time or price.

An investment in a fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Please refer to the funds’ prospectus for a complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Schwab International ETFs

Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

Effective June 14, 2010, the rate is:


		Schwab
Schwab		International		Schwab
International		Small-Cap		Emerging Markets
Equity ETF		Equity ETF		Equity ETF

	0.13%		0.35%		0.25%

Prior to June 14, 2010, the rate was:


		Schwab
Schwab		International		Schwab
International		Small-Cap		Emerging Markets
Equity ETF		Equity ETF		Equity ETF

	0.15%		0.35%		0.35%

The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

The funds may engage in certain transactions involving affiliates. For instance, a fund may own shares of The Charles Schwab Corporation if that company is included in its index. During the period ended August 31, 2010, there were no transactions involving affiliates.

5. Other Service Providers:

SEI Investments Distribution Co. (the “Distributor”) is the principal underwriter and distributor of shares of the funds.

6. Board of Trustees:

Schwab International ETFs

Financial Notes (continued)

7. Purchases and Sales/Maturities of Investment Securities:

For the period ended August 31, 2010, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab International Equity ETF		$14,818,020		$10,151,799
Schwab International Small-Cap Equity ETF		3,895,703		2,610,511
Schwab Emerging Markets Equity ETF		90,199,481		20,680,158

8. In-Kind Transactions:

The in-kind transactions for the period ended August 31, 2010 were as follows:


	In-kind Purchases		In-kind Sales

Schwab International Equity ETF		$299,476,851		$—
Schwab International Small-Cap Equity ETF		59,492,504		—
Schwab Emerging Markets Equity ETF		80,371,327		—

For the period ended August 31, 2010, there were no in-kind redemptions. However, if the funds have such transactions, they will realize net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). 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 paid-in-capital at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset value per share. The net realized in-kind gains or losses will be disclosed in the Funds’ Statements of Operations.

9. Federal Income Taxes:

As of August 31, 2010, the components of distributable earnings on a tax-basis were as follows:


				Schwab
	Schwab			International			Schwab
	International			Small-Cap			Emerging Markets
	Equity ETF			Equity ETF			Equity ETF

Undistributed ordinary income		$4,294,084			$914,039			$1,038,729
Unrealized appreciation		6,694,561			2,886,261			6,162,005
Unrealized depreciation		(25,383,077	)		(5,151,661	)		(8,030,036	)
Other unrealized appreciation/(depreciation)		(1,961	)		(789	)		(136,374	)
Net unrealized appreciation/(depreciation)		(18,690,477	)		(2,266,189	)		(2,004,405	)

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 and Passive Foreign Investment Companies (PFIC).

Schwab

International

Emerging

International

Small-Cap

Markets

Equity ETF

Deferred capital losses

$1,532,850

$237,433

$842,882

Schwab International ETFs

Financial Notes (continued)

9. Federal Income Taxes (continued):

The tax-basis components of distributions paid during the current period were:


			Schwab
	Schwab		International		Schwab
	International		Small-Cap		Emerging Markets
	Equity ETF		Equity ETF		Equity ETF

Ordinary income		$132,000		$—		$—
Long-term capital gains		—		—		—
Return of capital		—		—		—

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 are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses; in-kind transactions; capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.


				Schwab
	Schwab			International			Schwab
	International			Small-Cap			Emerging Markets
	Equity ETF			Equity ETF			Equity ETF

Capital shares		$—			$—			$—
Undistributed net investment income		(27,163	)		4,367			(848,461	)
Net realized capital gains and losses		27,163			(4,367	)		848,461

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.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:

Schwab International Equity ETF

Schwab International Small-Cap Equity ETF

Schwab Emerging Markets Equity ETF

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF (three of the portfolios constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2010, and the results of their operations, changes in their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 18, 2010

Other Information (unaudited)

Frequency Distribution of Discounts and Premiums
Bid/Offer Midpoint vs. NAV as of August 31, 2010

Schwab International Equity ETF
Frequency Distribution of Discount and Premiums
Bid/Offer Midpoint vs. NAV

Bid/Offer Midpoint Above NAV

Bid/Offer Midpoint Below NAV

50-99

100-199

>200

50-99

100-199

>200

Basis Points

Commencement of trading (11/3/09) through 8/31/10

Schwab International Small-Cap Equity ETF
Frequency Distribution of Discount and Premiums
Bid/Offer Midpoint vs. NAV

Bid/Offer Midpoint Above NAV

Bid/Offer Midpoint Below NAV

50-99

100-199

>200

50-99

100-199

>200

Basis Points

Commencement of trading (1/14/10) through 8/31/10

Schwab Emerging Markets Equity ETF
Frequency Distribution of Discount and Premiums
Bid/Offer Midpoint vs. NAV

Bid/Offer Midpoint Above NAV

Bid/Offer Midpoint Below NAV

50-99

100-199

>200

50-99

100-199

>200

Basis Points

Commencement of trading (1/14/10) through 8/31/10

—

Trustees and Officers

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired. Consulting Managing Director, PIMCO (investment adviser) (January 2003 – December 2008); Managing Director, PIMCO (February 1999 – December 2002); President and Trustee, PIMCO Funds and PIMCO Variable Insurance Trust (investments) (February 1994 – May 2005).	11	Independent Director and Chairman of Corporate Governance/Nominating Committee, PS Business Parks, Inc. (2005 – present). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee and member of Nominating/Corporate Governance Committee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Trustee and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Trustee, PCIM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Mark A. Goldfarb 1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G Financial Services (financial services) (May 1987 – present).	11	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (June 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	11	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc., and The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	84	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Randall W. Merk 1954 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2009.)		Executive Vice President and President, Investment Management Services, Charles Schwab & Co., Inc. (August 2004 – present); Executive Vice President, Charles Schwab & Co., Inc. (2002 – present); Director, President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (August 2007-present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC (Sept. 2002 – present); President and Chief Executive Officer, Schwab Funds (July 2007 – present); Trustee (June 2006 – Dec. 2009), President and Chief Executive Officer (July 2007 – March 2008, July 2010 – present), Laudus Funds; President and Chief Executive Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc. and Excelsior Funds Trust (June 2006 – June 2007).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc. (November 2004 – present); Treasurer and Chief Financial Officer, Laudus Funds (2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Koji E. Felton 1961 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc. (July 2000 – present); Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc. (June 1998 – present); Secretary and Chief Legal Officer, Schwab Funds (Nov. 1998 – present); Vince President and Assistant Clerk, Laudus Funds (Feb. 2010 – present); Chief Legal Officer and Secretary, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).

Officers of the Trust (continued)


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Catherine MacGregor 1964 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President and Assistant Secretary, Schwab Funds (Dec. 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds.


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. (2004 – present); Vice President, Schwab Funds (June 2007 – present); Vice President (Oct. 2005 – present), Anti-Money Laundering Officer (Oct. 2005 – Feb. 2009), Laudus Funds.


¹		Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The Trust’s retirement policy requires that independent trustees retire by December 31 of the year in which the Trustee turns 72 or the Trustee’s twentieth year of service as an independent trustee, whichever comes first.
²		Mr. Bettinger is an Interested Trustee because he is an employee of Schwab and/or the investment adviser. In addition to his employment with the investment adviser and Schwab, Mr. Bettinger also owns stock of The Charles Schwab Corporation.
³		The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

Glossary

American Depositary Receipt (ADR) U.S. dollar-denominated receipts issued by U.S. banks or trust companies that represent shares of foreign-based corporations.