nvq

Schwab Strategic Trust
Schwab U.S. TIPS ETF™

Portfolio Holdings as of March 31, 2012 (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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued). For variable-rate obligations, the rate shown is the rate as of the report date. The maturity date shown for all the securities is the final legal maturity.

Cost

Value

Holdings by Category

($)

.6%

U.S. Government Securities

360,038,833

378,499,960

.0%

Other Investment Company

27,871

.6%

Total Investments

360,066,704

378,527,831

.4%

Other Assets and
Liabilities, Net

1,542,733

100

.0%

Net Assets

380,070,564


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)

U.S. Government Securities 99.6% of net assets

U.S. Treasury Obligations 99.6%


U.S. Treasury Inflation Protected Securities
0.63%, 04/15/13		8,028,210		8,240,235
1.88%, 07/15/13		12,449,160		13,106,600
2.00%, 01/15/14		12,008,447		12,837,750
1.25%, 04/15/14		8,118,968		8,612,439
2.00%, 07/15/14		11,520,872		12,552,336
1.63%, 01/15/15		10,475,242		11,418,014
0.50%, 04/15/15		11,074,015		11,741,889
1.88%, 07/15/15		9,777,582		10,905,035
2.00%, 01/15/16		9,493,174		10,719,882
0.13%, 04/15/16		19,676,336		20,786,278
2.50%, 07/15/16		9,578,743		11,187,684
2.38%, 01/15/17		8,306,404		9,737,930
2.63%, 07/15/17		7,120,745		8,567,110
1.63%, 01/15/18		7,519,131		8,647,001
1.38%, 07/15/18		7,417,324		8,498,622
2.13%, 01/15/19		6,912,895		8,276,049
1.88%, 07/15/19		7,839,964		9,322,188
1.38%, 01/15/20		9,507,886		10,919,237
1.25%, 07/15/20		14,614,319		16,703,728
1.13%, 01/15/21		16,786,528		18,913,717
0.63%, 07/15/21		17,749,631		19,222,318
0.13%, 01/15/22		14,134,415		14,481,132
2.38%, 01/15/25		13,059,748		16,618,530
2.00%, 01/15/26		9,481,757		11,625,488
2.38%, 01/15/27		7,612,322		9,768,740
1.75%, 01/15/28		7,635,950		9,101,136
3.63%, 04/15/28		8,881,098		13,089,940
2.50%, 01/15/29		7,382,247		9,742,277
3.88%, 04/15/29		10,403,572		16,041,060
3.38%, 04/15/32		2,966,649		4,518,117
2.13%, 02/15/40		4,914,813		6,464,502
2.13%, 02/15/41		8,933,926		11,784,384
0.75%, 02/15/42		4,550,567		4,348,612

Total U.S. Government Securities
(Cost $360,038,833)				378,499,960



	Number		Value
Security	of Shares		($)

Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		27,871		27,871

Total Other Investment Company
(Cost $27,871)				27,871



End of Investments

At 3/31/12, the tax basis cost of the fund’s investments was $360,139,246 and the unrealized appreciation and depreciation were $18,748,555 and ($359,970), respectively, with a net unrealized appreciation of $18,388,585.

Under procedures approved by the fund’s Board of Trustees (the Board), the investment adviser and administrator have formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

Schwab U.S. TIPS ETF

Portfolio Holdings (Unaudited) continued

The fund values the securities in its portfolios every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at the bid or at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it 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. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund 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.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If the fund determines 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 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 prices.

	•	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.

Schwab U.S. TIPS ETF

Portfolio Holdings (Unaudited) continued

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, 2012:

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)

$—

$378,499,960

$—

$378,499,960

Other Investment Company(a)

27,871

—

27,871

Total

$27,871

$378,499,960

$—

$378,527,831


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

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended March 31, 2012.

REG59499MAR12

Schwab Strategic Trust
Schwab Short-Term U.S. Treasury ETF™

Portfolio Holdings as of March 31, 2012 (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

($)

.5%

U.S. Government Securities

180,385,390

180,641,345

.1%

Other Investment Company

184,946

.6%

Total Investments

180,570,336

180,826,291

.4%

Other Assets and
Liabilities, Net

684,673

100

.0%

Net Assets

181,510,964


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)

U.S. Government Securities 99.5% of net assets

U.S. Treasury Obligations 99.5%


U.S. Treasury Notes
1.75%, 04/15/13		7,470,000		7,587,884
3.13%, 04/30/13		3,723,000		3,839,053
1.38%, 05/15/13		4,694,000		4,753,224
3.63%, 05/15/13		4,213,000		4,372,142
1.13%, 06/15/13		7,758,000		7,839,521
1.00%, 07/15/13		3,061,000		3,089,936
0.38%, 07/31/13		2,625,000		2,628,796
3.38%, 07/31/13		4,310,000		4,487,619
0.75%, 08/15/13		3,864,000		3,889,209
3.13%, 08/31/13		4,502,000		4,682,256
3.13%, 09/30/13		7,092,000		7,392,027
2.75%, 10/31/13		5,259,000		5,460,940
0.50%, 11/15/13		5,404,000		5,421,098
2.00%, 11/30/13		6,113,000		6,283,736
0.75%, 12/15/13		5,641,000		5,683,088
1.00%, 01/15/14		4,515,000		4,569,501
1.25%, 02/15/14		7,183,000		7,305,621
4.00%, 02/15/14		2,663,000		2,843,794
1.88%, 02/28/14		1,672,000		1,720,854
1.75%, 03/31/14		2,828,000		2,906,876
1.25%, 04/15/14		4,025,000		4,097,639
1.88%, 04/30/14		4,546,000		4,687,353
2.25%, 05/31/14		4,981,000		5,181,017
0.75%, 06/15/14		5,825,000		5,871,419
2.63%, 06/30/14		2,058,000		2,160,579
0.63%, 07/15/14		1,273,000		1,279,365
2.63%, 07/31/14		4,000,000		4,204,376
0.50%, 08/15/14		6,000,000		6,011,718
2.38%, 08/31/14		3,000,000		3,139,455
0.25%, 09/15/14		5,003,000		4,980,331
0.50%, 10/15/14		7,428,000		7,436,706
0.38%, 11/15/14		7,800,000		7,781,717
0.25%, 01/15/15		7,000,000		6,955,158
0.25%, 02/15/15		1,300,000		1,290,860
4.00%, 02/15/15		5,300,000		5,824,621
2.38%, 02/28/15		7,000,000		7,372,967
2.50%, 03/31/15		5,300,000		5,608,889

Total U.S. Government Securities
(Cost $180,385,390)				180,641,345



	Number		Value
Security	of Shares		($)

Other Investment Company 0.1% of net assets

Money Market Funds 0.1%
State Street Institutional U.S. Government Money Market Fund		184,946		184,946

Total Other Investment Company
(Cost $184,946)				184,946



End of Investments

At 3/31/12, the tax basis cost of the fund’s investments was $180,574,234 and the unrealized appreciation and depreciation were $274,973 and ($22,916), respectively, with a net unrealized appreciation $252,057.

Schwab Short-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued

The fund values the securities in its portfolios every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at the bid or at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it 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. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund 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.

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 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 prices.

	•	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.

Schwab Short-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued

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)

$—

$180,641,345

$—

$180,641,345

Other Investment Company(a)

184,946

—

184,946

Total

$184,946

$180,641,345

$—

$180,826,291


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

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no significant transfers between Level 1 and Level 2 for the year ended March 31, 2012.

REG59498MAR12

Schwab Strategic Trust
Schwab Intermediate-Term U.S. Treasury ETF™

Portfolio Holdings as of March 31, 2012 (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

($)

.3%

U.S. Government Securities

145,829,438

146,903,776

.1%

Other Investment Company

182,984

.4%

Total Investments

146,012,422

147,086,760

.6%

Other Assets and
Liabilities, Net

874,663

100

.0%

Net Assets

147,961,423


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)

U.S. Government Securities 99.3% of net assets

U.S. Treasury Obligations 99.3%


U.S. Treasury Bond
7.25%, 05/15/16		2,820,000		3,552,760
8.50%, 02/15/20		733,000		1,098,584
8.75%, 05/15/20		618,000		943,705
8.75%, 08/15/20		1,413,000		2,172,598


U.S. Treasury Notes
2.50%, 04/30/15		4,455,000		4,718,821
4.13%, 05/15/15		629,000		698,043
2.13%, 05/31/15		2,700,000		2,830,572
4.25%, 08/15/15		2,700,000		3,025,688
1.25%, 08/31/15		1,652,000		1,687,234
1.38%, 11/30/15		2,359,000		2,416,133
2.13%, 02/29/16		3,256,000		3,427,194
2.38%, 03/31/16		5,680,000		6,033,671
2.00%, 04/30/16		3,922,000		4,109,217
3.25%, 06/30/16		4,096,000		4,502,401
4.88%, 08/15/16		2,463,000		2,883,441
1.00%, 08/31/16		3,194,000		3,208,223
3.13%, 10/31/16		4,200,000		4,607,862
2.75%, 11/30/16		5,852,000		6,322,448
3.13%, 01/31/17		3,258,000		3,582,018
3.00%, 02/28/17		3,000,000		3,283,593
3.25%, 03/31/17		4,143,000		4,587,726
3.13%, 04/30/17		1,500,000		1,652,109
2.75%, 05/31/17		2,932,000		3,174,808
2.50%, 06/30/17		3,882,000		4,153,437
2.38%, 07/31/17		1,024,000		1,088,800
4.75%, 08/15/17		3,766,000		4,472,712
4.25%, 11/15/17		1,205,000		1,402,790
2.25%, 11/30/17		1,515,000		1,598,443
3.50%, 02/15/18		2,647,000		2,974,979
2.75%, 02/28/18		4,400,000		4,763,686
4.00%, 08/15/18		1,988,000		2,304,372
1.38%, 09/30/18		2,276,000		2,261,242
3.75%, 11/15/18		3,017,000		3,450,929
1.38%, 12/31/18		2,443,000		2,417,617
2.75%, 02/15/19		1,927,000		2,076,192
1.38%, 02/28/19		2,520,000		2,484,564
3.13%, 05/15/19		3,891,000		4,285,267
3.63%, 08/15/19		3,518,000		3,993,204
3.38%, 11/15/19		2,302,000		2,570,328
3.63%, 02/15/20		1,899,000		2,154,474
3.50%, 05/15/20		2,272,000		2,556,000
2.63%, 08/15/20		3,366,000		3,549,289
2.63%, 11/15/20		2,430,000		2,555,867
3.63%, 02/15/21		1,484,000		1,680,167
3.13%, 05/15/21		2,730,000		2,971,862
2.13%, 08/15/21		2,228,000		2,226,781
2.00%, 02/15/22		8,555,000		8,391,925

Total U.S. Government Securities
(Cost $145,829,438)				146,903,776



	Number		Value
Security	of Shares		($)

Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		182,984		182,984

Total Other Investment Company
(Cost $182,984)				182,984



End of Investments

At 3/31/12, the tax basis cost of the fund’s investments was $146,013,755 and the unrealized appreciation and depreciation were $1,214,451, and ($141,446), respectively, with a net unrealized appreciation $1,073,005.

Schwab Intermediate-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued

procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The fund values the securities in its portfolios every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at the bid or at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it 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. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund 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.

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 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 prices.

	•	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

Schwab Intermediate-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued


		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)

$—

$146,903,776

$—

$146,903,776

Other Investment Company(a)

182,984

—

182,984

Total

$182,984

$146,903,776

$—

$147,086,760


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

REG59500MAR12

Schwab Strategic Trust
Schwab U.S. Aggregate Bond ETF™

Portfolio Holdings as of March 31, 2012 (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	.2%	Asset-Backed Obligations		422,540		422,641
	2	.0%	Commercial Mortgage Backed Securities		4,497,687		4,576,501
	20	.2%	Corporate Bonds		45,208,708		45,715,007
	4	.5%	Foreign Securities		9,993,166		10,096,572
	31	.5%	Mortgage-Backed Securities		71,029,381		71,370,685
	1	.0%	Municipal Bonds		2,154,830		2,183,118
	40	.2%	U.S. Government and Government Agencies		90,361,323		91,114,361
	1	.1%	Other Investment Company		2,503,335		2,503,335
	3	.1%	Short-Term Investment		6,999,802		6,999,802


	103	.8%	Total Investments		233,170,772		234,982,022
	(3	.8)%	Other Assets and Liabilities, Net				(8,530,370	)


	100	.0%	Net Assets				226,451,652


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)

Asset-Backed Obligations 0.2% of net assets


Citibank Credit Card Issuance Trust
Series 2005-A2 Class A2
4.85%, 03/10/17 (a)		100,000		111,552
Series 2003-A7 Class A7
4.15%, 07/07/17 (a)		100,000		110,375
Honda Auto Receivables Owner Trust
Series 2011-3 Class A3
0.88%, 09/21/15 (a)		200,000		200,714

Total Asset-Backed Obligations
(Cost $422,540)				422,641




Commercial Mortgage Backed Securities 2.0% of net assets


Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2004-6 Class A5
4.81%, 12/10/42 (a)		200,000		214,434
Series 2005-4 Class A5A
4.93%, 07/10/45 (a)		361,000		396,372
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10 Class A4
5.41%, 12/11/40 (a)		400,000		448,621
Series 2005-PWR8 Class A4
4.67%, 06/11/41 (a)		200,000		218,045
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C5 Class A4
4.83%, 11/15/37 (a)		200,000		215,668
Series 2005-C1 Class A4
5.01%, 02/15/38 (a)(b)		200,000		218,172
Credit Suisse Mortgage Capital Certificates
Series 2007-C5 Class A3
5.69%, 09/15/40 (a)(b)		200,000		212,986
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.44%, 03/10/39 (a)		415,000		458,434
GS Mortgage Securities Corp. II
Series 2007-GG10 Class A4
5.79%, 08/10/45 (a)(b)		200,000		222,783
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2004-CB8 Class A4
4.40%, 01/12/39 (a)		300,000		316,124
Series 2007-LD12 Class ASB
5.83%, 02/15/51 (a)(b)		189,673		205,367
LB-UBS Commercial Mortgage Trust
Series 2004-C4 Class A4
5.28%, 06/15/29 (a)(b)		200,000		215,893
Series 2005-C5 Class A4
4.95%, 09/15/30 (a)		300,000		330,558
Wachovia Bank Commercial Mortgage Trust
Series 2004-C11 Class A5
5.22%, 01/15/41 (a)(b)		220,000		236,194
Series 2005-C21 Class A4
5.20%, 10/15/44 (a)(b)		200,000		221,242
Series 2006-C23 Class A5
5.42%, 01/15/45 (a)(b)		400,000		445,608

Total Commercial Mortgage Backed Securities
(Cost $4,497,687)				4,576,501




Corporate Bonds 20.2% of net assets

Finance 6.9%


Banking 4.6%
American Express Co.
8.13%, 05/20/19		150,000		196,373
American Express Credit Corp.
2.38%, 03/24/17		200,000		200,541
Bank of America Corp.
4.90%, 05/01/13		300,000		309,030
5.13%, 11/15/14		350,000		366,279
3.63%, 03/17/16		650,000		649,469
7.63%, 06/01/19		2,000		2,309
6.50%, 09/15/37		100,000		96,763

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Bank of New York Mellon Corp.
2.30%, 07/28/16		100,000		102,625
Bank of Tokyo-Mitsubishi UFJ Ltd.
2.35%, 02/23/17		100,000		100,196
Barclays Bank PLC
3.90%, 04/07/15		100,000		103,971
5.00%, 09/22/16		100,000		107,664
BB&T Corp.
3.95%, 03/22/22 (a)		100,000		100,465
BNP Paribas S.A.
5.00%, 01/15/21		100,000		101,105
Capital One Financial Corp.
2.15%, 03/23/15		150,000		150,339
Citigroup, Inc.
5.50%, 04/11/13		200,000		207,602
4.75%, 05/19/15		100,000		105,360
3.95%, 06/15/16		550,000		565,754
8.50%, 05/22/19		54,000		66,668
5.38%, 08/09/20		150,000		161,385
5.88%, 05/29/37		200,000		206,041
Credit Suisse USA, Inc.
5.38%, 03/02/16		250,000		276,449
6.00%, 02/15/18		100,000		108,416
Deutsche Bank AG
3.25%, 01/11/16		150,000		154,036
Goldman Sachs Group, Inc.
4.75%, 07/15/13		75,000		77,667
3.63%, 02/07/16		475,000		475,287
5.95%, 01/18/18		240,000		258,849
5.25%, 07/27/21		100,000		99,172
6.13%, 02/15/33		80,000		79,592
6.25%, 02/01/41		75,000		74,319
HSBC Holdings PLC
5.10%, 04/05/21		350,000		379,059
HSBC USA, Inc.
5.00%, 09/27/20		164,000		167,443
JP Morgan Chase Capital XVIII
6.95%, 08/01/66		75,000		75,600
JPMorgan Chase & Co.
2.05%, 01/24/14		425,000		432,556
2.60%, 01/15/16		273,000		276,469
6.30%, 04/23/19		450,000		520,735
6.40%, 05/15/38		100,000		119,326
5.40%, 01/06/42		100,000		106,585
KeyBank NA
5.80%, 07/01/14		250,000		271,215
Morgan Stanley
3.80%, 04/29/16		250,000		243,579
6.63%, 04/01/18		200,000		210,863
7.30%, 05/13/19		200,000		215,532
7.25%, 04/01/32		100,000		108,703
PNC Funding Corp.
3.63%, 02/08/15		160,000		170,210
Rabobank Nederland Utrecht
3.88%, 02/08/22		200,000		193,805
Royal Bank of Scotland PLC
6.13%, 01/11/21		125,000		134,021
Santander Holdings USA, Inc.
4.63%, 04/19/16		50,000		50,713
UBS AG
5.75%, 04/25/18		100,000		109,629
US Bancorp
2.20%, 11/15/16 (a)		100,000		102,051
3.00%, 03/15/22 (a)		100,000		98,700
Wachovia Corp.
5.50%, 05/01/13		90,000		94,545
5.75%, 06/15/17		150,000		173,006
5.50%, 08/01/35		75,000		76,604
Wells Fargo & Co.
4.60%, 04/01/21		175,000		188,021
5.38%, 02/07/35		50,000		53,540
Wells Fargo & Co., Series I
3.75%, 10/01/14		150,000		158,970
Westpac Banking Corp.
4.88%, 11/19/19		100,000		108,134

				10,343,340


Brokerage 0.1%
BlackRock, Inc.
5.00%, 12/10/19		50,000		57,283
Jefferies Group, Inc.
5.50%, 03/15/16		100,000		102,500
Nomura Holdings, Inc.
5.00%, 03/04/15		100,000		104,063
6.70%, 03/04/20		15,000		16,259

				280,105


Finance Company 0.7%
General Electric Capital Corp.
4.80%, 05/01/13		100,000		104,390
5.90%, 05/13/14		230,000		252,928
2.95%, 05/09/16		300,000		313,238
6.00%, 08/07/19		100,000		116,953
6.75%, 03/15/32		150,000		179,737
5.88%, 01/14/38		133,000		146,703
HSBC Finance Corp.
5.50%, 01/19/16		100,000		108,455
6.68%, 01/15/21		25,000		26,730
SLM Corp.
5.00%, 04/15/15		250,000		254,599

				1,503,733


Insurance 1.1%
Allstate Corp.
5.00%, 08/15/14		200,000		218,134
American International Group, Inc.
4.88%, 09/15/16		50,000		52,941
5.85%, 01/16/18		40,000		43,608
6.40%, 12/15/20		160,000		181,384
Berkshire Hathaway Finance Corp.
5.40%, 05/15/18		40,000		47,316
Berkshire Hathaway, Inc.
3.20%, 02/11/15		140,000		149,248
Chubb Corp.
6.00%, 05/11/37		250,000		305,276
Cigna Corp.
4.00%, 02/15/22 (a)		200,000		203,955
5.88%, 03/15/41 (a)		50,000		55,600
Genworth Financial, Inc.
5.75%, 06/15/14		100,000		104,018
Hartford Financial Services Group, Inc.
5.50%, 03/30/20		70,000		74,930
5.95%, 10/15/36		100,000		96,647

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
MetLife, Inc.
6.82%, 08/15/18		200,000		245,387
Principal Financial Group, Inc.
7.88%, 05/15/14		25,000		27,611
Prudential Financial, Inc.
4.50%, 11/16/21		100,000		106,395
6.63%, 12/01/37		100,000		115,849
5.63%, 05/12/41		75,000		78,385
Travelers Cos., Inc.
5.90%, 06/02/19		160,000		194,022
6.25%, 06/15/37		70,000		86,300
UnitedHealth Group, Inc.
6.00%, 02/15/18		150,000		181,404

				2,568,410


Other Financial 0.0%
CME Group, Inc.
5.75%, 02/15/14		50,000		54,547

				54,547


Real Estate Investment Trust 0.4%
Digital Realty Trust LP
5.25%, 03/15/21		100,000		103,291
Duke Realty LP
7.38%, 02/15/15		175,000		196,719
ERP Operating LP
5.75%, 06/15/17		150,000		171,284
HCP, Inc.
2.70%, 02/01/14		18,000		18,259
5.38%, 02/01/21 (a)		46,000		49,656
ProLogis LP
6.63%, 05/15/18		50,000		56,990
Simon Property Group LP
6.75%, 05/15/14 (a)		25,000		27,691
6.13%, 05/30/18		150,000		176,835
5.65%, 02/01/20 (a)		52,000		59,619

				860,344

				15,610,479

Industrial 11.1%


Basic Industry 1.2%
ArcelorMittal
9.85%, 06/01/19		100,000		120,488
5.25%, 08/05/20		102,000		100,018
7.00%, 10/15/39		100,000		95,796
Barrick North America Finance LLC
5.70%, 05/30/41		60,000		64,492
BHP Billiton Finance USA Ltd.
1.13%, 11/21/14		200,000		201,516
3.25%, 11/21/21		100,000		101,130
Cliffs Natural Resources, Inc.
4.88%, 04/01/21		150,000		155,661
6.25%, 10/01/40		50,000		53,278
Dow Chemical Co.
2.50%, 02/15/16		200,000		205,488
8.55%, 05/15/19		225,000		295,280
5.25%, 11/15/41 (a)		100,000		103,682
EI du Pont de Nemours & Co.
5.25%, 12/15/16		150,000		175,439
International Paper Co.
7.50%, 08/15/21		132,000		166,681
Monsanto Co.
2.75%, 04/15/16		80,000		83,906
Rio Tinto Finance USA Ltd.
1.88%, 11/02/15		170,000		173,340
6.50%, 07/15/18		100,000		123,393
Rio Tinto Finance USA PLC
3.50%, 03/22/22		100,000		100,393
4.75%, 03/22/42 (a)		100,000		100,189
Vale Overseas Ltd.
6.88%, 11/10/39		84,000		98,542
Valspar Corp.
4.20%, 01/15/22 (a)		100,000		102,584

				2,621,296


Capital Goods 1.0%
Boeing Capital Corp.
2.90%, 08/15/18 (a)		100,000		104,942
4.70%, 10/27/19		50,000		57,862
Boeing Co.
6.88%, 03/15/39		90,000		126,073
Caterpillar Financial Services Corp.
1.55%, 12/20/13		100,000		101,609
7.15%, 02/15/19		72,000		93,136
Caterpillar, Inc.
5.70%, 08/15/16		100,000		118,386
CRH America, Inc.
6.00%, 09/30/16		100,000		109,013
Deere & Co.
5.38%, 10/16/29		150,000		181,806
General Electric Co.
5.25%, 12/06/17		350,000		405,267
Honeywell International, Inc.
4.25%, 03/01/21		200,000		226,887
Lockheed Martin Corp.
4.25%, 11/15/19		36,000		39,060
Raytheon Co.
3.13%, 10/15/20		100,000		101,970
Republic Services, Inc.
3.80%, 05/15/18		200,000		215,040
5.70%, 05/15/41		80,000		91,667
Tyco International Finance S.A.
8.50%, 01/15/19 (a)		100,000		129,778
United Technologies Corp.
5.38%, 12/15/17		100,000		119,890

				2,222,386


Communications 2.2%
America Movil S.A.B. de C.V.
2.38%, 09/08/16		200,000		203,465
6.38%, 03/01/35		40,000		47,587
AT&T Mobility LLC
7.13%, 12/15/31		50,000		64,188
AT&T, Inc.
5.50%, 02/01/18		130,000		153,353
3.00%, 02/15/22		100,000		98,209
6.80%, 05/15/36		55,000		68,170
6.30%, 01/15/38		120,000		141,519
5.35%, 09/01/40		50,000		53,365
BellSouth Corp.
6.88%, 10/15/31		100,000		120,834
6.55%, 06/15/34		150,000		171,758
CBS Corp.
7.88%, 07/30/30		50,000		64,845

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
5.50%, 05/15/33		150,000		157,335
Cellco Partnership / Verizon Wireless Capital LLC
5.55%, 02/01/14		90,000		97,381
Comcast Corp.
5.30%, 01/15/14		50,000		53,809
5.15%, 03/01/20		250,000		288,098
Deutsche Telekom International Finance BV
8.75%, 06/15/30		100,000		137,805
DIRECTV Holdings LLC
3.55%, 03/15/15		100,000		105,677
3.50%, 03/01/16		30,000		31,537
5.88%, 10/01/19		25,000		28,630
6.00%, 08/15/40 (a)		75,000		80,372
6.38%, 03/01/41		35,000		39,638
Embarq Corp.
7.08%, 06/01/16		150,000		169,087
France Telecom S.A.
2.75%, 09/14/16		150,000		154,457
5.38%, 01/13/42		50,000		53,061
NBCUniversal Media LLC
4.38%, 04/01/21		250,000		268,286
News America, Inc.
5.30%, 12/15/14		54,000		59,777
6.90%, 03/01/19		30,000		36,533
6.15%, 03/01/37		50,000		56,076
Qwest Corp.
6.75%, 12/01/21		150,000		167,812
Telecom Italia Capital S.A.
5.25%, 11/15/13		300,000		309,000
Telefonica Emisiones S.A.U.
2.58%, 04/26/13		20,000		20,089
6.22%, 07/03/17		150,000		158,723
Time Warner Cable, Inc.
5.85%, 05/01/17		150,000		175,233
6.55%, 05/01/37		200,000		232,360
Verizon Communications, Inc.
5.25%, 04/15/13		75,000		78,648
5.50%, 02/15/18		100,000		117,356
8.75%, 11/01/18		75,000		101,912
5.85%, 09/15/35		80,000		92,138
Verizon Global Funding Corp.
7.75%, 12/01/30		100,000		135,812
Vodafone Group PLC
5.00%, 12/16/13		150,000		160,475
5.63%, 02/27/17		50,000		58,549
5.45%, 06/10/19		45,000		53,149
4.38%, 03/16/21		30,000		33,060
6.15%, 02/27/37		50,000		60,671

				4,959,839


Consumer Cyclical 1.2%
CVS Caremark Corp.
4.88%, 09/15/14		75,000		82,386
4.75%, 05/18/20 (a)		108,000		121,175
Daimler Finance North America LLC
6.50%, 11/15/13		30,000		32,684
8.50%, 01/18/31		75,000		109,475
eBay, Inc.
1.63%, 10/15/15		125,000		127,568
Home Depot, Inc.
5.40%, 03/01/16		200,000		231,006
Macy’s Retail Holdings, Inc.
5.90%, 12/01/16		150,000		172,310
5.13%, 01/15/42 (a)		100,000		98,593
Marriott International, Inc.
3.00%, 03/01/19 (a)		100,000		98,505
McDonald’s Corp.
5.30%, 03/15/17		150,000		175,929
3.70%, 02/15/42		200,000		185,698
Nordstrom, Inc.
4.00%, 10/15/21 (a)		150,000		159,908
Target Corp.
3.88%, 07/15/20		25,000		27,374
6.35%, 11/01/32		45,000		55,829
Time Warner, Inc.
3.15%, 07/15/15		85,000		90,087
4.75%, 03/29/21		50,000		55,014
7.70%, 05/01/32		61,000		79,786
5.38%, 10/15/41		50,000		52,733
Toyota Motor Credit Corp.
4.25%, 01/11/21		80,000		87,187
3.40%, 09/15/21		100,000		102,911
Viacom, Inc.
2.50%, 12/15/16		50,000		51,235
Wal-Mart Stores, Inc.
4.25%, 04/15/13		100,000		103,867
6.50%, 08/15/37		200,000		264,235
Walt Disney Co.
1.35%, 08/16/16		150,000		150,654

				2,716,149


Consumer Non-Cyclical 2.8%
Abbott Laboratories
5.88%, 05/15/16		100,000		117,753
Altria Group, Inc.
7.75%, 02/06/14		20,000		22,413
4.75%, 05/05/21		100,000		107,693
10.20%, 02/06/39		37,000		57,539
Amgen, Inc.
3.88%, 11/15/21 (a)		100,000		102,600
Anheuser-Busch Cos., Inc.
6.45%, 09/01/37		60,000		79,391
Anheuser-Busch InBev Worldwide, Inc.
5.38%, 11/15/14		193,000		214,448
6.88%, 11/15/19		100,000		127,662
Archer-Daniels-Midland Co.
5.94%, 10/01/32		100,000		118,065
Aristotle Holding, Inc.
2.75%, 11/21/14 (c)		100,000		102,811
6.13%, 11/15/41 (c)		100,000		111,961
AstraZeneca PLC
5.40%, 06/01/14		75,000		82,788
Cardinal Health, Inc.
4.00%, 06/15/15		100,000		107,673
Coca-Cola Co.
1.50%, 11/15/15		100,000		102,197
3.15%, 11/15/20		150,000		157,001
Covidien International Finance S.A.
2.80%, 06/15/15		50,000		52,131
Diageo Capital PLC
5.75%, 10/23/17		200,000		240,663
Express Scripts, Inc.
3.13%, 05/15/16		130,000		135,500
General Mills, Inc.
3.15%, 12/15/21 (a)		100,000		100,299

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
GlaxoSmithKline Capital, Inc.
5.65%, 05/15/18		100,000		120,924
Johnson & Johnson
1.20%, 05/15/14		100,000		101,782
5.95%, 08/15/37		75,000		98,054
Kellogg Co.
7.45%, 04/01/31		100,000		131,466
Kimberly-Clark Corp.
5.00%, 08/15/13		45,000		47,747
Kraft Foods, Inc.
4.13%, 02/09/16		150,000		163,155
5.38%, 02/10/20		150,000		173,689
6.50%, 02/09/40		25,000		30,873
Kroger Co.
6.40%, 08/15/17		25,000		30,176
7.50%, 04/01/31		100,000		128,001
McKesson Corp.
3.25%, 03/01/16		50,000		53,610
Medtronic, Inc.
4.45%, 03/15/20		100,000		112,799
Merck & Co., Inc.
2.25%, 01/15/16		90,000		93,492
5.85%, 06/30/39		64,000		82,419
Novartis Capital Corp.
4.40%, 04/24/20		100,000		113,604
PepsiCo, Inc.
3.75%, 03/01/14		50,000		53,079
5.00%, 06/01/18		100,000		116,876
4.88%, 11/01/40		75,000		82,473
Pfizer, Inc.
6.20%, 03/15/19		225,000		281,976
Philip Morris International, Inc.
4.88%, 05/16/13		100,000		104,908
6.38%, 05/16/38		50,000		62,362
Procter & Gamble Co.
1.80%, 11/15/15		375,000		387,230
4.70%, 02/15/19		42,000		48,966
5.55%, 03/05/37		100,000		125,441
Quest Diagnostics, Inc.
3.20%, 04/01/16		200,000		209,815
Reynolds American, Inc.
7.63%, 06/01/16		175,000		210,228
Safeway, Inc.
3.95%, 08/15/20		50,000		49,671
Sanofi
2.63%, 03/29/16		100,000		104,806
Target Corp.
5.88%, 07/15/16		100,000		118,176
Teva Pharmaceutical Finance Co. LLC
6.15%, 02/01/36		325,000		391,141
Thermo Fisher Scientific, Inc.
4.50%, 03/01/21		50,000		56,227
3.60%, 08/15/21 (a)		50,000		52,880
Watson Pharmaceuticals, Inc.
5.00%, 08/15/14		125,000		133,904
6.13%, 08/15/19		100,000		112,463

				6,325,001


Energy 1.4%
Anadarko Petroleum Corp.
5.95%, 09/15/16		225,000		259,659
8.70%, 03/15/19		168,000		220,935
6.45%, 09/15/36		100,000		116,140
Baker Hughes, Inc.
3.20%, 08/15/21 (c)		100,000		100,862
5.13%, 09/15/40		200,000		228,435
BP Capital Markets PLC
3.63%, 05/08/14		120,000		126,227
4.75%, 03/10/19		100,000		113,402
Chevron Corp.
3.95%, 03/03/14		100,000		106,557
4.95%, 03/03/19		100,000		118,300
Conoco, Inc.
6.95%, 04/15/29		64,000		86,218
ConocoPhillips
5.75%, 02/01/19		50,000		60,931
6.50%, 02/01/39		125,000		166,617
Devon Energy Corp.
5.60%, 07/15/41 (a)		100,000		112,946
Encana Corp.
6.50%, 02/01/38		68,000		72,914
Halliburton Co.
7.45%, 09/15/39		60,000		84,488
Marathon Petroleum Corp.
5.13%, 03/01/21		125,000		136,200
Occidental Petroleum Corp.
1.75%, 02/15/17		85,000		86,045
3.13%, 02/15/22 (a)		100,000		101,096
Shell International Finance BV
3.10%, 06/28/15		100,000		107,124
4.30%, 09/22/19		100,000		113,553
6.38%, 12/15/38		45,000		59,755
Suncor Energy, Inc.
6.10%, 06/01/18		100,000		120,318
Talisman Energy, Inc.
3.75%, 02/01/21 (a)		48,000		47,278
Total Capital S.A.
3.00%, 06/24/15		100,000		103,895
Transocean, Inc.
5.05%, 12/15/16		100,000		107,205
Valero Energy Corp.
6.13%, 02/01/20		150,000		172,606

				3,129,706


Other Industrial 0.0%
Howard Hughes Medical Institute
3.45%, 09/01/14		50,000		53,274

				53,274


Technology 0.9%
Cisco Systems, Inc.
2.90%, 11/17/14		266,000		281,854
5.90%, 02/15/39		50,000		60,953
Hewlett-Packard Co.
1.25%, 09/13/13		150,000		150,357
6.00%, 09/15/41		200,000		219,538
International Business Machines Corp.
7.50%, 06/15/13		274,000		296,575
0.55%, 02/06/15		180,000		179,187
7.00%, 10/30/25		105,000		141,397
Microsoft Corp.
4.50%, 10/01/40		200,000		214,849
Oracle Corp.
5.75%, 04/15/18		165,000		200,855
3.88%, 07/15/20		180,000		198,503

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Xerox Corp.
4.25%, 02/15/15		150,000		159,427
4.50%, 05/15/21		25,000		25,767

				2,129,262


Transportation 0.4%
Burlington Northern Santa Fe LLC
4.70%, 10/01/19		140,000		156,830
5.05%, 03/01/41 (a)		80,000		83,774
CSX Corp.
4.25%, 06/01/21 (a)		150,000		161,019
Southwest Airlines Co.
5.13%, 03/01/17		120,000		130,714
Union Pacific Corp.
4.00%, 02/01/21 (a)		180,000		191,231
United Parcel Service, Inc.
6.20%, 01/15/38		125,000		163,230

				886,798

				25,043,711

Utilities 2.2%


Electric 1.4%
Alabama Power Co.
4.10%, 01/15/42		100,000		96,361
Appalachian Power Co.
7.00%, 04/01/38		75,000		98,437
Carolina Power & Light Co.
5.13%, 09/15/13		100,000		106,506
Commonwealth Edison Co.
1.95%, 09/01/16 (a)		50,000		50,855
Consolidated Edison Co. of New York, Inc.
5.85%, 04/01/18		98,000		119,100
Dominion Resources, Inc.
5.15%, 07/15/15		100,000		112,595
Duke Energy Indiana, Inc.
3.75%, 07/15/20		175,000		185,306
Exelon Generation Co. LLC
5.20%, 10/01/19		142,000		157,856
4.00%, 10/01/20 (a)		150,000		154,434
FirstEnergy Corp.
7.38%, 11/15/31		200,000		246,907
Florida Power & Light Co.
5.95%, 02/01/38		50,000		63,080
Florida Power Corp.
6.40%, 06/15/38		91,000		118,823
Georgia Power Co.
4.75%, 09/01/40		150,000		158,260
Midamerican Energy Holdings Co.
5.75%, 04/01/18		100,000		117,694
6.13%, 04/01/36		100,000		119,271
National Rural Utilities Cooperative Finance Corp.
5.45%, 02/01/18		100,000		117,095
NextEra Energy Capital Holdings, Inc.
2.55%, 11/15/13		225,000		229,102
Pacific Gas & Electric Co.
6.05%, 03/01/34		192,000		234,152
Public Service Electric & Gas Co.
0.85%, 08/15/14		100,000		100,344
San Diego Gas & Electric Co.
4.30%, 04/01/42 (a)		100,000		102,245
Southern California Edison Co.
5.75%, 03/15/14		150,000		164,461
Virginia Electric and Power Co.
6.00%, 05/15/37		139,000		174,618
Westar Energy, Inc.
4.13%, 03/01/42 (a)		100,000		96,123
Xcel Energy, Inc.
4.70%, 05/15/20 (a)		100,000		112,213

				3,235,838


Natural Gas 0.8%
Energy Transfer Partners LP
6.70%, 07/01/18		50,000		57,397
4.65%, 06/01/21 (a)		100,000		102,067
7.50%, 07/01/38		100,000		113,910
Enterprise Products Operating LLC
9.75%, 01/31/14		200,000		229,609
6.30%, 09/15/17		100,000		118,026
5.20%, 09/01/20		70,000		78,314
6.45%, 09/01/40		50,000		59,070
Kinder Morgan Energy Partners LP
6.85%, 02/15/20		50,000		59,668
5.80%, 03/15/35		150,000		155,462
National Grid PLC
6.30%, 08/01/16		75,000		86,621
Sempra Energy
6.00%, 10/15/39		100,000		120,522
Southwest Gas Corp.
3.88%, 04/01/22 (a)		100,000		102,219
TransCanada PipeLines Ltd.
3.80%, 10/01/20		56,000		60,149
7.63%, 01/15/39		50,000		70,985
Williams Partners LP
7.25%, 02/01/17		200,000		240,929
6.30%, 04/15/40		50,000		58,331

				1,713,279


Other Utilities 0.0%
Veolia Environnement S.A.
6.00%, 06/01/18		100,000		111,700

				111,700

				5,060,817

Total Corporate Bonds
(Cost $45,208,708)				45,715,007




Foreign Securities 4.5% of net assets

Foreign Agencies 1.4%


Canada 0.1%
Export Development Canada
2.25%, 05/28/15		100,000		105,092
1.25%, 10/27/15		60,000		61,192

				166,284


Cayman Islands 0.1%
Petrobras International Finance Co.
2.88%, 02/06/15		100,000		102,858
6.88%, 01/20/40		180,000		213,277

				316,135

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)


Germany 0.6%
Kreditanstalt fuer Wiederaufbau
2.63%, 02/16/16 (d)		375,000		397,111
4.88%, 01/17/17 (d)		350,000		406,332
4.50%, 07/16/18 (d)		300,000		347,390
4.88%, 06/17/19 (d)		200,000		236,943

				1,387,776


Mexico 0.2%
Pemex Project Funding Master Trust
6.63%, 06/15/35		200,000		230,000
Petroleos Mexicanos
5.50%, 01/21/21		200,000		221,500

				451,500


Norway 0.1%
Statoil A.S.A.
2.90%, 10/15/14		100,000		105,397

				105,397


Republic of Korea 0.3%
Export-Import Bank of Korea
5.88%, 01/14/15		300,000		328,305
4.38%, 09/15/21		300,000		303,968

				632,273

				3,059,365

Foreign Local Government 0.5%


Canada 0.5%
Hydro Quebec
2.00%, 06/30/16		200,000		205,950
8.05%, 07/07/24		60,000		86,546
Province of British Columbia
4.30%, 05/30/13		109,000		113,989
Province of Ontario
2.95%, 02/05/15		460,000		487,995
4.00%, 10/07/19		75,000		83,598
Province of Quebec
7.50%, 09/15/29		68,000		100,189

				1,078,267

Sovereign 1.2%


Brazil 0.3%
Brazilian Government International Bond
6.00%, 01/17/17		250,000		296,875
4.88%, 01/22/21		100,000		113,700
8.25%, 01/20/34		150,000		227,250
7.13%, 01/20/37		100,000		137,750

				775,575


Canada 0.1%
Canada Government International Bond
2.38%, 09/10/14		200,000		209,274

				209,274


Colombia 0.1%
Colombia Government International Bond
7.38%, 03/18/19		100,000		128,800
7.38%, 09/18/37		100,000		141,000

				269,800


Italy 0.1%
Republic of Italy
3.13%, 01/26/15		200,000		199,105

				199,105


Mexico 0.3%
Mexico Government International Bond
5.88%, 02/17/14		84,000		91,434
5.63%, 01/15/17		150,000		174,225
8.00%, 09/24/22		200,000		276,500
6.05%, 01/11/40		150,000		181,500

				723,659


Peru 0.1%
Peruvian Government International Bond
7.13%, 03/30/19		250,000		320,000

				320,000


Poland 0.1%
Poland Government International Bond
5.25%, 01/15/14		100,000		106,160

				106,160


South Africa 0.1%
South Africa Government International Bond
4.67%, 01/17/24		100,000		102,750

				102,750

				2,706,323

Supranational 1.4%
Asian Development Bank
2.63%, 02/09/15		400,000		422,666
European Bank for Reconstruction & Development
1.63%, 09/03/15		100,000		102,027
European Investment Bank
4.63%, 05/15/14		200,000		216,162
4.63%, 10/20/15		400,000		448,273
2.50%, 05/16/16		325,000		340,519
4.00%, 02/16/21		300,000		330,674
Inter-American Development Bank
4.50%, 09/15/14		300,000		328,270
5.13%, 09/13/16		100,000		117,239
International Bank for Reconstruction & Development
3.63%, 05/21/13		150,000		155,804
0.50%, 11/26/13		350,000		351,571
2.13%, 03/15/16		200,000		209,783
1.00%, 09/15/16		125,000		125,708
International Finance Corp.
2.13%, 11/17/17		100,000		103,921

				3,252,617

Total Foreign Securities
(Cost $9,993,166)				10,096,572




Mortgage-Backed Securities 31.5% of net assets

U.S. Government Agency Mortgages 31.5%
Fannie Mae
5.50%, 02/01/17 to 07/01/38 (a)		3,541,932		3,867,418
5.00%, 02/01/18 to 05/01/40 (a)		4,147,254		4,496,509
4.00%, 01/01/20 to 04/01/41 (a)		5,261,829		5,547,973

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
3.50%, 08/01/21 to 03/01/42 (a)		3,970,924		4,142,912
4.50%, 04/01/23 to 07/01/41 (a)		6,483,485		6,916,434
6.00%, 06/01/37 to 09/01/39 (a)		2,287,937		2,529,369
3.64%, 03/01/40 (a)(b)		619,295		651,555
3.36%, 04/01/40 (a)(b)		205,651		215,692
3.60%, 05/01/40 (a)(b)		181,981		191,631
Fannie Mae TBA
3.50%, 05/01/27 to 05/01/42 (a)		600,000		617,140
4.00%, 05/01/27 to 05/01/42 (a)		1,200,000		1,257,515
4.50%, 05/01/27 to 04/01/42 (a)		300,000		319,718
5.50%, 05/01/27 to 05/01/42 (a)		800,000		870,720
5.00%, 04/01/42 to 05/01/42 (a)		700,000		755,360
Freddie Mac
4.50%, 02/01/13 to 02/01/41 (a)		4,283,039		4,523,533
5.00%, 06/01/18 to 09/01/40 (a)		3,328,506		3,589,919
5.50%, 11/01/18 to 02/01/40 (a)		2,332,105		2,538,046
4.00%, 05/01/23 to 10/01/41 (a)		2,765,769		2,905,909
3.50%, 11/01/25 to 03/01/42 (a)		1,794,399		1,867,935
6.00%, 10/01/37 to 04/01/38 (a)		1,598,628		1,765,300
6.50%, 11/01/37 to 09/01/39 (a)		1,573,800		1,766,059
3.00%, 05/01/41 (a)(b)		89,769		93,773
Freddie Mac TBA
4.00%, 05/01/27 to 05/01/42 (a)		700,000		732,375
5.00%, 05/01/27 (a)		200,000		214,719
5.50%, 05/01/27 to 04/01/42 (a)		200,000		216,751
4.50%, 04/01/42 to 05/01/42 (a)		500,000		529,749
Ginnie Mae
5.50%, 04/15/33 to 11/15/38 (a)		1,543,595		1,729,814
5.00%, 10/15/34 to 04/20/40 (a)		3,498,661		3,867,987
3.50%, 08/20/38 to 02/15/42 (a)(b)		590,875		616,203
6.00%, 12/15/38 (a)		97,762		110,387
4.50%, 07/15/39 to 11/20/41 (a)		5,067,785		5,531,797
4.00%, 08/15/39 to 01/20/42 (a)		2,536,178		2,728,428
3.00%, 10/20/40 to 10/20/41 (a)(b)		957,878		1,005,055
Ginnie Mae TBA
6.00%, 03/01/42 to 04/01/42 (a)		1,400,000		1,579,000
4.50%, 04/01/42 (a)		200,000		217,656
5.00%, 04/01/42 (a)		300,000		331,359
3.50%, 05/01/42 (a)		200,000		207,844
4.00%, 05/01/42 (a)		300,000		321,141

Total Mortgage-Backed Securities
(Cost $71,029,381)				71,370,685




Municipal Bonds 1.0% of net assets

Fixed-Rate Obligations 1.0%
Bay Area Toll Authority
RB (Build America Bonds) Series 2010S3
6.91%, 10/01/50		100,000		133,217
California
GO (Build America Bonds) Series 2009
7.55%, 04/01/39		250,000		324,620
Commonwealth of Massachusetts
GO (Build America Bonds) Series 2009
5.46%, 12/01/39		100,000		120,459
Los Angeles USD
GO (Build America Bonds) Series 2010
6.76%, 07/01/34		200,000		257,198
Metropolitan Government of Nashville & Davidson County
GO (Build America Bonds) Series 2010
5.71%, 07/01/34		20,000		23,671
New Jersey State Turnpike Authority
RB (Build America Bonds) Series 2010A
7.10%, 01/01/41		100,000		136,904
New York City Municipal Water Finance Authority
Water System RB (Build America Bonds) Series 2009
5.75%, 06/15/41		200,000		248,728
San Francisco CA City & County Public Utilities Commission
Water System RB (Build America Bonds) Series 2010DE
6.00%, 11/01/40		250,000		297,185
State of Connecticut
GO Bonds Series 2008A
5.85%, 03/15/32		200,000		240,842
State of Illinois
GO Bonds (Pension Funding) Series 2003
5.10%, 06/01/33		200,000		188,732
Yale University
Medium-Term Notes Series B
2.90%, 10/15/14		200,000		211,562

Total Municipal Bonds
(Cost $2,154,830)				2,183,118




U.S. Government and Government Agencies 40.2% of net assets

U.S. Government Agency Securities 5.4%
Fannie Mae
0.50%, 08/09/13		1,780,000		1,785,110
1.63%, 10/26/15		2,471,000		2,547,483
7.13%, 01/15/30		272,000		403,104
Federal Farm Credit Bank
4.88%, 12/16/15		314,000		359,325
Federal Home Loan Bank
0.88%, 12/27/13		1,465,000		1,481,640
5.00%, 11/17/17		1,320,000		1,583,436
Freddie Mac
0.38%, 11/27/13		2,278,000		2,279,399
1.00%, 07/30/14		1,128,000		1,143,274
2.38%, 01/13/22		261,000		256,774
6.75%, 03/15/31		259,000		373,983

				12,213,528

U.S. Treasury Obligations 34.8%
U.S. Treasury Bonds
0.88%, 01/31/17		2,700,000		2,683,760
9.13%, 05/15/18		2,075,000		3,032,256
8.00%, 11/15/21		1,522,000		2,312,133
6.00%, 02/15/26		1,125,000		1,552,325
6.75%, 08/15/26		821,000		1,212,386
5.38%, 02/15/31		432,000		581,107
4.38%, 02/15/38		1,502,000		1,803,809
3.50%, 02/15/39		1,116,000		1,159,594
4.38%, 11/15/39		789,000		948,156
4.63%, 02/15/40		1,006,000		1,256,557
4.25%, 11/15/40		277,000		326,254
3.75%, 08/15/41		400,000		432,500

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
3.13%, 02/15/42		2,050,000		1,965,438
U.S. Treasury Notes
0.50%, 05/31/13		1,281,000		1,284,903
3.50%, 05/31/13		1,512,000		1,569,173
0.38%, 07/31/13		1,976,000		1,978,857
0.75%, 09/15/13		1,848,000		1,860,561
0.25%, 10/31/13		790,000		789,383
0.25%, 11/30/13		2,248,000		2,245,981
1.00%, 01/15/14		3,724,000		3,768,952
1.75%, 01/31/14		3,811,000		3,909,850
0.25%, 02/28/14		2,500,000		2,496,680
1.25%, 04/15/14		3,500,000		3,563,165
0.38%, 11/15/14		523,000		521,774
2.38%, 02/28/15		863,000		908,982
2.50%, 03/31/15		1,435,000		1,518,633
2.50%, 04/30/15		1,270,000		1,345,208
2.13%, 05/31/15		1,136,000		1,190,937
1.88%, 06/30/15		1,136,000		1,182,594
1.75%, 07/31/15		2,273,000		2,357,351
2.13%, 02/29/16		1,054,000		1,109,417
2.25%, 03/31/16		1,981,000		2,095,991
2.00%, 04/30/16		1,772,000		1,856,587
2.63%, 04/30/16		1,054,000		1,130,251
3.25%, 05/31/16		935,000		1,027,185
3.00%, 09/30/16		1,506,000		1,642,835
3.25%, 03/31/17		1,361,000		1,507,095
1.88%, 09/30/17		1,406,000		1,456,198
1.88%, 10/31/17		1,167,000		1,207,936
2.88%, 03/31/18		1,301,000		1,417,480
2.63%, 04/30/18		2,769,000		2,976,243
1.38%, 09/30/18		1,100,000		1,092,868
3.38%, 11/15/19		2,211,000		2,468,721
2.63%, 08/15/20		1,217,000		1,283,269
2.63%, 11/15/20		1,863,000		1,959,498
3.63%, 02/15/21		1,789,000		2,025,484
2.13%, 08/15/21		885,000		884,516

				78,900,833

Total U.S. Government and Government Agencies
(Cost $90,361,323)				91,114,361



	Number		Value
Security	of Shares		($)

Other Investment Company 1.1% of net assets

Money Market Fund 1.1%
State Street Institutional U.S. Government Money Market Fund		2,503,335		2,503,335

Total Other Investment Company
(Cost $2,503,335)				2,503,335



Security	Face		Value
Rate, Maturity Date	Amount ($)		($)

Short-Term Investments 3.1% of net assets

U.S. Treasury Obligations 3.1%
U.S. Treasury Bills
0.06%, 04/19/12 (e)		3,000,000		2,999,907
0.02%, 05/17/12 (e)		4,000,000		3,999,895

Total Short-Term Investments
(Cost $6,999,802)				6,999,802



End of Investments

At 3/31/12, the tax basis cost of the fund’s investments was $233,181,523 and the unrealized appreciation and depreciation were $2,236,910 and ($436,411), respectively, with a net unrealized appreciation $1,800,499.


(a)		The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.
(b)		Variable-rate security.
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $315,634 or 0.1% of net assets.
(d)		Guaranteed by the Republic of Germany.
(e)		The rate shown is the purchase yield.


GO —		General obligation
RB —		Revenue bond
USD —		Unified school district

The fund values the securities in its portfolios every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at the bid or at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it 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. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund 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.

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 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 prices.

	•	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.

Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued


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

Asset-Backed Obligations(a)		$—		$422,641		$—		$422,641
Commercial Mortgage Backed Securities(a)		—		4,576,501		—		4,576,501
Corporate Bonds(a)		—		45,715,007		—		45,715,007
Foreign Securities(a)		—		10,096,572		—		10,096,572
Mortgage-Backed Securities(a)		—		71,370,685		—		71,370,685
Municipal Bonds(a)		—		2,183,118		—		2,183,118
U.S. Government and Government Agencies(a)		—		91,114,361		—		91,114,361
Other Investment Company(a)		2,503,335		—		—		2,503,335
Short-Term Investments(a)		—		6,999,802		—		6,999,802

Total		$2,503,335		$232,478,687		$—		$234,982,022


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

REG64288MAR12

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 17, 2012

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 17, 2012

By:		/s/ George Pereira George Pereira
		Principal Financial Officer

Date:		May 15, 2012