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

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

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

($)

.4%

U.S. Government Securities

79,558,390

79,435,999

.2%

Other Investment Company

183,510

.6%

Total Investments

79,741,900

79,619,509

.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).


	•	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.

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.


	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

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

($)

.0%

U.S. Government Securities

39,877,995

38,908,842

.2%

Other Investment Company

92,815

.2%

Total Investments

39,970,810

39,001,657

.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).


	•	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

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.


	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

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