0000950123-11-054259.txt : 20110526 0000950123-11-054259.hdr.sgml : 20110526 20110526132533 ACCESSION NUMBER: 0000950123-11-054259 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110331 FILED AS OF DATE: 20110526 DATE AS OF CHANGE: 20110526 EFFECTIVENESS DATE: 20110526 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB STRATEGIC TRUST CENTRAL INDEX KEY: 0001454889 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-22311 FILM NUMBER: 11873329 BUSINESS ADDRESS: STREET 1: 211 MAIN STREET STREET 2: CHARLES SCHWAB INVESTMENT MANAGEMENT,INC CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 800-648-5300 MAIL ADDRESS: STREET 1: 211 MAIN STREET STREET 2: CHARLES SCHWAB INVESTMENT MANAGEMENT,INC CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: Schwab Strategic Trust DATE OF NAME CHANGE: 20090127 0001454889 S000029407 Schwab U.S. TIPS ETF C000090317 Schwab U.S. TIPS ETF SCHP 0001454889 S000029408 Schwab Short-Term U.S. Treasury ETF C000090318 Schwab Short-Term U.S. Treasury ETF SCHO 0001454889 S000029409 Schwab Intermediate-Term U.S. Treasury ETF C000090319 Schwab Intermediate-Term U.S. Treasury ETF SCHR N-Q 1 f58603nvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22311
Schwab Strategic Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Marie Chandoha
Schwab Strategic Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: December 31
Date of reporting period: March 31, 2011
 
 
Item 1. Schedule of Investments.

 

 

Schwab Strategic Trust
Schwab U.S. TIPS ETF™
 
Portfolio Holdings  as of March 31, 2011 (Unaudited)
 
 
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  98 .7%   U.S. Government Securities     130,526,240       131,714,595  
  —%   Other Investment Company     66,089       66,089  
 
 
  98 .7%   Total Investments     130,592,329       131,780,684  
  1 .3%   Other Assets and
Liabilities, Net 		            1,677,437  
 
 
  100 .0%   Net Assets             133,458,121  
 
                 
Security
 		  Face Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 U.S. Government Securities 98.7% of net assets
 
U.S. Treasury Obligations 98.7%
                 
 
U.S. Treasury Inflation Protected Securities
2.00%, 04/15/12
    3,286,758       3,438,770  
3.00%, 07/15/12
    5,349,169       5,734,470  
0.63%, 04/15/13
    3,155,420       3,308,269  
1.88%, 07/15/13
    5,065,209       5,485,470  
2.00%, 01/15/14
    5,205,196       5,679,337  
1.25%, 04/15/14
    3,381,387       3,619,673  
2.00%, 07/15/14
    4,677,179       5,141,248  
1.63%, 01/15/15
    4,557,225       4,948,144  
0.50%, 04/15/15
    4,622,967       4,803,541  
1.88%, 07/15/15
    4,076,390       4,484,029  
2.00%, 01/15/16
    3,980,478       4,400,299  
2.50%, 07/15/16
    4,011,240       4,555,285  
2.38%, 01/15/17
    3,534,340       3,988,820  
2.63%, 07/15/17
    3,079,887       3,536,111  
1.63%, 01/15/18
    3,156,259       3,410,716  
1.38%, 07/15/18
    3,092,902       3,292,982  
2.13%, 01/15/19
    2,893,123       3,228,985  
1.88%, 07/15/19
    3,271,083       3,589,490  
1.38%, 01/15/20
    3,971,085       4,169,639  
1.25%, 07/15/20
    6,273,924       6,486,673  
1.13%, 01/15/21
    5,103,639       5,184,991  
2.38%, 01/15/25
    5,770,520       6,480,121  
2.00%, 01/15/26
    4,038,166       4,308,239  
2.38%, 01/15/27
    3,278,847       3,651,291  
1.75%, 01/15/28
    3,183,590       3,247,262  
3.63%, 04/15/28
    4,035,111       5,202,146  
2.50%, 01/15/29
    3,079,776       3,492,651  
3.88%, 04/15/29
    4,614,247       6,175,154  
3.38%, 04/15/32
    1,257,862       1,621,661  
2.13%, 02/15/40
    2,807,620       2,973,887  
2.13%, 02/15/41
    1,960,660       2,075,241  
                 
Total U.S. Government Securities
(Cost $130,526,240)     131,714,595  
         
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Company 0.0% of net assets
 
Money Fund 0.0%
State Street Institutional Liquid Reserves Fund - Institutional Class
    66,089       66,089  
                 
Total Other Investment Company
(Cost $66,089)     66,089  
         
 
End of Investments
 
At 3/31/11, the tax basis cost of the fund’s investments was $130,592,329 and the unrealized appreciation and depreciation were $1,213,977 and ($25,622), respectively, with a net unrealized appreciation of $1,188,355.
 
 
Various inputs are used on determining the value of the fund’s investments. The fair value measurements and disclosures establish a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:
 
  •  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 fund does not adjust the quoted price for such investments, even in situations where the fund holds 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
 
 
 
 1

 

 
 Schwab U.S. TIPS ETF
 

 
Portfolio Holdings (Unaudited) continued
 
  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 fund’s 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 fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of March 31, 2011:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Significant Other
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total*
 
U.S. Government Securities(a)
    $—       $131,714,595       $—       $131,714,595  
Other Investment Company(a)
    66,089       —       —       66,089  
                                 
Total
    $66,089       $131,714,595       $—       $131,780,684  
                                 
 
     
*
  The fund had no Other Financial Instruments.
(a)
  As categorized in Portfolio Holdings.
 
REG59499MAR11 - 00
 
 
 
2 

 

Schwab Strategic Trust
Schwab Short-Term U.S. Treasury ETF™
 
Portfolio Holdings  as of March 31, 2011 (Unaudited)
 
 
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .4%   U.S. Government Securities     79,558,390       79,435,999  
  0 .2%   Other Investment Company     183,510       183,510  
 
 
  99 .6%   Total Investments     79,741,900       79,619,509  
  0 .4%   Other Assets and
Liabilities, Net 		            298,725  
 
 
  100 .0%   Net Assets             79,918,234  
 
                 
Security
 		  Face Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 U.S. Government Securities 99.4% of net assets
 
U.S. Treasury Obligations 99.4%
                 
 
U.S. Treasury Notes
1.38%, 04/15/12
    240,000       242,569  
1.00%, 04/30/12
    2,400,000       2,416,584  
4.50%, 04/30/12
    1,952,000       2,039,383  
1.38%, 05/15/12
    1,920,000       1,941,375  
0.75%, 05/31/12
    2,160,000       2,169,115  
4.75%, 05/31/12
    2,048,000       2,151,520  
4.88%, 06/30/12
    1,360,000       1,435,224  
1.50%, 07/15/12
    2,208,000       2,238,188  
0.63%, 07/31/12
    1,440,000       1,443,269  
1.75%, 08/15/12
    2,640,000       2,685,788  
4.38%, 08/15/12
    1,920,000       2,022,449  
1.38%, 09/15/12
    1,840,000       1,862,498  
4.25%, 09/30/12
    1,120,000       1,181,687  
1.38%, 10/15/12
    2,400,000       2,429,439  
0.38%, 10/31/12
    960,000       956,813  
1.38%, 11/15/12
    2,240,000       2,267,476  
0.50%, 11/30/12
    1,200,000       1,197,469  
1.13%, 12/15/12
    2,400,000       2,418,938  
0.63%, 12/31/12
    1,200,000       1,198,969  
1.38%, 01/15/13
    2,400,000       2,428,407  
0.63%, 01/31/13
    1,280,000       1,277,700  
2.88%, 01/31/13
    1,008,000       1,048,438  
1.38%, 02/15/13
    2,400,000       2,428,407  
3.88%, 02/15/13
    1,280,000       1,356,000  
1.38%, 03/15/13
    2,640,000       2,670,624  
1.75%, 04/15/13
    3,120,000       3,178,999  
1.38%, 05/15/13
    2,768,000       2,798,282  
3.63%, 05/15/13
    1,760,000       1,862,988  
1.13%, 06/15/13
    3,600,000       3,617,712  
1.00%, 07/15/13
    2,400,000       2,403,744  
0.75%, 08/15/13
    2,560,000       2,547,000  
3.13%, 08/31/13
    1,440,000       1,514,249  
3.13%, 09/30/13
    2,080,000       2,187,900  
2.75%, 10/31/13
    1,600,000       1,669,374  
0.50%, 11/15/13
    3,360,000       3,309,338  
0.75%, 12/15/13
    1,552,000       1,536,359  
1.00%, 01/15/14
    2,352,000       2,340,424  
1.25%, 02/15/14
    3,280,000       3,282,050  
4.00%, 02/15/14
    800,000       864,438  
1.88%, 02/28/14
    800,000       814,813  
                 
Total U.S. Government Securities
(Cost $79,558,390)     79,435,999  
         
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Company 0.2% of net assets
 
Money Funds 0.2%
State Street Institutional Liquid Reserves Fund - Institutional Class
    183,510       183,510  
                 
Total Other Investment Company
(Cost $183,510)     183,510  
         
 
End of Investments
 
At 3/31/11, the tax basis cost of the fund’s investments was $79,741,900 and the unrealized appreciation and depreciation were $4,450 and ($126,841), respectively, with a net unrealized depreciation ($122,391).
 
 
Various inputs are used on determining the value of the fund’s investments. The fair value measurements and disclosures establish a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:
 
  •  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 fund does not adjust the quoted price for such investments, even in situations where the fund holds a large position and a sale could reasonably impact the quoted price.
 
 
 
 1

 

 
 Schwab Short-Term U.S. Treasury ETF
 

 
Portfolio Holdings (Unaudited) continued
 
 
  •  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 fund’s 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 fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of March 31, 2011:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Significant Other
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total*
 
U.S. Government Securities(a)
    $—       $79,435,999       $—       $79,435,999  
Other Investment Company(a)
    183,510       —       —       183,510  
                                 
Total
    $183,510       $79,435,999       $—       $79,619,509  
                                 
 
     
*
  The fund had no Other Financial Instruments.
(a)
  As categorized in Portfolio Holdings.
 
REG59498MAR11 - 00
 
 
 
2 

 

Schwab Strategic Trust
Schwab Intermediate-Term U.S. Treasury ETF™
 
Portfolio Holdings  as of March 31, 2011 (Unaudited)
 
 
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .0%   U.S. Government Securities     39,877,995       38,908,842  
  0 .2%   Other Investment Company     92,815       92,815  
 
 
  99 .2%   Total Investments     39,970,810       39,001,657  
  0 .8%   Other Assets and
Liabilities, Net 		            291,912  
 
 
  100 .0%   Net Assets             39,293,569  
 
                 
Security
 		  Face Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 U.S. Government Securities 99.0% of net assets
 
U.S. Treasury Obligations 99.0%
                 
 
U.S. Treasury Bond
7.25%, 05/15/16
    240,000       298,350  
8.50%, 02/15/20
    176,000       248,449  
8.75%, 05/15/20
    320,000       459,400  
8.75%, 08/15/20
    200,000       288,141  
                 
 
U.S. Treasury Notes
4.75%, 05/15/14
    240,000       265,556  
2.63%, 06/30/14
    720,000       748,238  
2.63%, 07/31/14
    1,000,000       1,038,750  
2.38%, 09/30/14
    1,000,000       1,028,828  
2.38%, 10/31/14
    1,000,000       1,027,891  
2.13%, 11/30/14
    1,000,000       1,018,203  
2.25%, 01/31/15
    1,000,000       1,020,625  
4.00%, 02/15/15
    1,000,000       1,086,094  
2.38%, 02/28/15
    800,000       819,504  
2.50%, 03/31/15
    800,000       822,816  
2.50%, 04/30/15
    800,000       821,813  
4.13%, 05/15/15
    1,008,000       1,100,610  
2.13%, 05/31/15
    960,000       970,502  
4.25%, 08/15/15
    960,000       1,053,675  
1.25%, 08/31/15
    640,000       620,300  
1.38%, 11/30/15
    600,000       581,015  
2.13%, 02/29/16
    360,000       358,875  
2.38%, 03/31/16
    1,280,000       1,288,900  
3.25%, 06/30/16
    1,200,000       1,255,500  
4.88%, 08/15/16
    400,000       451,500  
3.13%, 10/31/16
    1,200,000       1,242,281  
2.75%, 11/30/16
    1,088,000       1,103,385  
3.13%, 01/31/17
    960,000       990,600  
3.00%, 02/28/17
    1,200,000       1,227,750  
3.25%, 03/31/17
    1,024,000       1,061,120  
3.13%, 04/30/17
    336,000       345,345  
2.75%, 05/31/17
    760,000       763,859  
2.50%, 06/30/17
    1,072,000       1,060,610  
4.75%, 08/15/17
    1,248,000       1,398,931  
4.25%, 11/15/17
    320,000       348,850  
2.25%, 11/30/17
    280,000       270,463  
3.50%, 02/15/18
    840,000       874,453  
3.75%, 11/15/18
    960,000       1,008,600  
2.75%, 02/15/19
    1,080,000       1,055,278  
3.13%, 05/15/19
    1,520,000       1,519,881  
3.63%, 08/15/19
    960,000       992,400  
3.38%, 11/15/19
    960,000       970,500  
3.63%, 02/15/20
    1,248,000       1,281,931  
3.50%, 05/15/20
    960,000       972,979  
2.63%, 08/15/20
    576,000       540,360  
2.63%, 11/15/20
    640,000       597,200  
3.63%, 02/15/21
    600,000       608,531  
                 
Total U.S. Government Securities
(Cost $39,877,995)     38,908,842  
         
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Company 0.3% of net assets
 
Money Fund 0.3%
State Street Institutional Liquid Reserves Fund - Institutional Class
    92,815       92,815  
                 
Total Other Investment Company
(Cost $92,815)     92,815  
         
 
End of Investments
 
At 3/31/11, the tax basis cost of the fund’s investments was $39,970,810 and the unrealized appreciation and depreciation were $0 and ($969,153), respectively, with a net unrealized depreciation ($969,153).
 
 
Various inputs are used on determining the value of the fund’s investments. The fair value measurements and disclosures establish a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:
 
  •  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 fund
 
 
 
 1

 

 
 Schwab Intermediate-Term U.S. Treasury ETF
 

 
Portfolio Holdings (Unaudited) continued
 
  does not adjust the quoted price for such investments, even in situations where the fund holds 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 fund’s 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 fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of March 31, 2011:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Significant Other
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total*
 
U.S. Government Securities(a)
    $—       $38,908,842       $—       $38,908,842  
Other Investment Company(a)
    92,815       —       —       92,815  
                                 
Total
    $92,815       $38,908,842       $—       $39,001,657  
                                 
 
     
*
  The fund had no Other Financial Instruments.
(a)
  As categorized in Portfolio Holdings.
 
REG59500MAR11 - 00
 
 
 
2 

 

Item 2. Controls and Procedures.
(a)   Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.
 
(b)   During Registrant’s last fiscal quarter, there have been no changes in Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.
Item 3. Exhibits.
Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are attached.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant ) Schwab Strategic Trust
         
By:
  /s/ Marie Chandoha
 
Marie Chandoha 		   
 
  Chief Executive Officer    
 
        
Date: May 23, 2011    
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
By:
  /s/ Marie Chandoha
 
Marie Chandoha 		   
 
  Chief Executive Officer    
 
        
Date: May 23, 2011    

 

 

         
By:
  /s/ George Pereira
 
George Pereira 		   
 
  Principal Financial Officer    
 
        
Date: May 23, 2011    

 

EX-99.CERT 2 f58603exv99wcert.htm EX-99.CERT exv99wcert
CERTIFICATIONS
I, Marie Chandoha, certify that:
1.   I have reviewed this report on Form N-Q of Schwab Strategic Trust;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
         
Date: May 23, 2011 
 /s/ Marie Chandoha    
  Marie Chandoha    
  President and Chief Executive Officer   

 

 

         
CERTIFICATIONS
I, George Pereira, certify that:
1.   I have reviewed this report on Form N-Q of Schwab Strategic Trust;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
         
Date: May 23, 2011 
 /s/ George Pereira    
  George Pereira    
  Treasurer and Principal Financial Officer