nvcsrs

In This Report


Performance at a Glance		2
From the President		3
Fund Management		5
Performance and Fund Facts
Schwab U.S. Broad Market ETF™		6
Schwab U.S. Large-Cap ETF™		7
Schwab U.S. Large-Cap Growth ETF™		8
Schwab U.S. Large-Cap Value ETF™		9
Schwab U.S. Mid-Cap ETF™		10
Schwab U.S. Small-Cap ETF™		11
Schwab U.S. Dividend Equity ETF™		12
Fund Expenses		13
Financial Statements and Portfolio Holdings
Schwab U.S. Broad Market ETF™		14
Schwab U.S. Large-Cap ETF™		37
Schwab U.S. Large-Cap Growth ETF™		50
Schwab U.S. Large-Cap Value ETF™		60
Schwab U.S. Mid-Cap ETF™		69
Schwab U.S. Small-Cap ETF™		79
Schwab U.S. Dividend Equity ETF™		100
Financial Notes		107
Trustees and Officers		115
Glossary		118
EX-99.CERT
EX-99.906CERT

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

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

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


Total Return for the 6 Months Ended February 28, 2013

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


NAV Return¹			9.82%
Market Price Return¹			9.66%
Dow Jones U.S. Broad Stock Market Index^SM			9.82%
ETF Category: Morningstar Large Blend²			9.36%


Performance Details			page 6




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


NAV Return¹			9.30%
Market Price Return¹			9.27%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM			9.35%
ETF Category: Morningstar Large Blend²			9.36%


Performance Details			page 7




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


NAV Return¹			6.81%
Market Price Return¹			6.57%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM			6.86%
ETF Category: Morningstar Large Growth²			7.38%


Performance Details			page 8




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


NAV Return¹			11.65%
Market Price Return¹			11.61%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM			11.75%
ETF Category: Morningstar Large Value²			10.79%


Performance Details			page 9




Schwab U.S. Mid-Cap ETF^tm (Ticker Symbol: SCHM)


NAV Return¹			15.44%
Market Price Return¹			15.32%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM			15.49%
ETF Category: Morningstar Mid-Cap Blend²			14.15%


Performance Details			page 10




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


NAV Return¹			13.90%
Market Price Return¹			13.84%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM			13.93%
ETF Category: Morningstar Small Blend²			13.22%


Performance Details			page 11




Schwab U.S. Dividend Equity ETF^tm (Ticker Symbol: SCHD)


NAV Return¹			8.74%
Market Price Return¹			8.49%
Dow Jones U.S. Dividend 100 Index^SM			8.81%
ETF Category: Morningstar Large Blend²			9.36%


Performance Details			page 12

All fund and index figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The Dow Jones Indexes are a product of S&P Dow Jones Indices LLC or its affiliates, and have been licensed for use by CSIM. The Schwab U.S. Equity ETFs, based on their respective Dow Jones Indexes, are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.


¹		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
²		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

2 Schwab U.S. Equity ETFs

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

As President and CEO of Charles Schwab Investment Management, Inc., I’d like to thank you for trusting us to help you meet your investment goals, and for reading this important report concerning the Schwab U.S. Equity ETFs. These funds are part of our line-up of core investment solutions and are available at some of the lowest operating expense ratios in the industry. The funds are designed to track market-leading U.S. stock indices and provide the full benefits of an ETF, including transparency, trading flexibility, and potential tax efficiency.

For the six months ended February 28, 2013, the funds generated returns that reflected a strong rally by U.S. stocks. In an effort to stimulate faster economic growth, the Federal Reserve maintained low short-term interest rates and programs aimed at holding down long-term interest rates. These efforts seemed to help as economic data showed mixed but encouraging signs of improvement. The stock market reacted favorably to these developments, performing particularly well early in 2013 in spite of intermittent volatility, as worries eased about the fiscal cliff.

Mid-cap stocks generally outperformed small- and large-cap stocks, while value stocks outperformed growth stocks. From a sector standpoint, shares of companies in the Financials and Industrials sectors were some of the better performers, while shares of companies involved in the Information Technology and Telecommunication Services sectors underperformed by comparison. Reflecting the overall performance of the U.S. stock market, the Dow Jones U.S. Broad Stock Market Index returned 9.8% for the six months.

Asset Class Performance Comparison % returns during the report period

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



		8.95%		S&P 500^® Index: measures U.S. large-cap stocks

		13.02%		Russell 2000^® Index: measures U.S. small-cap stocks

		14.54%		MSCI EAFE^® Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		0.15%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

		0.04%		Three-Month U.S. Treasury Bills (T-bills): measures short-term U.S. Treasury obligations

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

Data source: Index provider websites and Charles Schwab Investment Management, Inc.

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

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

Schwab U.S. Equity ETFs 3

Fund Management



		Agnes Hong, CFA, Managing Director and Head of Passive Equity Strategies, leads the portfolio management teams of Schwab’s index mutual funds and equity ETFs. She also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2009, Ms. Hong spent five years as a portfolio manager at Barclays Global Investors (subsequently acquired by BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients.

		Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.

		Chuck Craig, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent over five years as a managing director of portfolio management & supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc.

Schwab U.S. Equity ETFs 5

Schwab U.S. Broad Market ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab U.S. Broad Market ETF^tm (11/3/09)
NAV Return²		9.82	%		13.49	%		13.88	%	15.04%
Market Price Return²		9.66	%		13.51	%		13.82	%	15.00%
Dow Jones U.S. Broad Stock Market Index^SM		9.82	%		13.54	%		13.91	%	15.11%
ETF Category: Morningstar Large Blend³		9.36	%		12.35	%		12.78	%	13.75%

Fund Expense Ratio⁴: 0.04%

Statistics


Number of Holdings			1952
Weighted Average Market Cap ($ x 1,000,000)			$84,810
Price/Earnings Ratio (P/E)			18.9
Price/Book Ratio (P/B)			2.3
Portfolio Turnover Rate^5,6			3%

Sector Weightings % of Investments


Information Technology			17.6%
Financials			17.1%
Consumer Discretionary			12.2%
Health Care			11.9%
Industrials			11.2%
Energy			10.4%
Consumer Staples			9.5%
Materials			3.9%
Utilities			3.5%
Telecommunication Services			2.6%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Apple, Inc.			2.5%
Exxon Mobil Corp.			2.5%
General Electric Co.			1.5%
Chevron Corp.			1.4%
Google, Inc., Class A			1.3%
International Business Machines Corp.			1.3%
Johnson & Johnson			1.3%
Microsoft Corp.			1.3%
The Procter & Gamble Co.			1.3%
AT&T, Inc.			1.2%
Total			15.6%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Broad Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Broad Market ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.

Portfolio holdings may have changed since the report date.

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

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

6 Schwab U.S. Equity ETFs

Schwab U.S. Large-Cap ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab U.S. Large-Cap ETF^tm (11/3/09)
NAV Return²		9.30	%		13.24	%		13.51	%	14.50%
Market Price Return²		9.27	%		13.21	%		13.46	%	14.49%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		9.35	%		13.33	%		13.64	%	14.62%
ETF Category: Morningstar Large Blend³		9.36	%		12.35	%		12.78	%	13.75%

Fund Expense Ratio⁴: 0.04%

Statistics


Number of Holdings			755
Weighted Average Market Cap ($ x 1,000,000)			$94,591
Price/Earnings Ratio (P/E)			18.0
Price/Book Ratio (P/B)			2.3
Portfolio Turnover Rate^5,6			3%

Sector Weightings % of Investments


Information Technology			17.8%
Financials			16.4%
Consumer Discretionary			12.0%
Health Care			11.9%
Energy			10.9%
Industrials			10.4%
Consumer Staples			10.2%
Materials			3.7%
Utilities			3.6%
Telecommunication Services			2.9%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Apple, Inc.			2.8%
Exxon Mobil Corp.			2.8%
General Electric Co.			1.6%
Chevron Corp.			1.5%
International Business Machines Corp.			1.4%
Google, Inc., Class A			1.4%
Microsoft Corp.			1.4%
Johnson & Johnson			1.4%
The Procter & Gamble Co.			1.4%
AT&T, Inc.			1.4%
Total			17.1%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

Schwab U.S. Equity ETFs 7

Schwab U.S. Large-Cap Growth ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab U.S. Large-Cap Growth ETF^tm (12/11/09)
NAV Return²		6.81	%		9.65	%		12.95	%	12.74%
Market Price Return²		6.57	%		9.47	%		12.87	%	12.70%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		6.86	%		9.78	%		13.12	%	12.89%
ETF Category: Morningstar Large Growth³		7.38	%		10.15	%		13.93	%	13.41%

Fund Expense Ratio⁴: 0.07%

Statistics


Number of Holdings			413
Weighted Average Market Cap ($ x 1,000,000)			$80,046
Price/Earnings Ratio (P/E)			20.5
Price/Book Ratio (P/B)			3.1
Portfolio Turnover Rate^5,6			4%

Sector Weightings % of Investments


Information Technology			28.9%
Consumer Discretionary			14.0%
Health Care			13.0%
Industrials			11.5%
Energy			9.8%
Financials			9.8%
Consumer Staples			7.6%
Materials			4.4%
Telecommunication Services			0.5%
Utilities			0.5%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Apple, Inc.			5.8%
Google, Inc., Class A			3.0%
Microsoft Corp.			2.9%
Berkshire Hathaway, Inc., Class B			2.6%
Oracle Corp.			1.8%
Wal-Mart Stores, Inc.			1.7%
PepsiCo, Inc.			1.6%
QUALCOMM, Inc.			1.6%
Cisco Systems, Inc.			1.6%
Comcast Corp., Class A			1.5%
Total			24.1%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Growth Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Growth ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

8 Schwab U.S. Equity ETFs

Schwab U.S. Large-Cap Value ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab U.S. Large-Cap Value ETF^tm (12/11/09)
NAV Return²		11.65	%		16.59	%		13.90	%	12.96%
Market Price Return²		11.61	%		16.56	%		13.78	%	12.95%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		11.75	%		16.80	%		14.12	%	13.18%
ETF Category: Morningstar Large Value³		10.79	%		15.43	%		14.24	%	13.27%

Fund Expense Ratio⁴: 0.07%

Statistics


Number of Holdings			343
Weighted Average Market Cap ($ x 1,000,000)			$108,252
Price/Earnings Ratio (P/E)			16.2
Price/Book Ratio (P/B)			1.9
Portfolio Turnover Rate^5,6			3%

Sector Weightings % of Investments


Financials			22.5%
Consumer Staples			12.6%
Energy			11.9%
Health Care			11.0%
Consumer Discretionary			10.2%
Industrials			9.5%
Information Technology			7.7%
Utilities			6.4%
Telecommunication Services			5.0%
Materials			3.0%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Exxon Mobil Corp.			5.3%
General Electric Co.			3.2%
Chevron Corp.			3.0%
International Business Machines Corp.			2.8%
Johnson & Johnson			2.7%
The Procter & Gamble Co.			2.7%
AT&T, Inc.			2.6%
Pfizer, Inc.			2.6%
JPMorgan Chase & Co.			2.4%
Wells Fargo & Co.			2.2%
Total			29.5%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Value Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Value ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

Schwab U.S. Equity ETFs 9

Schwab U.S. Mid-Cap ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Mid-Cap ETF^tm (1/13/11)
NAV Return²		15.44	%		14.77	%	10.64%
Market Price Return²		15.32	%		14.73	%	10.62%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM		15.49	%		14.84	%	10.75%
ETF Category: Morningstar Mid-Cap Blend³		14.15	%		14.03	%	9.89%

Fund Expense Ratio⁴: 0.07%

Statistics


Number of Holdings			498
Weighted Average Market Cap ($ x 1,000,000)			$4,856
Price/Earnings Ratio (P/E)			24.9
Price/Book Ratio (P/B)			2.2
Portfolio Turnover Rate^5,6			9%

Sector Weightings % of Investments


Financials			21.7%
Consumer Discretionary			16.7%
Industrials			15.7%
Information Technology			12.1%
Health Care			8.5%
Materials			7.5%
Utilities			6.8%
Energy			6.5%
Consumer Staples			2.8%
Telecommunication Services			1.5%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Pentair Ltd. – Reg’d			0.6%
Netflix, Inc.			0.6%
PVH Corp.			0.5%
SBA Communications Corp., Class A			0.5%
United Continental Holdings, Inc.			0.5%
Whirlpool Corp.			0.5%
NiSource, Inc.			0.5%
Realty Income Corp.			0.4%
Alliance Data Systems Corp.			0.4%
Tesoro Corp.			0.4%
Total			4.9%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Mid-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Mid-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

10 Schwab U.S. Equity ETFs

Schwab U.S. Small-Cap ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab U.S. Small-Cap ETF^tm (11/3/09)
NAV Return²		13.90	%		15.34	%		16.07	%	18.85%
Market Price Return²		13.84	%		15.22	%		16.08	%	18.84%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		13.93	%		15.38	%		16.19	%	19.01%
ETF Category: Morningstar Small Blend³		13.22	%		14.19	%		14.70	%	16.75%

Fund Expense Ratio⁴: 0.10%

Statistics


Number of Holdings			1731
Weighted Average Market Cap ($ x 1,000,000)			$2,039
Price/Earnings Ratio (P/E)			46.4
Price/Book Ratio (P/B)			2.0
Portfolio Turnover Rate^5,6			9%

Sector Weightings % of Investments


Financials			23.6%
Industrials			18.0%
Information Technology			15.6%
Consumer Discretionary			13.2%
Health Care			11.5%
Materials			5.5%
Energy			5.5%
Consumer Staples			3.2%
Utilities			3.0%
Telecommunication Services			0.7%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Duke Realty Corp.			0.3%
United Rentals, Inc.			0.3%
Cheniere Energy, Inc.			0.3%
Wabtec Corp.			0.3%
Dresser-Rand Group, Inc.			0.3%
Ocwen Financial Corp.			0.3%
Apartment Investment & Management Co., Class A			0.3%
WABCO Holdings, Inc.			0.2%
MEDNAX, Inc.			0.2%
Carlisle Cos., Inc.			0.2%
Total			2.7%

Investments in smaller companies typically exhibit higher volatility.

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Small-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Small-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus dated December 28, 2012. Effective March 11, 2013, the management fee was reduced to 0.08%. For more information, see financial note 4 or refer to the prospectus supplement dated March 11, 2013.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

Schwab U.S. Equity ETFs 11

Schwab U.S. Dividend Equity ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Dividend Equity ETF^tm (10/20/11)
NAV Return²		8.74	%		15.02	%	19.23%
Market Price Return²		8.49	%		14.82	%	19.12%
Dow Jones U.S. Dividend 100 Index^SM		8.81	%		15.22	%	19.48%
ETF Category: Morningstar Large Blend³		9.36	%		12.35	%	19.17%

Fund Expense Ratio⁴: 0.07%

Statistics


Number of Holdings			102
Weighted Average Market Cap ($ x 1,000,000)			$102,439
Price/Earnings Ratio (P/E)			15.3
Price/Book Ratio (P/B)			3.2
Portfolio Turnover Rate^5,6			3%

Sector Weightings % of Investments


Consumer Staples			29.1%
Industrials			17.0%
Health Care			16.0%
Energy			11.3%
Consumer Discretionary			8.9%
Information Technology			6.5%
Materials			4.1%
Financials			3.3%
Utilities			2.9%
Telecommunication Services			0.7%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


The Procter & Gamble Co.			4.6%
Chevron Corp.			4.5%
Johnson & Johnson			4.5%
The Coca-Cola Co.			4.3%
Exxon Mobil Corp.			4.2%
Wal-Mart Stores, Inc.			4.1%
PepsiCo, Inc.			4.0%
Intel Corp.			3.6%
The Home Depot, Inc.			3.5%
McDonald’s Corp.			3.3%
Total			40.6%

Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Dividend 100 Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Dividend Equity ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


*		Total returns are since inception date of 10/20/11. Inception represents the date that the shares began trading in the secondary market. The fund’s total return may differ from the return disclosed in the Financial Highlights, as the total return in the Financial Highlights is calculated from the commencement of operations date which is the first day the NAV was determined.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
⁷		This list is not a recommendation of any security by the investment adviser.

12 Schwab U.S. Equity ETFs

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and, (2) ongoing costs, including management fees and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning September 1, 2012 and held through February 28, 2013.

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

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

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, including any redemption fees or brokerage commissions you may pay when purchasing or selling shares of the fund. If these transactional costs were included, your costs would have been higher.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 9/1/12		at 2/28/13		9/1/12–2/28/13

Schwab U.S. Broad Market ETF^tm
Actual Return		0.04%	$	1,000	$	1,098.20	$	0.21
Hypothetical 5% Return		0.04%	$	1,000	$	1,024.60	$	0.20


Schwab U.S. Large-Cap ETF^tm
Actual Return		0.04%	$	1,000	$	1,093.00	$	0.21
Hypothetical 5% Return		0.04%	$	1,000	$	1,024.60	$	0.20


Schwab U.S. Large-Cap Growth ETF^tm
Actual Return		0.08%	$	1,000	$	1,068.10	$	0.41
Hypothetical 5% Return		0.08%	$	1,000	$	1,024.40	$	0.40


Schwab U.S. Large-Cap Value ETF^tm
Actual Return		0.08%	$	1,000	$	1,116.50	$	0.42
Hypothetical 5% Return		0.08%	$	1,000	$	1,024.40	$	0.40


Schwab U.S. Mid-Cap ETF^tm
Actual Return		0.07%	$	1,000	$	1,154.40	$	0.37
Hypothetical 5% Return		0.07%	$	1,000	$	1,024.45	$	0.35


Schwab U.S. Small-Cap ETF^tm
Actual Return		0.10%	$	1,000	$	1,139.00	$	0.53
Hypothetical 5% Return		0.10%	$	1,000	$	1,024.30	$	0.50


Schwab U.S. Dividend Equity ETF^tm
Actual Return		0.08%	$	1,000	$	1,087.40	$	0.41
Hypothetical 5% Return		0.08%	$	1,000	$	1,024.40	$	0.40


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days of the period, and divided by the 365 days of the fiscal year.

Schwab U.S. Equity ETFs 13

Schwab U.S. Broad Market ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		33.84			29.47			25.11			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.42	²		0.65	²		0.56	²		0.42	²
Net realized and unrealized gains (losses)		2.87			4.32			4.32			(0.05	)

Total from investment operations		3.29			4.97			4.88			0.37
Less distributions:
Distributions from net investment income		(0.42	)		(0.60	)		(0.52	)		(0.26	)

Net asset value at end of period		36.71			33.84			29.47			25.11

Total return (%)		9.82	³		17.07			19.41			1.42	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.04	^4,5		0.06			0.06			0.07	^4,6
Gross operating expenses		0.04	^4,5		0.06			0.06			0.07	⁴
Net investment income (loss)		2.46	⁴		2.06			1.83			1.92	⁴
Portfolio turnover rate⁷		3	³		5			3			2	³
Net assets, end of period ($ x 1,000)		1,650,319			1,072,825			742,651			272,490

* Unaudited.

¹ Commencement of operations.

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

³ Not annualized.

⁴ Annualized.

⁵ Effective September 20, 2012, the annual operating expense ratio was reduced. The ratio presented for the period ended 2/28/13 is a blended ratio. Please see financial note 4 for additional information.

⁶ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

⁷ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

14 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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

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


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		1,430,526,247		1,645,036,767
	0	.1%	Other Investment Companies		2,122,978		2,116,265


	99	.8%	Total Investments		1,432,649,225		1,647,153,032
	0	.5%	Collateral Invested for Securities on Loan		7,615,308		7,615,308
	(0	.3)%	Other Assets and Liabilities, Net				(4,449,174	)


	100	.0%	Net Assets				1,650,319,166


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.9%
Allison Transmission Holdings, Inc. (a)		9,026		208,500
American Axle & Manufacturing Holdings, Inc. *		6,599		83,477
BorgWarner, Inc. *		11,687		869,630
Cooper Tire & Rubber Co.		5,982		151,225
Dana Holding Corp.		15,283		255,684
Dorman Products, Inc.		3,596		125,716
Drew Industries, Inc.		1,970		71,669
Ford Motor Co.		377,288		4,757,602
General Motors Co. *		75,576		2,051,888
Gentex Corp.		14,085		264,094
Harley-Davidson, Inc.		23,374		1,230,174
Johnson Controls, Inc.		67,578		2,126,680
Lear Corp.		10,788		576,295
Tenneco, Inc. *		5,894		208,824
Tesla Motors, Inc. *(a)		6,846		238,446
The Goodyear Tire & Rubber Co. *		23,956		310,949
Thor Industries, Inc.		4,495		168,967
TRW Automotive Holdings Corp. *		10,788		633,148
Visteon Corp. *		4,989		290,759

				14,623,727

Banks 3.2%
Associated Banc-Corp.		19,199		276,274
Astoria Financial Corp.		8,120		79,414
BancFirst Corp.		1,813		72,593
BancorpSouth, Inc.		9,260		141,678
Bank of Hawaii Corp.		4,495		217,513
Bank of the Ozarks, Inc.		3,596		138,050
BankUnited, Inc.		6,413		181,873
BB&T Corp.		70,392		2,137,101
BBCN Bancorp, Inc.		6,605		81,770
Beneficial Mutual Bancorp, Inc. *		8,262		79,233
Berkshire Hills Bancorp, Inc.		2,104		51,127
BOK Financial Corp.		2,392		142,157
Boston Private Financial Holdings, Inc.		7,721		70,493
Brookline Bancorp, Inc.		8,121		73,901
CapitalSource, Inc.		27,044		243,396
Capitol Federal Financial, Inc.		15,895		188,038
Cathay General Bancorp		7,280		141,887
Central Pacific Financial Corp. *		4,140		64,129
Chemical Financial Corp.		2,855		69,919
CIT Group, Inc. *		20,677		865,539
Citizens Republic Bancorp, Inc. *		3,840		79,104
City Holding Co. (a)		1,798		68,180
City National Corp.		4,495		255,361
Columbia Banking System, Inc.		6,293		125,860
Comerica, Inc.		19,073		655,730
Commerce Bancshares, Inc.		8,653		329,593
Community Bank System, Inc.		3,596		103,817
Community Trust Bancorp, Inc.		1,252		42,731
Cullen/Frost Bankers, Inc.		5,894		356,941
CVB Financial Corp.		9,204		97,562
East West Bancorp, Inc.		15,283		375,962
EverBank Financial Corp.		5,025		75,877
F.N.B. Corp.		13,683		155,439
Fifth Third Bancorp		90,887		1,439,650
First Bancorp *		14,616		79,950
First Citizens BancShares, Inc., Class A		447		80,259
First Commonwealth Financial Corp.		11,862		86,237
First Financial Bancorp		5,450		83,548
First Financial Bankshares, Inc. (a)		2,891		128,939
First Horizon National Corp.		24,549		260,956
First Interstate BancSystem, Inc.		3,940		71,984
First Midwest Bancorp, Inc.		8,990		112,375
First Niagara Financial Group, Inc.		34,606		283,077
First Republic Bank		7,192		262,148
FirstMerit Corp.		10,788		163,115
Flagstar Bancorp, Inc. *		8,513		115,692
Fulton Financial Corp.		21,896		248,520
Glacier Bancorp, Inc.		6,928		120,824
Hancock Holding Co.		8,091		244,348
Home BancShares, Inc.		3,596		121,725
Hudson City Bancorp, Inc.		47,647		405,952
Huntington Bancshares, Inc.		84,506		594,077
IBERIABANK Corp.		2,697		135,389
Independent Bank Corp.		2,070		65,598
International Bancshares Corp.		5,550		112,387
Investors Bancorp, Inc.		5,394		95,312
Kearny Financial Corp.		1,811		18,092
KeyCorp		96,641		907,459
M&T Bank Corp.		12,334		1,259,178
MB Financial, Inc.		5,435		128,864
National Bank Holdings Corp., Class A		3,278		59,299
National Penn Bancshares, Inc.		12,265		120,197
Nationstar Mortgage Holdings, Inc. *(a)		2,855		110,003
NBT Bancorp, Inc.		3,153		64,510

See financial notes 15

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
New York Community Bancorp, Inc.		43,458		586,683
Northfield Bancorp, Inc.		5,685		64,695
Northwest Bancshares, Inc.		13,485		168,428
Ocwen Financial Corp. *		12,586		496,140
Old National Bancorp		9,977		134,689
Oritani Financial Corp.		6,293		92,570
PacWest Bancorp		4,495		122,848
Park National Corp. (a)		1,173		77,395
People’s United Financial, Inc.		34,162		447,522
Pinnacle Financial Partners, Inc. *		3,155		68,495
PNC Financial Services Group, Inc.		52,342		3,265,617
Popular, Inc. *		9,899		276,380
PrivateBancorp, Inc.		8,091		144,910
Prosperity Bancshares, Inc.		4,495		207,399
Provident Financial Services, Inc.		7,192		107,808
Radian Group, Inc.		12,928		113,896
Regions Financial Corp.		139,345		1,065,989
Renasant Corp.		2,304		50,711
S&T Bancorp, Inc.		2,756		49,773
Sandy Spring Bancorp, Inc.		2,204		42,669
SCBT Financial Corp.		1,352		64,382
Signature Bank *		4,495		333,844
State Bank Financial Corp.		2,956		47,000
Sterling Financial Corp.		3,651		77,328
SunTrust Banks, Inc.		53,940		1,488,205
Susquehanna Bancshares, Inc.		18,130		210,852
SVB Financial Group *		4,495		301,435
Synovus Financial Corp.		77,744		197,470
TCF Financial Corp.		18,228		250,453
Texas Capital Bancshares, Inc. *		3,844		162,447
TFS Financial Corp. *		12,586		132,279
TrustCo Bank Corp.		9,120		47,515
Trustmark Corp.		7,192		164,697
U.S. Bancorp		187,891		6,384,536
UMB Financial Corp.		3,596		163,942
Umpqua Holdings Corp.		14,384		180,519
United Bankshares, Inc. (a)		4,536		117,936
Valley National Bancorp (a)		23,531		236,016
ViewPoint Financial Group, Inc.		3,740		77,979
Washington Federal, Inc.		10,788		189,329
Webster Financial Corp.		9,329		205,425
Wells Fargo & Co.		488,243		17,127,564
WesBanco, Inc.		2,404		56,230
Westamerica Bancorp		2,697		119,342
Western Alliance Bancorp *		9,104		121,083
Wintrust Financial Corp.		4,495		164,067
Zions Bancorp		18,133		437,731

				52,662,129

Capital Goods 8.2%
3M Co.		63,193		6,572,072
A.O. Smith Corp.		3,596		257,222
AAON, Inc.		2,104		50,622
AAR Corp.		3,596		63,182
Actuant Corp., Class A		8,091		246,047
Acuity Brands, Inc.		4,495		306,244
Aecom Technology Corp. *		11,041		334,653
Aegion Corp. *		3,816		91,698
AGCO Corp.		9,390		483,397
Air Lease Corp. *		6,534		177,529
Aircastle Ltd.		8,091		108,986
Albany International Corp., Class A		2,995		85,537
Alliant Techsystems, Inc.		3,097		203,783
Altra Holdings, Inc.		2,404		61,879
American Railcar Industries, Inc.		1,252		54,637
AMETEK, Inc.		24,273		1,015,340
Apogee Enterprises, Inc.		2,756		71,077
Applied Industrial Technologies, Inc.		4,495		195,128
Armstrong World Industries, Inc.		2,017		103,129
Astec Industries, Inc.		1,934		68,870
AZZ, Inc.		2,170		96,912
B/E Aerospace, Inc. *		10,788		567,557
Barnes Group, Inc.		4,679		124,508
Beacon Roofing Supply, Inc. *		4,495		165,865
Belden, Inc.		5,394		271,642
Blount International, Inc. *		4,495		67,740
Brady Corp., Class A		4,495		153,055
Briggs & Stratton Corp.		4,736		115,843
Builders FirstSource, Inc. *		9,220		55,781
Carlisle Cos., Inc.		6,293		427,106
Caterpillar, Inc.		64,728		5,978,925
Chart Industries, Inc. *		2,718		197,218
CIRCOR International, Inc.		1,798		74,941
CLARCOR, Inc.		5,394		275,040
Colfax Corp. *		6,499		282,057
Comfort Systems USA, Inc.		3,908		48,772
Crane Co.		5,394		290,089
Cubic Corp.		1,349		56,307
Cummins, Inc.		17,440		2,020,773
Curtiss-Wright Corp.		4,495		156,021
Danaher Corp.		57,689		3,553,642
Deere & Co.		38,736		3,402,183
DigitalGlobe, Inc. *		6,942		181,047
Donaldson Co., Inc.		14,384		518,255
Dover Corp.		17,980		1,318,833
DXP Enterprises, Inc. *		952		59,214
Dycom Industries, Inc. *		3,178		66,579
Eaton Corp. plc		45,635		2,828,001
EMCOR Group, Inc.		6,293		242,721
Emerson Electric Co.		71,662		4,063,235
Encore Wire Corp.		2,269		74,174
EnerSys, Inc. *		4,689		191,686
EnPro Industries, Inc. *		1,950		90,733
ESCO Technologies, Inc.		3,596		145,854
Esterline Technologies Corp. *		3,596		247,872
Exelis, Inc.		17,980		185,554
Fastenal Co.		26,512		1,368,815
Flowserve Corp.		4,868		781,314
Fluor Corp.		16,543		1,024,012
Fortune Brands Home & Security, Inc. *		15,783		545,303
Foster Wheeler AG *		10,988		264,371
Franklin Electric Co., Inc.		1,845		120,054
Gardner Denver, Inc.		5,394		382,920
GATX Corp.		5,394		268,891
GenCorp, Inc. *		5,712		68,830
Generac Holdings, Inc.		2,697		92,912
General Cable Corp. *		4,620		152,183
General Dynamics Corp.		32,623		2,217,385
General Electric Co.		1,040,313		24,156,068
Graco, Inc.		6,293		365,623
GrafTech International Ltd. *		12,586		93,011
Granite Construction, Inc.		3,338		103,778

16 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Great Lakes Dredge & Dock Corp.		5,812		56,667
Greenbrier Cos., Inc. *		2,304		46,656
Griffon Corp.		4,560		51,391
H&E Equipment Services, Inc.		3,694		71,885
Harsco Corp.		8,091		194,022
HEICO Corp., Class A		5,551		184,848
Hexcel Corp. *		9,446		257,403
Honeywell International, Inc.		77,338		5,421,394
Hubbell, Inc., Class B		5,394		501,156
Huntington Ingalls Industries, Inc.		5,394		259,128
Hyster-Yale Materials Handling, Inc.		1,557		79,765
IDEX Corp.		8,091		412,075
II-VI, Inc. *		7,212		124,984
Illinois Tool Works, Inc.		42,662		2,623,713
Ingersoll-Rand plc		28,245		1,487,099
ITT Corp.		8,990		236,707
Jacobs Engineering Group, Inc. *		12,586		614,700
John Bean Technologies Corp.		2,756		50,793
Joy Global, Inc.		10,788		683,312
Kaman Corp.		2,697		94,125
Kaydon Corp.		4,495		112,420
KBR, Inc.		14,478		439,986
Kennametal, Inc.		8,091		327,524
L-3 Communications Holdings, Inc.		9,889		754,234
Lennox International, Inc.		5,394		318,624
Lincoln Electric Holdings, Inc.		8,990		503,889
Lindsay Corp.		1,120		95,704
Lockheed Martin Corp.		26,496		2,331,648
Masco Corp.		37,758		727,219
MasTec, Inc. *		5,973		179,728
Moog, Inc., Class A *		5,394		242,514
MRC Global, Inc. *		2,697		82,852
MSC Industrial Direct Co., Inc., Class A		4,495		383,513
Mueller Industries, Inc.		3,681		195,756
Mueller Water Products, Inc., Class A		15,284		85,896
National Presto Industries, Inc.		500		37,995
Navistar International Corp. *		7,719		191,663
Nordson Corp.		5,394		341,980
Nortek, Inc. *		1,352		97,263
Northrop Grumman Corp.		24,326		1,597,732
Orbital Sciences Corp. *		5,394		79,723
Oshkosh Corp. *		8,990		346,654
Owens Corning *		11,063		429,355
PACCAR, Inc.		35,960		1,705,583
Pall Corp.		11,687		796,820
Parker Hannifin Corp.		15,283		1,443,938
Pentair Ltd. - Reg’d		20,833		1,109,774
Polypore International, Inc. *(a)		4,548		174,097
Powell Industries, Inc. *		1,052		61,237
Precision Castparts Corp.		14,384		2,683,911
Primoris Services Corp.		7,248		135,900
Proto Labs, Inc. *		1,049		48,768
Quanex Building Products Corp.		3,640		72,472
Quanta Services, Inc. *		20,930		594,412
Raven Industries, Inc.		3,596		101,515
Raytheon Co.		32,692		1,784,002
RBC Bearings, Inc. *		2,697		134,418
Regal-Beloit Corp.		4,495		347,374
Rexnord Corp. *		9,175		186,895
Rockwell Automation, Inc.		14,384		1,299,451
Rockwell Collins, Inc.		13,879		834,267
Roper Industries, Inc.		9,889		1,232,268
Rush Enterprises, Inc., Class A *		3,086		75,607
Sauer-Danfoss, Inc.		1,330		71,980
Seaboard Corp.		26		74,178
Simpson Manufacturing Co., Inc.		5,394		156,965
Snap-On, Inc.		5,694		457,057
Solarcity Corp. *(a)		7,944		143,866
Spirit AeroSystems Holdings, Inc., Class A *		11,275		196,298
SPX Corp.		5,394		434,271
Standex International Corp.		899		48,384
Stanley Black & Decker, Inc.		17,081		1,344,275
Sun Hydraulics Corp.		2,269		63,282
TAL International Group, Inc.		2,709		116,622
Teledyne Technologies, Inc. *		3,643		268,052
Tennant Co.		2,697		125,869
Terex Corp. *		11,687		383,450
Textainer Group Holdings Ltd.		2,063		83,428
Textron, Inc.		27,869		804,021
The Babcock & Wilcox Co.		11,687		315,783
The Boeing Co.		66,779		5,135,305
The Gorman-Rupp Co.		1,452		41,876
The Manitowoc Co., Inc.		15,283		283,041
The Middleby Corp. *		1,831		273,387
The Timken Co.		8,091		439,503
The Toro Co.		5,688		256,529
Thermon Group Holdings, Inc. *		1,804		36,982
Titan International, Inc.		3,596		75,912
TransDigm Group, Inc.		4,524		643,946
Trex Co., Inc. *		1,252		59,144
TriMas Corp. *		2,995		85,927
Trinity Industries, Inc.		8,091		349,855
Triumph Group, Inc.		4,797		352,148
Tutor Perini Corp. *		4,204		71,510
United Rentals, Inc. *		9,123		487,259
United Technologies Corp.		83,320		7,544,626
Universal Forest Products, Inc.		1,870		75,885
URS Corp.		8,091		341,926
USG Corp. *		8,567		241,761
Valmont Industries, Inc.		2,145		337,945
W.W. Grainger, Inc.		5,867		1,328,641
Wabash National Corp. *		6,564		62,621
WABCO Holdings, Inc. *		6,293		432,455
Wabtec Corp.		4,595		449,345
Watsco, Inc.		2,697		210,015
Watts Water Technologies, Inc., Class A		2,791		131,010
WESCO International, Inc. *		4,495		332,180
Woodward, Inc.		5,394		201,897
Xylem, Inc.		17,980		494,450

				135,195,503

Commercial & Professional Services 1.1%
ABM Industries, Inc.		4,152		94,250
Acacia Research Corp. *		4,748		132,754
Acco Brands Corp. *		10,788		80,910
Avery Dennison Corp.		10,788		440,690
Cintas Corp.		11,687		513,059
Clean Harbors, Inc. *		5,394		277,791
Copart, Inc. *		11,228		383,324

See financial notes 17

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Covanta Holding Corp.		13,485		263,767
Deluxe Corp.		5,394		214,034
Equifax, Inc.		12,586		693,740
Exponent, Inc. *		1,185		59,570
FTI Consulting, Inc. *		5,394		187,387
G&K Services, Inc., Class A		2,697		112,384
Healthcare Services Group, Inc.		7,192		173,327
Herman Miller, Inc.		5,650		135,600
HNI Corp.		5,394		170,235
Huron Consulting Group, Inc. *		1,798		70,464
ICF International, Inc. *		2,004		49,579
IHS, Inc., Class A *		4,828		512,975
Innerworkings, Inc. *		3,708		54,767
Insperity, Inc.		2,706		76,715
Interface, Inc.		5,629		103,067
Iron Mountain, Inc.		16,651		574,459
KAR Auction Services, Inc.		7,689		163,161
Kelly Services, Inc., Class A		3,156		55,735
Kforce, Inc.		3,708		53,914
Kimball International, Inc., Class B		3,608		33,230
Knoll, Inc.		4,672		79,517
Korn/Ferry International *		4,565		84,498
Manpower, Inc.		8,091		441,769
McGrath Rentcorp		2,200		64,878
Mine Safety Appliances Co.		3,012		141,112
Mistras Group, Inc. *		2,004		40,982
Mobile Mini, Inc. *		3,596		96,804
Navigant Consulting, Inc. *		5,446		69,328
Nielsen Holdings N.V. *		16,117		542,982
On Assignment, Inc. *		3,640		79,570
Performant Financial Corp. *		3,908		51,781
Pitney Bowes, Inc. (a)		20,677		270,869
Quad/Graphics, Inc. (a)		8,480		184,440
R.R. Donnelley & Sons Co. (a)		20,677		215,868
Republic Services, Inc.		30,566		960,995
Robert Half International, Inc.		15,283		543,311
Rollins, Inc.		7,348		180,099
Steelcase, Inc., Class A		7,638		108,078
Stericycle, Inc. *		8,990		862,321
Team, Inc. *		2,697		118,290
Tetra Tech, Inc. *		5,994		172,987
The ADT Corp.		22,804		1,092,083
The Advisory Board Co. *		3,596		182,713
The Brink’s Co.		5,394		142,671
The Corporate Executive Board Co.		3,087		167,130
The Dun & Bradstreet Corp.		4,190		337,714
Towers Watson & Co., Class A		5,570		370,795
TrueBlue, Inc. *		5,394		104,590
Tyco International Ltd.		45,849		1,467,626
UniFirst Corp.		1,798		150,205
United Stationers, Inc.		5,394		195,263
Verisk Analytics, Inc., Class A *		14,384		841,752
Viad Corp.		2,004		55,030
WageWorks, Inc. *		2,404		56,758
Waste Connections, Inc.		12,117		414,523
Waste Management, Inc.		43,152		1,610,433

				18,180,653

Consumer Durables & Apparel 1.5%
American Greetings Corp., Class A (a)		3,840		62,208
Arctic Cat, Inc. *		1,798		65,321
Blyth, Inc. (a)		1,285		18,363
Brunswick Corp.		8,990		327,596
Carter’s, Inc. *		4,823		272,065
Coach, Inc.		28,768		1,390,357
Columbia Sportswear Co. (a)		1,798		99,843
Crocs, Inc. *		9,940		150,690
D.R. Horton, Inc.		28,768		641,526
Deckers Outdoor Corp. *(a)		4,495		181,328
Ethan Allen Interiors, Inc.		2,370		66,218
Fifth & Pacific Cos., Inc. *		11,029		199,515
Fossil, Inc. *		5,394		554,341
G-III Apparel Group Ltd. *		1,352		49,348
Garmin Ltd. (a)		11,687		401,332
Hanesbrands, Inc. *		9,889		392,000
Harman International Industries, Inc.		7,192		305,300
Hasbro, Inc. (a)		11,687		467,714
Helen of Troy Ltd. *		4,495		166,675
Iconix Brand Group, Inc. *		7,206		170,206
iRobot Corp. *		2,409		51,649
Jarden Corp. *		7,648		475,017
KB Home		7,486		139,913
La-Z-Boy, Inc.		7,192		131,757
Leapfrog Enterprises, Inc. *		5,079		43,527
Leggett & Platt, Inc.		13,826		422,799
Lennar Corp., Class A		15,883		612,925
M.D.C Holdings, Inc.		4,495		172,743
Maidenform Brands, Inc. *		2,204		42,295
Mattel, Inc.		33,639		1,370,789
Meritage Homes Corp. *		3,006		121,713
Michael Kors Holdings Ltd. *		11,073		656,407
Mohawk Industries, Inc. *		5,594		593,076
Movado Group, Inc.		2,070		74,603
NACCO Industries, Inc., Class A		899		52,223
Newell Rubbermaid, Inc.		28,768		671,445
NIKE, Inc., Class B		72,266		3,935,606
NVR, Inc. *		448		452,122
Oxford Industries, Inc.		1,800		87,498
Polaris Industries, Inc.		6,407		559,780
PulteGroup, Inc. *		34,162		655,227
PVH Corp.		7,611		927,400
Quiksilver, Inc. *		14,000		87,500
Ralph Lauren Corp.		6,293		1,091,647
Skechers U.S.A., Inc., Class A *		3,840		80,256
Smith & Wesson Holding Corp. *(a)		4,495		42,927
Standard Pacific Corp. *		16,219		132,023
Steven Madden Ltd. *		4,495		198,185
Sturm Ruger & Co., Inc. (a)		1,851		101,083
Tempur-Pedic International, Inc. *		6,293		258,454
The Jones Group, Inc.		7,192		82,996
The Ryland Group, Inc.		4,066		145,238
Toll Brothers, Inc. *		15,283		521,456
True Religion Apparel, Inc.		2,500		66,725
Tumi Holdings, Inc. *		3,055		72,220
Tupperware Brands Corp.		6,293		492,301
Under Armour, Inc., Class A *		7,420		365,658
VF Corp.		8,538		1,376,838
Whirlpool Corp.		7,592		857,516
Wolverine World Wide, Inc.		5,394		227,627

				24,433,110

18 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Consumer Services 2.1%
AFC Enterprises, Inc. *		2,697		80,910
American Public Education, Inc. *		1,800		70,164
Ameristar Casinos, Inc.		3,055		80,041
Apollo Group, Inc., Class A *		9,930		167,519
Ascent Capital Group, Inc., Class A *		1,285		88,138
Bally Technologies, Inc. *		3,990		190,522
BJ’s Restaurants, Inc. *		2,697		83,041
Bloomin’ Brands, Inc. *		7,544		129,832
Bob Evans Farms, Inc.		2,832		115,262
Boyd Gaming Corp. *(a)		5,242		34,440
Brinker International, Inc.		7,687		256,592
Buffalo Wild Wings, Inc. *		1,812		142,586
Burger King Worldwide, Inc. (a)		8,990		164,068
Carnival Corp.		44,140		1,578,888
Chipotle Mexican Grill, Inc. *		3,233		1,024,182
Choice Hotels International, Inc.		2,725		103,632
Churchill Downs, Inc.		1,236		81,551
Coinstar, Inc. *(a)		2,770		141,796
Cracker Barrel Old Country Store, Inc.		2,697		203,030
Darden Restaurants, Inc.		13,485		623,951
Denny’s Corp. *		9,220		52,185
DeVry, Inc.		6,293		188,664
DineEquity, Inc. *		1,343		93,862
Domino’s Pizza, Inc.		5,544		264,005
Dunkin’ Brands Group, Inc.		7,235		268,780
Grand Canyon Education, Inc. *		3,155		75,562
H&R Block, Inc.		28,938		719,399
Hillenbrand, Inc.		7,192		177,570
Hyatt Hotels Corp., Class A *		5,500		225,995
International Game Technology		26,306		419,318
International Speedway Corp., Class A		2,839		85,567
Interval Leisure Group, Inc.		4,688		97,839
ITT Educational Services, Inc. *(a)		3,102		42,746
Jack in the Box, Inc. *		4,152		131,452
K12, Inc. *(a)		3,596		74,977
Krispy Kreme Doughnuts, Inc. *		6,464		85,325
Las Vegas Sands Corp.		34,791		1,791,389
Life Time Fitness, Inc. *		3,841		161,860
Marriott International, Inc., Class A		24,703		974,533
Marriott Vacations Worldwide Corp. *		2,899		119,613
Matthews International Corp., Class A		3,596		118,668
McDonald’s Corp.		99,836		9,574,272
MGM Resorts International *		36,418		454,861
Norwegian Cruise Line Holdings Ltd. *		2,500		77,450
Orient-Express Hotels Ltd., Class A *		8,990		92,867
Panera Bread Co., Class A *		2,811		452,430
Papa John’s International, Inc. *		1,926		100,171
Penn National Gaming, Inc. *		6,493		323,676
Pinnacle Entertainment, Inc. *		5,993		83,902
Regis Corp.		5,650		101,813
Royal Caribbean Cruises Ltd.		14,085		491,144
Service Corp. International		21,112		328,080
SHFL Entertainment, Inc. *		5,023		79,665
Six Flags Entertainment Corp.		5,397		360,574
Sonic Corp. *		6,293		71,048
Sotheby’s		6,389		244,251
Starbucks Corp.		73,540		4,031,463
Starwood Hotels & Resorts Worldwide, Inc.		19,279		1,163,102
Steiner Leisure Ltd. *		1,268		59,786
Stewart Enterprises, Inc., Class A		8,091		68,531
Strayer Education, Inc. (a)		1,200		58,908
Texas Roadhouse, Inc.		6,293		121,707
The Cheesecake Factory, Inc.		4,937		171,018
The Wendy’s Co. (a)		36,859		209,728
Vail Resorts, Inc.		3,596		198,643
Weight Watchers International, Inc. (a)		2,398		102,730
WMS Industries, Inc. *		4,495		112,555
Wyndham Worldwide Corp.		13,879		836,071
Wynn Resorts Ltd.		8,091		945,838
Yum! Brands, Inc.		44,997		2,946,404

				35,392,142

Diversified Financials 5.9%
Affiliated Managers Group, Inc. *		5,394		788,765
American Express Co.		96,339		5,987,469
Ameriprise Financial, Inc.		20,771		1,425,514
Bank of America Corp.		1,068,012		11,993,775
BlackRock, Inc.		12,595		3,019,651
Capital One Financial Corp.		57,536		2,936,062
Cash America International, Inc.		2,840		143,818
CBOE Holdings, Inc.		9,931		356,722
Citigroup, Inc.		291,276		12,224,854
CME Group, Inc.		30,061		1,798,249
Cohen & Steers, Inc. (a)		2,697		88,920
Credit Acceptance Corp. *		899		99,366
DFC Global Corp. *		3,596		67,173
Discover Financial Services		50,732		1,954,704
ETRADE Financial Corp.		24,273		259,964
Eaton Vance Corp.		11,687		446,327
Encore Capital Group, Inc. *		2,070		61,168
Evercore Partners, Inc., Class A		1,798		73,179
EZCORP, Inc., Class A *		5,394		111,548
Federated Investors, Inc., Class B (a)		10,788		250,497
Financial Engines, Inc. *		4,495		146,897
First Cash Financial Services, Inc. *		2,712		143,492
Franklin Resources, Inc.		13,639		1,926,509
GAMCO Investors, Inc., Class A		1,371		73,348
Greenhill & Co., Inc.		2,392		145,386
HFF, Inc., Class A		4,495		82,528
Interactive Brokers Group, Inc., Class A		4,187		61,591
IntercontinentalExchange, Inc. *		7,192		1,113,465
Invesco Ltd.		45,849		1,228,295
Janus Capital Group, Inc.		17,980		166,495
Jefferies Group, Inc.		14,539		315,787
JPMorgan Chase & Co.		376,681		18,427,234
Legg Mason, Inc.		12,737		363,004
Leucadia National Corp.		19,778		532,028
LPL Financial Holdings, Inc.		3,338		105,247
MarketAxess Holdings, Inc.		3,066		119,758
Moody’s Corp.		19,073		916,648

See financial notes 19

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Morgan Stanley		136,346		3,074,602
MSCI, Inc. *		12,586		416,974
Nelnet, Inc., Class A		2,773		92,008
Netspend Holdings, Inc. *		5,456		86,478
NewStar Financial, Inc. *		4,630		62,644
Northern Trust Corp.		21,576		1,147,196
NYSE Euronext		26,071		971,927
PHH Corp. *		5,582		117,278
PICO Holdings, Inc. *		2,104		45,257
Piper Jaffray Cos., Inc. *		3,102		119,644
Portfolio Recovery Associates, Inc. *		1,798		210,231
Raymond James Financial, Inc.		10,974		481,539
SEI Investments Co.		13,174		372,429
SLM Corp.		46,331		878,899
State Street Corp.		46,063		2,606,705
Stifel Financial Corp. *		6,069		209,623
T. Rowe Price Group, Inc.		25,172		1,791,995
TD Ameritrade Holding Corp.		23,374		444,340
The Bank of New York Mellon Corp.		115,616		3,137,818
The Charles Schwab Corp. (b)		108,144		1,756,259
The Goldman Sachs Group, Inc.		43,698		6,544,212
The McGraw-Hill Cos., Inc.		27,869		1,297,302
The NASDAQ OMX Group, Inc.		11,775		372,796
Virtus Investment Partners, Inc. *		400		67,204
Waddell & Reed Financial, Inc., Class A		8,391		344,199
Walter Investment Management Corp. *		2,755		126,510
WisdomTree Investments, Inc. *		10,788		98,171
World Acceptance Corp. *		1,798		141,503

				96,971,180

Energy 10.3%
Alon USA Energy, Inc.		4,204		81,936
Alpha Natural Resources, Inc. *		19,778		157,828
Anadarko Petroleum Corp.		49,445		3,934,833
Apache Corp.		38,657		2,871,055
Approach Resources, Inc. *		2,747		67,988
Arch Coal, Inc. (a)		20,677		108,141
Atwood Oceanics, Inc. *		5,394		275,903
Baker Hughes, Inc.		43,152		1,934,073
Berry Petroleum Co., Class A		5,394		246,883
Bill Barrett Corp. *		2,500		45,125
Bonanza Creek Energy, Inc. *		2,104		71,178
Bristow Group, Inc.		3,291		191,734
C&J Energy Services, Inc. *		4,213		101,955
Cabot Oil & Gas Corp.		21,576		1,337,065
Cameron International Corp. *		25,172		1,603,960
CARBO Ceramics, Inc. (a)		1,945		176,606
Carrizo Oil & Gas, Inc. *		3,596		84,470
Cheniere Energy, Inc. *		20,983		446,938
Chesapeake Energy Corp.		51,401		1,036,244
Chevron Corp.		194,058		22,733,895
Cimarex Energy Co.		8,990		605,117
Clean Energy Fuels Corp. *(a)		6,293		79,166
Cloud Peak Energy, Inc. *		6,293		107,862
Cobalt International Energy, Inc. *		18,322		452,004
Comstock Resources, Inc. *		4,495		63,469
Concho Resources, Inc. *		10,236		920,831
ConocoPhillips		120,466		6,981,005
CONSOL Energy, Inc.		22,199		713,698
Contango Oil & Gas Co.		899		34,845
Continental Resources, Inc. *		5,594		492,272
Crosstex Energy, Inc.		5,097		84,967
CVR Energy, Inc.		1,798		101,012
Delek US Holdings, Inc.		2,878		107,522
Denbury Resources, Inc. *		38,706		701,353
Devon Energy Corp.		37,758		2,048,749
Diamond Offshore Drilling, Inc.		6,693		466,368
Diamondback Energy, Inc. *		3,178		72,172
Dresser-Rand Group, Inc. *		7,341		452,646
Dril-Quip, Inc. *		3,643		299,564
Energen Corp.		7,192		332,558
Ensco plc, Class A		22,600		1,359,164
EOG Resources, Inc.		26,970		3,390,399
EPL Oil & Gas, Inc. *		4,525		116,428
EQT Corp.		15,283		964,204
Era Group, Inc. *		1,798		36,302
EXCO Resources, Inc. (a)		15,283		101,479
Exterran Holdings, Inc. *		6,321		159,479
Exxon Mobil Corp.		452,359		40,508,748
FMC Technologies, Inc. *		23,562		1,223,103
Forest Oil Corp. *		10,788		62,570
Forum Energy Technologies, Inc. *		6,538		174,434
Geospace Technologies Corp. *		1,244		121,066
Gulfmark Offshore, Inc., Class A		2,697		96,337
Gulfport Energy Corp. *		5,849		239,517
Halcon Resources Corp. *		9,520		67,592
Halliburton Co.		91,698		3,806,384
Helix Energy Solutions Group, Inc. *		9,889		231,501
Helmerich & Payne, Inc.		10,289		681,749
Hercules Offshore, Inc. *		15,849		107,456
Hess Corp.		29,667		1,972,856
HollyFrontier Corp.		20,277		1,139,567
Hornbeck Offshore Services, Inc. *		3,596		152,830
ION Geophysical Corp. *		17,081		113,418
Key Energy Services, Inc. *		17,081		146,555
Kinder Morgan, Inc.		62,281		2,308,757
KiOR, Inc., Class A *(a)		9,060		49,921
Kodiak Oil & Gas Corp. *		24,309		216,350
Laredo Petroleum Holdings, Inc. *		9,739		166,926
Lufkin Industries, Inc.		3,596		232,949
Marathon Oil Corp.		71,021		2,379,204
Marathon Petroleum Corp.		34,162		2,831,347
McDermott International, Inc. *		23,374		297,317
McMoRan Exploration Co. *		9,923		159,661
Murphy Oil Corp.		18,879		1,149,354
Nabors Industries Ltd. *		29,667		497,219
National-Oilwell Varco, Inc.		42,253		2,878,697
Newfield Exploration Co. *		13,485		311,773
Newpark Resources, Inc. *		9,020		79,466
Noble Corp.		25,415		910,365
Noble Energy, Inc.		17,980		1,992,723
Northern Oil and Gas, Inc. *		6,293		86,277
Oasis Petroleum, Inc. *		7,192		263,946
Occidental Petroleum Corp.		80,910		6,661,320
Oceaneering International, Inc.		10,788		686,009
Oil States International, Inc. *		5,394		410,753
Parker Drilling Co. *		11,369		54,116
Patterson-UTI Energy, Inc.		16,182		377,688
PBF Energy, Inc. *		2,500		104,375
PDC Energy, Inc. *		3,596		167,717
Peabody Energy Corp.		27,869		600,856

20 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Phillips 66		62,930		3,962,073
Pioneer Energy Services Corp. *		6,023		52,581
Pioneer Natural Resources Co.		12,034		1,513,998
Plains Exploration & Production Co. *		12,714		576,834
QEP Resources, Inc.		17,245		525,283
Range Resources Corp.		16,182		1,242,778
Rentech, Inc.		36,400		99,372
Resolute Energy Corp. *		8,165		83,120
Rex Energy Corp. *		7,280		98,134
Rosetta Resources, Inc. *		4,989		242,865
Rowan Cos. plc, Class A *		12,586		435,350
RPC, Inc. (a)		4,811		77,842
Sanchez Energy Corp. *		3,278		60,676
SandRidge Energy, Inc. *(a)		35,082		199,967
Schlumberger Ltd.		131,954		10,272,619
SEACOR Holdings, Inc.		1,798		124,925
SemGroup Corp., Class A *		4,495		207,175
SM Energy Co.		6,293		364,239
Solazyme, Inc. *(a)		5,410		47,229
Southwestern Energy Co. *		34,162		1,170,732
Spectra Energy Corp.		65,781		1,910,280
Stone Energy Corp. *		4,845		99,080
Superior Energy Services, Inc. *		15,583		412,170
Swift Energy Co. *		4,500		60,840
Targa Resources Corp.		3,596		219,356
Teekay Corp.		3,842		133,317
Tesoro Corp.		14,384		808,956
TETRA Technologies, Inc. *		8,134		75,077
The Williams Cos., Inc.		66,534		2,309,395
Tidewater, Inc.		5,394		255,298
Transocean Ltd.		35,960		1,880,708
Ultra Petroleum Corp. *		15,283		260,728
Unit Corp. *		4,495		204,433
VAALCO Energy, Inc. *		8,165		66,218
Valero Energy Corp.		55,738		2,541,095
W&T Offshore, Inc.		3,596		53,437
Weatherford International Ltd. *		74,617		886,450
Western Refining, Inc.		6,293		225,856
Whiting Petroleum Corp. *		11,382		554,303
World Fuel Services Corp.		7,192		273,512
WPX Energy, Inc. *		19,058		270,433

				170,331,948

Food & Staples Retailing 2.0%
Casey’s General Stores, Inc.		4,495		254,372
Costco Wholesale Corp.		43,152		4,370,866
CVS Caremark Corp.		123,429		6,309,690
Harris Teeter Supermarkets, Inc.		4,706		202,358
PriceSmart, Inc.		1,798		133,322
Rite Aid Corp. *		60,501		99,222
Safeway, Inc. (a)		23,593		562,929
Spartan Stores, Inc.		3,640		60,642
SUPERVALU, Inc. (a)		20,796		82,560
Susser Holdings Corp. *		1,452		64,295
Sysco Corp.		58,435		1,879,270
The Andersons, Inc.		2,697		132,369
The Fresh Market, Inc. *		3,896		181,631
The Kroger Co.		50,762		1,482,758
United Natural Foods, Inc. *		4,495		227,537
Wal-Mart Stores, Inc.		166,523		11,786,498
Walgreen Co.		85,680		3,507,739
Weis Markets, Inc.		1,798		72,747
Whole Foods Market, Inc.		17,416		1,491,158

				32,901,963

Food, Beverage & Tobacco 5.3%
Altria Group, Inc.		202,280		6,786,494
Annie’s, Inc. *		952		39,946
Archer-Daniels-Midland Co.		64,889		2,067,364
B&G Foods, Inc.		5,394		158,584
Beam, Inc.		15,383		938,824
Boulder Brands, Inc. *		4,495		38,297
Brown-Forman Corp., Class B		14,778		969,732
Bunge Ltd.		14,384		1,065,998
Cal-Maine Foods, Inc.		1,252		50,693
Campbell Soup Co.		17,669		727,256
Coca-Cola Enterprises, Inc.		27,220		973,932
ConAgra Foods, Inc.		40,599		1,384,832
Constellation Brands, Inc., Class A *		14,566		644,400
Crimson Wine Group Ltd. *		1		6
Darling International, Inc. *		11,687		195,056
Dean Foods Co. *		18,286		303,548
Dole Food Co., Inc. *		3,608		40,410
Dr. Pepper Snapple Group, Inc.		20,850		909,477
Flowers Foods, Inc.		11,276		317,758
Fresh Del Monte Produce, Inc.		4,495		117,275
General Mills, Inc.		63,988		2,959,445
Green Mountain Coffee Roasters, Inc. *(a)		12,739		608,415
H.J. Heinz Co.		32,364		2,344,125
Hillshire Brands Co.		11,705		379,242
Hormel Foods Corp.		14,384		538,105
Ingredion, Inc.		8,091		535,624
J&J Snack Foods Corp.		1,850		128,057
Kellogg Co.		24,273		1,468,517
Kraft Foods Group, Inc.		58,602		2,840,439
Lancaster Colony Corp.		1,810		132,438
Lorillard, Inc.		38,499		1,483,751
McCormick & Co., Inc. Non Voting Shares		12,986		873,568
Mead Johnson Nutrition Co.		20,677		1,548,914
Molson Coors Brewing Co., Class B		15,283		675,661
Mondelez International, Inc., Class A		175,705		4,858,243
Monster Beverage Corp. *		15,283		770,722
PepsiCo, Inc.		154,110		11,676,915
Philip Morris International, Inc.		166,270		15,255,272
Pilgrim’s Pride Corp. *		8,468		74,603
Post Holdings, Inc. *		2,697		104,266
Reynolds American, Inc.		32,592		1,423,619
Sanderson Farms, Inc.		2,697		136,819
Smithfield Foods, Inc. *		12,279		273,085
Snyders-Lance, Inc.		5,394		133,555
The Boston Beer Co., Inc., Class A *(a)		899		139,732
The Coca-Cola Co.		383,763		14,859,303
The Hain Celestial Group, Inc. *		4,495		246,101
The Hershey Co.		15,283		1,273,685
The J.M. Smucker Co.		10,835		1,032,576
Tootsie Roll Industries, Inc. (a)		2,751		77,248
TreeHouse Foods, Inc. *		3,596		209,970
Tyson Foods, Inc., Class A		27,869		631,790

See financial notes 21

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Universal Corp.		2,697		150,466
Vector Group Ltd.		5,089		81,678
WhiteWave Foods Co., Class A *(a)		6,767		105,836

				87,761,667

Health Care Equipment & Services 4.3%
Abaxis, Inc.		2,409		102,190
Abbott Laboratories		156,453		5,286,547
ABIOMED, Inc. *(a)		3,162		50,718
Acadia Healthcare Co., Inc. *		6,944		189,016
Aetna, Inc.		32,804		1,548,021
Air Methods Corp.		3,039		136,117
Alere, Inc. *		8,091		184,151
Align Technology, Inc. *		6,888		216,559
Allscripts Healthcare Solutions, Inc. *		18,879		240,141
AmerisourceBergen Corp.		23,163		1,093,294
AmSurg Corp. *		2,955		89,241
Analogic Corp.		1,103		81,832
ArthroCare Corp. *		2,791		97,462
athenahealth, Inc. *		3,596		337,269
Baxter International, Inc.		54,839		3,707,116
Becton, Dickinson & Co.		19,479		1,715,321
Bio-Reference Labs, Inc. *(a)		2,370		62,758
BioScrip, Inc. *		5,512		60,356
Boston Scientific Corp. *		140,361		1,037,268
Brookdale Senior Living, Inc. *		8,990		248,843
C.R. Bard, Inc.		7,553		746,614
Cantel Medical Corp.		2,070		64,439
Cardinal Health, Inc.		33,557		1,550,669
CareFusion Corp. *		22,475		735,831
Centene Corp. *		5,394		242,838
Cerner Corp. *		14,384		1,258,025
Chemed Corp.		1,845		142,416
CIGNA Corp.		28,896		1,689,260
Community Health Systems, Inc.		9,889		417,909
Computer Programs & Systems, Inc.		1,096		57,145
Conceptus, Inc. *		2,956		66,007
CONMED Corp.		2,734		85,055
Coventry Health Care, Inc.		13,027		590,905
Covidien plc		47,647		3,028,920
Cyberonics, Inc. *		2,192		100,284
DaVita HealthCare Partners, Inc. *		8,385		1,003,014
DENTSPLY International, Inc.		14,384		595,785
Dexcom, Inc. *		8,091		120,799
Edwards Lifesciences Corp. *		11,687		1,004,264
Emeritus Corp. *		2,885		82,194
Endologix, Inc. *		5,515		83,056
Express Scripts Holding Co. *		80,711		4,593,263
Globus Medical, Inc., Class A *(a)		5,230		75,573
Greatbatch, Inc. *		2,204		59,662
Haemonetics Corp. *		5,394		222,502
Hanger, Inc. *		3,230		95,802
HCA Holdings, Inc.		24,081		893,164
Health Management Associates, Inc., Class A *		26,071		286,520
Health Net, Inc. *		9,889		254,543
HEALTHSOUTH Corp. *		8,990		216,839
HealthStream, Inc. *		1,904		40,727
Henry Schein, Inc. *		8,990		802,088
Hill-Rom Holdings, Inc.		6,293		206,284
HMS Holdings Corp. *		8,265		239,602
Hologic, Inc. *		25,172		549,505
Humana, Inc.		16,182		1,104,583
ICU Medical, Inc. *		1,085		61,585
IDEXX Laboratories, Inc. *		5,408		498,185
Insulet Corp. *		4,495		101,452
Integra LifeSciences Holdings Corp. *		2,711		110,446
Intuitive Surgical, Inc. *		3,885		1,980,923
IPC The Hospitalist Co. *		1,385		57,754
Kindred Healthcare, Inc. *		8,990		101,317
Laboratory Corp. of America Holdings *		9,889		876,165
Landauer, Inc.		952		55,892
LifePoint Hospitals, Inc. *		5,394		237,821
Magellan Health Services, Inc. *		3,596		185,410
Masimo Corp.		5,394		107,071
McKesson Corp.		23,374		2,480,683
MedAssets, Inc. *		5,420		100,107
Medidata Solutions, Inc. *		2,409		125,557
MEDNAX, Inc. *		4,795		410,548
Medtronic, Inc.		100,829		4,533,272
Meridian Bioscience, Inc.		6,293		133,412
Merit Medical Systems, Inc. *		4,495		53,580
Molina Healthcare, Inc. *		2,886		92,092
MWI Veterinary Supply, Inc. *		1,146		144,694
National Healthcare Corp.		952		44,144
Neogen Corp. *		2,697		126,273
NuVasive, Inc. *		4,682		86,945
NxStage Medical, Inc. *		5,394		60,521
Omnicare, Inc.		11,687		435,458
Omnicell, Inc. *		3,056		55,069
OraSure Technologies, Inc. *		3,596		19,994
Orthofix International N.V. *		1,836		68,409
Owens & Minor, Inc.		6,293		191,622
Patterson Cos., Inc.		8,285		301,077
Quest Diagnostics, Inc.		15,583		875,297
Quidel Corp. *		8,464		200,343
ResMed, Inc.		14,384		639,944
Select Medical Holdings Corp.		8,325		76,923
Sirona Dental Systems, Inc. *		5,469		388,408
St. Jude Medical, Inc.		31,149		1,277,109
STERIS Corp.		5,394		210,366
Stryker Corp.		28,363		1,811,828
Team Health Holdings, Inc. *		4,495		150,538
Teleflex, Inc.		4,495		359,420
Tenet Healthcare Corp. *		12,028		472,821
The Cooper Cos., Inc.		4,495		476,740
The Ensign Group, Inc.		1,452		45,477
Thoratec Corp. *		5,394		189,923
Triple-S Management Corp., Class B *		3,010		54,060
UnitedHealth Group, Inc.		101,981		5,450,884
Universal American Corp.		8,091		67,479
Universal Health Services, Inc., Class B		8,990		520,431
Vanguard Health Systems, Inc. *		6,787		100,923
Varian Medical Systems, Inc. *		10,993		776,436
VCA Antech, Inc. *		8,091		177,678
Vocera Communications, Inc. *		1,352		35,652
Volcano Corp. *		5,394		116,726
WellCare Health Plans, Inc. *		4,495		257,069

22 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
WellPoint, Inc.		30,007		1,865,835
West Pharmaceutical Services, Inc.		3,596		217,270
Wright Medical Group, Inc. *		5,394		125,410
Zimmer Holdings, Inc.		17,228		1,291,411

				71,860,185

Household & Personal Products 2.2%
Avon Products, Inc.		42,253		826,046
Central Garden & Pet Co., Class A *		3,908		34,117
Church & Dwight Co., Inc.		14,384		891,233
Colgate-Palmolive Co.		44,151		5,052,199
Elizabeth Arden, Inc. *		2,292		89,159
Energizer Holdings, Inc.		6,407		588,995
Harbinger Group, Inc. *		5,712		48,952
Herbalife Ltd. (a)		11,687		470,869
Kimberly-Clark Corp.		39,280		3,703,318
Nu Skin Enterprises, Inc., Class A		6,293		259,272
Prestige Brands Holdings, Inc. *		4,788		113,906
Revlon, Inc., Class A *		3,056		68,913
Spectrum Brands Holdings, Inc.		2,240		121,162
The Clorox Co.		12,733		1,069,699
The Estee Lauder Cos., Inc., Class A		23,674		1,517,503
The Procter & Gamble Co.		271,145		20,655,826
WD-40 Co.		1,327		71,937

				35,583,106

Insurance 4.2%
ACE Ltd.		33,463		2,857,406
Aflac, Inc.		46,748		2,335,063
Alleghany Corp. *		1,798		679,410
Allied World Assurance Co. Holdings AG		3,596		315,765
American Equity Investment Life Holding Co.		5,993		83,183
American Financial Group, Inc.		7,738		340,162
American International Group, Inc. *		146,025		5,550,410
American National Insurance Co.		930		74,744
AMERISAFE, Inc. *		1,804		58,846
AmTrust Financial Services, Inc.		2,886		95,960
Aon plc		32,385		1,978,400
Arch Capital Group Ltd. *		13,485		662,383
Argo Group International Holdings Ltd.		3,596		136,576
Arthur J. Gallagher & Co.		12,586		484,309
Aspen Insurance Holdings Ltd.		7,192		257,905
Assurant, Inc.		7,794		327,270
Assured Guaranty Ltd.		19,112		356,821
Axis Capital Holdings Ltd.		11,728		477,681
Berkshire Hathaway, Inc., Class B *		180,446		18,434,363
Brown & Brown, Inc.		11,687		350,610
Cincinnati Financial Corp.		15,283		687,888
Citizens, Inc. *		4,208		38,672
CNA Financial Corp.		3,612		113,922
CNO Financial Group, Inc.		22,883		250,340
Employers Holdings, Inc.		3,596		75,552
Endurance Specialty Holdings Ltd.		5,394		237,552
Enstar Group Ltd. *		899		112,681
Erie Indemnity Co., Class A		2,711		198,445
Everest Re Group Ltd.		5,394		672,146
FBL Financial Group, Inc., Class A		2,070		75,224
Fidelity National Financial, Inc., Class A		20,818		519,201
First American Financial Corp.		10,788		262,041
Genworth Financial, Inc., Class A *		47,647		406,905
Greenlight Capital Re Ltd., Class A *		2,697		64,674
Hartford Financial Services Group, Inc.		43,241		1,020,920
HCC Insurance Holdings, Inc.		10,788		431,520
Hilltop Holdings, Inc. *		12,788		164,198
Horace Mann Educators Corp.		4,201		85,952
Infinity Property & Casualty Corp.		899		50,515
Kemper Corp.		5,394		170,666
Lincoln National Corp.		27,411		809,721
Loews Corp.		30,801		1,327,831
Maiden Holdings Ltd.		4,860		48,989
Markel Corp. *		899		434,622
Marsh & McLennan Cos., Inc.		53,672		1,993,378
MBIA, Inc. *		14,896		144,044
Mercury General Corp.		3,596		139,777
MetLife, Inc.		107,735		3,818,128
Montpelier Re Holdings Ltd.		5,535		136,825
National Financial Partners Corp. *		4,495		88,372
Old Republic International Corp.		23,518		282,451
OneBeacon Insurance Group Ltd., Class A		13,020		174,077
PartnerRe Ltd.		6,477		578,007
Platinum Underwriters Holdings Ltd.		3,091		163,452
Primerica, Inc.		4,495		141,458
Principal Financial Group, Inc.		27,911		882,267
ProAssurance Corp.		7,192		337,233
Protective Life Corp.		8,091		258,265
Prudential Financial, Inc.		46,043		2,558,610
Reinsurance Group of America, Inc.		7,192		413,540
RenaissanceRe Holdings Ltd.		5,394		471,651
RLI Corp.		1,798		123,954
Safety Insurance Group, Inc.		1,798		84,506
Selective Insurance Group, Inc.		5,394		119,963
StanCorp Financial Group, Inc.		4,495		178,946
Symetra Financial Corp.		7,519		99,025
The Allstate Corp.		47,848		2,201,965
The Chubb Corp.		26,190		2,200,746
The Hanover Insurance Group, Inc.		5,394		230,216
The Navigators Group, Inc. *		905		50,825
The Progressive Corp.		56,149		1,367,790
The Travelers Cos., Inc.		37,787		3,038,831
Torchmark Corp.		10,097		567,350
Tower Group, Inc.		3,596		67,065
United Fire Group, Inc.		2,004		49,258
Unum Group		28,385		694,581
Validus Holdings Ltd.		9,229		328,829
W.R. Berkley Corp.		10,932		453,678
White Mountains Insurance Group Ltd.		512		289,280
XL Group plc		30,722		879,878

				69,725,665

Materials 3.9%
A. Schulman, Inc.		2,850		89,347
Air Products & Chemicals, Inc.		20,830		1,798,462
Airgas, Inc.		6,707		672,578

See financial notes 23

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Albemarle Corp.		8,990		585,069
Alcoa, Inc.		104,588		891,090
Allegheny Technologies, Inc.		10,389		316,553
Allied Nevada Gold Corp. *		8,091		148,065
AMCOL International Corp.		2,356		68,889
American Vanguard Corp.		2,170		67,335
AptarGroup, Inc.		6,293		339,444
Ashland, Inc.		7,192		560,760
Axiall Corp.		5,733		324,373
Balchem Corp.		3,596		145,027
Ball Corp.		15,425		685,024
Bemis Co., Inc.		10,788		402,824
Berry Plastics Group, Inc. *		7,644		146,918
Boise, Inc.		11,687		100,391
Buckeye Technologies, Inc.		4,495		124,646
Cabot Corp.		6,293		231,457
Calgon Carbon Corp. *		5,464		93,216
Carpenter Technology Corp.		4,495		212,299
Celanese Corp., Series A		16,182		758,127
CF Industries Holdings, Inc.		6,293		1,263,823
Chemtura Corp. *		10,788		217,055
Clearwater Paper Corp. *		2,697		130,508
Cliffs Natural Resources, Inc. (a)		14,384		366,217
Coeur d’Alene Mines Corp. *		8,990		170,900
Commercial Metals Co.		11,687		190,615
Compass Minerals International, Inc.		3,596		265,097
Crown Holdings, Inc. *		14,678		570,534
Cytec Industries, Inc.		4,495		325,393
Deltic Timber Corp.		1,127		80,457
Domtar Corp.		3,596		268,118
E.I. du Pont de Nemours & Co.		92,597		4,435,396
Eagle Materials, Inc.		4,090		263,028
Eastman Chemical Co.		15,283		1,065,684
Ecolab, Inc.		26,071		1,995,735
Flotek Industries, Inc. *		4,108		57,676
FMC Corp.		13,532		815,438
Freeport-McMoRan Copper & Gold, Inc.		94,677		3,022,090
Globe Specialty Metals, Inc.		4,958		70,850
Graphic Packaging Holding Co. *		12,652		93,878
Greif, Inc., Class A		3,596		182,929
H.B. Fuller Co.		4,737		193,601
Haynes International, Inc.		1,798		92,597
Hecla Mining Co.		25,172		116,798
Horsehead Holding Corp. *		4,220		44,605
Huntsman Corp.		17,980		309,795
Innophos Holdings, Inc.		2,697		131,695
International Flavors & Fragrances, Inc.		8,091		590,481
International Paper Co.		43,211		1,901,716
Intrepid Potash, Inc.		5,394		106,316
Kaiser Aluminum Corp.		1,798		110,110
KapStone Paper and Packaging Corp.		4,515		120,280
Koppers Holdings, Inc.		2,697		111,872
Kraton Performance Polymers, Inc. *		2,995		72,000
Kronos Worldwide, Inc. (a)		4,630		79,219
Louisiana-Pacific Corp. *		13,485		282,780
LSB Industries, Inc. *		1,800		69,750
LyondellBasell Industries N.V., Class A		37,581		2,202,998
Martin Marietta Materials, Inc.		4,495		436,599
Materion Corp.		1,904		52,665
McEwen Mining, Inc. *		25,674		62,388
MeadWestvaco Corp.		17,081		609,962
Minerals Technologies, Inc.		3,624		145,830
Molycorp, Inc. *(a)		14,000		85,960
Monsanto Co.		53,041		5,358,732
Myers Industries, Inc.		3,596		52,933
Neenah Paper, Inc.		1,352		39,478
NewMarket Corp.		1,025		257,962
Newmont Mining Corp.		49,522		1,995,241
Noranda Aluminum Holding Corp.		6,464		30,769
Nucor Corp.		31,072		1,399,794
Olin Corp.		8,990		208,208
OM Group, Inc. *		2,697		66,184
Owens-Illinois, Inc. *		17,081		435,565
P.H. Glatfelter Co.		4,040		73,326
Packaging Corp. of America		9,889		413,162
PolyOne Corp.		8,990		204,882
PPG Industries, Inc.		15,283		2,058,009
Praxair, Inc.		29,667		3,353,854
Quaker Chemical Corp.		1,798		103,223
Reliance Steel & Aluminum Co.		7,239		482,045
Resolute Forest Products *		9,596		132,425
Rock-Tenn Co., Class A		7,333		648,604
Rockwood Holdings, Inc.		7,492		468,999
Royal Gold, Inc.		6,308		413,426
RPM International, Inc.		13,485		410,079
RTI International Metals, Inc. *		2,855		84,708
Schnitzer Steel Industries, Inc., Class A		2,697		77,161
Schweitzer-Mauduit International, Inc.		3,596		132,513
Sealed Air Corp.		19,148		425,277
Sensient Technologies Corp.		5,394		199,093
Sigma-Aldrich Corp.		11,840		912,390
Silgan Holdings, Inc.		4,596		197,306
Sonoco Products Co.		9,889		314,174
Steel Dynamics, Inc.		21,576		329,466
Stepan Co.		1,798		110,110
Stillwater Mining Co. *		11,170		145,657
SunCoke Energy, Inc. *		5,900		97,291
Texas Industries, Inc. *(a)		1,992		115,636
The Dow Chemical Co.		119,222		3,781,722
The Mosaic Co.		27,223		1,593,634
The Scotts Miracle-Gro Co., Class A		4,495		199,173
The Sherwin-Williams Co.		8,338		1,347,337
The Valspar Corp.		8,990		553,874
Tredegar Corp.		2,310		56,549
Tronox Ltd., Class A (a)		8,280		170,071
United States Steel Corp. (a)		14,384		299,763
Valhi, Inc.		6,309		102,711
Vulcan Materials Co.		12,692		646,404
W.R. Grace & Co. *		6,793		486,243
Walter Energy, Inc.		6,293		200,054
Wausau Paper Corp.		1,505		14,854
Westlake Chemical Corp.		1,945		167,698
Worthington Industries, Inc.		6,325		179,250

				64,090,351

Media 3.4%
AMC Networks, Inc., Class A *		6,293		361,218

24 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Arbitron, Inc.		2,697		126,328
Belo Corp., Class A		9,889		85,441
Cablevision Systems Corp., Class A		23,374		327,002
CBS Corp., Class B Non Voting Shares		58,757		2,549,466
Charter Communications, Inc., Class A *		4,495		388,323
Cinemark Holdings, Inc.		10,788		299,906
Clear Channel Outdoor Holdings, Inc., Class A *		15,677		119,145
Comcast Corp., Class A		262,927		10,461,865
DIRECTV *		59,807		2,880,903
Discovery Communications, Inc., Series A *		24,367		1,786,832
DISH Network Corp., Class A		22,528		783,974
DreamWorks Animation SKG, Inc., Class A *(a)		6,938		115,171
Gannett Co., Inc.		25,172		505,202
John Wiley & Sons, Inc., Class A		4,895		179,059
Lamar Advertising Co., Class A *		6,293		290,988
Liberty Global, Inc., Series A *		25,172		1,734,099
Liberty Media Corp. *		10,935		1,180,980
Live Nation Entertainment, Inc. *		13,576		143,770
Meredith Corp. (a)		4,495		188,880
Morningstar, Inc.		2,697		184,960
National CineMedia, Inc.		6,321		96,395
News Corp., Class A		201,123		5,792,342
Omnicom Group, Inc.		26,165		1,505,273
Pandora Media, Inc. *(a)		9,256		112,923
Regal Entertainment Group, Class A (a)		8,091		126,786
Scholastic Corp.		2,200		66,220
Scripps Networks Interactive, Inc., Class A		8,990		566,820
Sinclair Broadcast Group, Inc., Class A		4,860		68,429
Sirius XM Radio, Inc.		324,810		1,006,911
Starz - Liberty Capital *		10,935		202,954
The Interpublic Group of Cos., Inc.		43,187		551,930
The Madison Square Garden Co., Class A *		5,847		326,964
The New York Times Co., Class A *		16,182		156,480
The Walt Disney Co.		175,424		9,576,396
The Washington Post Co., Class B		412		164,199
Time Warner Cable, Inc.		30,163		2,605,782
Time Warner, Inc.		93,690		4,981,497
Valassis Communications, Inc.		4,495		123,568
Viacom, Inc., Class B		46,763		2,733,765

				55,459,146

Pharmaceuticals, Biotechnology & Life Sciences 7.5%
AbbVie, Inc.		156,453		5,776,245
Achillion Pharmaceuticals, Inc. *		6,670		54,027
Acorda Therapeutics, Inc. *		3,837		114,151
Actavis, Inc. *		12,600		1,073,016
Aegerion Pharmaceuticals, Inc. *		2,552		76,866
Affymax, Inc. *(a)		3,256		8,661
Agilent Technologies, Inc.		34,162		1,417,040
Akorn, Inc. *		6,384		88,099
Alexion Pharmaceuticals, Inc. *		18,979		1,646,238
Alkermes plc *		11,893		258,197
Allergan, Inc.		30,566		3,313,966
Alnylam Pharmaceuticals, Inc. *		5,860		138,823
Amgen, Inc.		76,110		6,957,215
Arena Pharmaceuticals, Inc. *(a)		19,185		160,962
ARIAD Pharmaceuticals, Inc. *		17,980		378,119
Arqule, Inc. *		5,394		13,269
Array BioPharma, Inc. *		9,020		35,088
Auxilium Pharmaceuticals, Inc. *		4,495		76,640
AVEO Pharmaceuticals, Inc. *		5,750		38,353
Bio-Rad Laboratories, Inc., Class A *		1,798		221,514
Biogen Idec, Inc. *		23,447		3,900,174
BioMarin Pharmaceutical, Inc. *		12,040		697,959
Bristol-Myers Squibb Co.		163,279		6,036,425
Bruker Corp. *		8,091		141,916
Celgene Corp. *		42,547		4,389,999
Cepheid, Inc. *		7,192		262,005
Charles River Laboratories International, Inc. *		4,789		195,104
Clovis Oncology, Inc. *(a)		2,855		53,845
Covance, Inc. *		6,293		419,051
Cubist Pharmaceuticals, Inc. *		6,293		267,012
Dendreon Corp. *(a)		15,283		88,489
Dynavax Technologies Corp. *		17,417		35,531
Eli Lilly & Co.		101,000		5,520,660
Emergent Biosolutions, Inc. *		4,590		71,099
Endo Health Solutions, Inc. *		11,687		362,297
Exact Sciences Corp. *		5,610		59,915
Exelixis, Inc. *(a)		14,425		65,778
Forest Laboratories, Inc. *		22,916		843,309
Genomic Health, Inc. *		2,196		62,915
Gilead Sciences, Inc. *		149,634		6,390,868
Halozyme Therapeutics, Inc. *		8,990		49,085
Hospira, Inc. *		16,182		476,236
Idenix Pharmaceuticals, Inc. *		11,938		50,259
Illumina, Inc. *		12,586		630,936
ImmunoGen, Inc. *		8,091		122,741
Impax Laboratories, Inc. *		8,095		160,524
Incyte Corp. *(a)		12,754		283,139
Infinity Pharmaceuticals, Inc. *		3,804		157,067
Intercept Pharmaceuticals, Inc. *(a)		1,852		72,265
InterMune, Inc. *		8,000		70,960
Ironwood Pharmaceuticals, Inc. *		9,146		136,550
Isis Pharmaceuticals, Inc. *		9,193		135,137
Jazz Pharmaceuticals plc *		4,530		263,555
Johnson & Johnson		274,822		20,916,702
Lexicon Pharmaceuticals, Inc. *		43,315		85,331
Life Technologies Corp. *		17,980		1,045,177
Luminex Corp. *		4,495		75,876
MAP Pharmaceuticals, Inc. *		2,956		73,900
Medivation, Inc. *		7,192		353,415
Merck & Co., Inc.		301,565		12,885,872
Merrimack Pharmaceuticals, Inc. *		8,465		54,176
Mettler-Toledo International, Inc. *		2,944		626,483
Momenta Pharmaceuticals, Inc. *		4,781		60,910
Mylan, Inc. *		41,354		1,224,492
Myriad Genetics, Inc. *		8,990		228,526
Nektar Therapeutics *		13,485		125,006
Neurocrine Biosciences, Inc. *		7,280		77,022
NPS Pharmaceuticals, Inc. *		10,903		87,006
Onyx Pharmaceuticals, Inc. *		6,993		526,643
Opko Health, Inc. *(a)		16,182		112,303
Optimer Pharmaceuticals, Inc. *		5,621		68,127

See financial notes 25

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Pacira Pharmaceuticals, Inc. *(a)		2,756		60,246
PAREXEL International Corp. *		6,293		218,304
PDL BioPharma, Inc. (a)		17,980		128,377
PerkinElmer, Inc.		12,586		430,064
Perrigo Co.		8,505		962,511
Pfizer, Inc.		732,936		20,060,458
Pharmacyclics, Inc. *		5,394		473,485
Puma Biotechnology, Inc. *		3,178		81,706
Questcor Pharmaceuticals, Inc. (a)		6,293		205,152
Regeneron Pharmaceuticals, Inc. *		7,465		1,246,655
Rigel Pharmaceuticals, Inc. *		8,182		54,983
Salix Pharmaceuticals Ltd. *		5,394		263,497
Santarus, Inc. *		5,656		75,055
Seattle Genetics, Inc. *		9,930		279,430
Sequenom, Inc. *(a)		13,264		54,515
Spectrum Pharmaceuticals, Inc. (a)		6,293		71,740
Synageva BioPharma Corp. *		3,854		192,584
Techne Corp.		3,596		244,492
The Medicines Co. *		5,436		172,919
Theravance, Inc. *		7,317		148,462
Thermo Fisher Scientific, Inc.		35,607		2,627,797
United Therapeutics Corp. *		5,394		322,615
Vertex Pharmaceuticals, Inc. *		21,177		991,507
ViroPharma, Inc. *		7,248		180,765
VIVUS, Inc. *(a)		8,990		96,373
Warner Chilcott plc, Class A		18,386		248,395
Waters Corp. *		8,990		833,553
Zoetis, Inc. *		8,400		280,980

				123,952,881

Real Estate 3.8%
Acadia Realty Trust		4,548		122,432
AG Mortgage Investment Trust, Inc.		2,004		52,565
Alexander & Baldwin, Inc. *		4,495		158,359
Alexander’s, Inc.		199		64,575
Alexandria Real Estate Equities, Inc.		6,293		447,684
American Assets Trust, Inc.		3,157		95,436
American Campus Communities, Inc.		10,171		459,729
American Capital Agency Corp.		33,663		1,067,790
American Capital Mortgage Investment Corp.		3,055		78,513
American Tower Corp.		39,556		3,069,546
Annaly Capital Management, Inc.		97,991		1,517,881
Anworth Mortgage Asset Corp.		19,778		120,646
Apartment Investment & Management Co., Class A		14,390		426,232
Apollo Residential Mortgage, Inc.		2,204		49,326
ARMOUR Residential REIT, Inc.		27,893		186,604
Ashford Hospitality Trust		7,192		84,650
Associated Estates Realty Corp.		4,201		73,433
AvalonBay Communities, Inc.		11,062		1,380,869
BioMed Realty Trust, Inc.		15,283		322,777
Boston Properties, Inc.		15,283		1,587,598
Brandywine Realty Trust		15,283		210,141
BRE Properties, Inc.		7,492		364,186
Camden Property Trust		8,091		559,412
Capstead Mortgage Corp.		10,788		135,282
CBL & Associates Properties, Inc.		17,081		388,422
CBRE Group, Inc., Class A *		29,884		722,296
Chesapeake Lodging Trust		2,697		58,066
Chimera Investment Corp.		97,182		289,602
Colonial Properties Trust		8,990		193,824
Colony Financial, Inc.		3,167		70,149
CommonWealth REIT		8,990		226,997
Coresite Realty Corp.		1,798		58,255
Corporate Office Properties Trust		7,728		199,923
Corrections Corp. of America		10,788		413,720
Cousins Properties, Inc.		10,111		98,279
CreXus Investment Corp.		6,595		87,779
CubeSmart		10,788		159,015
CYS Investments, Inc.		16,341		193,804
DCT Industrial Trust, Inc.		30,566		221,909
DDR Corp.		24,273		419,195
DiamondRock Hospitality Co.		18,917		169,118
Digital Realty Trust, Inc.		12,586		843,010
Douglas Emmett, Inc.		12,586		308,483
Duke Realty Corp.		30,785		497,486
DuPont Fabros Technology, Inc.		6,293		145,746
EastGroup Properties, Inc.		3,596		204,289
Education Realty Trust, Inc.		10,788		117,697
EPR Properties		4,287		209,163
Equity Lifestyle Properties, Inc.		4,495		331,237
Equity One, Inc.		5,850		137,533
Equity Residential		31,773		1,748,786
Essex Property Trust, Inc.		3,596		535,768
Extra Space Storage, Inc.		9,889		370,244
Federal Realty Investment Trust		6,293		668,380
FelCor Lodging Trust, Inc. *		12,586		63,182
First Industrial Realty Trust, Inc. *		8,990		142,671
First Potomac Realty Trust		4,825		68,177
Forest City Enterprises, Inc., Class A *		12,874		206,499
Forestar Group, Inc. *		3,156		54,978
Franklin Street Properties Corp.		8,091		111,251
General Growth Properties, Inc.		44,269		847,309
Getty Realty Corp.		2,404		47,792
Glimcher Realty Trust		13,485		151,841
Government Properties Income Trust (a)		4,504		119,176
Hatteras Financial Corp.		9,590		255,957
HCP, Inc.		44,516		2,175,942
Health Care REIT, Inc.		25,672		1,646,602
Healthcare Realty Trust, Inc.		8,397		223,360
Healthcare Trust of America, Inc.		17,894		205,423
Hersha Hospitality Trust		14,662		82,254
Highwoods Properties, Inc.		7,192		262,508
Home Properties, Inc.		5,394		336,693
Hospitality Properties Trust		12,586		336,046
Host Hotels & Resorts, Inc.		71,277		1,188,188
Hudson Pacific Properties, Inc.		2,756		62,203
Inland Real Estate Corp.		7,480		72,257
Invesco Mortgage Capital, Inc.		11,288		237,274
Investors Real Estate Trust		8,365		79,551
iStar Financial, Inc. *		7,216		72,088
Jones Lang LaSalle, Inc.		4,495		434,397
Kennedy-Wilson Holdings, Inc.		4,495		72,235
Kilroy Realty Corp.		7,192		379,450
Kimco Realty Corp.		40,455		880,705
LaSalle Hotel Properties		8,091		205,430
Lexington Realty Trust		13,162		150,837
Liberty Property Trust		11,388		441,741
LTC Properties, Inc.		2,891		111,506

26 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Mack-Cali Realty Corp.		8,411		238,704
Medical Properties Trust, Inc.		13,192		191,548
MFA Financial, Inc.		35,061		311,342
Mid-America Apartment Communities, Inc.		3,896		270,538
National Health Investors, Inc.		2,139		138,607
National Retail Properties, Inc.		10,442		359,727
NorthStar Realty Finance Corp.		12,990		116,260
OMEGA Healthcare Investors, Inc.		10,788		301,956
Parkway Properties, Inc.		4,530		76,602
Pebblebrook Hotel Trust		5,748		137,435
Pennsylvania REIT		6,293		113,589
Pennymac Mortgage Investment Trust		5,692		144,691
Piedmont Office Realty Trust, Inc., Class A		17,980		353,487
Plum Creek Timber Co., Inc.		16,182		784,827
Post Properties, Inc.		5,394		257,510
Potlatch Corp.		4,495		197,825
ProLogis, Inc.		46,748		1,820,367
PS Business Parks, Inc.		1,493		110,467
Public Storage		14,384		2,175,005
Ramco-Gershenson Properties Trust		4,495		71,021
Rayonier, Inc.		12,586		703,180
Realogy Holdings Corp. *		3,736		167,560
Realty Income Corp.		18,124		827,361
Redwood Trust, Inc.		9,889		200,351
Regency Centers Corp.		8,990		466,401
Resource Capital Corp.		8,468		57,582
Retail Opportunity Investments Corp. (a)		4,825		62,291
Retail Properties of America, Inc., Class A		15,417		228,172
RLJ Lodging Trust		10,354		221,472
Rouse Properties, Inc. (a)		3,804		63,184
Ryman Hospitality Properties (a)		5,244		234,669
Sabra Health Care REIT, Inc.		3,640		96,205
Saul Centers, Inc.		1,254		54,875
Select Income REIT		2,452		68,190
Senior Housing Properties Trust		17,334		434,910
Simon Property Group, Inc.		30,566		4,855,715
SL Green Realty Corp.		8,990		733,764
Sovran Self Storage, Inc.		2,705		164,572
Spirit Realty Capital, Inc.		3,747		74,640
STAG Industrial, Inc.		3,056		64,818
Starwood Property Trust, Inc.		13,213		369,303
Strategic Hotels & Resorts, Inc. *		17,980		130,894
Sun Communities, Inc.		2,709		126,050
Sunstone Hotel Investors, Inc. *		13,495		152,898
Tanger Factory Outlet Centers		9,195		324,492
Taubman Centers, Inc.		6,293		482,799
The Geo Group, Inc.		8,163		281,950
The Howard Hughes Corp. *		2,697		207,103
The Macerich Co.		13,485		810,583
The St. Joe Co. *		9,889		220,525
Two Harbors Investment Corp.		26,970		346,834
UDR, Inc.		24,626		587,576
Universal Health Realty Income Trust		1,798		102,684
Ventas, Inc.		29,068		2,057,433
Vornado Realty Trust		16,576		1,329,561
Washington REIT		6,293		174,253
Weingarten Realty Investors		12,586		385,761
Weyerhaeuser Co.		53,094		1,561,495
WP Carey, Inc.		5,438		324,050
Zillow, Inc., Class A *(a)		5,257		225,841

				62,602,869

Retailing 4.3%
Aaron’s, Inc.		8,091		220,803
Abercrombie & Fitch Co., Class A		8,091		377,283
Advance Auto Parts, Inc.		7,206		550,106
Aeropostale, Inc. *		8,091		105,345
Amazon.com, Inc. *		35,968		9,505,263
American Eagle Outfitters, Inc.		17,980		371,826
Ann, Inc. *		5,511		155,906
Asbury Automotive Group, Inc. *		3,023		102,056
Ascena Retail Group, Inc. *		14,384		241,507
AutoNation, Inc. *		3,796		166,151
AutoZone, Inc. *		3,749		1,425,182
Barnes & Noble, Inc. *(a)		2,951		46,449
Bed Bath & Beyond, Inc. *		23,374		1,326,475
Best Buy Co., Inc.		26,417		433,503
Big Lots, Inc. *		6,421		213,819
Blue Nile, Inc. *(a)		1,152		39,087
Brown Shoe Co., Inc.		5,406		88,658
Cabela’s, Inc. *		4,777		241,668
CarMax, Inc. *		22,475		863,265
Chico’s FAS, Inc.		17,980		305,300
Conn’s, Inc. *		2,004		64,208
Core-Mark Holding Co., Inc.		899		43,080
Dick’s Sporting Goods, Inc.		9,390		469,500
Dillard’s, Inc., Class A		3,596		286,529
Dollar General Corp. *		26,261		1,216,935
Dollar Tree, Inc. *		23,434		1,058,865
DSW, Inc., Class A		2,978		201,581
Expedia, Inc.		9,205		587,647
Express, Inc. *		8,583		158,786
Family Dollar Stores, Inc.		9,468		544,883
Five Below, Inc. *		3,772		150,126
Foot Locker, Inc.		16,182		553,263
Francesca’s Holdings Corp. *(a)		3,156		80,320
Fred’s, Inc., Class A		3,156		42,827
GameStop Corp., Class A (a)		12,075		302,600
Genesco, Inc. *		2,697		158,260
Genuine Parts Co.		15,283		1,085,551
GNC Holdings, Inc., Class A		8,091		331,731
Group 1 Automotive, Inc.		2,697		155,725
Groupon, Inc. *(a)		31,845		144,258
Guess?, Inc.		5,845		161,848
Hibbett Sports, Inc. *		2,392		126,393
HomeAway, Inc. *		2,840		83,780
HSN, Inc.		3,690		197,415
J.C. Penney Co., Inc. (a)		13,926		244,680
Jos. A. Bank Clothiers, Inc. *		3,596		149,234
Kayak Software Corp. *		3,104		123,756
Kohl’s Corp.		21,135		974,324
Liberty Interactive Corp., Series A *		50,967		1,064,191
Liberty Ventures, Series A *		2,853		205,987
Limited Brands, Inc.		23,568		1,072,815
Lithia Motors, Inc., Class A		1,798		73,898
LKQ Corp. *		29,168		618,070

See financial notes 27

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Lowe’s Cos., Inc.		112,651		4,297,636
Lumber Liquidators Holdings, Inc. *		2,470		146,199
Macy’s, Inc.		39,697		1,631,547
Monro Muffler Brake, Inc.		2,907		107,704
Netflix, Inc. *		5,394		1,014,504
Nordstrom, Inc.		14,925		809,234
O’Reilly Automotive, Inc. *		11,775		1,197,989
Office Depot, Inc. *		27,560		111,067
OfficeMax, Inc.		8,368		100,165
Penske Automotive Group, Inc.		3,950		117,552
PetSmart, Inc.		10,931		711,717
Pier 1 Imports, Inc.		10,788		242,406
Pool Corp.		5,394		246,614
Priceline.com, Inc. *		4,919		3,382,206
Rent-A-Center, Inc.		5,659		205,309
Restoration Hardware Holdings, Inc. *(a)		3,772		145,637
Ross Stores, Inc.		22,683		1,314,707
rue21, Inc. *		1,352		36,504
Saks, Inc. *(a)		10,071		114,809
Sally Beauty Holdings, Inc. *		15,283		423,950
Sears Holdings Corp. *(a)		3,338		150,210
Select Comfort Corp. *		6,293		129,195
Shutterfly, Inc. *		3,612		156,327
Signet Jewelers Ltd.		8,091		495,331
Sonic Automotive, Inc., Class A		4,505		100,642
Stage Stores, Inc.		3,596		88,785
Staples, Inc.		67,425		888,662
Target Corp.		64,375		4,053,050
The Buckle, Inc. (a)		2,697		120,853
The Cato Corp., Class A		2,716		69,693
The Children’s Place Retail Stores, Inc. *		2,192		99,648
The Finish Line, Inc., Class A		4,939		89,445
The Gap, Inc.		29,288		964,161
The Home Depot, Inc.		147,923		10,132,726
The Men’s Wearhouse, Inc.		5,394		151,679
The TJX Cos., Inc.		72,166		3,245,305
Tiffany & Co.		11,734		788,055
Tractor Supply Co.		7,192		747,896
TripAdvisor, Inc. *		10,862		493,787
Ulta Salon, Cosmetics & Fragrance, Inc.		6,293		557,308
Urban Outfitters, Inc. *		11,130		450,988
Vitamin Shoppe, Inc. *		3,596		188,970
Williams-Sonoma, Inc.		8,485		385,219

				70,418,109

Semiconductors & Semiconductor Equipment 2.1%
Advanced Energy Industries, Inc. *		3,256		58,738
Advanced Micro Devices, Inc. *(a)		59,544		148,265
Altera Corp.		32,364		1,146,333
Analog Devices, Inc.		29,667		1,341,542
Applied Materials, Inc.		122,297		1,675,469
Atmel Corp. *		44,950		305,660
ATMI, Inc. *		3,596		78,752
Broadcom Corp., Class A		50,656		1,727,876
Brooks Automation, Inc.		7,192		72,711
Cabot Microelectronics Corp.		2,697		92,157
Cavium, Inc. *		4,681		172,823
Cirrus Logic, Inc. *		7,293		175,324
Cree, Inc. *		12,596		569,717
Cymer, Inc. *		3,596		355,573
Cypress Semiconductor Corp.		17,081		179,863
Diodes, Inc. *		3,596		71,668
Entegris, Inc. *		13,485		128,242
Entropic Communications, Inc. *		8,468		37,344
Fairchild Semiconductor International, Inc. *		12,281		175,127
First Solar, Inc. *		5,394		139,435
Hittite Microwave Corp. *		2,392		155,049
Integrated Device Technology, Inc. *		14,049		95,533
Intel Corp.		495,349		10,328,027
International Rectifier Corp. *		7,192		151,176
Intersil Corp., Class A		11,687		99,223
KLA-Tencor Corp.		17,081		935,356
Kulicke & Soffa Industries, Inc. *		8,091		87,545
Lam Research Corp. *		17,999		761,358
Lattice Semiconductor Corp. *		11,512		53,876
Linear Technology Corp.		22,628		865,295
LSI Corp. *		55,109		383,559
Marvell Technology Group Ltd.		52,142		526,634
Maxim Integrated Products, Inc.		28,862		899,917
MEMC Electronic Materials, Inc. *		24,327		120,419
Micrel, Inc.		4,660		49,023
Microchip Technology, Inc.		18,879		688,517
Micron Technology, Inc. *		100,292		841,450
Microsemi Corp. *		9,889		204,010
MKS Instruments, Inc.		5,394		146,393
Monolithic Power Systems, Inc.		3,155		77,581
NVIDIA Corp.		60,805		769,791
OmniVision Technologies, Inc. *		5,634		86,820
ON Semiconductor Corp. *		43,152		345,216
Peregrine Semiconductor Corp. *		2,304		23,017
PMC-Sierra, Inc. *		21,576		140,028
Power Integrations, Inc.		2,725		113,932
Rambus, Inc. *		10,788		60,844
RF Micro Devices, Inc. *		35,061		161,631
Semtech Corp. *		7,192		219,859
Silicon Image, Inc. *		9,120		42,043
Silicon Laboratories, Inc. *		4,495		186,632
Skyworks Solutions, Inc. *		18,879		402,123
Spansion, Inc., Class A *		4,660		54,802
SunPower Corp. *(a)		15,356		180,279
Teradyne, Inc. *		17,980		301,345
Tessera Technologies, Inc.		5,394		96,229
Texas Instruments, Inc.		112,469		3,865,560
TriQuint Semiconductor, Inc. *		16,182		76,055
Ultratech, Inc. *		3,596		147,364
Veeco Instruments, Inc. *		3,743		119,439
Volterra Semiconductor Corp. *		4,495		68,998
Xilinx, Inc.		25,596		953,963

				34,538,530

Software & Services 9.3%
Accelrys, Inc. *		5,612		53,090
Accenture plc, Class A		63,133		4,694,570
ACI Worldwide, Inc. *		3,786		173,437
Activision Blizzard, Inc.		41,354		591,362
Acxiom Corp. *		8,990		163,708
Adobe Systems, Inc. *		48,633		1,911,277
Advent Software, Inc. *		3,596		94,215

28 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Akamai Technologies, Inc. *		17,980		664,541
Alliance Data Systems Corp. *		4,842		768,377
ANSYS, Inc. *		9,137		692,585
AOL, Inc. *		9,947		367,044
Aspen Technology, Inc. *		9,143		281,239
Autodesk, Inc. *		22,475		825,282
Automatic Data Processing, Inc.		47,841		2,935,524
Blackbaud, Inc.		6,293		174,945
Blucora, Inc. *		3,808		59,024
BMC Software, Inc. *		14,740		590,632
Booz Allen Hamilton Holding Corp.		12,156		155,597
Bottomline Technologies (de), Inc. *		4,495		121,949
Broadridge Financial Solutions, Inc.		12,607		289,331
BroadSoft, Inc. *		2,697		56,637
CA, Inc.		33,716		825,705
CACI International, Inc., Class A *		2,697		136,873
Cadence Design Systems, Inc. *		26,071		369,165
Cardtronics, Inc. *		4,495		118,488
Cass Information Systems, Inc.		1,139		48,692
Citrix Systems, Inc. *		18,879		1,338,521
Cognizant Technology Solutions Corp., Class A *		29,262		2,246,444
CommVault Systems, Inc. *		4,495		332,405
Computer Sciences Corp.		15,283		734,042
Compuware Corp. *		23,374		271,372
comScore, Inc. *		3,378		53,845
Comverse, Inc. *		2,069		56,939
Concur Technologies, Inc. *		4,495		315,549
Convergys Corp.		12,586		208,802
CoreLogic, Inc. *		10,330		267,650
Cornerstone OnDemand, Inc. *		3,135		106,151
CoStar Group, Inc. *		2,697		271,696
CSG Systems International, Inc. *		3,596		69,798
Dealertrack Technologies, Inc. *		3,596		106,046
Demand Media, Inc. *		4,108		33,275
Demandware, Inc. *(a)		1,352		35,760
Dice Holdings, Inc. *		5,412		52,172
Digital River, Inc. *		4,201		59,822
DST Systems, Inc.		3,596		244,240
EarthLink, Inc.		10,365		60,221
eBay, Inc. *		114,838		6,279,342
Ebix, Inc. (a)		2,697		43,233
Electronic Arts, Inc. *		32,364		567,341
Ellie Mae, Inc. *		1,452		29,476
EPAM Systems, Inc. *		2,304		48,338
EPIQ Systems, Inc.		3,256		40,505
Equinix, Inc. *		4,674		988,785
Euronet Worldwide, Inc. *		5,394		130,211
ExactTarget, Inc. *		8,246		183,886
Exlservice Holdings, Inc. *		2,697		81,638
Facebook, Inc., Class A *		54,456		1,483,926
FactSet Research Systems, Inc. (a)		4,495		437,319
Fair Isaac Corp.		3,153		139,804
Fidelity National Information Services, Inc.		25,172		947,726
Fiserv, Inc. *		13,499		1,108,403
FleetCor Technologies, Inc. *		4,196		292,923
Forrester Research, Inc.		1,352		37,126
Fortinet, Inc. *		12,664		306,215
Gartner, Inc. *		8,990		447,342
Genpact Ltd.		13,039		229,617
Global Cash Access Holdings, Inc. *		6,364		45,184
Global Payments, Inc.		7,734		372,856
Google, Inc., Class A *		26,424		21,170,909
Guidewire Software, Inc. *		3,105		113,488
Heartland Payment Systems, Inc.		3,296		102,506
IAC/InterActiveCorp		8,091		329,708
iGate Corp. *		4,047		77,338
Imperva, Inc. *		1,252		45,698
Infoblox, Inc. *		3,608		76,093
Informatica Corp. *		10,489		367,220
Interactive Intelligence Group, Inc. *		1,352		56,257
International Business Machines Corp.		105,362		21,159,850
Intuit, Inc.		27,270		1,758,370
j2 Global, Inc.		4,616		164,699
Jack Henry & Associates, Inc.		8,990		393,043
Jive Software, Inc. *		8,212		136,155
Lender Processing Services, Inc.		8,990		220,794
LinkedIn Corp., Class A *		6,493		1,091,993
Liquidity Services, Inc. *(a)		2,697		91,833
LivePerson, Inc. *		4,649		67,271
LogMeIn, Inc. *		2,252		40,221
Manhattan Associates, Inc. *		2,697		188,412
ManTech International Corp., Class A (a)		4,640		115,118
MasterCard, Inc., Class A		10,562		5,469,215
MAXIMUS, Inc.		3,116		226,782
Mentor Graphics Corp. *		8,091		143,292
MICROS Systems, Inc. *		8,091		346,295
Microsoft Corp.		751,625		20,895,175
MicroStrategy, Inc., Class A *		899		91,590
Millennial Media, Inc. *		5,938		55,639
Monotype Imaging Holdings, Inc.		3,596		75,516
Monster Worldwide, Inc. *		13,545		69,350
Netscout Systems, Inc. *		3,209		81,605
NetSuite, Inc. *		2,744		191,504
NeuStar, Inc., Class A *		7,192		315,369
NIC, Inc.		5,394		95,582
Nuance Communications, Inc. *		24,013		442,079
OpenTable, Inc. *		2,298		127,769
Oracle Corp.		371,998		12,744,651
Paychex, Inc.		32,364		1,071,248
Pegasystems, Inc.		1,920		52,589
Progress Software Corp. *		5,872		132,237
Proofpoint, Inc. *		2,956		41,325
PROS Holdings, Inc. *		2,304		60,042
PTC, Inc. *		11,914		275,690
QLIK Technologies, Inc. *		7,478		194,428
QuinStreet, Inc. *		5,412		31,011
Rackspace Hosting, Inc. *		10,788		602,618
RealPage, Inc. *		3,322		71,954
Red Hat, Inc. *		18,879		959,242
Responsys, Inc. *		4,208		33,959
Rovi Corp. *		6,204		110,369
SAIC, Inc.		28,077		331,870
Salesforce.com, Inc. *		12,886		2,180,569
Sapient Corp. *		10,457		117,328
ServiceNow, Inc. *		6,638		215,536
SolarWinds, Inc. *		5,971		337,123
Solera Holdings, Inc.		6,693		376,816
Sourcefire, Inc. *		2,697		144,640
Splunk, Inc. *		2,370		85,628
SS&C Technologies Holdings, Inc. *		3,294		83,371

See financial notes 29

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Symantec Corp. *		71,604		1,678,398
Synchronoss Technologies, Inc. *		3,596		108,491
Synopsys, Inc. *		14,637		512,734
Syntel, Inc.		1,309		78,749
Take-Two Interactive Software, Inc. *		8,990		131,614
Tangoe, Inc. *		3,056		41,776
TeleTech Holdings, Inc. *		3,666		68,591
Teradata Corp. *		17,081		991,723
TIBCO Software, Inc. *		14,972		321,149
TiVo, Inc. *		13,485		167,079
Total System Services, Inc.		15,818		375,836
Tyler Technologies, Inc. *		3,596		202,814
Ultimate Software Group, Inc. *		2,697		265,034
Unisys Corp. *		4,495		103,295
United Online, Inc.		8,668		51,141
ValueClick, Inc. *		8,091		215,787
Vantiv, Inc., Class A *		4,049		88,106
VeriFone Systems, Inc. *		10,788		204,648
Verint Systems, Inc. *		5,166		176,522
VeriSign, Inc. *		16,182		741,136
VirnetX Holding Corp. *(a)		3,938		138,736
Virtusa Corp. *		2,404		50,364
Visa, Inc., Class A		51,516		8,172,498
VMware, Inc., Class A *		8,283		594,968
Vocus, Inc. *		2,204		30,944
Web.com Group, Inc. *		3,596		61,420
WebMD Health Corp. *		3,596		79,472
Websense, Inc. *		3,759		56,347
Western Union Co.		61,132		857,682
WEX, Inc. *		3,743		280,762
Workday, Inc., Class A *		2,018		111,575
Yahoo! Inc. *		102,980		2,194,504
Yelp, Inc. *(a)		6,059		134,449
Zynga, Inc., Class A *		45,170		153,126

				154,358,687

Technology Hardware & Equipment 6.2%
3D Systems Corp. *(a)		6,972		257,685
Acme Packet, Inc. *		5,394		157,397
ADTRAN, Inc. (a)		6,293		140,586
Amphenol Corp., Class A		16,182		1,146,656
Anixter International, Inc.		2,744		189,116
Apple, Inc.		93,420		41,235,588
Arris Group, Inc. *		13,485		233,965
Arrow Electronics, Inc. *		10,530		422,779
Aruba Networks, Inc. *		9,889		246,434
Avnet, Inc. *		15,283		539,643
AVX Corp.		10,491		123,584
Badger Meter, Inc.		1,385		70,303
Benchmark Electronics, Inc. *		5,582		97,238
Black Box Corp.		1,452		35,226
Brocade Communications Systems, Inc. *		45,315		254,217
Ciena Corp. *		8,990		137,008
Cisco Systems, Inc.		525,466		10,955,966
Cognex Corp.		4,495		185,149
Coherent, Inc.		2,697		155,779
Comtech Telecommunications Corp.		1,940		51,953
Corning, Inc.		149,732		1,888,120
Daktronics, Inc.		4,760		48,600
Dell, Inc.		144,087		2,010,014
Diebold, Inc.		6,293		177,714
Dolby Laboratories, Inc., Class A		5,394		171,961
DTS, Inc. *		1,904		37,890
EchoStar Corp., Class A *		3,870		146,441
Electro Rent Corp.		2,404		38,897
Electronics for Imaging, Inc. *		4,495		103,655
EMC Corp. *		208,437		4,796,135
Emulex Corp. *		13,485		86,978
F5 Networks, Inc. *		8,091		764,033
Fabrinet *		3,608		59,207
FARO Technologies, Inc. *		2,697		114,218
FEI Co.		3,667		232,268
Finisar Corp. *		8,990		131,703
FLIR Systems, Inc.		15,283		402,554
Fusion-io, Inc. *(a)		6,297		106,293
Harmonic, Inc. *		14,560		82,846
Harris Corp.		11,082		532,712
Hewlett-Packard Co.		194,272		3,912,638
Infinera Corp. *		17,980		116,690
Ingram Micro, Inc., Class A *		15,283		288,237
Insight Enterprises, Inc. *		4,495		86,394
InterDigital, Inc.		4,495		199,578
Intermec, Inc. *		6,764		66,964
InvenSense, Inc. *		9,780		117,556
IPG Photonics Corp. (a)		2,791		165,478
Itron, Inc. *		3,596		151,284
Ixia *		5,433		110,181
Jabil Circuit, Inc.		19,778		370,442
JDS Uniphase Corp. *		24,273		343,706
Juniper Networks, Inc. *		53,041		1,096,888
Lexmark International, Inc., Class A		7,192		158,368
Littelfuse, Inc.		1,798		118,974
Loral Space & Communications, Inc.		1,798		104,716
Measurement Specialties, Inc. *		1,485		53,935
Methode Electronics, Inc.		4,208		55,167
Molex, Inc.		14,384		398,581
Motorola Solutions, Inc.		28,177		1,752,891
MTS Systems Corp.		1,330		71,820
Multi-Fineline Electronix, Inc. *		2,070		31,630
National Instruments Corp.		9,889		297,461
NCR Corp. *		15,283		421,505
NetApp, Inc. *		36,859		1,246,940
NETGEAR, Inc. *		3,596		122,444
Newport Corp. *		3,708		60,626
OSI Systems, Inc. *		1,845		106,327
Palo Alto Networks, Inc. *(a)		3,188		194,882
Park Electrochemical Corp.		2,170		54,901
Plantronics, Inc.		5,394		217,702
Plexus Corp. *		3,239		78,902
Polycom, Inc. *		16,182		147,418
Power-One, Inc. *		13,775		58,681
QLogic Corp. *		6,204		70,602
QUALCOMM, Inc.		168,554		11,062,199
Quantum Corp. *		28,112		35,421
RealD, Inc. *(a)		4,725		54,999
Riverbed Technology, Inc. *		15,289		233,616
Rofin-Sinar Technologies, Inc. *		2,890		76,787
Rogers Corp. *		1,385		66,078
Ruckus Wireless, Inc. *(a)		4,004		85,525
SanDisk Corp. *		24,273		1,223,116
Sanmina Corp. *		7,192		73,646
ScanSource, Inc. *		2,374		71,244

30 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Seagate Technology plc		34,706		1,116,145
Sonus Networks, Inc. *		25,689		62,938
Super Micro Computer, Inc. *		3,640		42,588
Synaptics, Inc. *		3,596		124,997
SYNNEX Corp. *		2,254		85,945
TE Connectivity Ltd.		43,156		1,731,850
Tech Data Corp. *		4,495		238,505
Tellabs, Inc.		35,061		71,174
Trimble Navigation Ltd. *		12,586		747,986
TTM Technologies, Inc. *		5,959		48,864
Ubiquiti Networks, Inc. (a)		5,956		82,014
Universal Display Corp. *		2,568		80,584
ViaSat, Inc. *		4,495		211,085
Vishay Intertechnology, Inc. *		13,956		184,080
Western Digital Corp.		22,475		1,059,921
Xerox Corp.		129,127		1,047,220
Zebra Technologies Corp., Class A *		5,394		241,220

				101,578,767

Telecommunication Services 2.6%
AT&T, Inc.		564,328		20,265,019
Atlantic Tele-Network, Inc.		1,798		84,506
CenturyLink, Inc.		62,313		2,160,392
Cincinnati Bell, Inc. *		19,778		64,279
Clearwire Corp., Class A *		35,457		110,626
Cogent Communications Group, Inc.		4,495		113,049
Consolidated Communications Holdings, Inc.		2,697		45,310
Crown Castle International Corp. *		28,874		2,015,405
Frontier Communications Corp. (a)		97,991		405,683
General Communication, Inc., Class A *		6,382		53,928
Leap Wireless International, Inc. *		9,260		49,541
Level 3 Communications, Inc. *		16,182		323,316
MetroPCS Communications, Inc. *		31,148		305,250
NII Holdings, Inc. *(a)		16,182		77,997
NTELOS Holdings Corp.		2,855		35,630
Premiere Global Services, Inc. *		6,293		67,146
SBA Communications Corp., Class A *		12,387		880,963
Shenandoah Telecommunications Co.		5,510		79,399
Sprint Nextel Corp. *		296,670		1,720,686
Telephone & Data Systems, Inc.		11,687		267,515
tw telecom, Inc. *		15,283		386,966
United States Cellular Corp. *		1,798		66,148
USA Mobility, Inc.		5,510		64,026
Verizon Communications, Inc.		283,786		13,204,563
Vonage Holdings Corp. *		35,115		92,704
Windstream Corp. (a)		58,435		501,957

				43,442,004

Transportation 1.9%
Alaska Air Group, Inc. *		7,192		370,748
Allegiant Travel Co.		1,798		144,361
AMERCO		899		135,488
Atlas Air Worldwide Holdings, Inc. *		2,697		127,271
Avis Budget Group, Inc. *		9,262		216,453
C.H. Robinson Worldwide, Inc.		16,182		922,698
Con-way, Inc.		5,480		192,622
CSX Corp.		103,451		2,373,166
Delta Air Lines, Inc. *		83,114		1,186,037
Expeditors International of Washington, Inc.		20,677		803,301
FedEx Corp.		28,815		3,037,966
Forward Air Corp.		3,596		135,641
Genesee & Wyoming, Inc., Class A *		4,495		402,392
Heartland Express, Inc.		5,000		67,850
Hertz Global Holdings, Inc. *		29,197		582,480
Hub Group, Inc., Class A *		3,724		140,507
J.B. Hunt Transport Services, Inc.		8,685		603,781
JetBlue Airways Corp. *		27,869		168,886
Kansas City Southern		10,812		1,113,312
Kirby Corp. *		5,394		409,836
Knight Transportation, Inc.		4,495		70,392
Landstar System, Inc.		5,394		303,628
Matson, Inc.		4,495		115,566
Norfolk Southern Corp.		31,529		2,303,194
Old Dominion Freight Line, Inc. *		6,851		246,293
Roadrunner Transportation Systems, Inc. *		2,304		52,485
Ryder System, Inc.		5,394		303,143
SkyWest, Inc.		4,930		69,020
Southwest Airlines Co.		73,718		862,501
Spirit Airlines, Inc. *		4,560		92,340
Swift Transportation Co. *		8,127		109,958
Union Pacific Corp.		46,895		6,429,774
United Continental Holdings, Inc. *		32,686		873,043
United Parcel Service, Inc., Class B		71,168		5,882,035
US Airways Group, Inc. *		16,182		217,324
UTI Worldwide, Inc.		10,788		164,301
Werner Enterprises, Inc.		4,184		96,316
Wesco Aircraft Holdings, Inc. *		4,771		64,886

				31,390,995

Utilities 3.5%
AGL Resources, Inc.		11,385		454,945
ALLETE, Inc.		4,495		211,265
Alliant Energy Corp.		10,788		514,480
Ameren Corp.		23,832		805,283
American Electric Power Co., Inc.		48,546		2,271,467
American States Water Co.		1,798		95,222
American Water Works Co., Inc.		17,084		673,964
Aqua America, Inc.		13,485		392,818
Atmos Energy Corp.		8,990		343,148
Avista Corp.		7,192		188,358
Black Hills Corp.		4,120		171,351
California Water Service Group		3,984		79,919
Calpine Corp. *		38,663		711,399
CenterPoint Energy, Inc.		41,913		898,196
CH Energy Group, Inc.		1,798		117,104
Chesapeake Utilities Corp.		1,005		48,270
Cleco Corp.		5,794		256,674
CMS Energy Corp.		26,970		717,672
Connecticut Water Service, Inc.		2,052		61,273
Consolidated Edison, Inc.		28,768		1,697,312
Dominion Resources, Inc.		56,366		3,156,496
DTE Energy Co.		16,782		1,121,038
Duke Energy Corp.		69,499		4,812,806
Dynegy, Inc. *(a)		7,872		154,055
Edison International		31,971		1,535,567

See financial notes 31

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
El Paso Electric Co.		4,495		149,908
Entergy Corp.		17,980		1,119,435
Exelon Corp.		84,506		2,618,841
FirstEnergy Corp.		41,354		1,632,656
Great Plains Energy, Inc.		14,890		325,049
Hawaiian Electric Industries, Inc.		8,990		242,640
IDACORP, Inc.		5,394		251,846
Integrys Energy Group, Inc.		7,592		429,479
ITC Holdings Corp.		5,394		455,901
MDU Resources Group, Inc.		18,486		446,622
MGE Energy, Inc.		2,126		114,124
National Fuel Gas Co.		8,177		475,820
New Jersey Resources Corp.		4,495		200,297
NextEra Energy, Inc.		41,654		2,993,673
NiSource, Inc.		30,407		842,274
Northeast Utilities		31,185		1,294,489
Northwest Natural Gas Co.		3,596		163,798
NorthWestern Corp.		3,596		140,172
NRG Energy, Inc.		31,818		763,632
NV Energy, Inc.		22,475		444,106
OGE Energy Corp.		9,490		549,566
ONEOK, Inc.		19,778		889,812
Ormat Technologies, Inc.		4,011		81,985
Otter Tail Corp.		3,053		88,201
Pepco Holdings, Inc.		21,576		437,777
PG&E Corp.		42,253		1,801,668
Piedmont Natural Gas Co., Inc.		6,893		222,230
Pinnacle West Capital Corp.		10,788		603,481
PNM Resources, Inc.		8,091		181,724
Portland General Electric Co.		7,192		213,531
PPL Corp.		57,536		1,773,260
Public Service Enterprise Group, Inc.		50,344		1,640,711
Questar Corp.		17,234		405,171
SCANA Corp.		12,586		614,700
Sempra Energy		22,475		1,747,656
SJW Corp.		7,110		188,486
South Jersey Industries, Inc.		3,596		198,283
Southwest Gas Corp.		4,495		203,624
TECO Energy, Inc.		18,879		325,663
The AES Corp.		63,341		736,022
The Empire District Electric Co. (a)		3,952		84,612
The Laclede Group, Inc.		1,798		73,286
The Southern Co.		86,304		3,884,543
UGI Corp.		10,788		386,426
UIL Holdings Corp.		4,812		188,438
Unitil Corp.		3,157		86,439
UNS Energy Corp.		3,596		169,084
Vectren Corp.		8,091		267,003
Westar Energy, Inc.		12,173		377,606
WGL Holdings, Inc.		5,394		227,465
Wisconsin Energy Corp.		23,374		965,346
Xcel Energy, Inc.		47,833		1,372,807

				57,581,450

Total Common Stock
(Cost $1,430,526,247)				1,645,036,767




Other Investment Companies 0.1% of net assets

Equity Fund 0.1%
iShares Russell 3000 Index Fund		21,000		1,895,040

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		221,225		221,225

Total Other Investment Companies
(Cost $2,122,978)				2,116,265



End of Investments



Collateral Invested for Securities on Loan 0.5% of net assets


State Street Institutional U.S. Government Money Market Fund		7,615,308		7,615,308

Total Collateral Invested for Securities on Loan
(Cost $7,615,308)				7,615,308



End of Collateral Invested for Securities on Loan

At 02/28/13, the tax basis cost of the fund’s investments was $1,433,119,295 and the unrealized appreciation and depreciation were $241,548,971 and ($27,515,234), respectively, with a net unrealized appreciation of $214,033,737.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.


Reg’d —		Registered
REIT —		Real Estate Investment Trust

32 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$1,645,036,767		$—		$—		$1,645,036,767
Other Investment Companies¹		2,116,265		—		—		2,116,265

Total		$1,647,153,032		$—		$—		$1,647,153,032

Other Financial Instruments
Collateral Invested for Securities on Loan		$7,615,308		$—		$—		$7,615,308


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

February 28,

Investments in Securities

2012

(Losses)

Purchases

Sales

out

2013

Rights

$—

$4,294

$4,273

$7,110

($15,677

)

$—

Total

$—

$4,294

$4,273

$7,110

($15,677

)

$—

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 February 28, 2013.

See financial notes 33

Schwab U.S. Broad Market ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments in affiliated issuers, at value (cost $1,711,229)		$1,756,259
Investments in unaffiliated issuers, at value (cost $1,430,937,996) including securities on loan of $7,598,779	+	1,645,396,773

Total investments, at value (cost $1,432,649,225)		1,647,153,032
Collateral invested for securities on loan		7,615,308
Receivables:
Investments sold		16,505
Dividends		3,531,644
Income from securities on loan		20,270
Foreign tax reclaims		1,813
Interest	+	9

Total assets		1,658,338,581

Liabilities

Collateral held for securities on loan		7,615,308
Payables:
Investments bought		398,706
Investment adviser fees	+	5,401

Total liabilities		8,019,415

Net Assets

Total assets		1,658,338,581
Total liabilities	—	8,019,415

Net assets		$1,650,319,166

Net Assets by Source
Capital received from investors		1,434,577,187
Net investment income not yet distributed		4,626,560
Net realized capital losses		(3,643,692	)
Net unrealized capital gains		214,759,111

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,650,319,166

44,950,000

$36.71

34 See financial notes

Schwab U.S. Broad Market ETF

Statement of

Operations

For September 1, 2012 through February 28, 2013; unaudited



Investment Income

Dividends received from affiliated issuer		$11,400
Dividends received from unaffiliated issuers (net of foreign withholding tax of $15,109)		16,048,895
Interest		387
Securities on loan	+	106,295

Total investment income		16,166,977

Expenses

Investment adviser fees		270,010

Total expenses	−	270,010

Net investment income		15,896,967

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		647
Net realized losses on unaffiliated investments		(2,555,503	)
Net realized gains on in-kind redemptions	+	2,100,298

Net realized losses		(454,558	)
Net unrealized gains on affiliated issuer		264,160
Net unrealized gains on unaffiliated investments	+	113,021,683

Net unrealized gains	+	113,285,843

Net realized and unrealized gains		112,831,285

Net increase in net assets resulting from operations		$128,728,252

See financial notes 35

Schwab U.S. Broad Market ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$15,896,967			$18,738,862
Net realized gains (losses)		(454,558	)		13,587,585
Net unrealized gains	+	113,285,843			107,871,937

Net increase in net assets resulting from operations		128,728,252			140,198,384

Distributions to Shareholders

Distributions from net investment income		($15,280,470	)		($16,859,390	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

13,600,000

$475,772,121

9,500,000

$299,666,505

Shares redeemed

(350,000

)

(11,726,132

)

(3,000,001

)

(92,831,011

)

Net transactions in fund shares

13,250,000

$464,045,989

6,499,999

$206,835,494

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

31,700,000

$1,072,825,395

25,200,001

$742,650,907

Total increase

13,250,000

577,493,771

6,499,999

330,174,488

End of period

44,950,000

$1,650,319,166

31,700,000

$1,072,825,395

Net investment income not yet distributed

$4,626,560

$4,010,063

36 See financial notes

Schwab U.S. Large-Cap ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		33.49			29.11			24.98			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.40			0.64			0.53			0.34
Net realized and unrealized gains (losses)		2.69			4.35			4.13			(0.12	)

Total from investment operations		3.09			4.99			4.66			0.22
Less distributions:
Distributions from net investment income		(0.43	)		(0.61	)		(0.53	)		(0.24	)

Net asset value at end of period		36.15			33.49			29.11			24.98

Total return (%)		9.30	²		17.36			18.66			0.83	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.04	^3,4		0.08			0.08			0.08	³
Gross operating expenses		0.04	^3,4		0.08			0.08			0.08	³
Net investment income (loss)		2.44	³		2.10			1.88			2.01	³
Portfolio turnover rate⁵		3	²		4			5			3	²
Net assets, end of period ($ x 1,000)		1,247,250			890,808			615,781			273,503

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective September 20, 2012, the annual operating expense ratio was reduced. The ratio presented for the period ended 2/28/13 is a blended ratio. Please see financial note 4 for additional information.

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

See financial notes 37

Schwab U.S. Large-Cap ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.6%	Common Stock		1,068,036,018		1,242,646,282
	0	.2%	Other Investment Companies		1,984,387		1,977,934


	99	.8%	Total Investments		1,070,020,405		1,244,624,216
	0	.1%	Collateral Invested for Securities on Loan		1,715,793		1,715,793
	0	.1%	Other Assets and Liabilities, Net				909,814


	100	.0%	Net Assets				1,247,249,823


	Number		Value
Security	of Shares		($)

Common Stock 99.6% of net assets

Automobiles & Components 0.9%
Allison Transmission Holdings, Inc.		3,450		79,695
BorgWarner, Inc. *		9,454		703,472
Ford Motor Co.		323,530		4,079,713
General Motors Co. *		63,956		1,736,406
Gentex Corp.		11,861		222,394
Harley-Davidson, Inc.		18,681		983,181
Johnson Controls, Inc.		56,708		1,784,601
Lear Corp.		8,280		442,318
The Goodyear Tire & Rubber Co. *		20,030		259,989
TRW Automotive Holdings Corp. *		8,328		488,770

				10,780,539

Banks 2.7%
BB&T Corp.		58,430		1,773,935
BOK Financial Corp.		2,096		124,565
CIT Group, Inc. *		16,658		697,304
City National Corp.		4,142		235,307
Comerica, Inc.		16,079		552,796
Commerce Bancshares, Inc.		6,493		247,318
Cullen/Frost Bankers, Inc.		5,468		331,142
Fifth Third Bancorp		76,353		1,209,432
First Republic Bank		5,260		191,727
Hudson City Bancorp, Inc.		41,446		353,120
Huntington Bancshares, Inc.		71,764		504,501
KeyCorp		78,661		738,627
M&T Bank Corp.		10,103		1,031,415
New York Community Bancorp, Inc.		36,692		495,342
People’s United Financial, Inc.		30,772		403,113
PNC Financial Services Group, Inc.		44,798		2,794,947
Regions Financial Corp.		117,990		902,624
SunTrust Banks, Inc.		44,850		1,237,412
TFS Financial Corp. *		7,210		75,777
U.S. Bancorp		157,120		5,338,938
Wells Fargo & Co.		410,718		14,407,987
Zions Bancorp		15,180		366,445

				34,013,774

Capital Goods 7.7%
3M Co.		53,772		5,592,288
AGCO Corp.		8,280		426,254
AMETEK, Inc.		21,330		892,234
B/E Aerospace, Inc. *		8,680		456,655
Caterpillar, Inc.		54,716		5,054,117
Cummins, Inc.		14,690		1,702,130
Danaher Corp.		48,819		3,007,250
Deere & Co.		33,068		2,904,362
Donaldson Co., Inc.		11,324		408,004
Dover Corp.		15,262		1,119,468
Eaton Corp. plc		38,851		2,407,596
Emerson Electric Co.		60,514		3,431,144
Fastenal Co.		22,448		1,158,990
Flowserve Corp.		4,287		688,064
Fluor Corp.		13,842		856,820
Fortune Brands Home & Security, Inc. *		13,580		469,189
Gardner Denver, Inc.		4,153		294,821
General Dynamics Corp.		27,653		1,879,574
General Electric Co.		879,677		20,426,100
Honeywell International, Inc.		65,553		4,595,265
Hubbell, Inc., Class B		4,330		402,300
Illinois Tool Works, Inc.		36,007		2,214,431
Ingersoll-Rand plc		23,157		1,219,216
Jacobs Engineering Group, Inc. *		10,830		528,937
Joy Global, Inc.		8,970		568,160
KBR, Inc.		12,420		377,444
L-3 Communications Holdings, Inc.		7,780		593,381
Lincoln Electric Holdings, Inc.		6,900		386,745
Lockheed Martin Corp.		22,420		1,972,960
Masco Corp.		30,368		584,888
MSC Industrial Direct Co., Inc., Class A		3,845		328,055
Northrop Grumman Corp.		20,539		1,349,002
Owens Corning *		9,660		374,905
PACCAR, Inc.		29,670		1,407,248
Pall Corp.		9,060		617,711
Parker Hannifin Corp.		12,462		1,177,410
Pentair Ltd. - Reg’d		17,534		934,036
Precision Castparts Corp.		12,368		2,307,745
Quanta Services, Inc. *		17,297		491,235
Raytheon Co.		27,683		1,510,661
Rockwell Automation, Inc.		11,730		1,059,688
Rockwell Collins, Inc.		11,772		707,615
Roper Industries, Inc.		8,280		1,031,771
Snap-On, Inc.		4,836		388,186
Spirit AeroSystems Holdings, Inc., Class A *		9,661		168,198
SPX Corp.		4,144		333,633
Stanley Black & Decker, Inc.		14,027		1,103,925
Textron, Inc.		23,530		678,841
The Babcock & Wilcox Co.		9,662		261,067
The Boeing Co.		56,770		4,365,613

38 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Timken Co.		6,594		358,186
TransDigm Group, Inc.		3,692		525,519
United Technologies Corp.		70,576		6,390,657
URS Corp.		6,900		291,594
W.W. Grainger, Inc.		4,930		1,116,448
Xylem, Inc.		15,288		420,420

				96,318,156

Commercial & Professional Services 0.8%
Avery Dennison Corp.		8,970		366,425
Cintas Corp.		8,664		380,350
Copart, Inc. *		8,801		300,466
Equifax, Inc.		9,882		544,696
IHS, Inc., Class A *		4,161		442,106
Iron Mountain, Inc.		13,455		464,197
Manpower, Inc.		6,902		376,849
Nielsen Holdings N.V. *		10,150		341,954
Pitney Bowes, Inc. (a)		15,870		207,897
Republic Services, Inc.		25,650		806,436
Robert Half International, Inc.		11,730		417,001
Stericycle, Inc. *		7,142		685,061
The ADT Corp.		19,320		925,235
The Dun & Bradstreet Corp.		3,644		293,706
Towers Watson & Co., Class A		4,830		321,533
Tyco International Ltd.		38,640		1,236,866
Verisk Analytics, Inc., Class A *		12,130		709,848
Waste Connections, Inc.		10,350		354,074
Waste Management, Inc.		36,432		1,359,642

				10,534,342

Consumer Durables & Apparel 1.3%
Coach, Inc.		23,571		1,139,186
D.R. Horton, Inc.		26,152		583,190
Fossil, Inc. *		4,382		450,338
Garmin Ltd. (a)		9,660		331,724
Harman International Industries, Inc.		5,670		240,691
Hasbro, Inc.		9,660		386,593
Jarden Corp. *		6,232		387,070
Leggett & Platt, Inc.		11,730		358,703
Lennar Corp., Class A		13,800		532,542
Mattel, Inc.		28,572		1,164,309
Michael Kors Holdings Ltd. *		9,834		582,960
Mohawk Industries, Inc. *		4,830		512,077
Newell Rubbermaid, Inc.		23,567		550,054
NIKE, Inc., Class B		61,294		3,338,071
NVR, Inc. *		385		388,542
Polaris Industries, Inc.		5,520		482,282
PulteGroup, Inc. *		28,120		539,342
PVH Corp.		5,820		709,167
Ralph Lauren Corp.		5,055		876,891
Toll Brothers, Inc. *		12,111		413,227
Tupperware Brands Corp.		5,464		427,449
Under Armour, Inc., Class A *		6,900		340,032
VF Corp.		7,242		1,167,845
Whirlpool Corp.		6,500		734,175

				16,636,460

Consumer Services 2.0%
Apollo Group, Inc., Class A *		8,419		142,029
Burger King Worldwide, Inc.		4,623		84,370
Carnival Corp.		37,354		1,336,153
Chipotle Mexican Grill, Inc. *		2,708		857,867
Darden Restaurants, Inc.		10,802		499,809
Dunkin’ Brands Group, Inc.		5,914		219,705
H&R Block, Inc.		25,458		632,886
Hyatt Hotels Corp., Class A *		4,598		188,932
International Game Technology		21,900		349,086
Las Vegas Sands Corp.		29,390		1,513,291
Marriott International, Inc., Class A		21,010		828,844
McDonald’s Corp.		84,188		8,073,629
MGM Resorts International *		30,855		385,379
Norwegian Cruise Line Holdings Ltd. *		2,016		62,456
Panera Bread Co., Class A *		2,312		372,116
Penn National Gaming, Inc. *		5,705		284,394
Royal Caribbean Cruises Ltd.		11,730		409,025
Starbucks Corp.		62,172		3,408,269
Starwood Hotels & Resorts Worldwide, Inc.		16,324		984,827
Weight Watchers International, Inc. (a)		2,208		94,591
Wyndham Worldwide Corp.		11,772		709,145
Wynn Resorts Ltd.		6,500		759,850
Yum! Brands, Inc.		38,092		2,494,264

				24,690,917

Diversified Financials 6.3%
Affiliated Managers Group, Inc. *		4,199		614,020
American Express Co.		81,462		5,062,863
Ameriprise Financial, Inc.		17,534		1,203,358
Bank of America Corp.		901,860		10,127,888
BlackRock, Inc.		10,446		2,504,429
Capital One Financial Corp.		49,624		2,532,313
CBOE Holdings, Inc.		7,172		257,618
Citigroup, Inc.		245,320		10,296,080
CME Group, Inc.		25,366		1,517,394
Discover Financial Services		41,964		1,616,873
ETRADE Financial Corp.		20,915		224,000
Eaton Vance Corp.		9,660		368,915
Franklin Resources, Inc.		11,425		1,613,781
IntercontinentalExchange, Inc. *		6,210		961,432
Invesco Ltd.		37,530		1,005,429
Jefferies Group, Inc.		10,028		217,808
JPMorgan Chase & Co.		318,858		15,598,533
Legg Mason, Inc.		9,496		270,636
Leucadia National Corp.		15,870		426,903
LPL Financial Holdings, Inc.		3,028		95,473
Moody’s Corp.		17,194		826,344
Morgan Stanley		115,410		2,602,495
MSCI, Inc. *		10,120		335,276
Northern Trust Corp.		19,264		1,024,267
NYSE Euronext		20,436		761,854
Raymond James Financial, Inc.		8,970		393,604
SEI Investments Co.		12,420		351,113
SLM Corp.		39,050		740,779
State Street Corp.		38,851		2,198,578
T. Rowe Price Group, Inc.		21,390		1,522,754
TD Ameritrade Holding Corp.		18,630		354,156
The Bank of New York Mellon Corp.		98,696		2,678,609
The Charles Schwab Corp. (b)		91,444		1,485,051

See financial notes 39

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Goldman Sachs Group, Inc.		36,950		5,533,632
The McGraw-Hill Cos., Inc.		23,303		1,084,755
The NASDAQ OMX Group, Inc.		9,886		312,991

				78,722,004

Energy 10.9%
Anadarko Petroleum Corp.		41,713		3,319,521
Apache Corp.		32,672		2,426,549
Baker Hughes, Inc.		36,570		1,639,067
Cabot Oil & Gas Corp.		17,309		1,072,639
Cameron International Corp. *		20,494		1,305,878
Chesapeake Energy Corp.		43,236		871,638
Chevron Corp.		164,110		19,225,486
Cimarex Energy Co.		7,590		510,883
Cobalt International Energy, Inc. *		16,496		406,956
Concho Resources, Inc. *		8,970		806,941
ConocoPhillips		101,478		5,880,650
CONSOL Energy, Inc.		18,719		601,816
Continental Resources, Inc. *		4,830		425,040
Denbury Resources, Inc. *		32,430		587,632
Devon Energy Corp.		31,334		1,700,183
Diamond Offshore Drilling, Inc.		5,820		405,538
Energen Corp.		6,210		287,150
Ensco plc, Class A		19,344		1,163,348
EOG Resources, Inc.		22,770		2,862,417
EQT Corp.		12,420		783,578
Exxon Mobil Corp.		382,468		34,250,009
FMC Technologies, Inc. *		20,010		1,038,719
Halliburton Co.		79,290		3,291,328
Helmerich & Payne, Inc.		8,680		575,137
Hess Corp.		25,474		1,694,021
HollyFrontier Corp.		16,933		951,635
Kinder Morgan, Inc.		53,130		1,969,529
Marathon Oil Corp.		59,109		1,980,152
Marathon Petroleum Corp.		28,317		2,346,913
McDermott International, Inc. *		19,324		245,801
Murphy Oil Corp.		15,364		935,360
Nabors Industries Ltd. *		24,154		404,821
National-Oilwell Varco, Inc.		35,711		2,432,990
Newfield Exploration Co. *		11,044		255,337
Noble Corp.		20,984		751,647
Noble Energy, Inc.		14,732		1,632,748
Occidental Petroleum Corp.		68,258		5,619,681
Oceaneering International, Inc.		8,971		570,466
Oil States International, Inc. *		4,440		338,106
Patterson-UTI Energy, Inc.		13,110		305,987
Peabody Energy Corp.		22,437		483,742
Phillips 66		52,250		3,289,660
Pioneer Natural Resources Co.		10,350		1,302,134
Plains Exploration & Production Co. *		10,681		484,597
QEP Resources, Inc.		14,591		444,442
Range Resources Corp.		13,800		1,059,840
Rowan Cos. plc, Class A *		10,402		359,805
SandRidge Energy, Inc. *(a)		32,430		184,851
Schlumberger Ltd.		110,980		8,639,793
SM Energy Co.		5,520		319,498
Southwestern Energy Co. *		28,988		993,419
Spectra Energy Corp.		56,580		1,643,083
Superior Energy Services, Inc. *		13,110		346,760
Tesoro Corp.		11,568		650,584
The Williams Cos., Inc.		56,316		1,954,728
Tidewater, Inc.		4,209		199,212
Transocean Ltd. *		29,964		1,567,117
Ultra Petroleum Corp. *		12,521		213,608
Valero Energy Corp.		47,550		2,167,804
Weatherford International Ltd. *		62,790		745,945
Whiting Petroleum Corp. *		10,984		534,921
WPX Energy, Inc. *		16,149		229,154

				135,687,994

Food & Staples Retailing 2.1%
Costco Wholesale Corp.		36,170		3,663,659
CVS Caremark Corp.		104,309		5,332,276
Safeway, Inc. (a)		20,039		478,131
Sysco Corp.		49,117		1,579,603
The Kroger Co.		42,956		1,254,745
Wal-Mart Stores, Inc.		140,489		9,943,811
Walgreen Co.		73,080		2,991,895
Whole Foods Market, Inc.		14,438		1,236,182

				26,480,302

Food, Beverage & Tobacco 5.7%
Altria Group, Inc.		169,815		5,697,293
Archer-Daniels-Midland Co.		54,892		1,748,859
Beam, Inc.		12,942		789,850
Brown-Forman Corp., Class B		12,552		823,662
Bunge Ltd.		12,118		898,065
Campbell Soup Co.		14,917		613,984
Coca-Cola Enterprises, Inc.		23,000		822,940
ConAgra Foods, Inc.		34,585		1,179,694
Constellation Brands, Inc., Class A *		12,198		539,640
Crimson Wine Group Ltd. *		1		6
Dr. Pepper Snapple Group, Inc.		17,414		759,599
General Mills, Inc.		54,089		2,501,616
Green Mountain Coffee Roasters, Inc. *		10,350		494,316
H.J. Heinz Co.		26,910		1,949,091
Hillshire Brands Co.		9,660		312,984
Hormel Foods Corp.		12,360		462,388
Ingredion, Inc.		6,291		416,464
Kellogg Co.		20,700		1,252,350
Kraft Foods Group, Inc.		50,314		2,438,720
Lorillard, Inc.		32,172		1,239,909
McCormick & Co., Inc. Non Voting Shares		11,040		742,661
Mead Johnson Nutrition Co.		17,250		1,292,197
Molson Coors Brewing Co., Class B		13,110		579,593
Mondelez International, Inc., Class A		148,620		4,109,343
Monster Beverage Corp. *		12,310		620,793
PepsiCo, Inc.		129,400		9,804,638
Philip Morris International, Inc.		140,089		12,853,166
Reynolds American, Inc.		27,288		1,191,940
Smithfield Foods, Inc. *		10,622		236,233
The Coca-Cola Co.		323,529		12,527,043
The Hershey Co.		12,585		1,048,834
The J.M. Smucker Co.		9,103		867,516
Tyson Foods, Inc., Class A		23,733		538,027

				71,353,414

40 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Health Care Equipment & Services 4.1%
Abbott Laboratories		132,480		4,476,499
Aetna, Inc.		27,868		1,315,091
AmerisourceBergen Corp.		19,690		929,368
Baxter International, Inc.		46,864		3,168,006
Becton, Dickinson & Co.		16,641		1,465,406
Boston Scientific Corp. *		117,130		865,591
C.R. Bard, Inc.		6,462		638,769
Cardinal Health, Inc.		28,080		1,297,577
CareFusion Corp. *		18,630		609,946
Cerner Corp. *		12,086		1,057,042
CIGNA Corp.		24,150		1,411,809
Coventry Health Care, Inc.		11,730		532,073
Covidien plc		39,462		2,508,599
DaVita HealthCare Partners, Inc. *		7,036		841,646
DENTSPLY International, Inc.		11,780		487,928
Edwards Lifesciences Corp. *		9,660		830,084
Express Scripts Holding Co. *		68,310		3,887,522
HCA Holdings, Inc.		20,356		755,004
Henry Schein, Inc. *		7,590		677,180
Hologic, Inc. *		22,080		482,006
Humana, Inc.		13,216		902,124
IDEXX Laboratories, Inc. *		4,430		408,092
Intuitive Surgical, Inc. *		3,283		1,673,969
Laboratory Corp. of America Holdings *		7,865		696,839
McKesson Corp.		19,591		2,079,193
Medtronic, Inc.		85,455		3,842,057
Omnicare, Inc.		9,707		361,683
Patterson Cos., Inc.		7,590		275,821
Quest Diagnostics, Inc.		13,117		736,782
ResMed, Inc.		11,578		515,105
St. Jude Medical, Inc.		25,976		1,065,016
Stryker Corp.		24,192		1,545,385
The Cooper Cos., Inc.		3,840		407,270
UnitedHealth Group, Inc.		85,430		4,566,233
Universal Health Services, Inc., Class B		7,594		439,617
Varian Medical Systems, Inc. *		9,012		636,518
WellPoint, Inc.		25,292		1,572,656
Zimmer Holdings, Inc.		14,511		1,087,744

				51,049,250

Household & Personal Products 2.4%
Avon Products, Inc.		35,317		690,447
Church & Dwight Co., Inc.		11,869		735,403
Colgate-Palmolive Co.		37,260		4,263,662
Energizer Holdings, Inc.		5,520		507,454
Herbalife Ltd. (a)		9,024		363,577
Kimberly-Clark Corp.		32,620		3,075,414
The Clorox Co.		11,041		927,554
The Estee Lauder Cos., Inc., Class A		20,024		1,283,538
The Procter & Gamble Co.		229,389		17,474,854

				29,321,903

Insurance 4.3%
ACE Ltd.		28,292		2,415,854
Aflac, Inc.		39,348		1,965,432
Alleghany Corp. *		1,380		521,461
Allied World Assurance Co. Holdings AG		2,902		254,825
American Financial Group, Inc.		6,932		304,731
American International Group, Inc. *		123,398		4,690,358
Aon plc		26,952		1,646,498
Arch Capital Group Ltd. *		11,320		556,038
Arthur J. Gallagher & Co.		9,972		383,722
Assurant, Inc.		6,625		278,184
Assured Guaranty Ltd.		16,120		300,960
Axis Capital Holdings Ltd.		9,844		400,946
Berkshire Hathaway, Inc., Class B *		152,970		15,627,415
Brown & Brown, Inc.		9,707		291,210
Cincinnati Financial Corp.		12,467		561,140
CNA Financial Corp.		2,115		66,707
Erie Indemnity Co., Class A		2,147		157,160
Everest Re Group Ltd.		4,303		536,197
Fidelity National Financial, Inc., Class A		17,940		447,424
Genworth Financial, Inc., Class A *		40,722		347,766
Hartford Financial Services Group, Inc.		36,756		867,809
HCC Insurance Holdings, Inc.		8,970		358,800
Lincoln National Corp.		23,196		685,210
Loews Corp.		26,015		1,121,507
Markel Corp. *		715		345,667
Marsh & McLennan Cos., Inc.		45,115		1,675,571
MetLife, Inc.		91,244		3,233,687
PartnerRe Ltd.		5,020		447,985
Principal Financial Group, Inc.		23,094		730,001
Prudential Financial, Inc.		38,866		2,159,784
Reinsurance Group of America, Inc.		6,210		357,075
RenaissanceRe Holdings Ltd.		4,225		369,434
The Allstate Corp.		40,378		1,858,195
The Chubb Corp.		22,155		1,861,685
The Progressive Corp.		47,610		1,159,780
The Travelers Cos., Inc.		32,072		2,579,230
Torchmark Corp.		7,874		442,440
Unum Group		24,150		590,950
Validus Holdings Ltd.		8,419		299,969
W.R. Berkley Corp.		9,254		384,041
White Mountains Insurance Group Ltd.		451		254,815
XL Group plc		25,100		718,864

				54,256,527

Materials 3.7%
Air Products & Chemicals, Inc.		17,612		1,520,620
Airgas, Inc.		5,814		583,028
Albemarle Corp.		7,707		501,572
Alcoa, Inc.		89,010		758,365
Allegheny Technologies, Inc.		8,970		273,316
Allied Nevada Gold Corp. *		6,900		126,270
AptarGroup, Inc.		5,544		299,043
Ashland, Inc.		6,017		469,145
Ball Corp.		12,814		569,070
Bemis Co., Inc.		8,970		334,940
Celanese Corp., Series A		13,120		614,672
CF Industries Holdings, Inc.		5,180		1,040,299
Cliffs Natural Resources, Inc. (a)		11,876		302,363
Crown Holdings, Inc. *		12,420		482,765
E.I. du Pont de Nemours & Co.		79,290		3,797,991

See financial notes 41

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Eastman Chemical Co.		13,110		914,160
Ecolab, Inc.		22,112		1,692,674
FMC Corp.		11,747		707,874
Freeport-McMoRan Copper & Gold, Inc.		79,160		2,526,787
Huntsman Corp.		15,940		274,646
International Flavors & Fragrances, Inc.		6,900		503,562
International Paper Co.		36,390		1,601,524
LyondellBasell Industries N.V., Class A		31,628		1,854,033
Martin Marietta Materials, Inc.		3,750		364,238
MeadWestvaco Corp.		14,644		522,937
Monsanto Co.		44,798		4,525,942
Newmont Mining Corp.		41,458		1,670,343
Nucor Corp.		26,494		1,193,555
Owens-Illinois, Inc. *		13,800		351,900
PPG Industries, Inc.		11,919		1,605,013
Praxair, Inc.		24,876		2,812,232
Reliance Steel & Aluminum Co.		6,210		413,524
Rock-Tenn Co., Class A		6,210		549,275
Rockwood Holdings, Inc.		6,468		404,897
Royal Gold, Inc.		5,272		345,527
Sealed Air Corp.		17,940		398,447
Sigma-Aldrich Corp.		9,974		768,596
Sonoco Products Co.		8,280		263,056
Steel Dynamics, Inc.		17,940		273,944
The Dow Chemical Co.		100,320		3,182,150
The Mosaic Co.		23,028		1,348,059
The Scotts Miracle-Gro Co., Class A		3,566		158,009
The Sherwin-Williams Co.		7,042		1,137,917
The Valspar Corp.		6,942		427,697
Tronox Ltd., Class A (a)		2,144		44,038
United States Steel Corp. (a)		11,841		246,766
Valhi, Inc.		2,070		33,700
Vulcan Materials Co.		10,712		545,562
W.R. Grace & Co. *		5,784		414,019
Westlake Chemical Corp.		1,596		137,607

				45,887,669

Media 3.6%
AMC Networks, Inc., Class A *		4,931		283,039
Cablevision Systems Corp., Class A		17,727		248,001
CBS Corp., Class B Non Voting Shares		49,764		2,159,260
Charter Communications, Inc., Class A *		3,751		324,049
Comcast Corp., Class A		222,308		8,845,635
DIRECTV *		50,550		2,434,993
Discovery Communications, Inc., Series A *		20,036		1,469,240
DISH Network Corp., Class A		18,946		659,321
Gannett Co., Inc.		20,010		401,601
John Wiley & Sons, Inc., Class A		4,140		151,441
Liberty Global, Inc., Series A *		20,884		1,438,699
Liberty Media Corp. *		9,212		994,896
News Corp., Class A		168,603		4,855,766
Omnicom Group, Inc.		22,122		1,272,679
Scripps Networks Interactive, Inc., Class A		8,224		518,523
Sirius XM Radio, Inc.		274,880		852,128
Starz - Liberty Capital *		9,212		170,975
The Interpublic Group of Cos., Inc.		35,237		450,329
The Walt Disney Co.		148,210		8,090,784
The Washington Post Co., Class B		362		144,271
Time Warner Cable, Inc.		25,210		2,177,892
Time Warner, Inc.		79,103		4,205,907
Viacom, Inc., Class B		38,698		2,262,285

				44,411,714

Pharmaceuticals, Biotechnology & Life Sciences 7.8%
AbbVie, Inc.		132,480		4,891,161
Actavis, Inc. *		10,640		906,102
Agilent Technologies, Inc.		28,980		1,202,090
Alexion Pharmaceuticals, Inc. *		16,112		1,397,555
Allergan, Inc.		25,720		2,788,562
Amgen, Inc.		64,334		5,880,771
Biogen Idec, Inc. *		19,958		3,319,814
BioMarin Pharmaceutical, Inc. *		10,172		589,671
Bristol-Myers Squibb Co.		138,102		5,105,631
Celgene Corp. *		35,322		3,644,524
Covance, Inc. *		4,830		321,630
Eli Lilly & Co.		86,194		4,711,364
Endo Health Solutions, Inc. *		9,358		290,098
Forest Laboratories, Inc. *		19,512		718,042
Gilead Sciences, Inc. *		126,690		5,410,930
Hospira, Inc. *		13,800		406,134
Illumina, Inc. *		10,366		519,647
Johnson & Johnson		232,478		17,693,900
Life Technologies Corp. *		14,284		830,329
Merck & Co., Inc.		255,029		10,897,389
Mettler-Toledo International, Inc. *		2,512		534,554
Mylan, Inc. *		33,908		1,004,016
Onyx Pharmaceuticals, Inc. *		6,154		463,458
PerkinElmer, Inc.		9,664		330,219
Perrigo Co.		7,200		814,824
Pfizer, Inc.		617,627		16,904,451
Pharmacyclics, Inc. *		4,188		367,623
Regeneron Pharmaceuticals, Inc. *		6,210		1,037,070
Techne Corp.		2,867		194,927
Thermo Fisher Scientific, Inc.		30,447		2,246,989
United Therapeutics Corp. *		4,140		247,613
Vertex Pharmaceuticals, Inc. *		17,982		841,917
Warner Chilcott plc, Class A		15,180		205,082
Waters Corp. *		7,251		672,313
Zoetis, Inc. *		7,080		236,826

				97,627,226

Real Estate 2.9%
Alexandria Real Estate Equities, Inc.		5,521		392,764
American Campus Communities, Inc.		8,660		391,432
American Capital Agency Corp.		28,448		902,370
American Tower Corp.		33,120		2,570,112
Annaly Capital Management, Inc.		85,484		1,324,147
AvalonBay Communities, Inc.		9,460		1,180,892
Boston Properties, Inc.		12,620		1,310,966
BRE Properties, Inc.		6,231		302,889
Camden Property Trust		6,900		477,066
CBRE Group, Inc., Class A *		25,200		609,084
Chimera Investment Corp.		85,560		254,969

42 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
DDR Corp.		20,010		345,573
Digital Realty Trust, Inc.		10,180		681,856
Equity Residential		26,744		1,471,990
Essex Property Trust, Inc.		3,004		447,566
Federal Realty Investment Trust		5,520		586,279
General Growth Properties, Inc.		37,498		717,712
HCP, Inc.		37,694		1,842,483
Health Care REIT, Inc.		21,690		1,391,197
Host Hotels & Resorts, Inc.		60,298		1,005,168
Jones Lang LaSalle, Inc.		3,640		351,770
Kimco Realty Corp.		33,853		736,980
Liberty Property Trust		9,660		374,711
Piedmont Office Realty Trust, Inc., Class A		13,978		274,807
Plum Creek Timber Co., Inc.		13,800		669,300
ProLogis, Inc.		38,640		1,504,641
Public Storage		12,368		1,870,165
Rayonier, Inc.		10,350		578,254
Realogy Holdings Corp. *		3,450		154,732
Realty Income Corp.		14,893		679,865
Regency Centers Corp.		7,590		393,769
Senior Housing Properties Trust		14,708		369,024
Simon Property Group, Inc.		25,840		4,104,942
SL Green Realty Corp.		7,396		603,661
Taubman Centers, Inc.		5,036		386,362
The Macerich Co.		11,408		685,735
UDR, Inc.		20,874		498,054
Ventas, Inc.		25,474		1,803,050
Vornado Realty Trust		14,084		1,129,678
Weyerhaeuser Co.		46,860		1,378,153

				36,754,168

Retailing 4.3%
Abercrombie & Fitch Co., Class A		6,900		321,747
Advance Auto Parts, Inc.		6,227		475,369
Amazon.com, Inc. *		30,360		8,023,237
American Eagle Outfitters, Inc.		14,691		303,810
AutoNation, Inc. *		2,870		125,620
AutoZone, Inc. *		3,030		1,151,854
Bed Bath & Beyond, Inc. *		19,348		1,097,999
Best Buy Co., Inc.		22,153		363,531
CarMax, Inc. *		20,640		792,782
Dick’s Sporting Goods, Inc.		8,014		400,700
Dillard’s, Inc., Class A		2,444		194,738
Dollar General Corp. *		22,212		1,029,304
Dollar Tree, Inc. *		19,348		874,239
Expedia, Inc.		7,648		488,248
Family Dollar Stores, Inc.		7,974		458,904
Foot Locker, Inc.		13,110		448,231
Genuine Parts Co.		13,157		934,542
GNC Holdings, Inc., Class A		6,532		267,812
Groupon, Inc. *		20,169		91,366
J.C. Penney Co., Inc. (a)		12,451		218,764
Kohl’s Corp.		18,052		832,197
Liberty Interactive Corp., Series A *		43,142		900,805
Limited Brands, Inc.		19,804		901,478
LKQ Corp. *		24,840		526,360
Lowe’s Cos., Inc.		94,102		3,589,991
Macy’s, Inc.		33,546		1,378,741
Netflix, Inc. *		4,830		908,426
Nordstrom, Inc.		13,110		710,824
O’Reilly Automotive, Inc. *		9,465		962,969
PetSmart, Inc.		8,983		584,883
Priceline.com, Inc. *		4,140		2,846,581
Ross Stores, Inc.		18,684		1,082,925
Sally Beauty Holdings, Inc. *		12,946		359,122
Sears Holdings Corp. *(a)		2,944		132,480
Signet Jewelers Ltd.		6,594		403,685
Staples, Inc.		56,300		742,034
Target Corp.		54,631		3,439,568
The Gap, Inc.		24,892		819,445
The Home Depot, Inc.		125,060		8,566,610
The TJX Cos., Inc.		61,442		2,763,047
Tiffany & Co.		9,919		666,160
Tractor Supply Co.		5,762		599,190
TripAdvisor, Inc. *		9,144		415,686
Ulta Salon, Cosmetics & Fragrance, Inc.		4,830		427,745
Urban Outfitters, Inc. *		9,057		366,990
Williams-Sonoma, Inc.		7,180		325,972

				53,316,711

Semiconductors & Semiconductor Equipment 2.0%
Advanced Micro Devices, Inc. *(a)		48,990		121,985
Altera Corp.		27,012		956,765
Analog Devices, Inc.		24,859		1,124,124
Applied Materials, Inc.		100,130		1,371,781
Atmel Corp. *		37,288		253,558
Broadcom Corp., Class A		42,954		1,465,161
Cree, Inc. *		9,676		437,646
Intel Corp.		418,635		8,728,540
KLA-Tencor Corp.		13,837		757,714
Lam Research Corp. *		14,264		603,367
Linear Technology Corp.		19,112		730,843
LSI Corp. *		47,650		331,644
Marvell Technology Group Ltd.		40,710		411,171
Maxim Integrated Products, Inc.		24,474		763,099
Microchip Technology, Inc.		15,903		579,982
Micron Technology, Inc. *		93,042		780,622
NVIDIA Corp.		51,060		646,420
ON Semiconductor Corp. *		36,570		292,560
Skyworks Solutions, Inc. *		16,560		352,728
Texas Instruments, Inc.		93,698		3,220,400
Xilinx, Inc.		22,124		824,562

				24,754,672

Software & Services 9.6%
Accenture plc, Class A		53,403		3,971,047
Activision Blizzard, Inc.		34,853		498,398
Adobe Systems, Inc. *		41,077		1,614,326
Akamai Technologies, Inc. *		15,180		561,053
Alliance Data Systems Corp. *		4,140		656,977
ANSYS, Inc. *		7,600		576,080
Autodesk, Inc. *		18,630		684,094
Automatic Data Processing, Inc.		40,404		2,479,189
BMC Software, Inc. *		12,438		498,391
Broadridge Financial Solutions, Inc.		10,397		238,611
CA, Inc.		28,489		697,696
Citrix Systems, Inc. *		15,870		1,125,183
Cognizant Technology Solutions Corp., Class A *		25,478		1,955,946

See financial notes 43

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Computer Sciences Corp.		12,910		620,067
Concur Technologies, Inc. *		3,740		262,548
eBay, Inc. *		97,432		5,327,582
Electronic Arts, Inc. *		25,420		445,613
Equinix, Inc. *		4,140		875,817
Facebook, Inc., Class A *		43,406		1,182,813
FactSet Research Systems, Inc. (a)		3,520		342,461
Fidelity National Information Services, Inc.		21,480		808,722
Fiserv, Inc. *		11,191		918,893
Fortinet, Inc. *		10,820		261,628
Gartner, Inc. *		7,728		384,545
Genpact Ltd.		11,114		195,717
Global Payments, Inc.		6,590		317,704
Google, Inc., Class A *		22,304		17,869,965
IAC/InterActiveCorp		6,610		269,357
Informatica Corp. *		8,970		314,040
International Business Machines Corp.		89,082		17,890,338
Intuit, Inc.		23,255		1,499,482
LinkedIn Corp., Class A *		5,528		929,699
MasterCard, Inc., Class A		8,990		4,655,202
MICROS Systems, Inc. *		6,632		283,850
Microsoft Corp.		636,802		17,703,096
NetSuite, Inc. *		2,244		156,609
Nuance Communications, Inc. *		20,426		376,043
Oracle Corp.		316,167		10,831,881
Paychex, Inc.		26,910		890,721
Rackspace Hosting, Inc. *		9,012		503,410
Red Hat, Inc. *		15,912		808,489
SAIC, Inc.		23,606		279,023
Salesforce.com, Inc. *		10,850		1,836,037
ServiceNow, Inc. *		1,211		39,321
SolarWinds, Inc. *		5,036		284,333
Solera Holdings, Inc.		5,567		313,422
Symantec Corp. *		58,676		1,375,365
Synopsys, Inc. *		12,478		437,104
Teradata Corp. *		14,438		838,270
TIBCO Software, Inc. *		12,604		270,356
Total System Services, Inc.		13,424		318,954
Vantiv, Inc., Class A *		4,140		90,086
VeriFone Systems, Inc. *		8,970		170,161
VeriSign, Inc. *		13,229		605,888
Visa, Inc., Class A		43,560		6,910,358
VMware, Inc., Class A *		7,118		511,286
Western Union Co.		49,931		700,532
Yahoo! Inc. *		87,096		1,856,016

				119,319,795

Technology Hardware & Equipment 6.3%
Amphenol Corp., Class A		13,180		933,935
Apple, Inc.		78,860		34,808,804
Arrow Electronics, Inc. *		8,970		360,146
Avnet, Inc. *		11,730		414,186
Cisco Systems, Inc.		444,188		9,261,320
Corning, Inc.		124,395		1,568,621
Dell, Inc.		121,712		1,697,882
Dolby Laboratories, Inc., Class A		4,214		134,342
EMC Corp. *		176,640		4,064,486
F5 Networks, Inc. *		6,452		609,262
FLIR Systems, Inc.		13,114		345,423
Harris Corp.		9,667		464,693
Hewlett-Packard Co.		164,256		3,308,116
Jabil Circuit, Inc.		15,870		297,245
JDS Uniphase Corp. *		18,978		268,728
Juniper Networks, Inc. *		43,897		907,790
Molex, Inc.		11,985		332,104
Motorola Solutions, Inc.		23,844		1,483,335
NCR Corp. *		13,157		362,870
NetApp, Inc. *		30,360		1,027,079
Palo Alto Networks, Inc. *(a)		2,590		158,327
QUALCOMM, Inc.		142,520		9,353,588
Riverbed Technology, Inc. *		12,662		193,475
SanDisk Corp. *		20,010		1,008,304
Seagate Technology plc		28,080		903,053
TE Connectivity Ltd.		35,360		1,418,997
Trimble Navigation Ltd. *		10,354		615,338
Western Digital Corp.		18,364		866,046
Xerox Corp.		109,150		885,207

				78,052,702

Telecommunication Services 2.9%
AT&T, Inc.		476,468		17,109,966
CenturyLink, Inc.		53,760		1,863,859
Crown Castle International Corp. *		24,456		1,707,029
Frontier Communications Corp. (a)		85,598		354,376
Level 3 Communications, Inc. *		13,110		261,938
MetroPCS Communications, Inc. *		25,941		254,222
SBA Communications Corp., Class A *		10,988		781,466
Sprint Nextel Corp. *		249,823		1,448,973
Telephone & Data Systems, Inc.		8,310		190,216
United States Cellular Corp. *		1,448		53,272
Verizon Communications, Inc.		240,064		11,170,178
Windstream Corp.		48,300		414,897

				35,610,392

Transportation 1.8%
C.H. Robinson Worldwide, Inc.		13,800		786,876
CSX Corp.		85,866		1,969,766
Delta Air Lines, Inc. *		74,164		1,058,320
Expeditors International of Washington, Inc.		17,944		697,124
FedEx Corp.		24,392		2,571,649
Hertz Global Holdings, Inc. *		24,937		497,493
J.B. Hunt Transport Services, Inc.		7,413		515,352
Kansas City Southern		9,131		940,219
Norfolk Southern Corp.		26,604		1,943,422
Southwest Airlines Co.		61,928		724,558
Union Pacific Corp.		39,330		5,392,536
United Continental Holdings, Inc. *		27,603		737,276
United Parcel Service, Inc., Class B		59,866		4,947,925

				22,782,516

Utilities 3.5%
AGL Resources, Inc.		9,690		387,212
Alliant Energy Corp.		9,136		435,696
Ameren Corp.		20,014		676,273
American Electric Power Co., Inc.		40,710		1,904,821
American Water Works Co., Inc.		15,814		623,862

44 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Aqua America, Inc.		11,730		341,695
Atmos Energy Corp.		7,590		289,710
Calpine Corp. *		32,035		589,444
CenterPoint Energy, Inc.		35,553		761,901
CMS Energy Corp.		21,816		580,524
Consolidated Edison, Inc.		24,840		1,465,560
Dominion Resources, Inc.		48,300		2,704,800
DTE Energy Co.		14,247		951,700
Duke Energy Corp.		58,816		4,073,008
Edison International		27,130		1,303,054
Entergy Corp.		15,132		942,118
Exelon Corp.		71,760		2,223,842
FirstEnergy Corp.		34,884		1,377,220
Integrys Energy Group, Inc.		6,319		357,466
ITC Holdings Corp.		4,140		349,913
MDU Resources Group, Inc.		15,685		378,950
National Fuel Gas Co.		6,942		403,955
NextEra Energy, Inc.		35,280		2,535,574
NiSource, Inc.		25,860		716,322
Northeast Utilities		26,296		1,091,547
NRG Energy, Inc.		26,952		646,848
NV Energy, Inc.		19,363		382,613
OGE Energy Corp.		8,292		480,190
ONEOK, Inc.		17,040		766,630
Pepco Holdings, Inc.		18,677		378,956
PG&E Corp.		35,880		1,529,923
Pinnacle West Capital Corp.		10,294		575,846
PPL Corp.		48,570		1,496,927
Public Service Enterprise Group, Inc.		42,346		1,380,056
Questar Corp.		14,591		343,034
SCANA Corp.		10,808		527,863
Sempra Energy		18,820		1,463,443
TECO Energy, Inc.		16,607		286,471
The AES Corp.		53,820		625,388
The Southern Co.		73,246		3,296,803
UGI Corp.		9,660		346,021
Westar Energy, Inc.		10,434		323,663
Wisconsin Energy Corp.		19,320		797,916
Xcel Energy, Inc.		40,710		1,168,377

				44,283,135

Total Common Stock
(Cost $1,068,036,018)				1,242,646,282




Other Investment Companies 0.2% of net assets

Equity Fund 0.1%
iShares Russell 1000 Index Fund		17,000		1,434,290

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		543,644		543,644

Total Other Investment Companies
(Cost $1,984,387)				1,977,934



End of Investments.



Collateral Invested for Securities on Loan 0.1% of net assets


State Street Institutional U.S. Government Money Market Fund		1,715,793		1,715,793

Total Collateral Invested for Securities on Loan
(Cost $1,715,793)				1,715,793



End of Collateral Invested for Securities on Loan

At 02/28/13, the tax basis cost of the fund’s investments was $1,070,665,146 and the unrealized appreciation and depreciation were $194,538,038 and ($20,578,968), respectively, with a net unrealized appreciation of $173,959,070.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.


Reg’d —		Registered
REIT —		Real Estate Investment Trust

See financial notes 45

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$1,242,646,282		$—		$—		$1,242,646,282
Other Investment Companies¹		1,977,934		—		—		1,977,934

Total		$1,244,624,216		$—		$—		$1,244,624,216

Other Financial Instruments
Collateral Invested for Securities on Loan		$1,715,793		$—		$—		$1,715,793


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

Feburary 28,

Investments in Securities

2012

(Losses)

Purchases

Sales

out

2013

Rights

$—

$1,451

$4,000

$17,332

($22,783

)

$—

Total

$—

$1,451

$4,000

$17,332

($22,783

)

$—

46 See financial notes

Schwab U.S. Large-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments in affiliated issuers, at value (cost $1,457,758)		$1,485,051
Investments in unaffiliated issuers, at value (cost $1,068,562,647) including securities on loan of $1,651,507	+	1,243,139,165

Total investments, at value (cost $1,070,020,405)		1,244,624,216
Collateral invested for securities on loan		1,715,793
Receivables:
Investments sold		1,777,589
Fund shares sold		3,615,217
Dividends		2,827,263
Income from securities on loan		4,214
Foreign tax reclaims		1,481
Interest	+	7

Total assets		1,254,565,780

Liabilities

Collateral held for securities on loan		1,715,793
Payables:
Investments bought		3,810,434
Investment adviser fees		4,088
Fund shares redeemed	+	1,785,642

Total liabilities		7,315,957

Net Assets

Total assets		1,254,565,780
Total liabilities	—	7,315,957

Net assets		$1,247,249,823

Net Assets by Source
Capital received from investors		1,068,913,280
Net investment income not yet distributed		3,408,247
Net realized capital gains		207,859
Net unrealized capital gains		174,720,437

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,247,249,823

34,500,000

$36.15

See financial notes 47

Schwab U.S. Large-Cap ETF

Statement of

Operations

For September 1, 2012 through February 28, 2013; unaudited



Investment Income

Dividends received from affiliated issuer		$9,738
Dividends received from unaffiliated issuers (net of foreign withholding tax of $12,982)		12,503,173
Interest		273
Securities on loan	+	25,017

Total investment income		12,538,201

Expenses

Investment adviser fees		220,638

Total expenses	−	220,638

Net investment income		12,317,563

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		4,707
Net realized losses on unaffiliated investments		(3,806,632	)
Net realized gains on in-kind redemptions	+	7,027,194

Net realized gains		3,225,269
Net unrealized gains on affiliated issuer		218,046
Net unrealized gains on unaffiliated investments	+	78,443,725

Net unrealized gains	+	78,661,771

Net realized and unrealized gains		81,887,040

Net increase in net assets resulting from operations		$94,204,603

48 See financial notes

Schwab U.S. Large-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$12,317,563			$16,197,348
Net realized gains		3,225,269			7,854,618
Net unrealized gains	+	78,661,771			97,201,951

Net increase in net assets resulting from operations		94,204,603			121,253,917

Distributions to Shareholders

Distributions from net investment income		($12,181,550	)		($14,860,890	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

8,650,000

$300,234,959

6,850,000

$211,482,525

Shares redeemed

(750,000

)

(25,816,099

)

(1,400,001

)

(42,848,148

)

Net transactions in fund shares

7,900,000

$274,418,860

5,449,999

$168,634,377

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

26,600,000

$890,807,910

21,150,001

$615,780,506

Total increase

7,900,000

356,441,913

5,449,999

275,027,404

End of period

34,500,000

$1,247,249,823

26,600,000

$890,807,910

Net investment income not yet distributed

$3,408,247

$3,272,234

See financial notes 49

Schwab U.S. Large-Cap Growth ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			12/9/09¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		34.05			29.44			24.21			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.28			0.36			0.27			0.15
Net realized and unrealized gains (losses)		2.03			4.59			5.20			(0.83	)

Total from investment operations		2.31			4.95			5.47			(0.68	)
Less distributions:
Distributions from net investment income		(0.31	)		(0.34	)		(0.24	)		(0.11	)

Net asset value at end of period		36.05			34.05			29.44			24.21

Total return (%)		6.81	²		16.96			22.57			(2.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08	^3,4		0.13			0.13			0.14	^3,5
Gross operating expenses		0.08	^3,4		0.13			0.13			0.14	³
Net investment income (loss)		1.66	³		1.17			0.93			0.86	³
Portfolio turnover rate⁶		4	²		8			10			6	²
Net assets, end of period ($ x 1,000)		605,674			475,062			309,155			108,946

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁵ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

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

50 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.9%	Common Stock		523,669,875		604,953,043
	0	.0%	Other Investment Companies		155,115		155,396


	99	.9%	Total Investments		523,824,990		605,108,439
	0	.2%	Collateral Invested for Securities on Loan		1,171,332		1,171,332
	(0	.1)%	Other Assets and Liabilities, Net				(605,596	)


	100	.0%	Net Assets				605,674,175


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 0.4%
Allison Transmission Holdings, Inc. (a)		2,563		59,205
BorgWarner, Inc. *		9,913		737,626
Johnson Controls, Inc.		58,004		1,825,386

				2,622,217

Banks 0.2%
SunTrust Banks, Inc.		45,689		1,260,559

Capital Goods 7.1%
AGCO Corp.		8,204		422,342
AMETEK, Inc.		20,614		862,284
B/E Aerospace, Inc. *		8,758		460,758
Caterpillar, Inc.		55,508		5,127,274
Cummins, Inc.		14,984		1,736,196
Danaher Corp.		49,376		3,041,562
Deere & Co.		33,294		2,924,212
Donaldson Co., Inc.		11,460		412,904
Dover Corp.		15,134		1,110,079
Emerson Electric Co.		61,397		3,481,210
Fastenal Co.		22,773		1,175,770
Flowserve Corp.		4,210		675,705
Fluor Corp.		14,145		875,575
Fortune Brands Home & Security, Inc. *		13,978		482,940
Gardner Denver, Inc.		4,121		292,550
Illinois Tool Works, Inc.		36,106		2,220,519
Jacobs Engineering Group, Inc. *		11,112		542,710
Joy Global, Inc.		9,072		574,620
KBR, Inc.		12,614		383,339
Lincoln Electric Holdings, Inc.		7,130		399,637
MSC Industrial Direct Co., Inc., Class A		3,940		336,161
PACCAR, Inc.		29,835		1,415,074
Pall Corp.		9,447		644,096
Pentair Ltd. - Reg’d		17,817		949,112
Precision Castparts Corp.		12,385		2,310,917
Quanta Services, Inc. *		17,944		509,610
Rockwell Collins, Inc.		11,877		713,926
Roper Industries, Inc.		8,353		1,040,867
Spirit AeroSystems Holdings, Inc., Class A *		9,267		161,338
SPX Corp.		4,382		352,795
Textron, Inc.		23,994		692,227
The Babcock & Wilcox Co.		10,058		271,767
The Boeing Co.		57,630		4,431,747
TransDigm Group, Inc.		3,785		538,757
W.W. Grainger, Inc.		5,040		1,141,358
Xylem, Inc.		15,553		427,708

				43,139,646

Commercial & Professional Services 0.8%
Copart, Inc. *		9,167		312,961
Equifax, Inc.		10,127		558,200
IHS, Inc., Class A *		4,199		446,144
Nielsen Holdings N.V. *		13,366		450,301
Robert Half International, Inc.		11,815		420,023
Stericycle, Inc. *		7,345		704,532
The Dun & Bradstreet Corp.		3,797		306,038
Towers Watson & Co., Class A		4,906		326,593
Verisk Analytics, Inc., Class A *		12,296		719,562
Waste Connections, Inc.		10,438		357,084

				4,601,438

Consumer Durables & Apparel 1.9%
Coach, Inc.		24,067		1,163,158
Fossil, Inc. *		4,577		470,378
Jarden Corp. *		6,166		382,970
Michael Kors Holdings Ltd. *		9,932		588,769
Mohawk Industries, Inc. *		4,919		521,512
NIKE, Inc., Class B		62,036		3,378,481
NVR, Inc. *		392		395,606
PVH Corp.		6,624		807,134
Ralph Lauren Corp.		5,229		907,075
Stanley Black & Decker, Inc.		14,390		1,132,493
Toll Brothers, Inc. *		12,637		431,175
Under Armour, Inc., Class A *		6,586		324,558
VF Corp.		7,492		1,208,160

				11,711,469

Consumer Services 2.1%
Apollo Group, Inc., Class A *		8,496		143,328
Burger King Worldwide, Inc. (a)		5,252		95,849
Chipotle Mexican Grill, Inc. *		2,688		851,532
Dunkin’ Brands Group, Inc.		6,160		228,844
Hyatt Hotels Corp., Class A *		4,769		195,958
Las Vegas Sands Corp.		30,033		1,546,399
Marriott International, Inc., Class A		20,833		821,862
MGM Resorts International *		31,341		391,449
Panera Bread Co., Class A *		2,421		389,660

See financial notes 51

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Penn National Gaming, Inc. *		5,712		284,743
Starbucks Corp.		63,135		3,461,061
Starwood Hotels & Resorts Worldwide, Inc.		16,573		999,849
Weight Watchers International, Inc. (a)		2,227		95,405
Wynn Resorts Ltd.		6,767		791,062
Yum! Brands, Inc.		38,309		2,508,473

				12,805,474

Diversified Financials 2.7%
Affiliated Managers Group, Inc. *		4,382		640,780
Ameriprise Financial, Inc.		17,401		1,194,231
BlackRock, Inc.		10,691		2,563,167
CIT Group, Inc. *		17,100		715,806
Discover Financial Services		42,772		1,648,005
Franklin Resources, Inc.		11,729		1,656,721
IntercontinentalExchange, Inc. *		6,137		950,130
Leucadia National Corp.		24,848		668,411
Moody’s Corp.		16,473		791,693
MSCI, Inc. *		10,165		336,767
State Street Corp.		39,373		2,228,118
T. Rowe Price Group, Inc.		21,569		1,535,497
The Charles Schwab Corp. (b)		93,005		1,510,401

				16,439,727

Energy 9.7%
Anadarko Petroleum Corp.		42,410		3,374,988
Baker Hughes, Inc.		37,178		1,666,318
Cabot Oil & Gas Corp.		17,907		1,109,697
Cameron International Corp. *		20,968		1,336,081
Cimarex Energy Co.		7,392		497,556
Concho Resources, Inc. *		8,963		806,311
CONSOL Energy, Inc.		19,181		616,669
Continental Resources, Inc. *		4,873		428,824
Denbury Resources, Inc. *		33,028		598,467
Diamond Offshore Drilling, Inc.		5,812		404,980
Ensco plc, Class A		19,626		1,180,308
EOG Resources, Inc.		23,016		2,893,341
FMC Technologies, Inc. *		20,102		1,043,495
Halliburton Co.		78,626		3,263,765
Helmerich & Payne, Inc.		8,936		592,099
Hess Corp.		25,214		1,676,731
HollyFrontier Corp.		17,169		964,898
Kinder Morgan, Inc.		53,724		1,991,549
Marathon Petroleum Corp.		28,729		2,381,060
Murphy Oil Corp.		15,573		948,084
Nabors Industries Ltd. *		24,600		412,296
National-Oilwell Varco, Inc.		36,260		2,470,394
Newfield Exploration Co. *		11,424		264,123
Noble Corp.		21,363		765,223
Noble Energy, Inc.		15,062		1,669,321
Occidental Petroleum Corp.		68,653		5,652,202
Oceaneering International, Inc.		9,104		578,923
Oil States International, Inc. *		4,568		347,853
Peabody Energy Corp.		22,728		490,016
Pioneer Natural Resources Co.		10,416		1,310,437
Plains Exploration & Production Co. *		11,088		503,063
QEP Resources, Inc.		15,058		458,667
Range Resources Corp.		13,776		1,057,997
Rowan Cos. plc, Class A *		10,585		366,135
SandRidge Energy, Inc. *(a)		29,381		167,472
Schlumberger Ltd.		112,738		8,776,653
SM Energy Co.		5,598		324,012
Southwestern Energy Co. *		29,690		1,017,476
Superior Energy Services, Inc. *		13,260		350,727
Tesoro Corp.		11,845		666,163
Transocean Ltd. *		30,445		1,592,274
Ultra Petroleum Corp. *		12,791		218,214
Weatherford International Ltd. *		64,188		762,553
Whiting Petroleum Corp. *		9,820		478,234
WPX Energy, Inc. *		17,218		244,323

				58,719,972

Food & Staples Retailing 3.9%
Costco Wholesale Corp.		36,703		3,717,647
CVS Caremark Corp.		105,874		5,412,279
Wal-Mart Stores, Inc.		141,788		10,035,755
Walgreen Co.		72,901		2,984,567
Whole Foods Market, Inc.		14,710		1,259,470

				23,409,718

Food, Beverage & Tobacco 2.3%
Brown-Forman Corp., Class B		12,825		841,577
Bunge Ltd.		12,432		921,336
Crimson Wine Group Ltd. *		1		7
Green Mountain Coffee Roasters, Inc. *(a)		10,466		499,856
Lorillard, Inc.		32,893		1,267,696
Monster Beverage Corp. *		12,510		630,879
PepsiCo, Inc.		131,354		9,952,693

				14,114,044

Health Care Equipment & Services 6.8%
Aetna, Inc.		28,280		1,334,533
AmerisourceBergen Corp.		19,906		939,563
Baxter International, Inc.		46,664		3,154,486
Becton, Dickinson & Co.		16,700		1,470,602
C.R. Bard, Inc.		6,562		648,654
CareFusion Corp. *		18,843		616,920
Cerner Corp. *		12,385		1,083,192
Coventry Health Care, Inc.		11,292		512,205
Covidien plc		40,096		2,548,903
DaVita HealthCare Partners, Inc. *		7,056		844,039
DENTSPLY International, Inc.		12,118		501,928
Edwards Lifesciences Corp. *		9,744		837,302
Express Scripts Holding Co. *		69,376		3,948,188
HCA Holdings, Inc.		20,391		756,302
Henry Schein, Inc. *		7,517		670,667
Hologic, Inc. *		22,856		498,947
Hospira, Inc. *		14,017		412,520
IDEXX Laboratories, Inc. *		4,718		434,622
Intuitive Surgical, Inc. *		3,360		1,713,230
Laboratory Corp. of America Holdings *		8,079		715,799
McKesson Corp.		20,013		2,123,980
Medtronic, Inc.		85,690		3,852,622
Omnicare, Inc.		8,899		331,577
Patterson Cos., Inc.		7,159		260,158
Quest Diagnostics, Inc.		13,440		754,925

52 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
ResMed, Inc.		11,976		532,812
St. Jude Medical, Inc.		26,041		1,067,681
Stryker Corp.		24,439		1,561,163
The Cooper Cos., Inc.		4,064		431,028
UnitedHealth Group, Inc.		86,686		4,633,367
Universal Health Services, Inc., Class B		7,546		436,838
Varian Medical Systems, Inc. *		9,211		650,573
Zimmer Holdings, Inc.		14,674		1,099,963

				41,379,289

Household & Personal Products 1.4%
Church & Dwight Co., Inc.		11,760		728,649
Colgate-Palmolive Co.		37,709		4,315,041
Energizer Holdings, Inc.		5,256		483,184
Herbalife Ltd. (a)		9,099		366,599
Mead Johnson Nutrition Co.		17,225		1,290,325
The Estee Lauder Cos., Inc., Class A		20,431		1,309,627

				8,493,425

Insurance 3.6%
Alleghany Corp. *		1,444		545,644
Axis Capital Holdings Ltd.		9,573		389,908
Berkshire Hathaway, Inc., Class B *		154,755		15,809,771
Erie Indemnity Co., Class A		2,105		154,086
Everest Re Group Ltd.		4,379		545,667
Loews Corp.		26,409		1,138,492
Markel Corp. *		785		379,508
PartnerRe Ltd.		5,118		456,730
RenaissanceRe Holdings Ltd.		4,063		355,269
The Progressive Corp.		47,147		1,148,501
White Mountains Insurance Group Ltd.		462		261,030
XL Group plc		25,454		729,003

				21,913,609

Materials 4.2%
Airgas, Inc.		6,012		602,883
Albemarle Corp.		7,614		495,519
Allied Nevada Gold Corp. *		7,076		129,491
AptarGroup, Inc.		5,591		301,578
Ashland, Inc.		6,267		488,638
Ball Corp.		13,021		578,263
CF Industries Holdings, Inc.		5,326		1,069,621
Cliffs Natural Resources, Inc. (a)		12,133		308,906
Crown Holdings, Inc. *		12,253		476,274
Ecolab, Inc.		22,365		1,712,041
FMC Corp.		11,602		699,136
Freeport-McMoRan Copper & Gold, Inc.		80,406		2,566,559
LyondellBasell Industries N.V., Class A		32,256		1,890,847
Monsanto Co.		45,320		4,578,680
Newmont Mining Corp.		42,009		1,692,543
Nucor Corp.		27,053		1,218,738
Praxair, Inc.		25,142		2,842,303
Reliance Steel & Aluminum Co.		6,384		425,111
Rock-Tenn Co., Class A		6,048		534,946
Royal Gold, Inc.		5,594		366,631
Sigma-Aldrich Corp.		10,174		784,008
The Mosaic Co.		23,388		1,369,133
W.R. Grace & Co. *		5,999		429,408

				25,561,257

Media 3.8%
AMC Networks, Inc., Class A *		4,822		276,783
Charter Communications, Inc., Class A *		3,807		328,887
Comcast Corp., Class A		225,548		8,974,555
DIRECTV *		51,238		2,468,134
Discovery Communications, Inc., Series A *		20,245		1,484,566
DISH Network Corp., Class A		19,248		669,830
John Wiley & Sons, Inc., Class A		3,931		143,796
Liberty Global, Inc., Series A *		20,867		1,437,528
Liberty Media Corp. *		9,427		1,018,116
Scripps Networks Interactive, Inc., Class A		7,358		463,922
Sirius XM Radio, Inc.		272,564		844,948
Starz - Liberty Capital *		9,427		174,965
The Washington Post Co., Class B		387		154,235
Time Warner Cable, Inc.		25,541		2,206,487
Viacom, Inc., Class B		39,105		2,286,078

				22,932,830

Pharmaceuticals, Biotechnology & Life Sciences 6.0%
Actavis, Inc. *		10,792		919,047
Alexion Pharmaceuticals, Inc. *		16,544		1,435,027
Allergan, Inc.		26,071		2,826,618
Amgen, Inc.		65,166		5,956,824
Biogen Idec, Inc. *		20,064		3,337,446
BioMarin Pharmaceutical, Inc. *		10,457		606,192
Celgene Corp. *		35,817		3,695,598
Covance, Inc. *		4,709		313,572
Endo Health Solutions, Inc. *		9,783		303,273
Forest Laboratories, Inc. *		19,726		725,917
Gilead Sciences, Inc. *		128,693		5,496,478
Illumina, Inc. *		10,451		523,909
Life Technologies Corp. *		14,522		844,164
Mettler-Toledo International, Inc. *		2,650		563,920
Mylan, Inc. *		34,511		1,021,871
Onyx Pharmaceuticals, Inc. *		5,652		425,652
Perrigo Co.		7,492		847,870
Pharmacyclics, Inc. *		4,164		365,516
Regeneron Pharmaceuticals, Inc. *		6,384		1,066,128
Techne Corp.		3,024		205,602
Thermo Fisher Scientific, Inc.		30,516		2,252,081
United Therapeutics Corp. *		4,035		241,333
Vertex Pharmaceuticals, Inc. *		18,255		854,699
Warner Chilcott plc, Class A		14,601		197,259
Waters Corp. *		7,406		686,684
Zoetis, Inc. *		7,121		238,197

				35,950,877

Real Estate 3.3%
Alexandria Real Estate Equities, Inc.		5,376		382,449
American Campus Communities, Inc.		8,745		395,274
American Tower Corp.		33,553		2,603,713
AvalonBay Communities, Inc.		9,693		1,209,977

See financial notes 53

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Boston Properties, Inc.		12,768		1,326,340
BRE Properties, Inc.		6,484		315,187
CBRE Group, Inc., Class A *		25,445		615,006
Digital Realty Trust, Inc.		10,416		697,664
Essex Property Trust, Inc.		3,124		465,445
Federal Realty Investment Trust		5,476		581,606
Host Hotels & Resorts, Inc.		61,466		1,024,638
Jones Lang LaSalle, Inc.		3,696		357,181
Public Storage		12,196		1,844,157
Realogy Holdings Corp. *		3,798		170,340
Simon Property Group, Inc.		26,265		4,172,458
SL Green Realty Corp.		7,728		630,759
Taubman Centers, Inc.		5,205		399,327
The Macerich Co.		11,624		698,719
Ventas, Inc.		25,078		1,775,021

				19,665,261

Retailing 6.1%
Advance Auto Parts, Inc.		6,137		468,499
Amazon.com, Inc. *		30,787		8,136,080
AutoZone, Inc. *		3,161		1,201,654
Bed Bath & Beyond, Inc. *		19,439		1,103,163
CarMax, Inc. *		19,410		745,538
Dick’s Sporting Goods, Inc.		8,345		417,250
Dollar General Corp. *		22,294		1,033,104
Dollar Tree, Inc. *		19,092		862,672
Family Dollar Stores, Inc.		8,104		466,385
Groupon, Inc. *		22,647		102,591
J.C. Penney Co., Inc. (a)		12,045		211,631
Kohl’s Corp.		17,884		824,452
LKQ Corp. *		25,227		534,560
Lowe’s Cos., Inc.		95,447		3,641,303
Netflix, Inc. *		4,704		884,728
Nordstrom, Inc.		12,876		698,137
O’Reilly Automotive, Inc. *		9,684		985,250
PetSmart, Inc.		9,044		588,855
Priceline.com, Inc. *		4,238		2,913,964
Ross Stores, Inc.		18,894		1,095,096
Sally Beauty Holdings, Inc. *		13,213		366,529
Sears Holdings Corp. *(a)		3,102		139,590
Target Corp.		55,209		3,475,959
The Sherwin-Williams Co.		7,295		1,178,799
The TJX Cos., Inc.		61,773		2,777,932
Tiffany & Co.		10,087		677,443
Tractor Supply Co.		6,065		630,699
Ulta Salon, Cosmetics & Fragrance, Inc.		4,970		440,143
Urban Outfitters, Inc. *		9,180		371,974

				36,973,980

Semiconductors & Semiconductor Equipment 1.0%
Altera Corp.		27,061		958,501
Atmel Corp. *		36,752		249,914
Broadcom Corp., Class A		43,959		1,499,441
Cree, Inc. *		9,820		444,158
Lam Research Corp. *		13,700		579,510
Marvell Technology Group Ltd.		38,979		393,688
NVIDIA Corp.		53,195		673,449
Skyworks Solutions, Inc. *		16,655		354,751
Xilinx, Inc.		22,243		828,997

				5,982,409

Software & Services 15.8%
Accenture plc, Class A		54,258		4,034,625
Activision Blizzard, Inc.		35,986		514,600
Adobe Systems, Inc. *		41,922		1,647,535
Akamai Technologies, Inc. *		15,167		560,572
Alliance Data Systems Corp. *		4,221		669,830
ANSYS, Inc. *		7,817		592,529
Autodesk, Inc. *		18,932		695,183
Automatic Data Processing, Inc.		41,139		2,524,289
BMC Software, Inc. *		11,147		446,660
Citrix Systems, Inc. *		15,839		1,122,985
Cognizant Technology Solutions Corp., Class A *		25,455		1,954,180
Concur Technologies, Inc. *		3,817		267,953
eBay, Inc. *		98,840		5,404,571
Electronic Arts, Inc. *		25,843		453,028
Equinix, Inc. *		4,132		874,125
Facebook, Inc., Class A *		45,648		1,243,908
FactSet Research Systems, Inc. (a)		3,449		335,553
Fidelity National Information Services, Inc.		21,059		792,871
Fiserv, Inc. *		11,366		933,262
Fortinet, Inc. *		11,004		266,077
Gartner, Inc. *		7,881		392,159
Genpact Ltd.		11,269		198,447
Global Payments, Inc.		6,751		325,466
Google, Inc., Class A *		22,572		18,084,686
IAC/InterActiveCorp		6,760		275,470
Informatica Corp. *		9,099		318,556
Intuit, Inc.		23,520		1,516,570
LinkedIn Corp., Class A *		5,781		972,249
MasterCard, Inc., Class A		9,102		4,713,198
MICROS Systems, Inc. *		6,740		288,472
Microsoft Corp.		642,501		17,861,528
NetSuite, Inc. *		2,282		159,261
Nuance Communications, Inc. *		21,381		393,624
Oracle Corp.		318,828		10,923,047
Rackspace Hosting, Inc. *		9,339		521,677
Red Hat, Inc. *		16,365		831,506
Salesforce.com, Inc. *		11,052		1,870,219
ServiceNow, Inc. *		1,008		32,730
SolarWinds, Inc. *		5,105		288,228
Solera Holdings, Inc.		5,882		331,157
Symantec Corp. *		58,692		1,375,740
Synopsys, Inc. *		12,539		439,241
TIBCO Software, Inc. *		13,024		279,365
Vantiv, Inc., Class A *		3,582		77,944
VeriFone Systems, Inc. *		9,072		172,096
Visa, Inc., Class A		44,325		7,031,718
VMware, Inc., Class A *		7,200		517,176

				95,525,866

Technology Hardware & Equipment 12.3%
Agilent Technologies, Inc.		29,459		1,221,959
Amphenol Corp., Class A		13,618		964,971
Apple, Inc.		79,846		35,244,024
Arrow Electronics, Inc. *		8,963		359,864

54 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Cisco Systems, Inc.		450,674		9,396,553
Corning, Inc.		124,951		1,575,632
Dell, Inc.		123,867		1,727,945
Dolby Laboratories, Inc., Class A		4,045		128,955
EMC Corp. *		178,864		4,115,661
F5 Networks, Inc. *		6,741		636,553
FLIR Systems, Inc.		12,590		331,621
Hewlett-Packard Co.		166,869		3,360,742
JDS Uniphase Corp. *		19,488		275,950
Juniper Networks, Inc. *		43,618		902,020
NetApp, Inc. *		30,389		1,028,060
Palo Alto Networks, Inc. *(a)		2,714		165,907
QUALCOMM, Inc.		144,558		9,487,342
Riverbed Technology, Inc. *		13,618		208,083
SanDisk Corp. *		20,420		1,028,964
Teradata Corp. *		14,401		836,122
Trimble Navigation Ltd. *		10,694		635,544
Western Digital Corp.		18,514		873,120

				74,505,592

Telecommunication Services 0.5%
Crown Castle International Corp. *		24,921		1,739,486
Level 3 Communications, Inc. *		13,485		269,430
MetroPCS Communications, Inc. *		26,729		261,944
SBA Communications Corp., Class A *		10,752		764,682
United States Cellular Corp. *		1,164		42,824

				3,078,366

Transportation 3.4%
C.H. Robinson Worldwide, Inc.		13,672		779,577
CSX Corp.		87,262		2,001,790
Delta Air Lines, Inc. *		71,778		1,024,272
Expeditors International of Washington, Inc.		17,705		687,839
FedEx Corp.		24,837		2,618,565
Hertz Global Holdings, Inc. *		25,264		504,017
J.B. Hunt Transport Services, Inc.		7,659		532,454
Kansas City Southern		9,408		968,742
Southwest Airlines Co.		62,834		735,158
Union Pacific Corp.		39,935		5,475,488
United Parcel Service, Inc., Class B		60,685		5,015,615

				20,343,517

Utilities 0.6%
Calpine Corp. *		33,355		613,732
EQT Corp.		12,610		795,565
ITC Holdings Corp.		4,382		370,367
NRG Energy, Inc.		27,266		654,384
ONEOK, Inc.		17,319		779,182
The AES Corp.		52,433		609,271

				3,822,501

Total Common Stock
(Cost $523,669,875)				604,953,043




Other Investment Companies 0.0% of net assets

Equity Fund 0.0%
iShares Russell 1000 Growth Index Fund		1,000		69,040

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		86,356		86,356

Total Other Investment Companies
(Cost $155,115)				155,396



End of Investments



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Institutional U.S. Government Money Market Fund		1,171,332		1,171,332

Total Collateral Invested for Securities on Loan
(Cost $1,171,332)				1,171,332



End of Collateral Invested for Securities on Loan

At 02/28/13, the tax basis cost of the fund’s investments was $524,157,644 and the unrealized appreciation and depreciation were $94,500,721 and ($13,549,926), respectively, with a net unrealized appreciation of $80,950,795.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.


Reg’d —		Registered

See financial notes 55

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$604,953,043		$—		$—		$604,953,043
Other Investment Companies¹		155,396		—		—		155,396

Total		$605,108,439		$—		$—		$605,108,439

Other Financial Instruments
Collateral Invested for Securities on Loan		$1,171,332		$—		$—		$1,171,332


¹		As categorized in Portfolio Holdings.

56 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments in affiliated issuers, at value (cost $1,465,131)		$1,510,401
Investments in unaffiliated issuers, at value (cost $522,359,859) including securities on loan of $1,136,345	+	603,598,038

Total investments, at value (cost $523,824,990)		605,108,439
Collateral invested for securities on loan		1,171,332
Receivables:
Investments sold		414,624
Fund shares sold		1,779,896
Dividends		694,843
Income from securities on loan		2,027
Interest	+	3

Total assets		609,171,164

Liabilities

Collateral held for securities on loan		1,171,332
Payables:
Investments bought		2,322,205
Investment adviser fees	+	3,452

Total liabilities		3,496,989

Net Assets

Total assets		609,171,164
Total liabilities	—	3,496,989

Net assets		$605,674,175

Net Assets by Source
Capital received from investors		528,215,109
Net investment income not yet distributed		822,087
Net realized capital losses		(4,663,488	)
Net unrealized capital gains		81,300,467

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$605,674,175

16,800,000

$36.05

See financial notes 57

Schwab U.S. Large-Cap Growth ETF

Statement of

Operations

For September 1, 2012 through February 28, 2013; unaudited



Investment Income

Dividends received from affiliated issuer		$10,328
Dividends received from unaffiliated issuers (net of foreign withholding tax of $13,697)		4,533,500
Interest		121
Securities on loan	+	13,312

Total investment income		4,557,261

Expenses

Investment adviser fees		198,630

Total expenses	−	198,630

Net investment income		4,358,631

Realized and Unrealized Gains (Losses)

Net realized gains on affiliated issuer		2,475
Net realized losses on unaffiliated investments		(3,977,372	)
Net realized gains on in-kind redemptions	+	3,114,865

Net realized losses		(860,032	)
Net unrealized gains on affiliated issuer		233,901
Net unrealized gains on unaffiliated investments	+	31,467,948

Net unrealized gains	+	31,701,849

Net realized and unrealized gains		30,841,817

Net increase in net assets resulting from operations		$35,200,448

58 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$4,358,631			$4,505,804
Net realized gains (losses)		(860,032	)		8,926,873
Net unrealized gains	+	31,701,849			43,484,128

Net increase in net assets resulting from operations		35,200,448			56,916,805

Distributions to Shareholders

Distributions from net investment income		($4,618,665	)		($4,082,865	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

3,250,000

$113,862,372

5,050,000

$161,486,599

Shares redeemed

(400,000

)

(13,831,699

)

(1,600,001

)

(48,413,567

)

Net transactions in fund shares

2,850,000

$100,030,673

3,449,999

$113,073,032

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

13,950,000

$475,061,719

10,500,001

$309,154,747

Total increase

2,850,000

130,612,456

3,449,999

165,906,972

End of period

16,800,000

$605,674,175

13,950,000

$475,061,719

Net investment income not yet distributed

$822,087

$1,082,121

See financial notes 59

Schwab U.S. Large-Cap Value ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			12/9/09¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		31.24			27.34			24.36			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.49			0.82			0.70			0.47
Net realized and unrealized gains (losses)		3.11			3.89			2.99			(0.78	)

Total from investment operations		3.60			4.71			3.69			(0.31	)
Less distributions:
Distributions from net investment income		(0.51	)		(0.81	)		(0.71	)		(0.33	)

Net asset value at end of period		34.33			31.24			27.34			24.36

Total return (%)		11.65	²		17.53			15.12			(1.29	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08	^3,4		0.13			0.13			0.14	^3,5
Gross operating expenses		0.08	^3,4		0.13			0.13			0.14	³
Net investment income (loss)		3.12	³		2.89			2.68			2.98	³
Portfolio turnover rate⁶		3	²		8			7			5	²
Net assets, end of period ($ x 1,000)		487,498			385,791			241,994			84,052

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁵ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

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

60 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.5%	Common Stock		425,847,928		485,238,269
	0	.2%	Other Investment Companies		1,004,036		1,003,249


	99	.7%	Total Investments		426,851,964		486,241,518
	0	.1%	Collateral Invested for Securities on Loan		681,321		681,321
	0	.2%	Other Assets and Liabilities, Net				574,906


	100	.0%	Net Assets				487,497,745


	Number		Value
Security	of Shares		($)

Common Stock 99.5% of net assets

Automobiles & Components 1.3%
Ford Motor Co.		240,018		3,026,627
General Motors Co. *		48,159		1,307,517
Gentex Corp.		8,975		168,281
Harley-Davidson, Inc.		14,318		753,557
Lear Corp.		6,041		322,710
The Goodyear Tire & Rubber Co. *		15,336		199,061
TRW Automotive Holdings Corp. *		6,357		373,092

				6,150,845

Banks 4.9%
BB&T Corp.		43,977		1,335,142
BOK Financial Corp.		1,583		94,078
City National Corp.		2,921		165,942
Comerica, Inc.		12,134		417,167
Commerce Bancshares, Inc.		4,962		189,003
Cullen/Frost Bankers, Inc.		4,249		257,319
Fifth Third Bancorp		56,442		894,041
First Republic Bank		4,219		153,782
Hudson City Bancorp, Inc.		29,267		249,355
Huntington Bancshares, Inc.		54,131		380,541
KeyCorp		58,335		547,766
M&T Bank Corp.		7,602		776,088
New York Community Bancorp, Inc.		27,264		368,064
People’s United Financial, Inc.		21,752		284,951
PNC Financial Services Group, Inc.		33,291		2,077,025
Regions Financial Corp.		92,300		706,095
TFS Financial Corp. *		5,680		59,697
U.S. Bancorp		119,267		4,052,693
Wells Fargo & Co.		309,276		10,849,402
Zions Bancorp		11,360		274,230

				24,132,381

Capital Goods 8.3%
3M Co.		39,986		4,158,544
Eaton Corp. plc		29,112		1,804,071
General Dynamics Corp.		20,819		1,415,067
General Electric Co.		662,288		15,378,327
Honeywell International, Inc.		49,700		3,483,970
Hubbell, Inc., Class B		3,426		318,310
Ingersoll-Rand plc		17,660		929,799
L-3 Communications Holdings, Inc.		5,802		442,519
Lockheed Martin Corp.		16,938		1,490,544
Masco Corp.		22,734		437,857
McDermott International, Inc. *		14,484		184,237
Northrop Grumman Corp.		15,513		1,018,894
Owens Corning *		7,501		291,114
Parker Hannifin Corp.		9,431		891,041
Raytheon Co.		20,683		1,128,671
Rockwell Automation, Inc.		8,863		800,683
Snap-On, Inc.		3,600		288,972
The Timken Co.		5,025		272,958
Tyco International Ltd.		29,310		938,213
United Technologies Corp.		53,108		4,808,929
URS Corp.		4,830		204,116

				40,686,836

Commercial & Professional Services 0.7%
Avery Dennison Corp.		6,402		261,522
Cintas Corp.		6,705		294,349
Iron Mountain, Inc.		10,632		366,804
Manpower, Inc.		4,770		260,442
Pitney Bowes, Inc. (a)		12,560		164,536
Republic Services, Inc.		18,658		586,608
The ADT Corp.		14,770		707,335
Waste Management, Inc.		27,338		1,020,254

				3,661,850

Consumer Durables & Apparel 1.0%
D.R. Horton, Inc.		17,446		389,046
Garmin Ltd. (a)		6,897		236,843
Harman International Industries, Inc.		4,150		176,168
Hasbro, Inc.		7,314		292,706
Leggett & Platt, Inc.		8,941		273,416
Lennar Corp., Class A		10,224		394,544
Mattel, Inc.		21,526		877,184
Newell Rubbermaid, Inc.		18,339		428,032
Polaris Industries, Inc.		4,076		356,120
PulteGroup, Inc. *		21,692		416,053
Tupperware Brands Corp.		3,467		271,223
Whirlpool Corp.		4,867		549,728

				4,661,063

Consumer Services 1.9%
Carnival Corp.		28,042		1,003,062
Darden Restaurants, Inc.		8,152		377,193
H&R Block, Inc.		17,040		423,615
International Game Technology		16,801		267,808
McDonald’s Corp.		63,583		6,097,610
Norwegian Cruise Line Holdings Ltd. *		1,515		46,935
Royal Caribbean Cruises Ltd.		9,005		314,004

See financial notes 61

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Wyndham Worldwide Corp.		8,922		537,461

				9,067,688

Diversified Financials 9.6%
American Express Co.		61,628		3,830,180
Bank of America Corp.		681,600		7,654,368
Capital One Financial Corp.		36,544		1,864,840
CBOE Holdings, Inc.		5,475		196,662
Citigroup, Inc.		185,452		7,783,420
CME Group, Inc.		19,230		1,150,339
ETRADE Financial Corp.		16,000		171,360
Eaton Vance Corp.		7,100		271,149
Invesco Ltd.		28,032		750,977
JPMorgan Chase & Co.		239,980		11,739,822
Legg Mason, Inc.		7,538		214,833
LPL Financial Holdings, Inc.		2,344		73,906
Morgan Stanley		86,906		1,959,730
Northern Trust Corp.		13,758		731,513
NYSE Euronext		15,490		577,467
Raymond James Financial, Inc.		7,016		307,862
SEI Investments Co.		8,480		239,730
SLM Corp.		28,836		547,019
TD Ameritrade Holding Corp.		14,382		273,402
The Bank of New York Mellon Corp.		73,497		1,994,709
The Goldman Sachs Group, Inc.		27,737		4,153,893
The NASDAQ OMX Group, Inc.		7,325		231,910

				46,719,091

Energy 11.8%
Apache Corp.		24,606		1,827,488
Chesapeake Energy Corp.		32,671		658,647
Chevron Corp.		123,540		14,472,711
Cobalt International Energy, Inc. *		11,094		273,689
ConocoPhillips		76,952		4,459,368
Devon Energy Corp.		23,690		1,285,419
Exxon Mobil Corp.		287,692		25,762,819
Marathon Oil Corp.		44,588		1,493,698
Patterson-UTI Energy, Inc.		9,425		219,980
Phillips 66		39,318		2,475,461
Spectra Energy Corp.		41,892		1,216,544
The Williams Cos., Inc.		42,410		1,472,051
Tidewater, Inc.		3,146		148,900
Valero Energy Corp.		35,488		1,617,898

				57,384,673

Food & Staples Retailing 0.5%
Safeway, Inc. (a)		14,982		357,471
Sysco Corp.		37,120		1,193,779
The Kroger Co.		32,333		944,447

				2,495,697

Food, Beverage & Tobacco 8.7%
Altria Group, Inc.		127,410		4,274,606
Archer-Daniels-Midland Co.		41,326		1,316,646
Beam, Inc.		10,022		611,643
Campbell Soup Co.		11,271		463,914
Coca-Cola Enterprises, Inc.		16,977		607,437
ConAgra Foods, Inc.		25,476		868,986
Constellation Brands, Inc., Class A *		9,622		425,677
Dr. Pepper Snapple Group, Inc.		13,200		575,784
General Mills, Inc.		40,727		1,883,624
H.J. Heinz Co.		20,264		1,467,722
Hillshire Brands Co.		7,871		255,020
Hormel Foods Corp.		8,362		312,822
Ingredion, Inc.		4,862		321,864
Kellogg Co.		15,536		939,928
Kraft Foods Group, Inc.		37,413		1,813,408
McCormick & Co., Inc. Non Voting Shares		8,336		560,763
Molson Coors Brewing Co., Class B		9,656		426,892
Mondelez International, Inc., Class A		113,018		3,124,948
Philip Morris International, Inc.		105,364		9,667,147
Reynolds American, Inc.		20,454		893,431
Smithfield Foods, Inc. *		7,830		174,139
The Coca-Cola Co.		243,672		9,434,980
The Hershey Co.		9,490		790,897
The J.M. Smucker Co.		6,731		641,464
Tyson Foods, Inc., Class A		17,892		405,612

				42,259,354

Health Care Equipment & Services 0.9%
Boston Scientific Corp. *		86,355		638,164
Cardinal Health, Inc.		21,418		989,726
CIGNA Corp.		17,892		1,045,966
Humana, Inc.		10,003		682,805
WellPoint, Inc.		19,091		1,187,078

				4,543,739

Household & Personal Products 3.4%
Avon Products, Inc.		26,980		527,459
Kimberly-Clark Corp.		24,650		2,324,002
The Clorox Co.		8,309		698,039
The Procter & Gamble Co.		172,672		13,154,153

				16,703,653

Insurance 5.0%
ACE Ltd.		21,584		1,843,058
Aflac, Inc.		29,572		1,477,121
Allied World Assurance Co. Holdings AG		2,293		201,348
American Financial Group, Inc.		4,905		215,624
American International Group, Inc. *		93,720		3,562,297
Aon plc		20,002		1,221,922
Arch Capital Group Ltd. *		8,588		421,843
Arthur J. Gallagher & Co.		7,871		302,876
Assurant, Inc.		4,927		206,885
Assured Guaranty Ltd.		12,133		226,523
Brown & Brown, Inc.		7,384		221,520
Cincinnati Financial Corp.		9,118		410,401
CNA Financial Corp.		1,483		46,774
Fidelity National Financial, Inc., Class A		13,218		329,657
Genworth Financial, Inc., Class A *		30,985		264,612
Hartford Financial Services Group, Inc.		28,386		670,194
HCC Insurance Holdings, Inc.		6,284		251,360
Lincoln National Corp.		17,256		509,742
Marsh & McLennan Cos., Inc.		34,331		1,275,053
MetLife, Inc.		69,284		2,455,425

62 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Principal Financial Group, Inc.		17,401		550,046
Prudential Financial, Inc.		29,126		1,618,532
Reinsurance Group of America, Inc.		4,644		267,030
The Allstate Corp.		30,447		1,401,171
The Chubb Corp.		16,496		1,386,159
The Travelers Cos., Inc.		23,996		1,929,758
Torchmark Corp.		5,879		330,341
Unum Group		17,073		417,776
Validus Holdings Ltd.		6,342		225,965
W.R. Berkley Corp.		6,998		290,417

				24,531,430

Materials 3.2%
Air Products & Chemicals, Inc.		13,467		1,162,741
Alcoa, Inc.		67,091		571,615
Allegheny Technologies, Inc.		6,675		203,387
Bemis Co., Inc.		6,578		245,623
Celanese Corp., Series A		9,940		465,689
E.I. du Pont de Nemours & Co.		58,788		2,815,945
Eastman Chemical Co.		9,664		673,871
Huntsman Corp.		12,150		209,344
International Flavors & Fragrances, Inc.		5,148		375,701
International Paper Co.		27,772		1,222,246
Martin Marietta Materials, Inc.		2,850		276,820
MeadWestvaco Corp.		10,918		389,882
Owens-Illinois, Inc. *		10,224		260,712
PPG Industries, Inc.		8,998		1,211,671
Rockwood Holdings, Inc.		4,830		302,358
Sealed Air Corp.		12,177		270,451
Sonoco Products Co.		6,295		199,992
Steel Dynamics, Inc.		13,700		209,199
The Dow Chemical Co.		76,112		2,414,273
The Scotts Miracle-Gro Co., Class A		2,400		106,344
The Valspar Corp.		5,680		349,945
Tronox Ltd., Class A (a)		1,525		31,323
United States Steel Corp. (a)		8,975		187,039
Valhi, Inc.		1,300		21,164
Vulcan Materials Co.		8,089		411,973
Westlake Chemical Corp.		1,200		103,464
Weyerhaeuser Co.		34,106		1,003,057

				15,695,829

Media 3.5%
Cablevision Systems Corp., Class A		13,547		189,523
CBS Corp., Class B Non Voting Shares		37,172		1,612,893
Gannett Co., Inc.		14,389		288,787
News Corp., Class A		128,084		3,688,819
Omnicom Group, Inc.		16,649		957,817
The Interpublic Group of Cos., Inc.		27,459		350,926
The McGraw-Hill Cos., Inc.		17,419		810,854
The Walt Disney Co.		111,896		6,108,403
Time Warner, Inc.		59,582		3,167,975

				17,175,997

Pharmaceuticals, Biotechnology & Life Sciences 10.0%
Abbott Laboratories		99,400		3,358,726
AbbVie, Inc.		99,400		3,669,848
Bristol-Myers Squibb Co.		103,877		3,840,333
Eli Lilly & Co.		64,741		3,538,743
Johnson & Johnson		174,944		13,314,988
Merck & Co., Inc.		192,255		8,215,056
PerkinElmer, Inc.		7,125		243,461
Pfizer, Inc.		464,908		12,724,532

				48,905,687

Real Estate 2.5%
American Capital Agency Corp.		21,414		679,252
Annaly Capital Management, Inc.		61,359		950,451
Camden Property Trust		5,396		373,079
Chimera Investment Corp.		63,406		188,950
DDR Corp.		15,052		259,948
Equity Residential		20,448		1,125,458
General Growth Properties, Inc.		28,257		540,839
HCP, Inc.		28,402		1,388,290
Health Care REIT, Inc.		16,388		1,051,126
Kimco Realty Corp.		25,560		556,441
Liberty Property Trust		7,437		288,481
Piedmont Office Realty Trust, Inc., Class A		11,644		228,921
Plum Creek Timber Co., Inc.		10,296		499,356
ProLogis, Inc.		28,884		1,124,743
Rayonier, Inc.		7,722		431,428
Realty Income Corp.		11,360		518,584
Regency Centers Corp.		5,720		296,754
Senior Housing Properties Trust		10,950		274,736
UDR, Inc.		15,689		374,340
Vornado Realty Trust		10,644		853,755

				12,004,932

Retailing 2.8%
Abercrombie & Fitch Co., Class A		4,954		231,005
American Eagle Outfitters, Inc.		11,271		233,084
AutoNation, Inc. *		2,396		104,873
Best Buy Co., Inc.		16,667		273,506
Dillard’s, Inc., Class A		1,850		147,408
Expedia, Inc.		5,839		372,762
Foot Locker, Inc.		9,656		330,139
Genuine Parts Co.		9,719		690,341
GNC Holdings, Inc., Class A		4,604		188,764
Liberty Interactive Corp., Series A *		32,497		678,537
Limited Brands, Inc.		14,981		681,935
Macy’s, Inc.		24,870		1,022,157
Signet Jewelers Ltd.		5,046		308,916
Staples, Inc.		44,304		583,927
The Gap, Inc.		18,709		615,900
The Home Depot, Inc.		94,572		6,478,182
TripAdvisor, Inc. *		6,842		311,037
Williams-Sonoma, Inc.		5,350		242,890

				13,495,363

Semiconductors & Semiconductor Equipment 2.9%
Advanced Micro Devices, Inc. *(a)		36,399		90,633
Analog Devices, Inc.		18,950		856,919
Applied Materials, Inc.		75,392		1,032,870
Intel Corp.		314,940		6,566,499
KLA-Tencor Corp.		10,781		590,368

See financial notes 63

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Linear Technology Corp.		14,503		554,595
LSI Corp. *		35,260		245,410
Maxim Integrated Products, Inc.		18,460		575,583
Microchip Technology, Inc.		12,433		453,431
Micron Technology, Inc. *		63,946		536,507
ON Semiconductor Corp. *		28,400		227,200
Texas Instruments, Inc.		70,557		2,425,044

				14,155,059

Software & Services 1.0%
Broadridge Financial Solutions, Inc.		7,845		180,043
CA, Inc.		21,868		535,547
Computer Sciences Corp.		9,724		467,044
Paychex, Inc.		20,448		676,829
SAIC, Inc.		17,831		210,762
Total System Services, Inc.		10,116		240,356
VeriSign, Inc. *		9,690		443,802
Western Union Co.		37,844		530,951
Yahoo! Inc. *		65,435		1,394,420

				4,679,754

Technology Hardware & Equipment 3.8%
Avnet, Inc. *		8,646		305,290
Harris Corp.		7,118		342,162
International Business Machines Corp.		67,024		13,460,430
Jabil Circuit, Inc.		11,928		223,411
Molex, Inc.		8,656		239,858
Motorola Solutions, Inc.		17,689		1,100,433
NCR Corp. *		9,975		275,110
Seagate Technology plc		21,112		678,962
TE Connectivity Ltd.		26,540		1,065,050
Xerox Corp.		79,441		644,267

				18,334,973

Telecommunication Services 5.0%
AT&T, Inc.		358,692		12,880,630
CenturyLink, Inc.		39,407		1,366,241
Frontier Communications Corp. (a)		62,855		260,220
Sprint Nextel Corp. *		189,042		1,096,443
Telephone & Data Systems, Inc.		6,389		146,244
Verizon Communications, Inc.		180,056		8,378,006
Windstream Corp. (a)		37,111		318,783

				24,446,567

Transportation 0.4%
Norfolk Southern Corp.		19,916		1,454,864
United Continental Holdings, Inc. *		20,878		557,651

				2,012,515

Utilities 6.4%
AGL Resources, Inc.		7,384		295,065
Alliant Energy Corp.		6,864		327,344
Ameren Corp.		15,252		515,365
American Electric Power Co., Inc.		30,956		1,448,431
American Water Works Co., Inc.		11,076		436,948
Aqua America, Inc.		8,772		255,528
Atmos Energy Corp.		5,680		216,806
CenterPoint Energy, Inc.		26,824		574,838
CMS Energy Corp.		16,548		440,342
Consolidated Edison, Inc.		18,402		1,085,718
Dominion Resources, Inc.		36,625		2,051,000
DTE Energy Co.		10,833		723,644
Duke Energy Corp.		44,588		3,087,719
Edison International		20,519		985,528
Energen Corp.		4,576		211,594
Entergy Corp.		11,350		706,651
Exelon Corp.		53,717		1,664,690
FirstEnergy Corp.		26,430		1,043,456
Integrys Energy Group, Inc.		4,867		275,326
MDU Resources Group, Inc.		11,867		286,707
National Fuel Gas Co.		5,252		305,614
NextEra Energy, Inc.		26,638		1,914,473
NiSource, Inc.		19,557		541,729
Northeast Utilities		19,694		817,498
NV Energy, Inc.		14,872		293,871
OGE Energy Corp.		6,248		361,822
Pepco Holdings, Inc.		14,309		290,330
PG&E Corp.		27,536		1,174,135
Pinnacle West Capital Corp.		6,864		383,972
PPL Corp.		36,636		1,129,122
Public Service Enterprise Group, Inc.		32,008		1,043,141
Questar Corp.		11,221		263,806
SCANA Corp.		8,259		403,370
Sempra Energy		14,200		1,104,192
TECO Energy, Inc.		12,496		215,556
The Southern Co.		55,035		2,477,125
UGI Corp.		7,150		256,113
Westar Energy, Inc.		7,968		247,167
Wisconsin Energy Corp.		14,484		598,189
Xcel Energy, Inc.		30,640		879,368

				31,333,293

Total Common Stock
(Cost $425,847,928)				485,238,269




Other Investment Companies 0.2% of net assets

Equity Fund 0.2%
iShares Russell 1000 Value Index Fund		11,500		901,715

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		101,534		101,534

Total Other Investment Companies
(Cost $1,004,036)				1,003,249



End of Investments

64 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Collateral Invested for Securities on Loan 0.1% of net assets


State Street Institutional U.S. Government Money Market Fund		681,321		681,321

Total Collateral Invested for Securities on Loan
(Cost $681,321)				681,321



End of Collateral Invested for Securities on Loan

At 02/28/13, the tax basis cost of the fund’s investments was $427,183,764 and the unrealized appreciation and depreciation were $64,455,018 and ($5,397,264), respectively, with a net unrealized appreciation $59,057,754.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.


REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$485,238,269		$—		$—		$485,238,269
Other Investment Companies¹		1,003,249		—		—		1,003,249

Total		$486,241,518		$—		$—		$486,241,518

Other Financial Instruments
Collateral Invested for Securities on Loan		$681,321		$—		$—		$681,321


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Balance					Change in											Balance
	as of		Realized			Unrealized							Gross		Gross		as of
	August 31,		Gains			Gains		Gross		Gross			Transfers		Transfers		February 28,
Investments in Securities	2012		(Losses)			(Losses)		Purchases		Sales			in		out		2013

Rights		$—		($129	)		$4,145		$6,910		($10,926	)		$—		$—		$—

Total		$—		($129	)		$4,145		$6,910		($10,926	)		$—		$—		$—

See financial notes 65

Schwab U.S. Large-Cap Value ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments, at value (cost $426,851,964) including securities on loan of $657,135		$486,241,518
Collateral invested for securities on loan		681,321
Receivables:
Investments sold		174,696
Dividends		1,630,562
Income from securities on loan		1,582
Foreign tax reclaims		1,114
Interest	+	4

Total assets		488,730,797

Liabilities

Collateral held for securities on loan		681,321
Payables:
Investments bought		548,940
Investment adviser fees	+	2,791

Total liabilities		1,233,052

Net Assets

Total assets		488,730,797
Total liabilities	—	1,233,052

Net assets		$487,497,745

Net Assets by Source
Capital received from investors		418,007,708
Net investment income not yet distributed		1,732,417
Net realized capital gains		8,300,902
Net unrealized capital gains		59,456,718

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$487,497,745

14,200,000

$34.33

66 See financial notes

Schwab U.S. Large-Cap Value ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$6,608,908			$8,587,933
Net realized gains		10,489,850			4,538,243
Net unrealized gains	+	28,784,976			32,475,452

Net increase in net assets resulting from operations		45,883,734			45,601,628

Distributions to Shareholders

Distributions from net investment income		($6,616,450	)		($7,983,125	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

3,550,000

$115,581,907

4,800,000

$143,142,091

Shares redeemed

(1,700,000

)

(53,142,097

)

(1,300,001

)

(36,963,776

)

Net transactions in fund shares

1,850,000

$62,439,810

3,499,999

$106,178,315

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

12,350,000

$385,790,651

8,850,001

$241,993,833

Total increase

1,850,000

101,707,094

3,499,999

143,796,818

End of period

14,200,000

$487,497,745

12,350,000

$385,790,651

Net investment income not yet distributed

$1,732,417

$1,739,959

68 See financial notes

Schwab U.S. Mid-Cap ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			1/12/11¹–
	2/28/13*			8/31/12			8/31/11


Per-Share Data ($)

Net asset value at beginning of period		26.56			23.75			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.26			0.37			0.18
Net realized and unrealized gains (losses)		3.81			2.77			(1.29	)

Total from investment operations		4.07			3.14			(1.11	)
Less distributions:
Distributions from net investment income		(0.28	)		(0.33	)		(0.14	)

Net asset value at end of period		30.35			26.56			23.75

Total return (%)		15.44	²		13.32			(4.49	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.07	^3,4		0.13			0.13	³
Gross operating expenses		0.07	^3,4		0.13			0.13	³
Net investment income (loss)		2.00	³		1.53			1.18	³
Portfolio turnover rate⁵		9	²		19			9	²
Net assets, end of period ($ x 1,000)		450,683			205,840			79,550

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

See financial notes 69

Schwab U.S. Mid-Cap ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		404,222,069		449,365,386
	0	.2%	Other Investment Companies		925,659		925,620


	99	.9%	Total Investments		405,147,728		450,291,006
	1	.3%	Collateral Invested for Securities on Loan		5,991,475		5,991,475
	(1	.2)%	Other Assets and Liabilities, Net				(5,599,575	)


	100	.0%	Net Assets				450,682,906


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 1.5%
Allison Transmission Holdings, Inc. (a)		8,316		192,100
Gentex Corp.		34,489		646,669
Lear Corp.		23,290		1,244,152
Tesla Motors, Inc. *(a)		17,226		599,981
The Goodyear Tire & Rubber Co. *		58,806		763,301
TRW Automotive Holdings Corp. *		24,918		1,462,437
Visteon Corp. *		12,345		719,466
WABCO Holdings, Inc. *		15,444		1,061,312

				6,689,418

Banks 3.6%
Associated Banc-Corp.		41,283		594,062
Bank of Hawaii Corp.		10,989		531,758
BankUnited, Inc.		11,153		316,299
BOK Financial Corp.		6,534		388,316
Capitol Federal Financial, Inc.		34,749		411,081
City National Corp.		11,286		641,158
Commerce Bancshares, Inc.		18,711		712,702
Cullen/Frost Bankers, Inc.		14,908		902,828
East West Bancorp, Inc.		34,155		840,213
First Citizens BancShares, Inc., Class A		1,471		264,118
First Horizon National Corp.		59,697		634,579
First Niagara Financial Group, Inc.		84,645		692,396
First Republic Bank		16,335		595,411
Fulton Financial Corp.		48,114		546,094
Hancock Holding Co.		21,042		635,468
Hudson City Bancorp, Inc.		114,048		971,689
Huntington Bancshares, Inc.		206,118		1,449,010
Ocwen Financial Corp. *		28,215		1,112,235
People’s United Financial, Inc.		84,348		1,104,959
Prosperity Bancshares, Inc.		10,959		505,648
Signature Bank *		11,130		826,625
TFS Financial Corp. *		19,305		202,896
Valley National Bancorp (a)		48,722		488,682
Zions Bancorp		44,253		1,068,267

				16,436,494

Capital Goods 10.9%
Acuity Brands, Inc.		10,298		701,603
Aecom Technology Corp. *		26,998		818,309
AGCO Corp.		23,463		1,207,875
Air Lease Corp. *		16,038		435,752
Armstrong World Industries, Inc.		5,346		273,341
B/E Aerospace, Inc. *		25,064		1,318,617
Carlisle Cos., Inc.		15,313		1,039,293
CLARCOR, Inc.		12,177		620,905
Colfax Corp. *		16,054		696,744
Crane Co.		11,583		622,934
Donaldson Co., Inc.		32,967		1,187,801
First Solar, Inc. *		14,440		373,274
Fortune Brands Home & Security, Inc. *		39,288		1,357,400
Foster Wheeler AG *		25,839		621,686
Gardner Denver, Inc.		11,880		843,361
Graco, Inc.		14,553		845,529
Hubbell, Inc., Class B		12,779		1,187,297
IDEX Corp.		19,915		1,014,271
Jacobs Engineering Group, Inc. *		31,744		1,550,377
KBR, Inc.		34,749		1,056,022
Kennametal, Inc.		19,305		781,466
Lennox International, Inc.		11,286		666,664
Lincoln Electric Holdings, Inc.		20,196		1,131,986
Masco Corp.		86,558		1,667,107
McDermott International, Inc. *		56,727		721,567
MRC Global, Inc. *		5,490		168,653
MSC Industrial Direct Co., Inc., Class A		11,155		951,745
Nordson Corp.		13,662		866,171
Oshkosh Corp. *		21,829		841,726
Owens Corning *		28,323		1,099,216
Pall Corp.		26,762		1,824,633
Pentair Ltd. - Reg’d		51,362		2,736,054
Quanta Services, Inc. *		51,762		1,470,041
Regal-Beloit Corp.		10,776		832,769
Sauer-Danfoss, Inc.		2,745		148,559
Seaboard Corp.		63		179,738
Snap-On, Inc.		14,231		1,142,322
Spirit AeroSystems Holdings, Inc., Class A *		26,433		460,199
SPX Corp.		12,177		980,370
Terex Corp. *		27,300		895,713
The Babcock & Wilcox Co.		29,671		801,710
The Timken Co.		19,305		1,048,648
TransDigm Group, Inc.		10,964		1,560,616
Trinity Industries, Inc.		19,008		821,906
Triumph Group, Inc.		12,080		886,793
United Rentals, Inc. *		22,850		1,220,419
URS Corp.		18,414		778,176
Valmont Industries, Inc.		5,535		872,039
Wabtec Corp.		11,583		1,132,702
WESCO International, Inc. *		10,595		782,971

70 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Woodward, Inc.		14,603		546,590
Xylem, Inc.		45,441		1,249,628

				49,041,288

Commercial & Professional Services 3.4%
Avery Dennison Corp.		24,354		994,861
Cintas Corp.		25,839		1,134,332
Clean Harbors, Inc. *		12,863		662,444
Copart, Inc. *		26,101		891,088
Corrections Corp. of America		24,057		922,586
Covanta Holding Corp.		31,819		622,380
Equifax, Inc.		29,384		1,619,646
Iron Mountain, Inc.		40,240		1,388,280
KAR Auction Services, Inc.		19,389		411,435
Manpower, Inc.		19,008		1,037,837
Pitney Bowes, Inc. (a)		46,035		603,059
R.R. Donnelley & Sons Co. (a)		42,887		447,740
Robert Half International, Inc.		34,155		1,214,210
Rollins, Inc.		15,741		385,812
The Dun & Bradstreet Corp.		10,692		861,775
Towers Watson & Co., Class A		13,724		913,607
Waste Connections, Inc.		29,781		1,018,808

				15,129,900

Consumer Durables & Apparel 5.7%
Carter’s, Inc. *		12,474		703,658
D.R. Horton, Inc.		68,573		1,529,178
Deckers Outdoor Corp. *(a)		8,332		336,113
Fossil, Inc. *		13,054		1,341,560
Hanesbrands, Inc. *		24,038		952,866
Harman International Industries, Inc.		16,427		697,326
Hasbro, Inc.		27,918		1,117,278
Jarden Corp. *		17,639		1,095,558
Leggett & Platt, Inc.		34,749		1,062,625
Lennar Corp., Class A		39,693		1,531,753
Mohawk Industries, Inc. *		13,993		1,483,538
Newell Rubbermaid, Inc.		69,498		1,622,083
NVR, Inc. *		1,068		1,077,826
Polaris Industries, Inc.		15,711		1,372,670
PulteGroup, Inc. *		82,445		1,581,295
PVH Corp.		18,562		2,261,780
Tempur-Pedic International, Inc. *		14,256		585,494
Toll Brothers, Inc. *		36,793		1,255,377
Tupperware Brands Corp.		13,365		1,045,544
Under Armour, Inc., Class A *		18,711		922,078
Whirlpool Corp.		18,994		2,145,372

				25,720,972

Consumer Services 2.4%
Apollo Group, Inc., Class A *		24,651		415,862
Bally Technologies, Inc. *		10,098		482,179
Brinker International, Inc.		17,820		594,832
Burger King Worldwide, Inc. (a)		15,147		276,433
Choice Hotels International, Inc.		6,550		249,097
Dunkin’ Brands Group, Inc.		17,523		650,979
H&R Block, Inc.		65,340		1,624,352
International Game Technology		64,152		1,022,583
MGM Resorts International *		90,448		1,129,696
Norwegian Cruise Line Holdings Ltd. *		5,102		158,060
Panera Bread Co., Class A *		6,831		1,099,449
Penn National Gaming, Inc. *		15,741		784,689
Service Corp. International		51,678		803,076
Six Flags Entertainment Corp.		12,771		853,231
Sotheby’s		16,335		624,487
Weight Watchers International, Inc. (a)		6,791		290,926

				11,059,931

Diversified Financials 2.4%
Affiliated Managers Group, Inc. *		12,460		1,822,026
CBOE Holdings, Inc.		20,914		751,231
ETRADE Financial Corp.		61,776		661,621
Eaton Vance Corp.		28,512		1,088,873
Federated Investors, Inc., Class B (a)		22,869		531,018
Legg Mason, Inc.		28,042		799,197
LPL Financial Holdings, Inc.		8,613		271,568
MSCI, Inc. *		29,700		983,961
Raymond James Financial, Inc.		27,324		1,198,977
SEI Investments Co.		33,532		947,950
The NASDAQ OMX Group, Inc.		28,512		902,690
Waddell & Reed Financial, Inc., Class A		20,493		840,623

				10,799,735

Energy 6.1%
Atwood Oceanics, Inc. *		13,959		714,003
Berry Petroleum Co., Class A		10,708		490,105
Cheniere Energy, Inc. *		54,178		1,153,991
Cimarex Energy Co.		21,073		1,418,424
Dresser-Rand Group, Inc. *		18,389		1,133,866
Dril-Quip, Inc. *		8,910		732,669
Era Group, Inc. *		4,752		95,943
Helmerich & Payne, Inc.		25,839		1,712,092
Laredo Petroleum Holdings, Inc. *		5,643		96,721
Nabors Industries Ltd. *		69,795		1,169,764
Newfield Exploration Co. *		32,373		748,464
Oasis Petroleum, Inc. *		17,348		636,672
Oceaneering International, Inc.		26,403		1,678,967
Oil States International, Inc. *		13,234		1,007,769
Patterson-UTI Energy, Inc.		36,531		852,634
Plains Exploration & Production Co. *		31,755		1,440,724
QEP Resources, Inc.		43,362		1,320,807
Rosetta Resources, Inc. *		12,771		621,692
Rowan Cos. plc, Class A *		29,997		1,037,596
RPC, Inc. (a)		15,741		254,689
SandRidge Energy, Inc. *(a)		83,754		477,398
SEACOR Holdings, Inc.		4,752		330,169
SM Energy Co.		15,823		915,835
Superior Energy Services, Inc. *		38,878		1,028,323
Teekay Corp.		8,910		309,177
Tesoro Corp.		33,950		1,909,348
Tidewater, Inc.		11,880		562,280
Ultra Petroleum Corp. *		36,828		628,286
Unit Corp. *		10,395		472,765
Whiting Petroleum Corp. *		28,809		1,402,998
World Fuel Services Corp.		17,226		655,105
WPX Energy, Inc. *		47,817		678,523

				27,687,799

See financial notes 71

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Food & Staples Retailing 0.5%
Safeway, Inc. (a)		57,618		1,374,765
The Fresh Market, Inc. *		9,801		456,923
United Natural Foods, Inc. *		11,880		601,366

				2,433,054

Food, Beverage & Tobacco 1.8%
Constellation Brands, Inc., Class A *		36,599		1,619,140
Dean Foods Co. *		44,847		744,460
Flowers Foods, Inc.		27,918		786,729
Green Mountain Coffee Roasters, Inc. *(a)		29,732		1,420,000
Hillshire Brands Co.		29,479		955,120
Ingredion, Inc.		18,686		1,237,013
Smithfield Foods, Inc. *		30,069		668,735
The Hain Celestial Group, Inc. *		10,860		594,585
WhiteWave Foods Co., Class A *(a)		5,189		81,156

				8,106,938

Health Care Equipment & Services 4.7%
Allscripts Healthcare Solutions, Inc. *		40,986		521,342
athenahealth, Inc. *		8,813		826,571
Brookdale Senior Living, Inc. *		23,463		649,456
Community Health Systems, Inc.		22,537		952,414
Coventry Health Care, Inc.		32,465		1,472,612
DENTSPLY International, Inc.		34,719		1,438,061
Health Net, Inc. *		19,486		501,570
HMS Holdings Corp. *		21,142		612,906
Hologic, Inc. *		64,525		1,408,581
IDEXX Laboratories, Inc. *		13,236		1,219,300
LifePoint Hospitals, Inc. *		12,029		530,359
MEDNAX, Inc. *		12,080		1,034,289
Omnicare, Inc.		26,730		995,960
Owens & Minor, Inc.		15,056		458,455
Patterson Cos., Inc.		20,196		733,923
ResMed, Inc.		34,644		1,541,311
Sirona Dental Systems, Inc. *		13,184		936,328
STERIS Corp.		14,534		566,826
Teleflex, Inc.		10,084		806,317
Tenet Healthcare Corp. *		25,697		1,010,149
The Cooper Cos., Inc.		11,583		1,228,493
Universal Health Services, Inc., Class B		21,476		1,243,246
WellCare Health Plans, Inc. *		10,395		594,490

				21,282,959

Household & Personal Products 0.4%
Energizer Holdings, Inc.		14,966		1,375,824
Nu Skin Enterprises, Inc., Class A		12,490		514,588

				1,890,412

Insurance 6.1%
Alleghany Corp. *		4,133		1,561,737
Allied World Assurance Co. Holdings AG		8,492		745,682
American Financial Group, Inc.		18,241		801,874
American National Insurance Co.		1,782		143,219
Arch Capital Group Ltd. *		33,264		1,633,928
Arthur J. Gallagher & Co.		30,073		1,157,209
Aspen Insurance Holdings Ltd.		17,796		638,165
Assurant, Inc.		19,024		798,818
Assured Guaranty Ltd.		48,080		897,654
Axis Capital Holdings Ltd.		27,456		1,118,283
Brown & Brown, Inc.		29,106		873,180
Cincinnati Financial Corp.		35,509		1,598,260
Erie Indemnity Co., Class A		6,237		456,548
Everest Re Group Ltd.		12,474		1,554,385
Fidelity National Financial, Inc., Class A		51,946		1,295,533
Genworth Financial, Inc., Class A *		119,659		1,021,888
HCC Insurance Holdings, Inc.		24,520		980,800
Markel Corp. *		2,134		1,031,682
Mercury General Corp.		9,207		357,876
Old Republic International Corp.		58,212		699,126
PartnerRe Ltd.		14,932		1,332,532
ProAssurance Corp.		15,147		710,243
Reinsurance Group of America, Inc.		17,820		1,024,650
RenaissanceRe Holdings Ltd.		11,599		1,014,217
Torchmark Corp.		22,869		1,285,009
Validus Holdings Ltd.		24,370		868,303
W.R. Berkley Corp.		26,730		1,109,295
White Mountains Insurance Group Ltd.		1,266		715,290

				27,425,386

Materials 7.5%
Airgas, Inc.		17,212		1,726,019
Albemarle Corp.		21,959		1,429,092
Allegheny Technologies, Inc.		25,839		787,314
Allied Nevada Gold Corp. *		19,602		358,717
AptarGroup, Inc.		16,038		865,090
Ashland, Inc.		17,723		1,381,862
Bemis Co., Inc.		25,140		938,728
Cabot Corp.		14,256		524,336
Coeur d’Alene Mines Corp. *		21,681		412,156
Compass Minerals International, Inc.		8,019		591,161
Cytec Industries, Inc.		10,989		795,494
Domtar Corp.		8,613		642,185
Greif, Inc., Class A		7,425		377,710
Huntsman Corp.		44,550		767,596
International Flavors & Fragrances, Inc.		19,874		1,450,404
Kronos Worldwide, Inc. (a)		4,816		82,402
Martin Marietta Materials, Inc.		11,261		1,093,781
MeadWestvaco Corp.		42,338		1,511,890
NewMarket Corp.		2,648		666,422
Owens-Illinois, Inc. *		39,798		1,014,849
Packaging Corp. of America		24,057		1,005,101
Reliance Steel & Aluminum Co.		18,414		1,226,188
Rock-Tenn Co., Class A		17,097		1,512,230
Rockwood Holdings, Inc.		18,711		1,171,309
Royal Gold, Inc.		15,620		1,023,735
RPM International, Inc.		32,646		992,765
Sealed Air Corp.		46,926		1,042,226
Silgan Holdings, Inc.		11,724		503,311
Sonoco Products Co.		24,057		764,291
Steel Dynamics, Inc.		54,312		829,344
The Scotts Miracle-Gro Co., Class A		9,207		407,962
The Valspar Corp.		20,525		1,264,545

72 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Tronox Ltd., Class A (a)		5,181		106,418
United States Steel Corp. (a)		34,749		724,169
Valhi, Inc.		4,752		77,362
Vulcan Materials Co.		31,482		1,603,378
W.R. Grace & Co. *		17,129		1,226,094
Walter Energy, Inc.		14,940		474,943
Westlake Chemical Corp.		4,880		420,754

				33,793,333

Media 1.6%
AMC Networks, Inc., Class A *		14,237		817,204
Cablevision Systems Corp., Class A		51,975		727,130
Clear Channel Outdoor Holdings, Inc., Class A *		9,954		75,650
Gannett Co., Inc.		55,539		1,114,668
John Wiley & Sons, Inc., Class A		11,286		412,842
Lamar Advertising Co., Class A *		13,365		617,998
Morningstar, Inc.		5,643		386,997
Regal Entertainment Group, Class A (a)		19,602		307,163
The Interpublic Group of Cos., Inc.		104,841		1,339,868
The Madison Square Garden Co., Class A *		14,836		829,629
The Washington Post Co., Class B		1,001		398,939

				7,028,088

Pharmaceuticals, Biotechnology & Life Sciences 3.8%
ARIAD Pharmaceuticals, Inc. *		45,080		948,032
Bio-Rad Laboratories, Inc., Class A *		4,880		601,216
BioMarin Pharmaceutical, Inc. *		29,997		1,738,926
Bruker Corp. *		22,972		402,929
Charles River Laboratories International, Inc. *		11,583		471,892
Covance, Inc. *		13,365		889,975
Cubist Pharmaceuticals, Inc. *		15,636		663,436
Endo Health Solutions, Inc. *		27,448		850,888
Illumina, Inc. *		29,792		1,493,473
Medivation, Inc. *		18,092		889,041
Mettler-Toledo International, Inc. *		7,425		1,580,040
Onyx Pharmaceuticals, Inc. *		17,509		1,318,603
PerkinElmer, Inc.		28,002		956,828
Pharmacyclics, Inc. *		12,269		1,076,973
Salix Pharmaceuticals Ltd. *		12,444		607,889
Seattle Genetics, Inc. *		24,815		698,294
Techne Corp.		8,316		565,405
United Therapeutics Corp. *		11,335		677,946
Warner Chilcott plc, Class A		41,770		564,313

				16,996,099

Real Estate 9.3%
Alexandria Real Estate Equities, Inc.		15,347		1,091,786
American Campus Communities, Inc.		25,245		1,141,074
Apartment Investment & Management Co., Class A		35,908		1,063,595
BioMed Realty Trust, Inc.		40,652		858,570
BRE Properties, Inc.		18,414		895,105
Camden Property Trust		20,311		1,404,302
CBL & Associates Properties, Inc.		38,983		886,473
CBRE Group, Inc., Class A *		73,908		1,786,356
Chimera Investment Corp.		247,401		737,255
DDR Corp.		58,280		1,006,496
Douglas Emmett, Inc.		31,963		783,413
Duke Realty Corp.		73,062		1,180,682
Equity Lifestyle Properties, Inc.		9,504		700,350
Essex Property Trust, Inc.		8,896		1,325,415
Extra Space Storage, Inc.		24,651		922,933
Federal Realty Investment Trust		15,644		1,661,549
Hatteras Financial Corp.		24,651		657,935
Healthcare Trust of America, Inc.		12,343		141,698
Highwoods Properties, Inc.		19,033		694,704
Home Properties, Inc.		12,507		780,687
Hospitality Properties Trust		29,700		792,990
Jones Lang LaSalle, Inc.		10,692		1,033,275
Kilroy Realty Corp.		18,384		969,940
Liberty Property Trust		28,704		1,113,428
Mack-Cali Realty Corp.		20,196		573,162
MFA Financial, Inc.		86,130		764,834
Mid-America Apartment Communities, Inc.		10,190		707,594
National Retail Properties, Inc.		26,433		910,617
OMEGA Healthcare Investors, Inc.		27,027		756,486
Piedmont Office Realty Trust, Inc., Class A		40,392		794,107
Rayonier, Inc.		29,866		1,668,613
Realogy Holdings Corp. *		10,989		492,857
Realty Income Corp.		43,640		1,992,166
Regency Centers Corp.		22,245		1,154,071
Retail Properties of America, Inc., Class A		7,724		114,315
Senior Housing Properties Trust		45,099		1,131,534
SL Green Realty Corp.		21,881		1,785,927
Tanger Factory Outlet Centers		22,572		796,566
Taubman Centers, Inc.		14,850		1,139,292
Two Harbors Investment Corp.		71,324		917,227
UDR, Inc.		61,445		1,466,078
Washington REIT		15,865		439,302
Weingarten Realty Investors		26,730		819,274

				42,054,033

Retailing 5.7%
Aaron’s, Inc.		16,929		461,992
Abercrombie & Fitch Co., Class A		19,132		892,125
Advance Auto Parts, Inc.		17,820		1,360,379
American Eagle Outfitters, Inc.		44,505		920,363
Ascena Retail Group, Inc. *		30,370		509,912
AutoNation, Inc. *		9,550		418,004
Big Lots, Inc. *		14,256		474,725
Cabela’s, Inc. *		11,583		585,984
Chico’s FAS, Inc.		39,798		675,770
Dick’s Sporting Goods, Inc.		23,629		1,181,450
Dillard’s, Inc., Class A		7,425		591,624
Expedia, Inc.		22,572		1,440,996
Foot Locker, Inc.		37,101		1,268,483
GameStop Corp., Class A (a)		28,933		725,061
GNC Holdings, Inc., Class A		18,117		742,797
Groupon, Inc. *		64,449		291,954
Guess?, Inc.		14,850		411,197
HomeAway, Inc. *		7,557		222,932
LKQ Corp. *		71,577		1,516,717
Netflix, Inc. *		13,365		2,513,689

See financial notes 73

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sally Beauty Holdings, Inc. *		37,719		1,046,325
Signet Jewelers Ltd.		19,602		1,200,034
Tractor Supply Co.		17,212		1,789,876
TripAdvisor, Inc. *		26,433		1,201,644
Ulta Salon, Cosmetics & Fragrance, Inc.		14,528		1,286,600
Urban Outfitters, Inc. *		26,625		1,078,845
Williams-Sonoma, Inc.		20,790		943,866

				25,753,344

Semiconductors & Semiconductor Equipment 1.8%
Advanced Micro Devices, Inc. *(a)		146,127		363,856
Atmel Corp. *		105,732		718,978
Cree, Inc. *		27,918		1,262,731
Cypress Semiconductor Corp. *		34,080		358,862
Lam Research Corp. *		38,559		1,631,046
LSI Corp. *		133,947		932,271
ON Semiconductor Corp. *		109,296		874,368
Skyworks Solutions, Inc. *		47,002		1,001,143
Teradyne, Inc. *		46,006		771,060

				7,914,315

Software & Services 6.7%
Akamai Technologies, Inc. *		42,651		1,576,381
Alliance Data Systems Corp. *		12,177		1,932,368
ANSYS, Inc. *		22,547		1,709,063
AOL, Inc. *		18,711		690,436
Booz Allen Hamilton Holding Corp.		8,910		114,048
Broadridge Financial Solutions, Inc.		29,443		675,717
Cadence Design Systems, Inc. *		67,587		957,032
Computer Sciences Corp.		37,422		1,797,379
Compuware Corp. *		51,678		599,981
Concur Technologies, Inc. *		10,989		771,428
DST Systems, Inc.		7,425		504,306
Electronic Arts, Inc. *		73,728		1,292,452
FactSet Research Systems, Inc. (a)		9,809		954,318
FleetCor Technologies, Inc. *		10,395		725,675
Fortinet, Inc. *		32,373		782,779
Gartner, Inc. *		22,869		1,137,961
Genpact Ltd.		32,076		564,858
Global Payments, Inc.		19,008		916,376
IAC/InterActiveCorp		19,694		802,530
Informatica Corp. *		26,136		915,021
Jack Henry & Associates, Inc.		20,790		908,939
Lender Processing Services, Inc.		20,493		503,308
MICROS Systems, Inc. *		19,305		826,254
NetSuite, Inc. *		6,734		469,966
NeuStar, Inc., Class A *		16,305		714,974
PTC, Inc. *		29,700		687,258
SAIC, Inc.		68,013		803,914
ServiceNow, Inc. *		2,745		89,130
SolarWinds, Inc. *		15,117		853,506
Solera Holdings, Inc.		16,910		952,033
Splunk, Inc. *		6,237		225,343
Synopsys, Inc. *		35,937		1,258,873
TIBCO Software, Inc. *		37,586		806,220
Total System Services, Inc.		38,907		924,430
Vantiv, Inc., Class A *		10,098		219,732
VeriFone Systems, Inc. *		26,706		506,613

				30,170,602

Technology Hardware & Equipment 3.6%
Anixter International, Inc.		6,534		450,323
Arrow Electronics, Inc. *		25,558		1,026,154
Avnet, Inc. *		33,091		1,168,443
AVX Corp.		10,746		126,588
Brocade Communications Systems, Inc. *		109,309		613,224
Diebold, Inc.		15,147		427,751
Dolby Laboratories, Inc., Class A		11,880		378,734
EchoStar Corp., Class A *		9,534		360,767
FLIR Systems, Inc.		36,234		954,404
Harris Corp.		27,416		1,317,887
Ingram Micro, Inc., Class A *		37,388		705,138
IPG Photonics Corp. (a)		7,103		421,137
Jabil Circuit, Inc.		46,298		867,162
JDS Uniphase Corp. *		56,895		805,633
Molex, Inc.		33,264		921,745
National Instruments Corp.		21,681		652,164
NCR Corp. *		39,159		1,080,005
Palo Alto Networks, Inc. *(a)		7,878		481,582
Polycom, Inc. *		42,338		385,699
Riverbed Technology, Inc. *		38,770		592,406
Trimble Navigation Ltd. *		30,591		1,818,023
Zebra Technologies Corp., Class A *		12,474		557,837

				16,112,806

Telecommunication Services 1.5%
Clearwire Corp., Class A *		105,732		329,884
Frontier Communications Corp. (a)		239,976		993,501
Level 3 Communications, Inc. *		39,091		781,038
MetroPCS Communications, Inc. *		76,923		753,845
SBA Communications Corp., Class A *		30,750		2,186,940
Telephone & Data Systems, Inc.		24,241		554,876
tw telecom, Inc. *		36,234		917,445
United States Cellular Corp. *		3,267		120,193

				6,637,722

Transportation 1.7%
Hertz Global Holdings, Inc. *		72,058		1,437,557
J.B. Hunt Transport Services, Inc.		22,070		1,534,306
Kirby Corp. *		13,648		1,036,975
Landstar System, Inc.		11,286		635,289
Ryder System, Inc.		12,295		690,979
United Continental Holdings, Inc. *		80,632		2,153,681

				7,488,787

Utilities 7.0%
AGL Resources, Inc.		28,809		1,151,208
Alliant Energy Corp.		26,730		1,274,754
American Water Works Co., Inc.		43,035		1,697,731
Aqua America, Inc.		33,561		977,632
Atmos Energy Corp.		21,681		827,564
Cleco Corp.		14,553		644,698
CMS Energy Corp.		63,855		1,699,182
Energen Corp.		17,801		823,118
Great Plains Energy, Inc.		36,663		800,353
Hawaiian Electric Industries, Inc.		24,325		656,532
IDACORP, Inc.		12,474		582,411

74 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Integrys Energy Group, Inc.		18,711		1,058,481
ITC Holdings Corp.		12,474		1,054,302
MDU Resources Group, Inc.		44,550		1,076,328
National Fuel Gas Co.		20,474		1,191,382
NiSource, Inc.		74,844		2,073,179
NRG Energy, Inc.		77,932		1,870,368
NV Energy, Inc.		56,727		1,120,926
OGE Energy Corp.		24,043		1,392,330
Pepco Holdings, Inc.		56,430		1,144,965
Piedmont Natural Gas Co., Inc.		17,226		555,366
Pinnacle West Capital Corp.		27,008		1,510,827
Questar Corp.		42,174		991,511
SCANA Corp.		31,779		1,552,086
TECO Energy, Inc.		49,005		845,336
UGI Corp.		27,027		968,107
Vectren Corp.		20,196		666,468
Westar Energy, Inc.		31,150		966,273
WGL Holdings, Inc.		12,771		538,553

				31,711,971

Total Common Stock
(Cost $404,222,069)				449,365,386




Other Investment Companies 0.2% of net assets

Equity Fund 0.2%
SPDR S&P MidCap 400 ETF Trust		3,999		802,040

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		123,580		123,580

Total Other Investment Companies
(Cost $925,659)				925,620



End of Investments



Collateral Invested for Securities on Loan 1.3% of net assets


State Street Institutional U.S. Government Money Market Fund		5,991,475		5,991,475

Total Collateral Invested for Securities on Loan
(Cost $5,991,475)				5,991,475



End of Collateral Invested for Securities on Loan

At 02/28/13, the tax basis cost of the fund’s investments was $405,544,803 the unrealized appreciation and depreciation were $52,615,243 and ($7,869,040), respectively, with a net unrealized appreciation of $44,746,203.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.


Reg’d —		Registered
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$449,365,386		$—		$—		$449,365,386
Other Investment Companies¹		925,620		—		—		925,620

Total		$450,291,006		$—		$—		$450,291,006

Other Financial Instruments
Collateral Invested for Securities on Loan		$5,991,475		$—		$—		$5,991,475


¹		As categorized in Portfolio Holdings.

See financial notes 75

Schwab U.S. Mid-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments, at value (cost $405,147,728) including securities on loan of $5,875,603		$450,291,006
Collateral invested for securities on loan		5,991,475
Receivables:
Investments sold		727,007
Fund shares sold		2,992,140
Dividends		437,659
Income from securities on loan		10,622
Interest	+	2

Total assets		460,449,911

Liabilities

Collateral held for securities on loan		5,991,475
Payables:
Investments bought		3,772,953
Investment adviser fees	+	2,577

Total liabilities		9,767,005

Net Assets

Total assets		460,449,911
Total liabilities	—	9,767,005

Net assets		$450,682,906

Net Assets by Source
Capital received from investors		408,175,995
Net investment income not yet distributed		752,995
Net realized capital losses		(3,509,921	)
Net unrealized capital gains		45,263,837

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$450,682,906

14,850,001

$30.35

76 See financial notes

Schwab U.S. Mid-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$2,899,573			$2,378,487
Net realized gains (losses)		(1,274,178	)		3,390,224
Net unrealized gains	+	43,430,302			12,136,881

Net increase in net assets resulting from operations		45,055,697			17,905,592

Distributions to Shareholders

Distributions from net investment income		($2,710,725	)		($1,917,350	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

7,700,000

$219,047,701

6,500,000

$161,782,743

Shares redeemed

(600,000

)

(16,549,641

)

(2,100,000

)

(51,481,582

)

Net transactions in fund shares

7,100,000

$202,498,060

4,400,000

$110,301,161

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

7,750,001

$205,839,874

3,350,001

$79,550,471

Total increase

7,100,000

244,843,032

4,400,000

126,289,403

End of period

14,850,001

$450,682,906

7,750,001

$205,839,874

Net investment income not yet distributed

$752,995

$564,147

78 See financial notes

Schwab U.S. Small-Cap ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		36.55			32.34			26.48			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.45			0.49			0.39			0.23
Net realized and unrealized gains (losses)		4.59			4.16			5.86			1.45	²

Total from investment operations		5.04			4.65			6.25			1.68
Less distributions:
Distributions from net investment income		(0.48	)		(0.44	)		(0.39	)		(0.20	)

Net asset value at end of period		41.11			36.55			32.34			26.48

Total return (%)		13.90	³		14.52			23.55			6.67	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.10	^4,5		0.13			0.13			0.14	^4,6
Gross operating expenses		0.10	^4,5		0.13			0.13			0.14	⁴
Net investment income (loss)		2.41	⁴		1.44			1.17			1.05	⁴
Portfolio turnover rate⁷		9	³		12			11			8	³
Net assets, end of period ($ x 1,000)		945,564			641,516			462,523			193,310

* Unaudited.

¹ Commencement of operations.

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

³ Not annualized.

⁴ Annualized.

⁶ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

⁷ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 79

Schwab U.S. Small-Cap ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		855,948,348		943,134,409
	0	.2%	Other Investment Companies		1,668,498		1,637,793
	0	.0%	Rights		—		—


	99	.9%	Total Investments		857,616,846		944,772,202
	2	.9%	Collateral Invested for Securities on Loan		27,566,166		27,566,166
	(2	.8)%	Other Assets and Liabilities, Net				(26,774,447	)


	100	.0%	Net Assets				945,563,921


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 1.3%
American Axle & Manufacturing Holdings, Inc. *		36,896		466,734
Cooper Tire & Rubber Co.		34,159		863,540
Dana Holding Corp.		79,656		1,332,645
Dorman Products, Inc.		14,311		500,313
Drew Industries, Inc.		11,467		417,169
Exide Technologies *		40,692		109,055
Federal-Mogul Corp. *		10,184		82,287
Fuel Systems Solutions, Inc. *		7,200		100,008
Modine Manufacturing Co. *		25,168		207,384
Standard Motor Products, Inc.		11,833		292,630
Superior Industries International, Inc.		13,116		285,273
Tenneco, Inc. *		32,472		1,150,483
Tesla Motors, Inc. *(a)		38,652		1,346,249
Thor Industries, Inc.		23,728		891,935
Tower International, Inc. *		3,463		41,695
Visteon Corp. *		28,344		1,651,888
WABCO Holdings, Inc. *		34,092		2,342,802
Winnebago Industries, Inc. *		16,123		312,464

				12,394,554

Banks 7.3%
1st Source Corp.		2,880		67,853
Arrow Financial Corp. (a)		6,240		151,258
Associated Banc-Corp.		96,531		1,389,081
Astoria Financial Corp.		44,200		432,276
BancFirst Corp.		3,360		134,534
BancorpSouth, Inc.		45,098		689,999
Bank Mutual Corp.		25,539		146,083
Bank of Hawaii Corp.		24,208		1,171,425
Bank of the Ozarks, Inc.		15,809		606,908
BankFinancial Corp.		9,459		75,483
BankUnited, Inc.		24,688		700,152
Banner Corp.		9,224		274,045
BBCN Bancorp, Inc.		41,696		516,197
Beneficial Mutual Bancorp, Inc. *		17,488		167,710
Berkshire Hills Bancorp, Inc.		13,453		326,908
Boston Private Financial Holdings, Inc.		42,847		391,193
Brookline Bancorp, Inc.		38,674		351,933
Camden National Corp.		4,164		141,118
Capital Bank Financial Corp., Class A *		5,398		99,863
Capital City Bank Group, Inc. *		7,362		84,295
CapitalSource, Inc.		114,104		1,026,936
Capitol Federal Financial, Inc.		75,784		896,525
Cardinal Financial Corp.		15,359		244,669
Cascade Bancorp *		3,360		20,261
Cathay General Bancorp		39,776		775,234
Centerstate Banks, Inc.		15,073		127,668
Central Pacific Financial Corp. *		15,464		239,537
Chemical Financial Corp.		14,784		362,060
Citizens Republic Bancorp, Inc. *		22,095		455,157
City Holding Co. (a)		8,060		305,635
Clifton Savings Bancorp, Inc.		4,320		48,816
CoBiz Financial, Inc.		20,515		170,069
Columbia Banking System, Inc.		21,492		429,840
Community Bank System, Inc.		21,328		615,739
Community Trust Bancorp, Inc.		9,200		313,996
CVB Financial Corp.		47,560		504,136
CYS Investments, Inc.		94,300		1,118,398
Dime Community Bancshares, Inc.		15,464		219,743
Doral Financial Corp. *		129,862		73,956
East West Bancorp, Inc.		76,192		1,874,323
ESSA Bancorp, Inc.		5,775		63,814
EverBank Financial Corp.		13,020		196,602
F.N.B. Corp.		75,099		853,125
First Bancorp		8,525		113,724
First Bancorp *(a)		36,896		201,821
First Busey Corp.		41,216		185,472
First Citizens BancShares, Inc., Class A		3,205		575,458
First Commonwealth Financial Corp.		57,299		416,564
First Community Bancshares, Inc.		8,011		125,132
First Financial Bancorp		31,764		486,942
First Financial Bankshares, Inc. (a)		15,944		711,102
First Financial Corp.		6,051		186,068
First Financial Holdings, Inc.		8,931		178,263
First Horizon National Corp.		133,560		1,419,743
First Interstate BancSystem, Inc.		11,507		210,233
First Merchants Corp.		15,293		227,407
First Midwest Bancorp, Inc.		41,134		514,175
First Niagara Financial Group, Inc.		190,448		1,557,865
FirstMerit Corp.		58,704		887,605
Flagstar Bancorp, Inc. *		10,877		147,818
Flushing Financial Corp.		15,464		244,331
Fulton Financial Corp.		107,808		1,223,621
Glacier Bancorp, Inc.		39,412		687,345
Great Southern Bancorp, Inc.		5,107		122,619
Hancock Holding Co.		45,640		1,378,328
Heartland Financial USA, Inc.		7,403		174,267
Home BancShares, Inc.		12,584		425,968

80 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
HomeTrust Bancshares, Inc. *		11,144		172,175
Hudson Valley Holding Corp.		9,508		144,331
IBERIABANK Corp.		16,117		809,073
Independent Bank Corp.		12,243		387,981
International Bancshares Corp.		29,112		589,518
Investors Bancorp, Inc.		25,397		448,765
Kearny Financial Corp.		8,964		89,550
Lakeland Financial Corp.		8,348		206,363
MB Financial, Inc.		29,907		709,095
Meridian Interstate Bancorp, Inc. *		5,390		97,505
MGIC Investment Corp. *(a)		108,817		324,275
National Bank Holdings Corp., Class A		4,027		72,848
National Penn Bancshares, Inc.		65,528		642,174
Nationstar Mortgage Holdings, Inc. *(a)		9,216		355,092
NBT Bancorp, Inc.		18,142		371,185
Northfield Bancorp, Inc.		12,062		137,266
Northwest Bancshares, Inc.		53,519		668,452
Ocwen Financial Corp. *		63,907		2,519,214
Old National Bancorp		54,579		736,817
Oriental Financial Group, Inc.		24,540		375,707
Oritani Financial Corp.		20,848		306,674
PacWest Bancorp		17,143		468,518
Park National Corp. (a)		7,339		484,227
Pinnacle Financial Partners, Inc. *		17,488		379,664
Popular, Inc. *		55,344		1,545,205
PrivateBancorp, Inc.		36,743		658,067
Prosperity Bancshares, Inc.		23,720		1,094,441
Provident Financial Services, Inc.		29,112		436,389
Provident New York Bancorp		21,829		196,024
Radian Group, Inc.		73,339		646,117
Renasant Corp.		13,655		300,547
Republic Bancorp, Inc., Class A		5,583		120,816
Rockville Financial, Inc.		15,464		198,867
Roma Financial Corp.		4,245		63,845
S&T Bancorp, Inc.		15,464		279,280
S.Y. Bancorp, Inc.		6,729		152,412
Sandy Spring Bancorp, Inc.		13,204		255,629
SCBT Financial Corp.		8,283		394,436
Signature Bank *		25,285		1,877,917
Simmons First National Corp., Class A		8,877		223,168
Southside Bancshares, Inc. (a)		8,160		174,379
State Bank Financial Corp.		16,904		268,774
StellarOne Corp.		12,588		193,729
Sterling Bancorp		16,842		171,283
Sterling Financial Corp.		15,728		333,119
Susquehanna Bancshares, Inc.		100,504		1,168,862
SVB Financial Group *		24,286		1,628,619
Synovus Financial Corp.		422,592		1,073,384
Taylor Capital Group, Inc. *		7,680		126,950
TCF Financial Corp.		91,540		1,257,760
Territorial Bancorp, Inc.		5,546		129,333
Texas Capital Bancshares, Inc. *		21,800		921,268
Tompkins Financial Corp.		6,240		258,523
TowneBank (a)		16,264		236,479
TriCo Bancshares		6,720		114,576
TrustCo Bank Corp.		51,213		266,820
Trustmark Corp.		36,800		842,720
UMB Financial Corp.		17,488		797,278
Umpqua Holdings Corp.		60,144		754,807
Union First Market Bankshares Corp.		10,664		193,552
United Bankshares, Inc. (a)		24,688		641,888
United Financial Bancorp, Inc.		9,776		146,151
Univest Corp. of Pennsylvania		9,066		150,405
Valley National Bancorp (a)		107,688		1,080,111
ViewPoint Financial Group, Inc.		19,632		409,327
Washington Federal, Inc.		57,264		1,004,983
Washington Trust Bancorp, Inc.		7,976		210,885
Webster Financial Corp.		43,243		952,211
WesBanco, Inc.		13,594		317,964
Westamerica Bancorp		14,984		663,042
Western Alliance Bancorp *		39,464		524,871
Westfield Financial, Inc.		11,624		90,551
Wilshire Bancorp, Inc. *		31,762		186,443
Wintrust Financial Corp.		19,408		708,392
WSFS Financial Corp.		4,634		220,115

				69,415,607

Capital Goods 12.4%
3D Systems Corp. *(a)		39,590		1,463,228
A.O. Smith Corp.		20,848		1,491,257
AAON, Inc.		9,704		233,478
AAR Corp.		21,271		373,731
Accuride Corp. *		23,795		96,370
Aceto Corp.		14,298		148,842
Actuant Corp., Class A		39,296		1,194,991
Acuity Brands, Inc.		23,460		1,598,330
Aecom Technology Corp. *		58,296		1,766,952
Aegion Corp. *		21,453		515,516
Aerovironment, Inc. *		10,198		225,580
Air Lease Corp. *		35,936		976,381
Aircastle Ltd.		31,512		424,467
Albany International Corp., Class A		15,499		442,651
Alliant Techsystems, Inc.		18,400		1,210,720
Altra Holdings, Inc.		14,558		374,723
Ameresco, Inc., Class A *		9,992		83,034
American Railcar Industries, Inc.		5,069		221,211
American Science & Engineering, Inc.		5,060		316,452
American Superconductor Corp. *(a)		20,023		57,866
American Woodmark Corp. *		5,610		180,081
Ampco-Pittsburgh Corp.		4,475		83,727
API Technologies Corp. *		18,547		48,593
Apogee Enterprises, Inc.		15,283		394,149
Applied Industrial Technologies, Inc.		22,660		983,671
Armstrong World Industries, Inc.		11,290		577,258
Astec Industries, Inc.		11,309		402,714
Astronics Corp. *		6,116		168,496
AZZ, Inc.		13,580		606,483
Badger Meter, Inc.		7,680		389,837
Barnes Group, Inc.		25,168		669,720
Beacon Roofing Supply, Inc. *		27,107		1,000,248
Belden, Inc.		24,813		1,249,583
Blount International, Inc. *		26,531		399,822
Brady Corp., Class A		24,841		845,836
Briggs & Stratton Corp.		25,648		627,350
Builders FirstSource, Inc. *		30,360		183,678
CAI International, Inc. *		7,729		213,320
Capstone Turbine Corp. *(a)		214,168		207,743
Carlisle Cos., Inc.		33,904		2,301,065

See financial notes 81

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Chart Industries, Inc. *		16,124		1,169,957
CIRCOR International, Inc.		9,520		396,794
CLARCOR, Inc.		27,192		1,386,520
Colfax Corp. *		35,936		1,559,622
Columbus McKinnon Corp. *		10,465		205,323
Comfort Systems USA, Inc.		21,007		262,167
Commercial Vehicle Group, Inc. *		14,091		111,319
Crane Co.		25,648		1,379,349
Cubic Corp.		8,765		365,851
Curtiss-Wright Corp.		25,518		885,730
DigitalGlobe, Inc. *		39,482		1,029,691
Douglas Dynamics, Inc.		11,624		165,293
Ducommun, Inc. *		6,065		94,008
DXP Enterprises, Inc. *		5,084		316,225
Dycom Industries, Inc. *		18,276		382,882
Dynamic Materials Corp.		7,362		124,418
Edgen Group, Inc. *		20,848		167,201
EMCOR Group, Inc.		35,936		1,386,052
Encore Wire Corp.		10,317		337,263
Energy Recovery, Inc. *		20,368		100,211
EnerSys, Inc. *		27,567		1,126,939
Enphase Energy, Inc. *(a)		19,567		96,465
EnPro Industries, Inc. *		11,232		522,625
ESCO Technologies, Inc.		14,340		581,630
Esterline Technologies Corp. *		16,657		1,148,167
Exelis, Inc.		105,800		1,091,856
Federal Signal Corp. *		34,634		270,145
First Solar, Inc. *(a)		32,334		835,834
Foster Wheeler AG *		57,744		1,389,321
Franklin Electric Co., Inc.		10,184		662,673
FreightCar America, Inc.		6,729		141,511
FuelCell Energy, Inc. *		78,548		83,261
Furmanite Corp. *		19,424		115,961
GATX Corp.		25,168		1,254,625
GenCorp, Inc. *		32,662		393,577
Generac Holdings, Inc.		15,147		521,814
General Cable Corp. *		26,712		879,893
Gibraltar Industries, Inc. *		15,464		265,208
Global Power Equipment Group, Inc.		9,224		154,779
Graco, Inc.		32,472		1,886,623
GrafTech International Ltd. *		68,408		505,535
Graham Corp.		5,414		126,092
Granite Construction, Inc.		19,161		595,716
Great Lakes Dredge & Dock Corp.		31,170		303,908
Greenbrier Cos., Inc. *		13,372		270,783
Griffon Corp.		24,208		272,824
H&E Equipment Services, Inc.		14,984		291,589
Harsco Corp.		45,501		1,091,114
HEICO Corp., Class A		24,535		817,016
Hexcel Corp. *		53,904		1,468,884
Houston Wire & Cable Co.		8,579		99,860
Huntington Ingalls Industries, Inc.		26,712		1,283,245
Hyster-Yale Materials Handling, Inc.		3,379		173,106
IDEX Corp.		44,680		2,275,552
II-VI, Inc. *		28,861		500,161
ITT Corp.		49,960		1,315,447
John Bean Technologies Corp.		15,676		288,909
Kaman Corp.		14,024		489,438
Kaydon Corp.		17,621		440,701
Kennametal, Inc.		43,240		1,750,355
L.B. Foster Co.		5,875		259,440
Layne Christensen Co. *		10,664		234,501
Lennox International, Inc.		24,688		1,458,320
Lindsay Corp.		6,758		577,471
MasTec, Inc. *		30,679		923,131
Meritor, Inc. *		52,689		231,832
Michael Baker Corp.		4,473		108,426
Moog, Inc., Class A *		25,300		1,137,488
MRC Global, Inc. *		12,584		386,580
Mueller Industries, Inc.		15,058		800,784
Mueller Water Products, Inc., Class A		85,355		479,695
MYR Group, Inc. *		11,213		260,254
NACCO Industries, Inc., Class A		3,226		187,398
Navistar International Corp. *		42,665		1,059,372
Nordson Corp.		30,552		1,936,997
Nortek, Inc. *		8,160		587,030
Northwest Pipe Co. *		5,068		121,024
Orbital Sciences Corp. *		32,349		478,118
Orion Marine Group, Inc. *		14,293		136,069
Oshkosh Corp. *		49,480		1,907,949
Otter Tail Corp.		19,408		560,697
Pike Electric Corp.		10,928		152,336
Polypore International, Inc. *(a)		25,168		963,431
Powell Industries, Inc. *		4,920		286,393
Preformed Line Products Co.		1,440		101,981
Primoris Services Corp.		16,317		305,944
Proto Labs, Inc. *		4,800		223,152
Quanex Building Products Corp.		20,085		399,892
Raven Industries, Inc.		19,408		547,888
RBC Bearings, Inc. *		12,104		603,263
Regal-Beloit Corp.		23,976		1,852,865
Rexnord Corp. *		14,504		295,446
Rush Enterprises, Inc., Class A *		18,260		447,370
Sauer-Danfoss, Inc.		6,208		335,977
Seaboard Corp.		151		430,802
Simpson Manufacturing Co., Inc.		21,328		620,645
Solarcity Corp. *(a)		6,136		111,123
Standex International Corp.		6,720		361,670
Sterling Construction Co., Inc. *		7,680		86,784
Sun Hydraulics Corp.		14,024		391,129
TAL International Group, Inc.		15,944		686,389
Taser International, Inc. *		27,269		203,154
Tecumseh Products Co., Class A *		8,059		73,015
Teledyne Technologies, Inc. *		19,888		1,463,359
Tennant Co.		9,984		465,953
Terex Corp. *		60,074		1,971,028
Textainer Group Holdings Ltd.		9,200		372,048
The ExOne Co. *(a)		2,545		69,199
The Gorman-Rupp Co.		8,160		235,334
The Keyw Holding Corp. *		13,480		195,460
The Manitowoc Co., Inc.		72,046		1,334,292
The Middleby Corp. *		10,120		1,511,017
The Toro Co.		31,512		1,421,191
Thermon Group Holdings, Inc. *		8,959		183,660
Titan International, Inc.		25,778		544,174
Titan Machinery, Inc. *		9,342		263,912
Tredegar Corp.		12,478		305,461
Trex Co., Inc. *		7,609		359,449
TriMas Corp. *		17,264		495,304
Trinity Industries, Inc.		42,656		1,844,445
Triumph Group, Inc.		26,912		1,975,610
Tutor Perini Corp. *		19,423		330,385
Twin Disc, Inc.		4,930		117,827

82 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
United Rentals, Inc. *		51,033		2,725,673
Universal Forest Products, Inc.		10,693		433,922
USG Corp. *		48,040		1,355,689
Valmont Industries, Inc.		12,584		1,982,609
Vicor Corp. *		12,016		63,444
Wabash National Corp. *		37,586		358,570
Wabtec Corp.		26,220		2,564,054
Watsco, Inc.		15,944		1,241,559
Watts Water Technologies, Inc., Class A		14,984		703,349
WESCO International, Inc. *		23,728		1,753,499
Woodward, Inc.		34,007		1,272,882

				117,585,755

Commercial & Professional Services 3.6%
ABM Industries, Inc.		27,192		617,258
Acacia Research Corp. *		26,712		746,867
Acco Brands Corp. *		61,208		459,060
ARC Document Solutions, Inc. *		20,986		47,218
CBIZ, Inc. *		26,874		170,919
CDI Corp.		7,363		121,195
Cenveo, Inc. *(a)		29,460		61,866
Clean Harbors, Inc. *		28,532		1,469,398
Consolidated Graphics, Inc. *		4,320		166,752
Corrections Corp. of America		53,904		2,067,218
CoStar Group, Inc. *		14,705		1,481,382
Courier Corp.		5,760		72,288
Covanta Holding Corp.		71,144		1,391,577
CRA International, Inc. *		5,619		124,236
Deluxe Corp.		28,493		1,130,602
EnergySolutions, Inc. *		45,697		169,993
EnerNOC, Inc. *		13,064		215,425
Ennis, Inc.		14,266		223,406
Exponent, Inc. *		7,106		357,219
FTI Consulting, Inc. *		23,344		810,971
Fuel Tech, Inc. *		8,864		39,268
G&K Services, Inc., Class A		10,232		426,367
Healthcare Services Group, Inc.		36,416		877,626
Heidrick & Struggles International, Inc.		8,392		114,131
Herman Miller, Inc.		31,875		765,000
Higher One Holdings, Inc. *(a)		17,488		156,343
Hill International, Inc. *		14,321		48,835
HNI Corp.		24,208		764,004
Huron Consulting Group, Inc. *		12,508		490,189
ICF International, Inc. *		10,719		265,188
Innerworkings, Inc. *		15,983		236,069
Insperity, Inc.		11,801		334,558
Interface, Inc.		31,121		569,825
KAR Auction Services, Inc.		45,955		975,165
Kelly Services, Inc., Class A		14,024		247,664
Kforce, Inc.		16,424		238,805
Kimball International, Inc., Class B		16,439		151,403
Knoll, Inc.		25,999		442,503
Korn/Ferry International *		25,648		474,744
McGrath Rentcorp		12,104		356,947
Metalico, Inc. *		23,079		37,850
Mine Safety Appliances Co.		17,480		818,938
Mistras Group, Inc. *		8,160		166,872
Mobile Mini, Inc. *		19,987		538,050
Monster Worldwide, Inc. *		63,608		325,673
Multi-Color Corp.		7,163		172,843
Navigant Consulting, Inc. *		27,672		352,265
On Assignment, Inc. *		23,248		508,201
Pendrell Corp. *		82,420		117,861
Performant Financial Corp. *		4,320		57,240
Quad/Graphics, Inc. (a)		13,433		292,168
R.R. Donnelley & Sons Co. (a)		96,664		1,009,172
Resources Connection, Inc.		21,640		264,224
Rollins, Inc.		35,456		869,027
RPX Corp. *		17,393		206,107
Schawk, Inc.		6,513		70,080
Standard Parking Corp. *		8,485		176,106
Steelcase, Inc., Class A		42,656		603,582
Swisher Hygiene, Inc. *(a)		83,610		117,890
Sykes Enterprises, Inc. *		21,733		322,952
Team, Inc. *		9,803		429,960
Tetra Tech, Inc. *		36,301		1,047,647
The Advisory Board Co. *		18,755		952,942
The Brink’s Co.		25,566		676,221
The Corporate Executive Board Co.		18,194		985,023
The Geo Group, Inc.		39,560		1,366,402
TMS International Corp., Class A *		6,992		96,350
TrueBlue, Inc. *		21,927		425,165
United Stationers, Inc.		21,380		773,956
US Ecology, Inc.		8,638		214,827
Viad Corp.		11,225		308,238
WageWorks, Inc. *		5,161		121,851

				34,305,167

Consumer Durables & Apparel 3.0%
American Greetings Corp., Class A (a)		17,024		275,789
Arctic Cat, Inc. *		7,145		259,578
Beazer Homes USA, Inc. *(a)		12,990		202,254
Blyth, Inc. (a)		6,026		86,112
Brunswick Corp.		49,647		1,809,137
Callaway Golf Co.		38,252		257,053
Carter’s, Inc. *		28,060		1,582,865
Cavco Industries, Inc. *		3,444		155,359
Columbia Sportswear Co. (a)		6,720		373,162
Crocs, Inc. *		49,063		743,795
CSS Industries, Inc.		4,897		117,577
Deckers Outdoor Corp. *(a)		19,044		768,235
Ethan Allen Interiors, Inc.		14,024		391,831
Fifth & Pacific Cos., Inc. *		60,728		1,098,569
G-III Apparel Group Ltd. *		8,960		327,040
Hanesbrands, Inc. *		53,820		2,133,425
Helen of Troy Ltd. *		17,157		636,182
Hovnanian Enterprises, Inc., Class A *(a)		53,830		314,905
Iconix Brand Group, Inc. *		36,896		871,483
iRobot Corp. *		13,544		290,383
JAKKS Pacific, Inc.		12,104		147,427
K-Swiss, Inc., Class A *		14,999		70,645
KB Home		46,379		866,823
La-Z-Boy, Inc.		28,764		526,956
Leapfrog Enterprises, Inc. *		25,389		217,584
M.D.C Holdings, Inc.		20,888		802,726
M/I Homes, Inc. *		11,558		264,678
Maidenform Brands, Inc. *		12,754		244,749
Marine Products Corp.		5,736		38,546

See financial notes 83

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Meritage Homes Corp. *		17,024		689,302
Movado Group, Inc.		9,731		350,705
National Presto Industries, Inc.		2,530		192,255
Oxford Industries, Inc.		7,976		387,713
Perry Ellis International, Inc.		7,149		115,957
Pool Corp.		25,168		1,150,681
Quiksilver, Inc. *		66,008		412,550
Sealy Corp. *(a)		27,611		60,192
Skechers U.S.A., Inc., Class A *		20,368		425,691
Skullcandy, Inc. *(a)		8,960		54,656
Smith & Wesson Holding Corp. *(a)		35,618		340,152
Standard Pacific Corp. *		59,235		482,173
Steven Madden Ltd. *		21,808		961,515
Sturm Ruger & Co., Inc. (a)		10,370		566,306
Tempur-Pedic International, Inc. *		31,992		1,313,911
The Jones Group, Inc.		40,736		470,093
The Ryland Group, Inc.		24,116		861,424
TRI Pointe Homes, Inc. *		7,135		131,284
True Religion Apparel, Inc.		13,033		347,851
Tumi Holdings, Inc. *		10,879		257,180
UniFirst Corp.		8,160		681,686
Universal Electronics, Inc. *		7,878		153,936
Vera Bradley, Inc. *(a)		11,624		292,925
Weyco Group, Inc.		4,171		96,183
Wolverine World Wide, Inc.		26,232		1,106,990
Zagg, Inc. *(a)		12,508		91,684

				27,869,863

Consumer Services 3.8%
AFC Enterprises, Inc. *		13,064		391,920
Ambassadors Group, Inc.		9,811		44,150
American Public Education, Inc. *		9,815		382,589
Ameristar Casinos, Inc.		18,099		474,194
Bally Technologies, Inc. *		22,288		1,064,252
Biglari Holdings, Inc. *		612		229,121
BJ’s Restaurants, Inc. *		13,224		407,167
Bloomin’ Brands, Inc. *		8,160		140,434
Bob Evans Farms, Inc.		14,984		609,849
Boyd Gaming Corp. *(a)		31,086		204,235
Bravo Brio Restaurant Group, Inc. *		9,959		150,182
Bridgepoint Education, Inc. *		10,204		104,183
Bright Horizons Family Solutions, Inc. *		4,890		136,724
Brinker International, Inc.		39,776		1,327,723
Buffalo Wild Wings, Inc. *		10,184		801,379
Caesars Entertainment Corp. *(a)		13,560		169,500
Capella Education Co. *		6,114		193,569
Career Education Corp. *		27,672		88,550
CEC Entertainment, Inc.		9,224		279,026
Choice Hotels International, Inc.		14,504		551,587
Churchill Downs, Inc.		6,720		443,386
Chuy’s Holdings, Inc. *		2,880		82,109
Coinstar, Inc. *(a)		16,238		831,223
Corinthian Colleges, Inc. *		42,610		90,759
Cracker Barrel Old Country Store, Inc.		13,319		1,002,654
Del Frisco’s Restaurant Group, Inc. *		2,880		50,659
Denny’s Corp. *		53,673		303,789
DeVry, Inc.		30,708		920,626
DineEquity, Inc. *		8,740		610,839
Domino’s Pizza, Inc.		30,552		1,454,886
Education Management Corp. *(a)		9,704		34,546
Grand Canyon Education, Inc. *		22,644		542,324
Hillenbrand, Inc.		33,418		825,090
Ignite Restaurant Group, Inc. *		2,998		42,092
International Speedway Corp., Class A		13,544		408,216
Interval Leisure Group, Inc.		21,506		448,830
Isle of Capri Casinos, Inc. *		11,144		73,885
ITT Educational Services, Inc. *(a)		8,160		112,445
Jack in the Box, Inc. *		23,140		732,612
K12, Inc. *(a)		19,408		404,657
Krispy Kreme Doughnuts, Inc. *		34,996		461,947
Life Time Fitness, Inc. *		22,540		949,836
LifeLock, Inc. *		8,140		94,831
Lincoln Educational Services Corp.		12,600		79,506
Marriott Vacations Worldwide Corp. *		15,464		638,045
Matthews International Corp., Class A		14,984		494,472
Morgans Hotel Group Co. *		15,744		77,303
National American University Holdings, Inc.		5,413		21,057
Orient-Express Hotels Ltd., Class A *		48,040		496,253
Papa John’s International, Inc. *		9,224		479,740
Pinnacle Entertainment, Inc. *		31,802		445,228
Red Robin Gourmet Burgers, Inc. *		7,417		318,041
Regis Corp.		31,628		569,937
Ruby Tuesday, Inc. *		32,472		238,344
Ryman Hospitality Properties (a)		24,703		1,105,459
Scientific Games Corp., Class A *		27,620		248,580
Service Corp. International		118,611		1,843,215
SHFL Entertainment, Inc. *		29,610		469,615
Six Flags Entertainment Corp.		29,419		1,965,483
Sonic Corp. *		29,112		328,674
Sotheby’s		38,147		1,458,360
Speedway Motorsports, Inc.		7,051		114,649
Steiner Leisure Ltd. *		7,200		339,480
Stewart Enterprises, Inc., Class A		40,256		340,968
Strayer Education, Inc. (a)		6,240		306,322
Texas Roadhouse, Inc.		31,032		600,159
The Cheesecake Factory, Inc.		26,712		925,304
The Marcus Corp.		10,668		130,256
The Wendy’s Co. (a)		151,048		859,463
Universal Technical Institute, Inc.		12,135		141,494
Vail Resorts, Inc.		19,408		1,072,098
WMS Industries, Inc. *		29,112		728,964

				35,509,044

Diversified Financials 2.2%
Artio Global Investors, Inc.		26,393		71,789
Asset Acceptance Capital Corp. *		5,815		30,645
BGC Partners, Inc., Class A		69,000		294,630
Calamos Asset Management, Inc., Class A		10,927		122,164
Cardtronics, Inc. *		23,729		625,496
Cash America International, Inc.		15,444		782,084
Cohen & Steers, Inc. (a)		9,704		319,941
Cowen Group, Inc., Class A *		51,418		134,201
Credit Acceptance Corp. *		5,280		583,598
DFC Global Corp. *		23,663		442,025
Duff & Phelps Corp., Class A		15,782		245,252

84 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Encore Capital Group, Inc. *		12,480		368,784
Epoch Holding Corp.		8,744		244,395
Evercore Partners, Inc., Class A		14,107		574,155
EZCORP, Inc., Class A *		24,208		500,621
FBR & Co. *		4,769		84,225
Federated Investors, Inc., Class B (a)		50,440		1,171,217
Financial Engines, Inc. *		21,808		712,686
First Cash Financial Services, Inc. *		14,379		760,793
Gain Capital Holdings, Inc.		7,200		31,968
GAMCO Investors, Inc., Class A		2,415		129,203
GFI Group, Inc.		36,602		128,473
Gleacher & Co., Inc. *		35,919		21,085
Green Dot Corp., Class A *(a)		11,279		158,132
Greenhill & Co., Inc.		14,032		852,865
HFF, Inc., Class A		17,488		321,080
ICG Group, Inc. *		18,013		234,709
Interactive Brokers Group, Inc., Class A		21,913		322,340
INTL FCStone, Inc. *		7,680		137,011
Investment Technology Group, Inc. *		21,328		258,282
Janus Capital Group, Inc.		102,239		946,733
Knight Capital Group, Inc., Class A *		47,037		174,037
Ladenburg Thalmann Financial Services, Inc. *		42,474		55,216
MarketAxess Holdings, Inc.		20,072		784,012
Nelnet, Inc., Class A		14,024		465,316
Netspend Holdings, Inc. *		16,287		258,149
NewStar Financial, Inc. *		10,184		137,790
Oppenheimer Holdings, Inc., Class A		5,773		109,110
PHH Corp. *		31,032		651,982
PICO Holdings, Inc. *		12,636		271,800
Piper Jaffray Cos., Inc. *		8,744		337,256
Portfolio Recovery Associates, Inc. *		9,224		1,078,516
Pzena Investment Management, Inc., Class A		10,121		63,661
Safeguard Scientifics, Inc. *		14,260		215,896
Stifel Financial Corp. *		30,712		1,060,793
SWS Group, Inc. *		13,163		84,375
The First Marblehead Corp. *		35,620		31,274
Virtus Investment Partners, Inc. *		3,080		517,471
Waddell & Reed Financial, Inc., Class A		46,120		1,891,842
Westwood Holdings Group, Inc.		3,840		158,784
WisdomTree Investments, Inc. *		32,256		293,530
World Acceptance Corp. *		6,992		550,270

				20,801,662

Energy 5.5%
Abraxas Petroleum Corp. *(a)		50,721		103,978
Alon USA Energy, Inc.		6,683		130,252
Alpha Natural Resources, Inc. *		117,992		941,576
Amyris, Inc. *(a)		22,080		64,694
Apco Oil & Gas International, Inc.		9,704		129,063
Approach Resources, Inc. *		18,301		452,950
Arch Coal, Inc. (a)		114,632		599,525
Atwood Oceanics, Inc. *		31,713		1,622,120
Basic Energy Services, Inc. *(a)		15,985		233,861
Berry Petroleum Co., Class A		24,224		1,108,733
Bill Barrett Corp. *		25,648		462,946
Bonanza Creek Energy, Inc. *		12,104		409,478
BPZ Resources, Inc. *(a)		59,220		145,681
Bristow Group, Inc.		19,400		1,130,244
C&J Energy Services, Inc. *		23,600		571,120
Cal Dive International, Inc. *		52,689		95,367
CARBO Ceramics, Inc. (a)		10,664		968,291
Carrizo Oil & Gas, Inc. *		19,437		456,575
Ceres, Inc. *		2,890		11,589
Cheniere Energy, Inc. *		123,229		2,624,778
Clayton Williams Energy, Inc. *		2,880		114,336
Clean Energy Fuels Corp. *(a)		35,456		446,037
Cloud Peak Energy, Inc. *		33,259		570,059
Comstock Resources, Inc. *		23,728		335,039
Contango Oil & Gas Co.		6,720		260,467
Crosstex Energy, Inc.		21,808		363,539
CVR Energy, Inc.		8,160		458,429
Dawson Geophysical Co. *		4,428		136,825
Delek US Holdings, Inc.		9,224		344,609
Diamondback Energy, Inc. *		6,769		153,724
Dresser-Rand Group, Inc. *		41,379		2,551,429
Dril-Quip, Inc. *		19,608		1,612,366
Emerald Oil, Inc. *		11,295		77,936
Endeavour International Corp. *(a)		23,248		58,817
EPL Oil & Gas, Inc. *		18,928		487,017
Era Group, Inc. *		10,664		215,306
EXCO Resources, Inc. (a)		78,216		519,354
Exterran Holdings, Inc. *		35,228		888,802
Forest Oil Corp. *		64,499		374,094
Forum Energy Technologies, Inc. *		9,331		248,951
FX Energy, Inc. *		28,748		101,480
Gastar Exploration Ltd. *		32,666		37,566
Geospace Technologies Corp. *		6,927		674,136
Gevo, Inc. *(a)		10,664		21,115
Global Geophysical Services, Inc. *		11,781		27,568
Goodrich Petroleum Corp. *		14,878		191,777
Green Plains Renewable Energy, Inc. *		11,624		110,079
Gulf Island Fabrication, Inc.		7,684		182,956
Gulfmark Offshore, Inc., Class A		13,064		466,646
Gulfport Energy Corp. *		37,093		1,518,958
Halcon Resources Corp. *		59,825		424,758
Hallador Energy Co.		13,092		106,307
Harvest Natural Resources, Inc. *		20,368		110,191
Helix Energy Solutions Group, Inc. *		52,464		1,228,182
Hercules Offshore, Inc. *		85,896		582,375
Hornbeck Offshore Services, Inc. *		18,367		780,598
Hyperdynamics Corp. *(a)		85,416		44,425
ION Geophysical Corp. *		65,332		433,804
Isramco, Inc. *		555		54,767
James River Coal Co. *(a)		19,408		51,431
Key Energy Services, Inc. *		82,807		710,484
KiOR, Inc., Class A *(a)		4,391		24,194
Kodiak Oil & Gas Corp. *		141,824		1,262,234
Laredo Petroleum Holdings, Inc. *		12,584		215,690
Lufkin Industries, Inc.		17,968		1,163,967
Magnum Hunter Resources Corp. *		85,896		332,418
Matador Resources Co. *		21,808		170,320
Matrix Service Co. *		14,116		219,645
McMoRan Exploration Co. *		53,904		867,315
Midstates Petroleum Co., Inc. *		16,424		122,523
Newpark Resources, Inc. *		47,560		419,004
Northern Oil and Gas, Inc. *		31,512		432,030
Oasis Petroleum, Inc. *		38,427		1,410,271
Parker Drilling Co. *		64,736		308,143

See financial notes 85

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
PBF Energy, Inc. *		10,856		453,238
PDC Energy, Inc. *		16,271		758,879
Penn Virginia Corp.		29,623		120,566
PetroQuest Energy, Inc. *		30,552		117,320
PHI, Inc. *		6,720		212,016
Pioneer Energy Services Corp. *		33,683		294,053
Quicksilver Resources, Inc. *(a)		66,068		122,886
Renewable Energy Group, Inc. *		9,072		67,042
Rentech, Inc.		122,584		334,654
Resolute Energy Corp. *		21,328		217,119
Rex Energy Corp. *		21,661		291,990
Rosetta Resources, Inc. *		28,632		1,393,806
RPC, Inc. (a)		35,456		573,678
Sanchez Energy Corp. *		6,056		112,097
SEACOR Holdings, Inc.		10,664		740,935
SemGroup Corp., Class A *		23,460		1,081,271
Solazyme, Inc. *(a)		18,977		165,669
Stone Energy Corp. *		26,858		549,246
Swift Energy Co. *		23,259		314,462
Targa Resources Corp.		15,464		943,304
Teekay Corp.		20,368		706,770
Tesco Corp. *		16,904		214,850
TETRA Technologies, Inc. *		41,424		382,344
Unit Corp. *		23,248		1,057,319
VAALCO Energy, Inc. *		31,087		252,116
W&T Offshore, Inc.		18,928		281,270
Warren Resources, Inc. *		38,927		101,989
Western Refining, Inc.		30,967		1,111,406
Willbros Group, Inc. *		27,015		182,351
World Fuel Services Corp.		38,816		1,476,173

				51,918,133

Food & Staples Retailing 0.9%
Arden Group, Inc., Class A		649		59,137
Casey’s General Stores, Inc.		20,848		1,179,788
Harris Teeter Supermarkets, Inc.		26,712		1,148,616
Ingles Markets, Inc., Class A		7,405		152,247
Nash Finch Co.		6,752		129,436
Natural Grocers by Vitamin Cottage, Inc. *		3,908		80,896
PriceSmart, Inc.		9,812		727,560
Rite Aid Corp. *		384,700		630,908
Roundy’s, Inc. (a)		14,879		85,257
Spartan Stores, Inc.		12,508		208,383
SUPERVALU, Inc. (a)		128,515		510,205
Susser Holdings Corp. *		9,668		428,099
The Andersons, Inc.		9,314		457,131
The Chefs’ Warehouse, Inc. *		5,813		104,634
The Fresh Market, Inc. *		22,065		1,028,670
The Pantry, Inc. *		12,533		155,910
United Natural Foods, Inc. *		26,712		1,352,161
Village Super Market, Inc., Class A		3,360		110,040
Weis Markets, Inc.		6,097		246,685

				8,795,763

Food, Beverage & Tobacco 1.8%
Alico, Inc.		1,383		59,262
Alliance One International, Inc. *		56,949		212,420
Annie’s, Inc. *(a)		5,384		225,913
B&G Foods, Inc.		28,136		827,198
Boulder Brands, Inc. *		31,992		272,572
Cal-Maine Foods, Inc.		7,460		302,055
Calavo Growers, Inc.		6,720		189,168
Central European Distribution Corp. *		30,072		21,754
Chiquita Brands International, Inc. *		25,309		157,169
Coca-Cola Bottling Co. Consolidated		2,499		163,510
Darling International, Inc. *		63,793		1,064,705
Dean Foods Co. *		99,544		1,652,430
Diamond Foods, Inc. *(a)		11,854		184,093
Dole Food Co., Inc. *		20,247		226,766
Flowers Foods, Inc.		62,168		1,751,894
Fresh Del Monte Produce, Inc.		21,009		548,125
Harbinger Group, Inc. *		5,199		44,555
J&J Snack Foods Corp.		7,958		550,853
Lancaster Colony Corp.		11,019		806,260
Limoneira Co.		4,320		85,147
National Beverage Corp.		5,611		75,075
Pilgrim’s Pride Corp. *		31,436		276,951
Post Holdings, Inc. *		17,592		680,107
Sanderson Farms, Inc.		10,664		540,985
Seneca Foods Corp., Class A *		4,320		131,846
Snyders-Lance, Inc.		25,648		635,044
Star Scientific, Inc. *(a)		72,720		128,714
The Boston Beer Co., Inc., Class A *(a)		4,420		687,001
The Hain Celestial Group, Inc. *		24,746		1,354,844
Tootsie Roll Industries, Inc. (a)		11,144		312,924
TreeHouse Foods, Inc. *		19,408		1,133,233
Universal Corp.		12,766		712,215
Vector Group Ltd.		31,396		503,906
WhiteWave Foods Co., Class A *(a)		12,501		195,516

				16,714,210

Health Care Equipment & Services 6.6%
Abaxis, Inc.		11,144		472,728
ABIOMED, Inc. *(a)		19,424		311,561
Acadia Healthcare Co., Inc. *		19,959		543,284
Accretive Health, Inc. *(a)		28,878		276,651
Accuray, Inc. *		32,952		140,705
Air Methods Corp.		18,898		846,441
Alere, Inc. *		40,736		927,151
Align Technology, Inc. *		38,549		1,211,981
Allscripts Healthcare Solutions, Inc. *		92,240		1,173,293
Almost Family, Inc.		4,733		97,452
Alphatec Holdings, Inc. *		38,690		63,065
Amedisys, Inc. *		16,169		182,710
AMN Healthcare Services, Inc. *		23,794		335,495
AmSurg Corp. *		17,280		521,856
Analogic Corp.		6,720		498,557
AngioDynamics, Inc. *		18,865		233,737
ArthroCare Corp. *		14,999		523,765
Assisted Living Concepts, Inc., Class A		11,190		132,490
athenahealth, Inc. *		19,780		1,855,166
Atrion Corp.		788		154,637
Bio-Reference Labs, Inc. *(a)		13,402		354,885
BioScrip, Inc. *		31,844		348,692
Brookdale Senior Living, Inc. *		52,944		1,465,490
Cantel Medical Corp.		11,144		346,913

86 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Centene Corp. *		28,953		1,303,464
Chemed Corp.		10,384		801,541
Community Health Systems, Inc.		49,000		2,070,740
Computer Programs & Systems, Inc.		5,569		290,368
Conceptus, Inc. *		17,052		380,771
CONMED Corp.		15,491		481,925
CorVel Corp. *		3,541		170,110
Cross Country Healthcare, Inc. *		17,563		100,109
CryoLife, Inc.		15,277		93,648
Cyberonics, Inc. *		13,800		631,350
Dexcom, Inc. *		36,816		549,663
Emeritus Corp. *		16,424		467,920
Endologix, Inc. *		30,011		451,966
ePocrates, Inc. *		10,143		119,180
ExamWorks Group, Inc. *		13,544		191,783
Gentiva Health Services, Inc. *		16,638		175,032
Globus Medical, Inc., Class A *(a)		4,320		62,424
Greatbatch, Inc. *		13,017		352,370
Greenway Medical Technologies *(a)		7,930		125,691
Haemonetics Corp. *		27,723		1,143,574
Hanger, Inc. *		18,403		545,833
Health Management Associates, Inc., Class A *		143,881		1,581,252
Health Net, Inc. *		43,720		1,125,353
HEALTHSOUTH Corp. *		52,249		1,260,246
HealthStream, Inc. *		10,664		228,103
Healthways, Inc. *		18,448		237,057
Hill-Rom Holdings, Inc.		32,488		1,064,957
HMS Holdings Corp. *		48,721		1,412,422
ICU Medical, Inc. *		6,901		391,701
Insulet Corp. *		29,837		673,421
Integra LifeSciences Holdings Corp. *		11,473		467,410
Invacare Corp.		15,464		224,383
IPC The Hospitalist Co. *		8,960		373,632
Kindred Healthcare, Inc. *		29,004		326,875
Landauer, Inc.		5,102		299,538
LHC Group, Inc. *		7,553		153,477
LifePoint Hospitals, Inc. *		26,392		1,163,623
Magellan Health Services, Inc. *		14,858		766,079
MAKO Surgical Corp. *(a)		22,201		283,951
Masimo Corp.		28,665		569,000
MedAssets, Inc. *		27,192		502,236
Medidata Solutions, Inc. *		12,104		630,860
MEDNAX, Inc. *		27,057		2,316,620
Merge Healthcare, Inc. *		32,281		79,088
Meridian Bioscience, Inc.		22,394		474,753
Merit Medical Systems, Inc. *		21,328		254,230
Molina Healthcare, Inc. *		16,594		529,515
MWI Veterinary Supply, Inc. *		6,512		822,205
National Healthcare Corp.		4,800		222,576
Natus Medical, Inc. *		15,944		202,489
Navidea Biopharmaceuticals, Inc. *(a)		57,683		177,087
Neogen Corp. *		11,996		561,653
NuVasive, Inc. *		24,208		449,543
NxStage Medical, Inc. *		32,579		365,536
Omnicell, Inc. *		17,802		320,792
OraSure Technologies, Inc. *		30,072		167,200
Orthofix International N.V. *		10,351		385,678
Owens & Minor, Inc.		34,065		1,037,279
Palomar Medical Technologies, Inc. *		9,801		108,203
PharMerica Corp. *		16,246		232,805
Quality Systems, Inc.		21,412		396,550
Quidel Corp. *		15,994		378,578
RTI Biologics, Inc. *		30,121		109,339
Select Medical Holdings Corp.		21,328		197,071
Sirona Dental Systems, Inc. *		29,600		2,102,192
Skilled Healthcare Group, Inc., Class A *		13,170		76,649
Staar Surgical Co. *		14,836		79,966
STERIS Corp.		31,504		1,228,656
SurModics, Inc. *		6,240		158,246
Symmetry Medical, Inc. *		19,629		204,730
Team Health Holdings, Inc. *		18,780		628,942
Teleflex, Inc.		22,080		1,765,517
Tenet Healthcare Corp. *		57,337		2,253,917
The Ensign Group, Inc.		9,452		296,037
Thoratec Corp. *		31,512		1,109,538
Triple-S Management Corp., Class B *		9,858		177,050
Unilife Corp. *(a)		38,012		95,410
Universal American Corp.		18,448		153,856
Vanguard Health Systems, Inc. *		17,488		260,047
VCA Antech, Inc. *		47,157		1,035,568
Vocera Communications, Inc. *		3,044		80,270
Volcano Corp. *		28,756		622,280
WellCare Health Plans, Inc. *		23,248		1,329,553
West Pharmaceutical Services, Inc.		18,569		1,121,939
Wright Medical Group, Inc. *		21,627		502,828
Zeltiq Aesthetics, Inc. *		3,444		13,879

				62,349,603

Household & Personal Products 0.5%
Central Garden & Pet Co., Class A *		21,808		190,384
Elizabeth Arden, Inc. *		14,720		572,608
Inter Parfums, Inc.		8,136		203,888
Lifevantage Corp. *		60,796		153,814
Medifast, Inc. *		7,266		168,426
Nature’s Sunshine Products, Inc.		5,558		80,369
Nu Skin Enterprises, Inc., Class A		28,540		1,175,848
Prestige Brands Holdings, Inc. *		27,192		646,898
Revlon, Inc., Class A *		6,595		148,717
Spectrum Brands Holdings, Inc.		12,104		654,705
USANA Health Sciences, Inc. *(a)		3,360		148,814
WD-40 Co.		7,672		415,899

				4,560,370

Insurance 2.9%
American Equity Investment Life Holding Co.		33,788		468,977
American National Insurance Co.		3,840		308,621
AMERISAFE, Inc. *		10,308		336,247
AmTrust Financial Services, Inc.		14,559		484,087
Argo Group International Holdings Ltd.		13,352		507,109
Aspen Insurance Holdings Ltd.		38,336		1,374,729
Baldwin & Lyons, Inc., Class B		4,944		115,146
Citizens, Inc. *		24,255		222,903
CNO Financial Group, Inc.		122,826		1,343,716
Crawford & Co., Class B		14,311		118,209
Donegal Group, Inc., Class A		5,103		73,585

See financial notes 87

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
eHealth, Inc. *		10,664		165,612
EMC Insurance Group, Inc.		2,803		72,149
Employers Holdings, Inc.		17,226		361,918
Endurance Specialty Holdings Ltd.		23,248		1,023,842
Enstar Group Ltd. *		4,420		554,003
FBL Financial Group, Inc., Class A		6,271		227,888
First American Financial Corp.		57,528		1,397,355
Global Indemnity plc *		5,760		133,056
Greenlight Capital Re Ltd., Class A *		15,480		371,210
Hilltop Holdings, Inc. *		20,824		267,380
Horace Mann Educators Corp.		20,851		426,612
Infinity Property & Casualty Corp.		6,477		363,943
Kansas City Life Insurance Co.		2,120		79,118
Kemper Corp.		29,204		924,015
Maiden Holdings Ltd.		28,152		283,772
MBIA, Inc. *(a)		76,192		736,777
Meadowbrook Insurance Group, Inc.		24,688		173,557
Mercury General Corp.		19,500		757,965
Montpelier Re Holdings Ltd.		29,984		741,205
National Financial Partners Corp. *		21,352		419,780
National Interstate Corp.		9,104		302,981
National Western Life Insurance Co., Class A		1,365		222,304
Old Republic International Corp.		129,720		1,557,937
OneBeacon Insurance Group Ltd., Class A		12,510		167,259
Platinum Underwriters Holdings Ltd.		17,968		950,148
Primerica, Inc.		25,168		792,037
ProAssurance Corp.		34,467		1,616,158
Protective Life Corp.		44,160		1,409,587
RLI Corp.		9,224		635,903
Safety Insurance Group, Inc.		6,720		315,840
Selective Insurance Group, Inc.		29,592		658,126
StanCorp Financial Group, Inc.		23,772		946,363
State Auto Financial Corp.		7,595		127,596
Stewart Information Services Corp.		9,853		228,097
Symetra Financial Corp.		41,181		542,354
The Hanover Insurance Group, Inc.		24,208		1,033,197
The Navigators Group, Inc. *		5,760		323,482
The Phoenix Cos., Inc. *		2,974		74,647
Tower Group, Inc.		18,448		344,055
United Fire Group, Inc.		12,135		298,278
Universal Insurance Holdings, Inc.		13,876		60,916

				27,441,751

Materials 5.5%
A. Schulman, Inc.		16,131		505,707
A.M. Castle & Co. *(a)		8,466		139,096
AK Steel Holding Corp. (a)		70,498		264,368
AMCOL International Corp.		13,544		396,027
American Vanguard Corp.		12,584		390,482
Axiall Corp.		38,601		2,184,045
Balchem Corp.		15,787		636,690
Berry Plastics Group, Inc. *		15,909		305,771
Boise Cascade Co. *		5,908		160,107
Boise, Inc.		49,480		425,033
Buckeye Technologies, Inc.		20,556		570,018
Cabot Corp.		32,266		1,186,744
Calgon Carbon Corp. *		30,461		519,665
Carpenter Technology Corp.		23,728		1,120,673
Century Aluminum Co. *		27,672		224,420
Chemtura Corp. *		55,155		1,109,719
Clearwater Paper Corp. *		12,589		609,182
Coeur d’Alene Mines Corp. *		48,025		912,955
Commercial Metals Co.		63,359		1,033,385
Compass Minerals International, Inc.		17,968		1,324,601
Cytec Industries, Inc.		24,688		1,787,164
Deltic Timber Corp.		5,760		411,206
Domtar Corp.		19,036		1,419,324
Eagle Materials, Inc.		25,207		1,621,062
Ferro Corp. *		47,665		244,521
Flotek Industries, Inc. *		24,208		339,880
FutureFuel Corp.		7,570		99,243
General Moly, Inc. *		29,245		85,395
Globe Specialty Metals, Inc.		34,352		490,890
Graphic Packaging Holding Co. *		70,848		525,692
Greif, Inc., Class A		16,424		835,489
H.B. Fuller Co.		27,019		1,104,267
Hawkins, Inc.		5,980		235,851
Haynes International, Inc.		6,720		346,080
Headwaters, Inc. *		39,677		373,361
Hecla Mining Co.		153,338		711,488
Horsehead Holding Corp. *		23,728		250,805
Innophos Holdings, Inc.		11,624		567,600
Intrepid Potash, Inc.		28,641		564,514
Kaiser Aluminum Corp.		9,224		564,878
KapStone Paper and Packaging Corp.		20,368		542,604
Koppers Holdings, Inc.		11,248		466,567
Kraton Performance Polymers, Inc. *		17,512		420,988
Kronos Worldwide, Inc. (a)		11,041		188,912
Louisiana-Pacific Corp. *		75,232		1,577,615
LSB Industries, Inc. *		9,970		386,338
Materion Corp.		11,167		308,879
McEwen Mining, Inc. *		140,761		342,049
Metals USA Holdings Corp.		7,139		148,063
Minerals Technologies, Inc.		19,780		795,947
Molycorp, Inc. *(a)		66,720		409,661
Myers Industries, Inc.		16,436		241,938
Neenah Paper, Inc.		8,160		238,272
NewMarket Corp.		5,760		1,449,619
NL Industries, Inc.		4,178		53,478
Noranda Aluminum Holding Corp.		36,404		173,283
Olin Corp.		43,112		998,474
Olympic Steel, Inc.		5,555		114,822
OM Group, Inc. *		17,753		435,659
Omnova Solutions, Inc. *		25,047		200,626
P.H. Glatfelter Co.		22,768		413,239
Packaging Corp. of America		52,944		2,212,000
PolyOne Corp.		48,040		1,094,832
Quaker Chemical Corp.		6,993		401,468
Resolute Forest Products *		54,031		745,628
RPM International, Inc.		72,680		2,210,199
RTI International Metals, Inc. *		16,279		482,998
Schnitzer Steel Industries, Inc., Class A		13,009		372,188
Schweitzer-Mauduit International, Inc.		16,744		617,016
Sensient Technologies Corp.		26,712		985,940
Silgan Holdings, Inc.		24,682		1,059,598
Spartech Corp. *		16,181		159,706
Stepan Co.		8,912		545,771
Stillwater Mining Co. *		63,260		824,910

88 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
STR Holdings, Inc. *		22,768		45,536
SunCoke Energy, Inc. *		40,423		666,575
Texas Industries, Inc. *(a)		11,144		646,909
United States Lime & Minerals, Inc. *		1,219		63,924
US Antimony Corp. *(a)		9,485		17,737
US Silica Holdings, Inc. (a)		8,180		201,146
Walter Energy, Inc.		33,696		1,071,196
Wausau Paper Corp.		23,922		236,110
Worthington Industries, Inc.		28,244		800,435
Zep, Inc.		12,137		181,570
Zoltek Cos., Inc. *(a)		15,272		142,793

				52,290,616

Media 1.6%
Arbitron, Inc.		14,024		656,884
Ascent Capital Group, Inc., Class A *		7,200		493,848
Belo Corp., Class A		51,213		442,480
Cinemark Holdings, Inc.		57,001		1,584,628
Clear Channel Outdoor Holdings, Inc., Class A *		20,848		158,445
Crown Media Holdings, Inc., Class A *(a)		18,087		34,727
Cumulus Media, Inc. *		36,552		119,525
Digital Generation, Inc. *(a)		13,109		101,595
DreamWorks Animation SKG, Inc., Class A *(a)		39,100		649,060
E.W. Scripps Co., Class A *		15,056		162,755
Entercom Communications Corp., Class A *		10,359		77,796
Entravision Communications Corp., Class A		58,886		117,772
Fisher Communications, Inc.		3,284		120,753
Harte-Hanks, Inc.		24,438		177,664
Journal Communications, Inc., Class A *		18,206		99,587
Lamar Advertising Co., Class A *		29,592		1,368,334
LIN TV Corp., Class A *		17,743		201,738
Live Nation Entertainment, Inc. *		76,192		806,873
Martha Stewart Living Omnimedia, Class A *		15,491		39,812
Meredith Corp. (a)		19,207		807,078
Morningstar, Inc.		12,212		837,499
National CineMedia, Inc.		30,406		463,692
Pandora Media, Inc. *(a)		50,920		621,224
ReachLocal, Inc. *		5,096		63,853
Regal Entertainment Group, Class A (a)		42,511		666,147
Scholastic Corp.		14,064		423,326
Shutterstock, Inc. *		2,199		71,687
Sinclair Broadcast Group, Inc., Class A		27,672		389,622
The Dolan Co. *		15,001		43,653
The Madison Square Garden Co., Class A *		33,553		1,876,284
The McClatchy Co., Class A *(a)		33,195		86,307
The New York Times Co., Class A *		65,528		633,656
Valassis Communications, Inc.		21,328		586,307
World Wrestling Entertainment, Inc., Class A		15,000		124,950

				15,109,561

Pharmaceuticals, Biotechnology & Life Sciences 4.9%
Achillion Pharmaceuticals, Inc. *		33,137		268,410
Acorda Therapeutics, Inc. *		21,650		644,087
Aegerion Pharmaceuticals, Inc. *		9,615		289,604
Affymax, Inc. *(a)		19,481		51,819
Affymetrix, Inc. *		34,507		140,443
Akorn, Inc. *		35,727		493,033
Alkermes plc *		68,540		1,488,003
Alnylam Pharmaceuticals, Inc. *		26,162		619,778
AMAG Pharmaceuticals, Inc. *		11,502		190,358
Arena Pharmaceuticals, Inc. *(a)		116,552		977,871
ARIAD Pharmaceuticals, Inc. *		99,820		2,099,215
Arqule, Inc. *		33,325		81,980
Array BioPharma, Inc. *		61,004		237,306
Auxilium Pharmaceuticals, Inc. *		26,344		449,165
AVANIR Pharmaceuticals, Inc. *(a)		74,306		202,855
AVEO Pharmaceuticals, Inc. *		31,109		207,497
Bio-Rad Laboratories, Inc., Class A *		10,764		1,326,125
BioCryst Pharmaceuticals, Inc. *		21,350		25,620
Bruker Corp. *		50,929		893,295
Cadence Pharmaceuticals, Inc. *(a)		29,592		145,001
Cell Therapeutics, Inc. *(a)		32,783		43,929
Cepheid, Inc. *		36,008		1,311,771
Charles River Laboratories International, Inc. *		26,232		1,068,692
ChemoCentryx, Inc. *		2,431		32,794
Clovis Oncology, Inc. *(a)		8,160		153,898
Cubist Pharmaceuticals, Inc. *		35,847		1,520,988
Curis, Inc. *		41,998		112,975
Cytori Therapeutics, Inc. *(a)		28,595		72,917
Dendreon Corp. *(a)		84,399		488,670
Depomed, Inc. *		30,155		195,103
Dyax Corp. *		54,165		173,870
Dynavax Technologies Corp. *		95,704		195,236
Emergent Biosolutions, Inc. *		13,660		211,593
Endocyte, Inc. *		14,439		139,336
Enzon Pharmaceuticals, Inc.		26,232		110,961
Exact Sciences Corp. *		34,345		366,805
Exelixis, Inc. *(a)		99,064		451,732
Fluidigm Corp. *		10,580		182,611
Genomic Health, Inc. *		9,704		278,020
Geron Corp. *		72,847		106,357
Halozyme Therapeutics, Inc. *		46,600		254,436
Hi-Tech Pharmacal Co., Inc.		5,884		217,767
Idenix Pharmaceuticals, Inc. *		55,540		233,823
ImmunoGen, Inc. *		44,680		677,796
Immunomedics, Inc. *(a)		36,655		84,307
Impax Laboratories, Inc. *		34,392		681,993
Incyte Corp. *(a)		73,440		1,630,368
Infinity Pharmaceuticals, Inc. *		21,000		867,090
Intercept Pharmaceuticals, Inc. *(a)		2,656		103,637
InterMune, Inc. *		48,129		426,904
Ironwood Pharmaceuticals, Inc. *		44,680		667,072
Isis Pharmaceuticals, Inc. *		54,457		800,518
Jazz Pharmaceuticals plc *		25,168		1,464,274
KYTHERA Biopharmaceuticals, Inc. *		2,199		57,306
Lexicon Pharmaceuticals, Inc. *		276,044		543,807
Luminex Corp. *		20,848		351,914
MannKind Corp. *(a)		85,764		219,556
MAP Pharmaceuticals, Inc. *		15,750		393,750

See financial notes 89

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Medivation, Inc. *		40,835		2,006,632
Merrimack Pharmaceuticals, Inc. *		7,200		46,080
Momenta Pharmaceuticals, Inc. *		24,692		314,576
Myriad Genetics, Inc. *		43,852		1,114,718
Nektar Therapeutics *		62,915		583,222
Neurocrine Biosciences, Inc. *		31,992		338,475
Novavax, Inc. *(a)		70,657		128,596
NPS Pharmaceuticals, Inc. *		46,984		374,932
Obagi Medical Products, Inc. *		10,325		139,181
Oncothyreon, Inc. *(a)		32,952		68,211
Opko Health, Inc. *(a)		73,312		508,785
Optimer Pharmaceuticals, Inc. *		25,790		312,575
Osiris Therapeutics, Inc. *(a)		8,160		53,693
Pacific Biosciences of California, Inc. *		19,871		45,703
Pacira Pharmaceuticals, Inc. *(a)		11,144		243,608
Pain Therapeutics, Inc. *		24,208		70,929
PAREXEL International Corp. *		31,615		1,096,724
PDL BioPharma, Inc. (a)		77,379		552,486
POZEN, Inc. *		17,488		108,251
Progenics Pharmaceuticals, Inc. *		20,848		55,039
Puma Biotechnology, Inc. *		4,167		107,134
Questcor Pharmaceuticals, Inc. (a)		31,148		1,015,425
Rigel Pharmaceuticals, Inc. *		46,752		314,173
Sagent Pharmaceuticals, Inc. *		6,460		105,944
Salix Pharmaceuticals Ltd. *		26,712		1,304,881
Sangamo BioSciences, Inc. *(a)		28,632		291,760
Santarus, Inc. *		26,901		356,976
Savient Pharmaceuticals, Inc. *(a)		35,126		33,018
Seattle Genetics, Inc. *		57,500		1,618,050
Sequenom, Inc. *(a)		62,276		255,954
SIGA Technologies, Inc. *(a)		20,023		85,698
Spectrum Pharmaceuticals, Inc. (a)		27,672		315,461
Sucampo Pharmaceuticals, Inc., Class A *		22,768		116,344
Synageva BioPharma Corp. *		4,800		239,856
Synergy Pharmaceuticals, Inc. *(a)		34,728		189,962
Targacept, Inc. *		15,325		66,357
TESARO, Inc. *(a)		3,244		64,426
The Medicines Co. *		28,632		910,784
Theravance, Inc. *		36,416		738,881
Threshold Pharmaceuticals, Inc. *		20,368		94,304
Vanda Pharmaceuticals, Inc. *		16,127		60,638
ViroPharma, Inc. *		35,580		887,365
VIVUS, Inc. *(a)		53,904		577,851
XenoPort, Inc. *		23,248		177,615
ZIOPHARM Oncology, Inc. *(a)		42,802		189,613

				46,006,927

Real Estate 10.7%
Acadia Realty Trust		27,267		734,028
AG Mortgage Investment Trust, Inc.		15,940		418,106
Alexander & Baldwin, Inc. *		23,054		812,192
Alexander’s, Inc.		1,077		349,486
American Assets Trust, Inc.		17,968		543,173
American Capital Mortgage Investment Corp.		30,677		788,399
AmREIT, Inc., Class B		2,004		34,669
Anworth Mortgage Asset Corp.		85,100		519,110
Apartment Investment & Management Co., Class A		80,040		2,370,785
Apollo Residential Mortgage, Inc.		12,584		281,630
ARMOUR Residential REIT, Inc.		203,320		1,360,211
Ashford Hospitality Trust		33,912		399,144
Associated Estates Realty Corp.		26,232		458,535
AV Homes, Inc. *		5,325		79,982
BioMed Realty Trust, Inc.		90,918		1,920,188
Brandywine Realty Trust		78,539		1,079,911
Campus Crest Communities, Inc.		20,848		261,434
CapLease, Inc.		36,416		217,768
Capstead Mortgage Corp.		53,399		669,623
CBL & Associates Properties, Inc.		87,292		1,985,020
Cedar Realty Trust, Inc.		29,610		169,961
Chesapeake Lodging Trust		25,984		559,436
Colonial Properties Trust		44,680		963,301
Colony Financial, Inc.		29,586		655,330
CommonWealth REIT		45,849		1,157,687
Coresite Realty Corp.		11,144		361,066
Corporate Office Properties Trust		43,127		1,115,695
Cousins Properties, Inc.		48,841		474,735
CreXus Investment Corp.		41,216		548,585
CubeSmart		64,056		944,185
CyrusOne, Inc. *		8,662		184,587
DCT Industrial Trust, Inc.		145,064		1,053,165
DiamondRock Hospitality Co.		105,088		939,487
Douglas Emmett, Inc.		70,524		1,728,543
Duke Realty Corp.		171,188		2,766,398
DuPont Fabros Technology, Inc.		33,912		785,402
EastGroup Properties, Inc.		15,890		902,711
Education Realty Trust, Inc.		60,728		662,542
EPR Properties		25,539		1,246,048
Equity Lifestyle Properties, Inc.		20,848		1,536,289
Equity One, Inc.		33,771		793,956
Excel Trust, Inc.		24,380		307,432
Extra Space Storage, Inc.		55,276		2,069,533
FelCor Lodging Trust, Inc. *		59,184		297,104
First Industrial Realty Trust, Inc. *		48,040		762,395
First Potomac Realty Trust		27,356		386,540
Forest City Enterprises, Inc., Class A *		77,217		1,238,561
Forestar Group, Inc. *		18,928		329,726
Franklin Street Properties Corp.		38,253		525,979
Getty Realty Corp.		14,382		285,914
Glimcher Realty Trust		76,468		861,030
Government Properties Income Trust (a)		23,252		615,248
Hatteras Financial Corp.		52,944		1,413,075
Healthcare Realty Trust, Inc.		46,724		1,242,858
Healthcare Trust of America, Inc.		28,987		332,771
Hersha Hospitality Trust		91,164		511,430
Highwoods Properties, Inc.		42,324		1,544,826
Home Properties, Inc.		27,656		1,726,288
Hospitality Properties Trust		66,488		1,775,230
Hudson Pacific Properties, Inc.		22,886		516,537
Inland Real Estate Corp.		42,948		414,878
Invesco Mortgage Capital, Inc.		73,077		1,536,079
Investors Real Estate Trust		51,060		485,581
iStar Financial, Inc. *		39,776		397,362
Kennedy-Wilson Holdings, Inc.		22,288		358,168
Kilroy Realty Corp.		40,148		2,118,208
Kite Realty Group Trust		39,294		258,947
LaSalle Hotel Properties		50,728		1,287,984
Lexington Realty Trust		81,019		928,478

90 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
LTC Properties, Inc.		16,624		641,188
Mack-Cali Realty Corp.		45,160		1,281,641
Medical Properties Trust, Inc.		74,302		1,078,865
MFA Financial, Inc.		198,167		1,759,723
Mid-America Apartment Communities, Inc.		22,752		1,579,899
Monmouth Real Estate Investment Corp.		21,963		245,107
National Health Investors, Inc.		13,800		894,240
National Retail Properties, Inc.		59,340		2,044,263
NorthStar Realty Finance Corp.		90,956		814,056
OMEGA Healthcare Investors, Inc.		60,384		1,690,148
Parkway Properties, Inc.		17,940		303,365
Pebblebrook Hotel Trust		32,728		782,526
Pennsylvania REIT		28,152		508,144
Pennymac Mortgage Investment Trust		31,640		804,289
Post Properties, Inc.		30,333		1,448,097
Potlatch Corp.		21,873		962,631
PS Business Parks, Inc.		9,704		717,999
Ramco-Gershenson Properties Trust		25,653		405,317
Redwood Trust, Inc.		43,864		888,685
Resource Capital Corp.		54,068		367,662
Retail Opportunity Investments Corp. (a)		24,208		312,525
Retail Properties of America, Inc., Class A		17,488		258,822
RLJ Lodging Trust		57,264		1,224,877
Rouse Properties, Inc. (a)		12,448		206,761
Sabra Health Care REIT, Inc.		20,129		532,009
Saul Centers, Inc.		6,720		294,067
Select Income REIT		10,354		287,945
Silver Bay Realty Trust Corp. *		6,980		142,532
Sovran Self Storage, Inc.		16,331		993,578
Spirit Realty Capital, Inc.		16,396		326,608
STAG Industrial, Inc.		24,747		524,884
Starwood Property Trust, Inc.		73,486		2,053,934
Strategic Hotels & Resorts, Inc. *		96,184		700,220
Summit Hotel Properties, Inc.		26,220		251,712
Sun Communities, Inc.		14,796		688,458
Sunstone Hotel Investors, Inc. *		86,233		977,020
Tanger Factory Outlet Centers		51,947		1,833,210
Tejon Ranch Co. *		7,995		234,253
The Howard Hughes Corp. *		15,619		1,199,383
The St. Joe Co. *		50,316		1,122,047
Two Harbors Investment Corp.		159,264		2,048,135
Universal Health Realty Income Trust		6,771		386,692
Urstadt Biddle Properties, Inc., Class A		13,404		283,227
Walter Investment Management Corp. *		18,524		850,622
Washington REIT		35,456		981,777
Weingarten Realty Investors		61,513		1,885,373
Winthrop Realty Trust		15,768		197,888
WP Carey, Inc.		30,820		1,836,564

				101,213,633

Retailing 4.0%
1-800-FLOWERS.COM, Inc., Class A *		13,112		56,382
Aaron’s, Inc.		37,856		1,033,090
Aeropostale, Inc. *		42,143		548,702
America’s Car-Mart, Inc. *		4,320		206,323
Ann, Inc. *		25,648		725,582
Asbury Automotive Group, Inc. *		16,904		570,679
Ascena Retail Group, Inc. *		67,896		1,139,974
Barnes & Noble, Inc. *(a)		20,402		321,128
bebe stores, Inc.		19,567		77,485
Big 5 Sporting Goods Corp.		8,940		139,375
Big Lots, Inc. *		31,048		1,033,898
Blue Nile, Inc. *(a)		6,675		226,483
Body Central Corp. *		7,064		54,463
Brown Shoe Co., Inc.		21,824		357,914
Cabela’s, Inc. *		24,688		1,248,966
CafePress, Inc. *		2,505		17,410
Chico’s FAS, Inc.		89,360		1,517,333
Citi Trends, Inc. *		8,078		83,123
Conn’s, Inc. *		11,861		380,026
Core-Mark Holding Co., Inc.		6,187		296,481
DSW, Inc., Class A		17,276		1,169,412
Express, Inc. *		46,752		864,912
Five Below, Inc. *		5,280		210,144
Francesca’s Holdings Corp. *(a)		18,912		481,310
Fred’s, Inc., Class A		18,972		257,450
GameStop Corp., Class A (a)		67,575		1,693,430
Genesco, Inc. *		13,199		774,517
Gordmans Stores, Inc. *		4,655		61,958
Group 1 Automotive, Inc.		11,624		671,170
Guess?, Inc.		33,019		914,296
Haverty Furniture Cos., Inc.		11,155		204,694
hhgregg, Inc. *(a)		8,523		79,775
Hibbett Sports, Inc. *		13,938		736,484
HomeAway, Inc. *		17,504		516,368
Hot Topic, Inc.		22,196		239,717
HSN, Inc.		20,240		1,082,840
Jos. A. Bank Clothiers, Inc. *		14,999		622,459
Kayak Software Corp. *		1,920		76,550
Kirkland’s, Inc. *		8,909		103,701
Liberty Ventures, Series A *		14,976		1,081,267
Lithia Motors, Inc., Class A		11,264		462,950
Lumber Liquidators Holdings, Inc. *		14,596		863,937
MarineMax, Inc. *		12,742		165,009
Mattress Firm Holding Corp. *		3,840		106,944
Monro Muffler Brake, Inc.		16,904		626,293
New York & Co., Inc. *		14,308		61,668
NutriSystem, Inc.		15,497		127,540
Office Depot, Inc. *		153,282		617,727
OfficeMax, Inc.		46,764		559,765
Orbitz Worldwide, Inc. *		12,508		53,284
Overstock.com, Inc. *(a)		7,573		87,998
Pacific Sunwear Of California, Inc. *(a)		20,282		42,998
Penske Automotive Group, Inc.		22,768		677,576
PetMed Express, Inc.		10,313		130,459
Pier 1 Imports, Inc.		60,669		1,363,232
RadioShack Corp. (a)		54,488		163,464
Rent-A-Center, Inc.		31,512		1,143,255
Restoration Hardware Holdings, Inc. *(a)		2,778		107,259
rue21, Inc. *		8,744		236,088
Saks, Inc. *(a)		55,344		630,922

See financial notes 91

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sears Hometown and Outlet Stores, Inc. *		4,148		184,876
Select Comfort Corp. *		30,615		628,526
Shoe Carnival, Inc.		7,989		155,226
Shutterfly, Inc. *		16,424		710,831
Sonic Automotive, Inc., Class A		21,620		482,991
Stage Stores, Inc.		18,733		462,518
Stamps.com, Inc. *		8,003		195,193
Stein Mart, Inc.		14,287		121,582
Systemax, Inc.		6,009		59,790
The Buckle, Inc. (a)		14,999		672,105
The Cato Corp., Class A		14,166		363,500
The Children’s Place Retail Stores, Inc. *		13,246		602,163
The Finish Line, Inc., Class A		26,950		488,065
The Men’s Wearhouse, Inc.		25,648		721,222
The Pep Boys-Manny, Moe & Jack *		28,685		319,264
The Wet Seal, Inc., Class A *		49,700		146,118
Tile Shop Holdings, Inc. *		17,378		306,374
Tilly’s, Inc. *		5,592		74,262
Vitamin Shoppe, Inc. *		16,208		851,730
VOXX International Corp. *		10,615		105,619
Zumiez, Inc. *		11,668		267,197

				38,024,791

Semiconductors & Semiconductor Equipment 3.1%
Advanced Energy Industries, Inc. *		19,781		356,849
Amkor Technology, Inc. *(a)		38,362		155,366
Applied Micro Circuits Corp. *		35,115		279,164
ATMI, Inc. *		17,176		376,154
Brooks Automation, Inc.		36,182		365,800
Cabot Microelectronics Corp.		12,584		429,995
Cavium, Inc. *		27,144		1,002,157
CEVA, Inc. *		11,579		175,190
Cirrus Logic, Inc. *		34,976		840,823
Cohu, Inc.		12,262		123,356
Cymer, Inc. *		16,748		1,656,042
Cypress Semiconductor Corp. *		70,952		747,125
Diodes, Inc. *		19,061		379,886
DSP Group, Inc. *		11,182		80,958
Entegris, Inc. *		74,646		709,883
Entropic Communications, Inc. *		47,217		208,227
Exar Corp. *		25,760		302,680
Fairchild Semiconductor International, Inc. *		67,928		968,653
FEI Co.		21,066		1,334,320
FormFactor, Inc. *		26,428		132,669
GT Advanced Technologies, Inc. *(a)		64,088		183,292
Hittite Microwave Corp. *		14,504		940,149
Inphi Corp. *		9,224		89,104
Integrated Device Technology, Inc. *		77,964		530,155
Intermolecular, Inc. *		7,911		76,499
International Rectifier Corp. *		38,019		799,159
Intersil Corp., Class A		69,549		590,471
IXYS Corp.		13,825		137,835
Kopin Corp. *		37,094		119,443
Kulicke & Soffa Industries, Inc. *		40,307		436,122
Lattice Semiconductor Corp. *		66,316		310,359
LTX-Credence Corp. *		27,015		156,687
M/A-COM Technology Solutions Holdings, Inc. *		6,591		106,774
MaxLinear, Inc., Class A *		13,174		77,463
MEMC Electronic Materials, Inc. *		125,885		623,131
Micrel, Inc.		25,648		269,817
Microsemi Corp. *		48,604		1,002,701
MKS Instruments, Inc.		28,747		780,194
Monolithic Power Systems, Inc.		18,815		462,661
Nanometrics, Inc. *		11,529		170,053
OmniVision Technologies, Inc. *		28,152		433,822
Peregrine Semiconductor Corp. *		3,360		33,566
Pericom Semiconductor Corp. *		13,005		91,295
Photronics, Inc. *		32,075		212,978
PMC-Sierra, Inc. *		108,388		703,438
Power Integrations, Inc.		16,533		691,245
Rambus, Inc. *		59,644		336,392
RF Micro Devices, Inc. *		151,827		699,922
Rubicon Technology, Inc. *		9,960		51,394
Rudolph Technologies, Inc. *		17,563		193,544
Semtech Corp. *		35,882		1,096,913
Sigma Designs, Inc. *		17,207		80,013
Silicon Image, Inc. *		43,429		200,208
Silicon Laboratories, Inc. *		21,620		897,662
Spansion, Inc., Class A *		26,322		309,547
SunPower Corp. *(a)		16,424		192,818
Supertex, Inc.		5,669		128,063
Teradyne, Inc. *		100,984		1,692,492
Tessera Technologies, Inc.		28,386		506,406
TriQuint Semiconductor, Inc. *		90,466		425,190
Ultratech, Inc. *		14,515		594,825
Veeco Instruments, Inc. *		21,224		677,258
Volterra Semiconductor Corp. *		13,544		207,900

				28,944,257

Software & Services 7.2%
Accelrys, Inc. *		30,181		285,512
ACI Worldwide, Inc. *		21,220		972,088
Actuate Corp. *		26,031		156,446
Acxiom Corp. *		40,256		733,062
Advent Software, Inc. *		17,556		459,967
Angie’s List, Inc. *(a)		17,968		306,534
AOL, Inc. *		41,400		1,527,660
Aspen Technology, Inc. *		50,341		1,548,489
Bankrate, Inc. *		21,328		239,940
Bazaarvoice, Inc. *		18,956		132,692
Blackbaud, Inc.		24,470		680,266
Blucora, Inc. *		24,680		382,540
Booz Allen Hamilton Holding Corp.		20,848		266,854
Bottomline Technologies (de), Inc. *		19,888		539,561
Brightcove, Inc. *		7,680		48,384
BroadSoft, Inc. *		14,984		314,664
CACI International, Inc., Class A *		12,786		648,890
Cadence Design Systems, Inc. *		154,957		2,194,191
Carbonite, Inc. *		5,300		52,046
Cass Information Systems, Inc.		5,092		217,683
CIBER, Inc. *		34,634		154,121
CommVault Systems, Inc. *		22,705		1,679,035
Compuware Corp. *		116,072		1,347,596
comScore, Inc. *		17,488		278,759
Comverse, Inc. *		12,000		330,240
Constant Contact, Inc. *		16,424		232,071
Convergys Corp.		58,768		974,961
CoreLogic, Inc. *		52,571		1,362,115

92 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Cornerstone OnDemand, Inc. *		18,361		621,703
CSG Systems International, Inc. *		18,448		358,076
Dealertrack Technologies, Inc. *		23,255		685,790
Demand Media, Inc. *		18,869		152,839
Demandware, Inc. *(a)		4,320		114,264
Dice Holdings, Inc. *		27,192		262,131
Digital River, Inc. *		18,658		265,690
DST Systems, Inc.		16,424		1,115,518
E2open, Inc. *		2,476		48,926
EarthLink, Inc.		55,411		321,938
Ebix, Inc. (a)		16,904		270,971
Echo Global Logistics, Inc. *		8,104		151,140
Ellie Mae, Inc. *		5,280		107,184
Envestnet, Inc. *		12,180		186,841
EPAM Systems, Inc. *		7,680		161,126
EPIQ Systems, Inc.		16,904		210,286
Euronet Worldwide, Inc. *		25,648		619,143
ExactTarget, Inc. *		12,584		280,623
Exlservice Holdings, Inc. *		14,024		424,506
Fair Isaac Corp.		18,740		830,932
FleetCor Technologies, Inc. *		22,280		1,555,367
Forrester Research, Inc.		7,829		214,984
Global Cash Access Holdings, Inc. *		35,456		251,738
Guidewire Software, Inc. *		15,448		564,624
Heartland Payment Systems, Inc.		20,297		631,237
iGate Corp. *		17,193		328,558
Imperva, Inc. *		5,760		210,240
Infoblox, Inc. *		19,888		419,438
Interactive Intelligence Group, Inc. *		9,167		381,439
Internap Network Services Corp. *		29,118		252,744
IntraLinks Holdings, Inc. *		19,813		116,500
j2 Global, Inc.		23,248		829,489
Jack Henry & Associates, Inc.		46,600		2,037,352
Jive Software, Inc. *		13,528		224,294
Keynote Systems, Inc.		8,316		127,068
Lender Processing Services, Inc.		46,271		1,136,416
Limelight Networks, Inc. *		33,912		71,893
Lionbridge Technologies, Inc. *		31,772		121,369
Liquidity Services, Inc. *(a)		13,156		447,962
LivePerson, Inc. *		26,712		386,523
LogMeIn, Inc. *		12,117		216,410
Manhattan Associates, Inc. *		10,664		744,987
ManTech International Corp., Class A (a)		12,702		315,137
Marchex, Inc., Class B		12,691		47,972
MAXIMUS, Inc.		18,503		1,346,648
Mentor Graphics Corp. *		51,773		916,900
MicroStrategy, Inc., Class A *		4,800		489,024
Millennial Media, Inc. *		7,097		66,499
ModusLink Global Solutions, Inc. *		23,776		68,475
MoneyGram International, Inc. *		11,676		189,268
Monotype Imaging Holdings, Inc.		19,444		408,324
Move, Inc. *		26,121		254,941
NCI, Inc., Class A *		3,840		19,315
Netscout Systems, Inc. *		21,160		538,099
NeuStar, Inc., Class A *		35,936		1,575,794
NIC, Inc.		31,992		566,898
OpenTable, Inc. *		12,203		678,487
Pegasystems, Inc.		9,382		256,973
Perficient, Inc. *		17,488		202,511
Progress Software Corp. *		33,057		744,444
Proofpoint, Inc. *		6,720		93,946
PROS Holdings, Inc. *		10,930		284,836
PTC, Inc. *		66,655		1,542,397
QLIK Technologies, Inc. *		39,776		1,034,176
Qualys, Inc. *		4,027		47,760
QuinStreet, Inc. *		15,362		88,024
RealD, Inc. *(a)		28,439		331,030
RealNetworks, Inc. *		13,000		94,510
RealPage, Inc. *		18,928		409,980
Responsys, Inc. *		14,857		119,896
Rosetta Stone, Inc. *		6,595		76,370
Rovi Corp. *		55,772		992,184
Saba Software, Inc. *		14,791		129,273
Sapient Corp. *		59,851		671,528
SciQuest, Inc. *		9,322		178,516
ServiceSource International, Inc. *		26,712		168,820
Sourcefire, Inc. *		16,164		866,875
Splunk, Inc. *		14,024		506,687
SS&C Technologies Holdings, Inc. *		22,288		564,109
Synchronoss Technologies, Inc. *		14,504		437,586
Syntel, Inc.		9,110		548,058
Take-Two Interactive Software, Inc. *		49,480		724,387
Tangoe, Inc. *		16,904		231,078
TechTarget, Inc. *		9,017		43,823
TeleNav, Inc. *		8,149		57,939
TeleTech Holdings, Inc. *		11,813		221,021
The Active Network, Inc. *		18,962		88,932
TiVo, Inc. *		66,295		821,395
Travelzoo, Inc. *		4,156		87,567
Trulia, Inc. *(a)		3,113		74,214
Tyler Technologies, Inc. *		14,024		790,954
Ultimate Software Group, Inc. *		15,159		1,489,675
Unisys Corp. *		23,728		545,269
United Online, Inc.		48,428		285,725
ValueClick, Inc. *		37,856		1,009,620
VASCO Data Security International, Inc. *		20,923		173,033
Verint Systems, Inc. *		29,406		1,004,803
VirnetX Holding Corp. *(a)		22,768		802,117
Virtusa Corp. *		11,524		241,428
Vocus, Inc. *		11,260		158,090
Web.com Group, Inc. *		16,790		286,773
WebMD Health Corp. *		27,027		597,297
Websense, Inc. *		19,888		298,121
WEX, Inc. *		20,848		1,563,808
Workday, Inc., Class A *		12,540		693,337
XO Group, Inc. *		13,635		124,760
Yelp, Inc. *(a)		8,744		194,029
Zillow, Inc., Class A *(a)		7,396		317,732
Zynga, Inc., Class A *		257,720		873,671

				68,199,494

Technology Hardware & Equipment 4.7%
Acme Packet, Inc. *		30,607		893,112
ADTRAN, Inc. (a)		33,912		757,594
Aeroflex Holding Corp. *		9,734		90,040
Anaren, Inc. *		7,200		139,320
Anixter International, Inc.		14,412		993,275
Arris Group, Inc. *		60,728		1,053,631
Aruba Networks, Inc. *		58,108		1,448,051
Audience, Inc. *		2,898		39,529
Aviat Networks, Inc. *		31,086		110,666

See financial notes 93

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Avid Technology, Inc. *		15,944		110,492
AVX Corp.		25,648		302,133
Bel Fuse, Inc., Class B		6,140		102,292
Benchmark Electronics, Inc. *		30,072		523,854
Black Box Corp.		8,591		208,418
Brocade Communications Systems, Inc. *		247,712		1,389,664
Calix, Inc. *		19,200		164,544
Checkpoint Systems, Inc. *		22,321		264,727
Ciena Corp. *		54,384		828,812
Cognex Corp.		22,540		928,423
Coherent, Inc.		12,784		738,404
Comtech Telecommunications Corp.		9,325		249,724
CTS Corp.		18,612		182,398
Daktronics, Inc.		20,368		207,957
Diebold, Inc.		33,912		957,675
Digi International, Inc. *		13,859		136,650
DTS, Inc. *		10,184		202,662
Echelon Corp. *		17,271		45,423
EchoStar Corp., Class A *		22,507		851,665
Electro Rent Corp.		13,180		213,252
Electro Scientific Industries, Inc.		13,505		148,690
Electronics for Imaging, Inc. *		25,604		590,428
Emulex Corp. *		46,940		302,763
Extreme Networks, Inc. *		50,721		177,524
Fabrinet *		11,636		190,947
FARO Technologies, Inc. *		9,224		390,636
Finisar Corp. *		52,900		774,985
Fusion-io, Inc. *(a)		37,080		625,910
Harmonic, Inc. *		63,260		359,949
Imation Corp. *		16,424		56,006
Infinera Corp. *		60,095		390,017
Ingram Micro, Inc., Class A *		80,616		1,520,418
Insight Enterprises, Inc. *		24,047		462,183
InterDigital, Inc.		22,096		981,062
Intermec, Inc. *		30,187		298,851
Intevac, Inc. *		11,712		55,983
InvenSense, Inc. *		18,673		224,449
IPG Photonics Corp. (a)		15,464		916,861
Itron, Inc. *		21,328		897,269
Ixia *		28,152		570,923
KEMET Corp. *		24,085		155,830
Lexmark International, Inc., Class A		34,852		767,441
Littelfuse, Inc.		11,624		769,160
Loral Space & Communications, Inc.		6,626		385,898
Maxwell Technologies, Inc. *		15,526		135,853
Measurement Specialties, Inc. *		8,172		296,807
Mercury Systems, Inc. *		16,742		114,683
Methode Electronics, Inc.		19,888		260,732
MTS Systems Corp.		8,744		472,176
Multi-Fineline Electronix, Inc. *		5,326		81,381
National Instruments Corp.		52,861		1,590,059
NeoPhotonics Corp. *		8,597		43,157
NETGEAR, Inc. *		20,504		698,161
Newport Corp. *		20,496		335,110
Oclaro, Inc. *		47,080		62,616
OCZ Technology Group, Inc. *(a)		36,064		62,391
Oplink Communications, Inc. *		10,410		159,898
OSI Systems, Inc. *		10,184		586,904
Park Electrochemical Corp.		10,273		259,907
Plantronics, Inc.		22,768		918,916
Plexus Corp. *		18,984		462,450
Polycom, Inc. *		94,640		862,170
Power-One, Inc. *		65,528		279,149
QLogic Corp. *		50,440		574,007
Quantum Corp. *		127,116		160,166
Rofin-Sinar Technologies, Inc. *		15,327		407,238
Rogers Corp. *		8,760		417,940
Ruckus Wireless, Inc. *(a)		4,248		90,737
Sanmina Corp. *		44,221		452,823
ScanSource, Inc. *		14,504		435,265
SeaChange International, Inc. *		12,725		146,592
ShoreTel, Inc. *		28,152		114,297
Silicon Graphics International Corp. *		17,488		263,194
Sonus Networks, Inc. *		150,088		367,716
STEC, Inc. *		20,420		98,424
Super Micro Computer, Inc. *		14,024		164,081
Sycamore Networks, Inc. (a)		10,404		23,721
Symmetricom, Inc. *		23,290		115,053
Synaptics, Inc. *		17,968		624,568
SYNNEX Corp. *		14,504		553,038
Tech Data Corp. *		20,368		1,080,726
Tellabs, Inc.		182,432		370,337
TTM Technologies, Inc. *		29,725		243,745
Ubiquiti Networks, Inc. (a)		5,647		77,759
Universal Display Corp. *		22,095		693,341
ViaSat, Inc. *		22,513		1,057,210
Viasystems Group, Inc. *		2,337		33,139
Vishay Intertechnology, Inc. *		71,392		941,660
Vishay Precision Group, Inc. *		7,131		100,191
Zebra Technologies Corp., Class A *		27,672		1,237,492

				44,675,550

Telecommunication Services 0.7%
Alaska Communications Systems Group, Inc. (a)		22,802		39,220
Atlantic Tele-Network, Inc.		5,280		248,160
Boingo Wireless, Inc. *		6,992		42,511
Cbeyond, Inc. *		16,904		118,666
Cincinnati Bell, Inc. *		116,380		378,235
Clearwire Corp., Class A *		236,576		738,117
Cogent Communications Group, Inc.		23,248		584,687
Consolidated Communications Holdings, Inc.		19,632		329,818
Elephant Talk Communications, Inc. *(a)		47,665		57,198
Fairpoint Communications, Inc. *(a)		14,092		117,668
General Communication, Inc., Class A *		17,621		148,898
Hawaiian Telcom Holdco, Inc. *		3,848		74,151
IDT Corp., Class B		8,427		85,197
Iridium Communications, Inc. *		31,280		191,121
Leap Wireless International, Inc. *		28,632		153,181
Lumos Networks Corp.		7,901		90,229
Neutral Tandem, Inc.		17,567		60,255
NII Holdings, Inc. *(a)		92,360		445,175
NTELOS Holdings Corp.		7,901		98,605
Premiere Global Services, Inc. *		24,028		256,379
Shenandoah Telecommunications Co.		12,013		173,107
tw telecom, Inc. *		81,576		2,065,504
USA Mobility, Inc.		12,105		140,660

94 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Vonage Holdings Corp. *		102,580		270,811

				6,907,553

Transportation 2.6%
Air Transport Services Group, Inc. *		30,622		169,033
Alaska Air Group, Inc. *		39,073		2,014,213
Allegiant Travel Co.		8,160		655,166
AMERCO		3,840		578,726
Arkansas Best Corp.		14,144		163,222
Atlas Air Worldwide Holdings, Inc. *		15,180		716,344
Avis Budget Group, Inc. *		57,264		1,338,260
Celadon Group, Inc.		11,144		222,100
Con-way, Inc.		30,506		1,072,286
Forward Air Corp.		15,667		590,959
Genco Shipping & Trading Ltd. *(a)		17,653		45,368
Genesee & Wyoming, Inc., Class A *		23,478		2,101,751
Hawaiian Holdings, Inc. *		28,103		159,063
Heartland Express, Inc.		24,688		335,016
Hub Group, Inc., Class A *		18,928		714,153
JetBlue Airways Corp. *		122,896		744,750
Kirby Corp. *		30,072		2,284,871
Knight Transportation, Inc.		30,900		483,894
Landstar System, Inc.		25,168		1,416,707
Marten Transport Ltd.		8,468		175,288
Matson, Inc.		23,054		592,718
Old Dominion Freight Line, Inc. *		37,856		1,360,923
Pacer International, Inc. *		19,053		79,070
Patriot Transportation Holding, Inc. *		3,360		91,325
Republic Airways Holdings, Inc. *		22,288		209,730
Roadrunner Transportation Systems, Inc. *		10,120		230,534
Ryder System, Inc.		27,672		1,555,166
SkyWest, Inc.		27,799		389,186
Spirit Airlines, Inc. *		25,767		521,782
Swift Transportation Co. *		44,629		603,830
Universal Truckload Services, Inc.		3,042		55,486
US Airways Group, Inc. *		88,472		1,188,179
UTI Worldwide, Inc.		55,778		849,499
Werner Enterprises, Inc.		23,728		546,219
Wesco Aircraft Holdings, Inc. *		11,388		154,877
Zipcar, Inc. *		13,984		171,024

				24,580,718

Utilities 2.9%
ALLETE, Inc.		18,606		874,482
American States Water Co.		10,184		539,345
Avista Corp.		32,256		844,785
Black Hills Corp.		23,612		982,023
California Water Service Group		22,721		455,783
CH Energy Group, Inc.		7,860		511,922
Chesapeake Utilities Corp.		5,175		248,555
Cleco Corp.		34,040		1,507,972
Connecticut Water Service, Inc.		5,617		167,724
Dynegy, Inc. *(a)		48,300		945,231
El Paso Electric Co.		21,653		722,128
Genie Energy Ltd., Class B		9,396		65,960
Great Plains Energy, Inc.		82,800		1,807,524
Hawaiian Electric Industries, Inc.		52,464		1,416,003
IDACORP, Inc.		27,269		1,273,190
MGE Energy, Inc.		12,584		675,509
Middlesex Water Co.		8,345		162,394
New Jersey Resources Corp.		22,288		993,153
Northwest Natural Gas Co.		14,526		661,659
NorthWestern Corp.		19,888		775,234
Ormat Technologies, Inc.		9,795		200,210
Piedmont Natural Gas Co., Inc.		38,816		1,251,428
PNM Resources, Inc.		43,240		971,170
Portland General Electric Co.		41,104		1,220,378
SJW Corp.		7,244		192,038
South Jersey Industries, Inc.		16,761		924,202
Southwest Gas Corp.		26,187		1,186,271
The Empire District Electric Co. (a)		22,821		488,598
The Laclede Group, Inc.		11,524		469,718
UIL Holdings Corp.		27,277		1,068,167
Unitil Corp.		7,218		197,629
UNS Energy Corp.		22,116		1,039,894
Vectren Corp.		44,200		1,458,600
WGL Holdings, Inc.		28,953		1,220,948

				27,519,827

Total Common Stock
(Cost $855,948,348)				943,134,409




Other Investment Companies 0.2% of net assets

Equity Fund 0.2%
iShares Russell 2000 Index Fund		15,100		1,365,946

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		271,847		271,847

Total Other Investment Companies
(Cost $1,668,498)				1,637,793




Rights 0.0% of net assets

Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Forest Laboratories, Inc. *(b)(c)		5,521		—

Total Rights
(Cost $—)				—



End of Investments



Collateral Invested for Securities on Loan 2.9% of net assets


State Street Institutional U.S. Government Money Market Fund		27,566,166		27,566,166

Total Collateral Invested for Securities on Loan
(Cost $27,566,166)				27,566,166



End of Collateral Invested for Securities on Loan

See financial notes 95

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued

At 02/28/13, the tax basis cost of the fund’s investments was $860,071,787 and the unrealized appreciation and depreciation were $131,415,119 and ($46,714,704), respectively, with a net unrealized appreciation of $84,700,415.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)		Illiquid security. At the period end, the value of these amounted to $0 or 0.0% of net assets.


REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$943,134,409		$—		$—		$943,134,409
Other Investment Companies¹		1,637,793		—		—		1,637,793
Rights¹		—		—		—		—

Total		$944,772,202		$—		$—		$944,772,202

Other Financial Instruments
Collateral Invested for Securities on Loan		$27,566,166		$—		$—		$27,566,166


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

February 28,

Investments in Securities

2012

(Losses)

Purchases

Sales

out

2013

Rights

$47,346

$—

($47,346

)

$—

Total

$47,346

$—

($47,346

)

$—

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized gains (losses) for Level 3 Investments held by the fund at February 28, 2013 was $0.

96 See financial notes

Schwab U.S. Small-Cap ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments, at value (cost $857,616,846) including securities on loan of $26,794,233		$944,772,202
Collateral invested for securities on loan		27,566,166
Receivables:
Investments sold		139,874
Fund shares sold		6,166,701
Dividends		746,479
Income from securities on loan		83,692
Interest	+	6

Total assets		979,475,120

Liabilities

Collateral held for securities on loan		27,566,166
Payables:
Investments bought		6,337,352
Investment adviser fees	+	7,681

Total liabilities		33,911,199

Net Assets

Total assets		979,475,120
Total liabilities	—	33,911,199

Net assets		$945,563,921

Net Assets by Source
Capital received from investors		839,276,489
Net investment income not yet distributed		1,322,527
Net realized capital gains		16,947,735
Net unrealized capital gains		88,017,170

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$945,563,921

23,000,000

$41.11

See financial notes 97

Schwab U.S. Small-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$8,884,501			$8,107,960
Net realized gains		22,241,242			29,193,207
Net unrealized gains	+	65,615,873			34,591,730

Net increase in net assets resulting from operations		96,741,616			71,892,897

Distributions to Shareholders

Distributions from net investment income		($9,083,170	)		($7,088,515	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

7,800,000

$304,555,128

7,400,000

$254,626,339

Shares redeemed

(2,350,000

)

(88,165,853

)

(4,150,001

)

(140,437,449

)

Net transactions in fund shares

5,450,000

$216,389,275

3,249,999

$114,188,890

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

17,550,000

$641,516,200

14,300,001

$462,522,928

Total increase

5,450,000

304,047,721

3,249,999

178,993,272

End of period

23,000,000

$945,563,921

17,550,000

$641,516,200

Net investment income not yet distributed

$1,322,527

$1,521,196

See financial notes 99

Schwab U.S. Dividend Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			10/19/11¹–
	2/28/13*			8/31/12


Per-Share Data ($)

Net asset value at beginning of period		28.58			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.46			0.62
Net realized and unrealized gains (losses)		2.01			3.43

Total from investment operations		2.47			4.05
Less distributions:
Distributions from net investment income		(0.47	)		(0.47	)

Net asset value at end of period		30.58			28.58

Total return (%)		8.74	²		16.31	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08	^3,4		0.17	³
Gross operating expenses		0.08	^3,4		0.17	³
Net investment income (loss)		3.36	³		3.19	³
Portfolio turnover rate⁵		3	²		17	²
Net assets, end of period ($ x 1,000)		686,472			504,464

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

100 See financial notes

Schwab U.S. Dividend Equity ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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

Cost

Value

Holdings by Category

($)

.4%

Common Stock

629,307,825

682,523,844

.2%

Other Investment Companies

1,120,371

1,124,200

.6%

Total Investments

630,428,196

683,648,044

.4%

Other Assets and
Liabilities, Net

2,824,078

100

.0%

Net Assets

686,472,122


	Number		Value
Security	of Shares		($)

Common Stock 99.4% of net assets

Banks 0.0%
First Financial Bancorp		13,728		210,450

Capital Goods 14.8%
3M Co.		150,870		15,690,480
Eaton Corp. plc		109,258		6,770,718
Emerson Electric Co.		171,629		9,731,364
General Dynamics Corp.		78,640		5,345,161
Honeywell International, Inc.		185,554		13,007,335
Illinois Tool Works, Inc.		100,902		6,205,473
Lockheed Martin Corp.		63,537		5,591,256
Northrop Grumman Corp.		58,093		3,815,548
Raytheon Co.		78,005		4,256,733
The Boeing Co.		160,844		12,368,904
United Technologies Corp.		199,756		18,087,906
Watsco, Inc.		6,984		543,844

				101,414,722

Commercial & Professional Services 0.6%
Waste Management, Inc.		103,275		3,854,223

Consumer Durables & Apparel 1.1%
Hasbro, Inc.		27,838		1,114,077
Leggett & Platt, Inc.		33,368		1,020,394
Mattel, Inc.		81,132		3,306,129
Polaris Industries, Inc.		15,271		1,334,227
Tupperware Brands Corp.		13,041		1,020,197

				7,795,024

Consumer Services 3.8%
Darden Restaurants, Inc.		30,532		1,412,716
H&R Block, Inc.		64,042		1,592,084
McDonald’s Corp.		237,839		22,808,760
Strayer Education, Inc.		2,797		137,305

				25,950,865

Diversified Financials 1.4%
Eaton Vance Corp.		27,519		1,050,951
Federated Investors, Inc., Class B		22,127		513,789
T. Rowe Price Group, Inc.		60,422		4,301,442
The McGraw-Hill Cos., Inc.		65,660		3,056,473
Waddell & Reed Financial, Inc., Class A		20,220		829,424

				9,752,079

Energy 11.2%
Chevron Corp.		266,531		31,224,107
ConocoPhillips		287,473		16,659,060
Exxon Mobil Corp.		324,577		29,065,870
RPC, Inc.		15,497		250,742

				77,199,779

Food & Staples Retailing 6.0%
Sysco Corp.		139,203		4,476,768
Wal-Mart Stores, Inc.		396,186		28,042,045
Walgreen Co.		203,507		8,331,577

				40,850,390

Food, Beverage & Tobacco 15.2%
Altria Group, Inc.		479,761		16,095,982
Campbell Soup Co.		42,471		1,748,106
ConAgra Foods, Inc.		96,422		3,288,955
Flowers Foods, Inc.		27,179		765,904
General Mills, Inc.		152,797		7,066,861
H.J. Heinz Co.		75,898		5,497,292
Kellogg Co.		58,670		3,549,535
McCormick & Co., Inc. Non Voting Shares		31,331		2,107,636
PepsiCo, Inc.		366,414		27,763,189
Reynolds American, Inc.		76,563		3,344,272
The Coca-Cola Co.		764,757		29,611,391
The Hershey Co.		35,309		2,942,652
Universal Corp.		5,482		305,841

				104,087,616

Health Care Equipment & Services 5.4%
Abbott Laboratories		374,416		12,651,517
Baxter International, Inc.		130,064		8,792,326
Becton, Dickinson & Co.		46,534		4,097,784
Medtronic, Inc.		239,584		10,771,697
Meridian Bioscience, Inc.		9,734		206,361
Owens & Minor, Inc.		14,908		453,948

				36,973,633

Household & Personal Products 7.9%
Avon Products, Inc.		102,556		2,004,970
Colgate-Palmolive Co.		105,259		12,044,787
Kimberly-Clark Corp.		92,566		8,727,123

See financial notes 101

Schwab U.S. Dividend Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Procter & Gamble Co.		410,044		31,237,152

				54,014,032

Insurance 1.8%
Aflac, Inc.		110,689		5,528,916
Arthur J. Gallagher & Co.		29,284		1,126,848
Erie Indemnity Co., Class A		5,846		427,927
Mercury General Corp.		8,582		333,582
The Chubb Corp.		61,856		5,197,760

				12,615,033

Materials 4.1%
Air Products & Chemicals, Inc.		50,456		4,356,371
E.I. du Pont de Nemours & Co.		220,912		10,581,685
Greif, Inc., Class A		7,089		360,617
International Paper Co.		103,983		4,576,292
PPG Industries, Inc.		36,374		4,898,123
RPM International, Inc.		31,139		946,937
Sonoco Products Co.		23,803		756,221
Southern Copper Corp.		40,630		1,535,408

				28,011,654

Media 0.1%
Meredith Corp.		8,334		350,195

Pharmaceuticals, Biotechnology & Life Sciences 10.6%
AbbVie, Inc.		374,416		13,823,439
Bristol-Myers Squibb Co.		390,993		14,455,011
Eli Lilly & Co.		241,925		13,223,620
Johnson & Johnson		406,473		30,936,660

				72,438,730

Retailing 3.9%
Genuine Parts Co.		36,675		2,605,025
RadioShack Corp.		24,695		74,085
The Cato Corp., Class A		6,292		161,453
The Home Depot, Inc.		354,061		24,253,178

				27,093,741

Semiconductors & Semiconductor Equipment 4.4%
Intel Corp.		1,178,721		24,576,333
Linear Technology Corp.		54,581		2,087,178
Maxim Integrated Products, Inc.		69,019		2,152,012
Microchip Technology, Inc.		46,247		1,686,628

				30,502,151

Software & Services 1.7%
Automatic Data Processing, Inc.		115,042		7,058,977
CA, Inc.		79,169		1,938,849
Paychex, Inc.		76,436		2,530,032

				11,527,858

Technology Hardware & Equipment 0.3%
Harris Corp.		26,954		1,295,679
Molex, Inc.		32,496		900,464

				2,196,143

Telecommunication Services 0.7%
CenturyLink, Inc.		147,941		5,129,114

Transportation 1.6%
CSX Corp.		244,194		5,601,810
Norfolk Southern Corp.		74,779		5,462,606

				11,064,416

Utilities 2.8%
CenterPoint Energy, Inc.		101,185		2,168,395
Entergy Corp.		41,812		2,603,215
Exelon Corp.		202,199		6,266,147
New Jersey Resources Corp.		10,207		454,824
PPL Corp.		137,403		4,234,761
Questar Corp.		41,943		986,080
WGL Holdings, Inc.		12,572		530,161
Wisconsin Energy Corp.		54,441		2,248,413

				19,491,996

Total Common Stock
(Cost $629,307,825)				682,523,844




Other Investment Companies 0.2% of net assets

Equity Fund 0.2%
Vanguard Dividend Appreciation ETF		15,500		990,450

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		133,750		133,750

Total Other Investment Companies
(Cost $1,120,371)				1,124,200



End of Investments

At 02/28/13, the tax basis cost of the fund’s investments was $630,511,094 and the unrealized appreciation and depreciation were $60,838,629 and ($7,701,679), respectively, with a net unrealized appreciation of $53,136,950.

102 See financial notes

Schwab U.S. Dividend Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				*10/19/11-8/31/12**
Net investment income		$9,449,877			$7,857,247
Net realized gains		8,396,568			5,045,819
Net unrealized gains	+	30,844,599			22,375,249

Net increase in net assets resulting from operations		48,691,044			35,278,315

Distributions to Shareholders

Distributions from net investment income		($8,889,165	)		($5,109,365	)

Transactions in Fund Shares

9/1/12-2/28/13

10/19/11*-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

7,750,000

$226,959,274

19,900,001

$536,746,165

Shares redeemed

(2,950,000

)

(84,752,827

)

(2,250,000

)

(62,451,319

)

Net transactions in fund shares

4,800,000

$142,206,447

17,650,001

$474,294,846

Shares Outstanding and Net Assets

9/1/12-2/28/13

10/19/11*-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

17,650,001

$504,463,796

—

$—

Total increase

4,800,000

182,008,326

17,650,001

504,463,796

End of period

22,450,001

$686,472,122

17,650,001

$504,463,796

Net investment income not yet distributed

$3,308,594

$2,747,882


*		Commencement of operations.

106 See financial notes

Schwab U.S. Equity ETFs

Financial Notes, unaudited

1. Business Structure of the Funds

Each of the funds discussed in this report is a series of Schwab Strategic Trust (the “trust”), a no-load, open-end management investment company. The trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:



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

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

Individual shares of the funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).

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

2. Significant Accounting Policies:

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

(a) Security Valuation:

Under procedures approved by the funds’ Board of Trustees (the “Board’’), the investment adviser has 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 funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when 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. Each 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

107

Schwab U.S. Equity ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


		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 funds pursuant to the valuation procedures.


	•	Bonds and notes: valued 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 independent bond-pricing services.

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

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The levels associated with valuing the funds’ investments as of February 28, 2013 are disclosed in the Portfolio Holdings.

(b) Accounting Policies for certain Portfolio Investments (if held):

Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign government, or letters of credit issued by a bank. Collateral at the individual loan level is required to have a value of at least 102% of the prior day’s market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities and is marked to market

108

Schwab U.S. Equity ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

daily. The cash collateral of securities loaned is invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Securities lending income, as disclosed in a fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent which are subject to adjustments pursuant to the securities lending agreement.

If applicable, the value of the securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities.

(c) Security Transactions:

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

(d) Investment Income:

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

(e) Expenses:

Pursuant to the Investment Advisory Agreement (“Advisor Agreement”) between Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”) and the trust, the investment adviser will pay the operating expenses of each fund, excluding interest expense, taxes, any brokerage expenses, and extraordinary or non-routine expenses. Interest expense, taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund.

(f) Distributions to Shareholders:

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

(g) Accounting Estimates:

The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.

(h) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.

(i) Indemnification:

Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.

(j) New Accounting Pronouncements:

In December 2011, Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” was issued and is effective for interim and annual periods beginning after January 1, 2013. The ASU enhances disclosure requirements with respect to an entity’s rights of offset and related arrangements associated with its financial and derivative

109

Schwab U.S. Equity ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

instruments. Management is currently evaluating the impact the adoption of ASU No. 2011-11 may have on the funds’ financial statement disclosures.

3. Risk Factors:

Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

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

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

Certain funds primarily invest in dividend paying stocks. As a result, fund performance will correlate directly with the performance of the dividend paying stock segment of the stock market, and a fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, a fund’s ability to generate income may be affected.

The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Certain funds invest in large-cap stocks. Large-cap stocks tend to go in and out of favor based on market and economic conditions. During a period when large-cap U.S. stocks fall behind other types of investments — mid- or small-cap stocks, for instance — a fund’s large-cap holdings could reduce performance.

Certain funds invest in mid-cap stocks. Historically, mid-cap stocks have been riskier than large-cap stocks. Mid-cap companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. Stock prices of midsized companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. During a period when mid-cap stocks fall behind other types of investments — bonds or large-cap stocks, for instance — a fund’s mid-cap holdings could reduce performance.

Certain funds invest in small-cap stocks. Historically, small-cap stocks have been riskier than large- and mid-cap stocks, and their prices may move sharply, especially during market upturns and downturns. Small-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — large-cap and mid-cap stocks, for instance — a fund’s small-cap holdings could reduce performance.

Certain funds invest in growth stocks. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.

Certain funds emphasize a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.

Certain funds may not fully replicate the index and may hold securities not included in the index. As a result, a fund is subject to the risk that the adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because these funds utilize a sampling approach, they may not track the return of their respective index as well as they would if the funds purchased all of the securities in the indexes.

110

Schwab U.S. Equity ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

As an index fund, each fund seeks to track the performance of its benchmark index, although it may not be successful in doing so. The divergence between the performance of a fund and its benchmark index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.

Each fund may invest in derivative instruments. The principal types of derivatives a fund may use are futures contracts. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as market risk and liquidity risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to leverage risk, credit risk, lack of availability risk, valuation risk, correlation risk and tax risk. Leverage risk is the risk that use of derivatives may magnify the effect of any decrease or increase in the value of the fund’s portfolio securities. Credit risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. These risks could cause a fund to lose more than the principal amount invested.

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

Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

To the extent that a fund’s or an index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.

Although fund shares are listed on national securities exchanges, there can be no assurance that an active trading market for fund shares will develop or be maintained. If an active market is not maintained, investors may find it difficult to buy or sell fund shares.

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

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

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

4. Affiliates and Affiliated Transactions:

CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser pursuant to an Advisory Agreement between CSIM and the trust.

For its advisory services to the following funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

Effective September 20, 2012, the rate is:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

0.04%

0.07%

0.10%

0.07%

111

Schwab U.S. Equity ETFs

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Prior to September 20, 2012, the rate was:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

0.06%

0.08%

0.13%

0.17%

Subsequent to the reporting period ended February 28, 2013, and effective March 11, 2013, the management fee of the Schwab U.S. Small-Cap ETF has been reduced to 0.08%.

The funds may engage in certain transactions involving affiliates. For instance, a fund may own shares of The Charles Schwab Corporation if that company is included in its index. Below is the summary of investment activities involving The Charles Schwab Corporation shares owned by the funds during the report period:


	Balance
	of Shares							Balance				Realized		Dividends
	Held at							of Shares		Market		Gain (Loss)		Received
	Beginning		Gross		Gross			Held at		Value at		During		During
Fund	of Period		Additions		Sales			2/28/13		2/28/13		Period		Period

Schwab U.S. Broad Market ETF		72,622		36,122		(600	)		108,144		$1,756,259		$647		$11,400
Schwab U.S. Large-Cap ETF		65,968		27,192		(1,716	)		91,444		1,485,051		4,707		9,738
Schwab U.S. Large-Cap Growth ETF		72,675		21,980		(1,650	)		93,005		1,510,401		2,475		10,328

Certain Schwab Funds may own shares of other Schwab Funds. As of February 28, 2013, outstanding shares of Schwab U.S. Large-Cap ETF and Schwab U.S. Small-Cap ETF were owned by other Schwab funds. The percentages of the outstanding shares of these funds owned by other Schwab Funds are less than 1%.

The funds may engage in direct transactions with certain other Schwab ETFs when practical. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended February 28, 2013, the funds had no direct security transactions with other Schwab ETFs.

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

5. Other Service Providers:

SEI Investments Distribution Co. is the principal underwriter and distributor of shares of the funds.

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

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

6. Board of Trustees:

The Board may include people who are officers and/or directors of the investment adviser or its affiliate. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees. For information regarding the trustees please refer to Trustees and Officers Table at the end of this report.

112

Schwab U.S. Equity ETFs

Financial Notes, unaudited (continued)

7. Borrowing from Banks:

The funds have access to custodian overdraft facilities and to an uncommitted line of credit of $100 million with State Street. The funds pay interest on the amounts they borrow at rates that are negotiated periodically.

There were no borrowings from the line of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred interest expense, which is disclosed on the Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended February 28, 2013, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab U.S. Broad Market ETF		$40,102,836		$32,705,524
Schwab U.S. Large-Cap ETF		29,906,908		26,999,621
Schwab U.S. Large-Cap Growth ETF		22,601,935		21,747,051
Schwab U.S. Large-Cap Value ETF		15,207,879		14,186,156
Schwab U.S. Mid-Cap ETF		27,800,735		25,311,497
Schwab U.S. Small-Cap ETF		68,282,830		64,716,722
Schwab U.S. Dividend Equity ETF		15,584,854		15,707,417

9. In-Kind Transactions:

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

The in-kind transactions for the period ended February 28, 2013 were as follows:


	In-kind Purchases of Securities		In-kind Sales of Securities

Schwab U.S. Broad Market ETF		$466,385,851		$8,123,204
Schwab U.S. Large-Cap ETF		293,881,837		22,341,928
Schwab U.S. Large-Cap Growth ETF		109,404,055		10,165,088
Schwab U.S. Large-Cap Value ETF		109,919,872		47,954,768
Schwab U.S. Mid-Cap ETF		214,204,140		13,420,095
Schwab U.S. Small-Cap ETF		298,312,576		83,395,013
Schwab U.S. Dividend Equity ETF		211,505,570		69,913,467

For the period ended February 28, 2013, certain funds realized net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended February 28, 2013 are disclosed in the funds’ Statements of Operations.

113

Schwab U.S. Equity ETFs

Financial Notes, unaudited (continued)

10. Federal Income Taxes

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2012, the following funds had capital loss carryforwards available to offset future net capital gains before the expiration dates:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

Expiration Date

ETF

August 31, 2019

$—

$721,062

$691,441

$295,384

$218,695

$927,631

$—

No expiration*

1,084,809

1,748,175

2,600,479

1,253,997

982,935

2,820,210

—

Total

$1,084,809

$2,469,237

$3,291,920

$1,549,381

$1,201,630

$3,747,841

$—


*		As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital losses, which may increase the likelihood that the pre-enactment capital losses may expire unused. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital loss, irrespective of the character of the original loss.

For tax purposes, realized net capital losses and late-year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2012, the funds had capital losses deferred as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

Deferred capital losses

$1,853,313

$58,588

$219,862

$261,308

$744,851

$—

$341,141

As of August 31, 2012, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2012, the funds did not incur any interest or penalties.

11. Subsequent Events:

Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.

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Trustees and Officers

The tables below give information about the trustees and officers for the Schwab Strategic Trust which includes the funds covered in this report. The “Fund Complex” includes the Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 94 funds.

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

Independent Trustees


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

Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired/Private Investor (January 2009 – present). Consulting Managing Director, PIMCO (investment adviser) (March 2003 – December 2008).	17	Director, PS Business Parks, Inc. (2005 – 2012). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (2006 – 2008). Director and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Director, PCM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012.)	CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant (wealth management) (January 2008 – April 2012); CEO, Kochis Fitz (wealth management) (June 1991 – December 2007).	17	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (January 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	17	None

115

Interested Trustees


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

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	94	None

Officers of the Trust


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

Marie Chandoha 1961 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2010.)		Executive Vice President, Charles Schwab & Co., Inc. (Sept. 2010 – present); Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer (Nov. 2004 – present); Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).


Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer — Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer — Equities, Schwab Funds and Laudus Funds (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).


Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds and Laudus Funds (June 2011 – present); Senior Managing Director, Global Head of Active Fixed Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies, Loomis, Sayles & Company (April 2006 – Jan. 2008).

116

Officers of the Trust (continued)


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

David Lekich 1964 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President, Charles Schwab & Co., Inc. (Sept. 2011 – present); Senior Vice President and Chief Counsel, Charles Schwab Investment Management Inc. (Sept. 2011 – present); Vice President, Charles Schwab & Co., Inc., (March 2004 – Sept. 2011) and Charles Schwab Investment Management, Inc. (Jan 2011 – Sept. 2011); Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds (April 2011 – present); Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.


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


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

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Glossary

ask See “offer.”

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

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

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

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

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

cap, capitalization See “market cap.”

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

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

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

dividend yield A stock’s indicated annual dividend divided by current price. At the portfolio level, it is the value-weighted average of the dividend yield of the securities in the portfolio.

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

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

gross domestic product (GDP) The output of goods and services produced by labor and property located in the United States.

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

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

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

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

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

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

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

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

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

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

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

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

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

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

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

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

SEC yield A standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for

118

fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund’s filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. This is also referred to as the “standardized yield.”

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

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

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

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

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

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

119

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

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

Proxy Voting Policies, Procedures and Results

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

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabetfs.com or the SEC’s website at http://www.sec.gov.

Schwab ETFs

U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

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

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

Schwab U.S. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

Schwab U.S. Dividend Equity ETF^tm

Schwab U.S. REIT ETF^tm

International ETFs

Schwab International Equity ETF^tm

Schwab International Small-Cap Equity ETF^tm

Schwab Emerging Markets Equity ETF^tm

Fixed Income ETFs

Schwab U.S. Aggregate Bond ETF^tm

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

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

Schwab U.S. TIPS ETF^tm

In This Report


Performance at a Glance		2
From the President		3
Fund Management		5
Performance and Fund Facts
Schwab International Equity ETF™		6
Schwab International Small-Cap Equity ETF™		8
Schwab Emerging Markets Equity ETF™		10
Fund Expenses		12
Financial Statements and Portfolio Holdings
Schwab International Equity ETF™		13
Schwab International Small-Cap Equity ETF™		35
Schwab Emerging Markets Equity ETF™		57
Financial Notes		74
Trustees and Officers		82
Glossary		85

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

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co, Inc. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance


Total Return for the 6 Months Ended February 28, 2013

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


NAV Return¹	13.59%	*
Market Price Return¹	12.71%
FTSE Developed ex-US Index (Net)	13.67%
ETF Category: Morningstar Foreign Large Blend²	13.49%


Performance Details	pages 6-7




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


NAV Return¹	14.88%
Market Price Return¹	15.28%
FTSE Developed Small Cap ex-US Liquid Index (Net)	14.95%
ETF Category: Morningstar Foreign Small/Mid Blend²	13.61%


Performance Details	pages 8-9




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


NAV Return¹	11.60%
Market Price Return¹	11.06%
FTSE Emerging Index (Net)	11.75%
ETF Category: Morningstar Diversified Emerging Markets²	11.03%


Performance Details	pages 10-11

Index ownership — “FTSE^®” is a trademark jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under license. FTSE does not sponsor, endorse or promote Schwab ETFs and does not accept any liability in relation to their issue, operation and trading.


*		Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports.
¹		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
²		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

2 Schwab International Equity ETFs

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the funds covered in this report.

Dear Shareholder,

As President and CEO of Charles Schwab Investment Management, Inc., I’d like to thank you for trusting us to help you meet your investment goals, and for reading this important report concerning the Schwab International Equity ETFs. These funds are part of our line-up of core investment solutions and are available at some of the lowest operating expense ratios in the industry. The funds are designed to track market-leading international stock indices, while also providing the full benefits of an ETF, including transparency, trading flexibility, and potential tax efficiency.

For the six months ended February 28, 2013, the funds generated returns that reflected both a strong rally by international stocks and a mixed performance by overseas currencies versus the U.S. dollar. In an effort to stimulate faster economic growth, many central banks adopted policies aimed at keeping interest rates low. In addition to the low interest rate backdrop, international equities benefitted from progress by European leaders concerning the euro zone’s sovereign debt crisis. In this environment, investors began shifting into stocks, enhancing their returns as the increased demand helped to push up prices.

Stocks in developed international markets outperformed emerging market stocks overall, but both generated solid returns. Select European markets were some of the better performers among developed economies, rebounding from depressed levels during the height of the region’s sovereign debt crisis. Among emerging markets, economic growth in China seemed to reaccelerate heading into 2013. This helped Chinese stocks outperform the returns produced by

Asset Class Performance Comparison % returns during the report period

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



		8.95%		S&P 500^® Index: measures U.S. large-cap stocks

		13.02%		Russell 2000^® Index: measures U.S. small-cap stocks

		14.54%		MSCI EAFE^® Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		0.15%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

		0.04%		Three-Month U.S. Treasury Bills (T-bills): measures short-term U.S. Treasury obligations

Data source: Index provider websites and Charles Schwab Investment Management, Inc.

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

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

Schwab International Equity ETFs 3

From the President continued

stock markets in other major emerging market economies, such as Brazil, Russia, and India. Reflecting the solid performance of overseas equities, the FTSE Developed ex-U.S. Index (Net) returned 13.7% for the six months, while the FTSE Emerging Index (Net) returned 11.8%.

For more information about the Schwab International Equity ETFs, please continue reading this report. In addition, you can find answers to frequently asked questions and further details about these ETFs by visiting www.schwabetfs.com, or by contacting us at 1-800-435-4000.

Sincerely,

Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested.

4 Schwab International Equity ETFs

Fund Management



		Agnes Hong, CFA, Managing Director and Head of Passive Equity Strategies, leads the portfolio management teams of Schwab’s index mutual funds and equity ETFs. She also has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 2009, Ms. Hong spent five years as a portfolio manager at Barclays Global Investors (subsequently acquired by BlackRock), where she managed institutional index funds and quantitative active funds. Prior to that, Ms. Hong worked in management consulting and product management, servicing global financial services clients.

		Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.

		Chuck Craig, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent over five years as a managing director of portfolio management & supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc.

Schwab International Equity ETFs 5

Schwab International Equity ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months				1 Year			3 Years			Since Inception**


Fund: Schwab International Equity ETF^tm (11/3/09)
NAV Return²		13.59	%	*		8.88	%		6.81	%	5.90%
Market Price Return²		12.71	%			8.56	%		6.57	%	5.84%
FTSE Developed ex-US Index (Net)		13.67	%			8.80	%		7.01	%	6.06%
ETF Category: Morningstar Foreign Large Blend³		13.49	%			8.35	%		6.87	%	6.32%

Fund Expense Ratio⁴: 0.09%

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


*		Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports.
**		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.

6 Schwab International Equity ETFs

Schwab International Equity ETF^tm

Performance and Fund Facts as of 02/28/13 continued

Statistics


Number of Holdings			1,084
Weighted Average Market Cap ($ x 1,000,000)			$51,872
Price/Earnings Ratio (P/E)			20.2
Price/Book Ratio (P/B)			1.0
Portfolio Turnover Rate^1,2			4%

Sector Weightings % of Investments


Financials			25.9%
Industrials			12.2%
Consumer Staples			10.9%
Consumer Discretionary			10.6%
Materials			9.9%
Health Care			8.5%
Energy			8.4%
Information Technology			5.8%
Telecommunication Services			4.2%
Utilities			3.3%
Other			0.3%
Total			100.0%

Top Equity Holdings % of Net Assets³


Nestle S.A. – Reg’d			1.6%
Samsung Electronics Co., Ltd. GDR – Reg’d			1.5%
HSBC Holding plc			1.4%
Novartis AG – Reg’d			1.2%
Roche Holding AG			1.1%
Toyota Motor Corp.			0.9%
BP plc			0.9%
Royal Dutch Shell plc, A Shares			0.8%
Vodafone Group plc			0.8%
Sanofi			0.8%
Total			11.0%

Country Weightings % of Investments


United Kingdom			18.2%
Japan			16.4%
France			8.5%
Canada			8.2%
Australia			8.1%
Switzerland			7.7%
Germany			7.1%
Republic of Korea			5.0%
Hong Kong			4.4%
Sweden			2.9%
Other Countries			13.5%
Total			100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
³		This list is not a recommendation of any security by the investment adviser.

Schwab International Equity ETFs 7

Schwab International Small-Cap Equity ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab International Small-Cap Equity ETF^tm (1/14/10)
NAV Return²		14.88	%		7.83	%		9.36	%	6.45%
Market Price Return²		15.28	%		8.13	%		9.26	%	6.62%
FTSE Developed Small Cap ex-US Liquid Index (Net)		14.95	%		7.48	%		9.61	%	6.65%
ETF Category: Morningstar Foreign Small/Mid Blend³		13.61	%		5.48	%		9.47	%	6.27%

Fund Expense Ratio⁴: 0.20%

Investments in smaller companies typically exhibit higher volatility.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.

8 Schwab International Equity ETFs

Schwab International Small-Cap Equity ETF^tm

Performance and Fund Facts as of 02/28/13 continued

Statistics


Number of Holdings			1074
Weighted Average Market Cap ($ x 1,000,000)			$2,206
Price/Earnings Ratio (P/E)			30.4
Price/Book Ratio (P/B)			1.5
Portfolio Turnover Rate^1,2			8%

Sector Weightings % of Investments


Industrials			20.1%
Financials			19.2%
Consumer Discretionary			16.5%
Materials			12.1%
Energy			8.4%
Information Technology			7.5%
Consumer Staples			6.2%
Health Care			5.9%
Utilities			2.4%
Telecommunication Services			1.1%
Other			0.6%
Total			100.0%

Top Equity Holdings % of Net Assets³


Catamaran Corp.			0.6%
Pembina Pipeline Corp.			0.5%
Metro, Inc.			0.5%
Aberdeen Asset Management plc			0.4%
iShares MSCI EAFE Small Cap Index Fund			0.4%
Franco-Nevada Corp.			0.4%
Onex Corp.			0.4%
Tourmaline Oil Corp.			0.4%
The Governor & Co. of the Bank of Ireland			0.3%
Vermilion Energy, Inc.			0.3%
Total			4.2%

Country Weightings % of Investments


United Kingdom			19.8%
Canada			19.2%
Japan			13.5%
Australia			6.8%
Germany			4.8%
Hong Kong			4.7%
Republic of Korea			4.1%
Switzerland			3.2%
France			2.9%
Sweden			2.8%
Other Countries			18.2%
Total			100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
³		This list is not a recommendation of any security by the investment adviser.

Schwab International Equity ETFs 9

Schwab Emerging Markets Equity ETF™

Performance and Fund Facts as of 02/28/13

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			3 Years			Since Inception*


Fund: Schwab Emerging Markets Equity ETF^tm (1/14/10)
NAV Return²		11.60	%		-1.07	%		5.69	%	2.90%
Market Price Return²		11.06	%		-0.58	%		5.39	%	2.99%
FTSE Emerging Index (Net)		11.75	%		-0.87	%		6.15	%	3.34%
ETF Category: Morningstar Diversified Emerging Markets³		11.03	%		0.03	%		4.64	%	2.80%

Fund Expense Ratio⁴: 0.15%

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


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.

10 Schwab International Equity ETFs

Schwab Emerging Markets Equity ETF^tm

Performance and Fund Facts as of 02/28/13 continued

Statistics


Number of Holdings			620
Weighted Average Market Cap ($ x 1,000,000)			$31,422
Price/Earnings Ratio (P/E)			15.4
Price/Book Ratio (P/B)			1.5
Portfolio Turnover Rate^1,2			3%

Sector Weightings % of Investments


Financials			29.4%
Energy			13.9%
Materials			11.7%
Consumer Staples			9.6%
Telecommunication Services			8.9%
Information Technology			8.8%
Consumer Discretionary			6.2%
Industrials			6.1%
Utilities			3.6%
Health Care			1.5%
Other			0.3%
Total			100.0%

Top Equity Holdings % of Net Assets³


Taiwan Semiconductor Manufacturing Co, Ltd. ADR			2.6%
China Mobile Ltd.			1.9%
China Construction Bank Corp., H Shares			1.7%
Petroleo Brasileiro S.A. ADR, Pfd.			1.3%
Industrial & Commercial Bank of China Ltd., H Shares			1.3%
Companhia de Bebidas das Americas ADR			1.2%
LUKOIL OAO ADR			1.2%
Gazprom OAO ADR			1.1%
Itau Unibanco Holding S.A. ADR			1.1%
Bank of China Ltd., H Shares			1.1%
Total			14.5%

Country Weightings % of Investments


China			18.2%
Brazil			15.5%
Taiwan			12.9%
South Africa			9.8%
India			8.5%
Russia			6.8%
Mexico			6.2%
Malaysia			4.6%
Indonesia			3.6%
Thailand			2.9%
Other Countries			11.0%
Total			100.0%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
³		This list is not a recommendation of any security by the investment adviser.

Schwab International Equity ETFs 11

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 9/1/12		at 2/28/13		9/1/12–2/28/13

Schwab International Equity ETF^tm
Actual Return		0.09%	$	1,000	$	1,135.50	$	0.48
Hypothetical 5% Return		0.09%	$	1,000	$	1,024.35	$	0.45


Schwab International Small-Cap Equity ETF^tm
Actual Return		0.21%	$	1,000	$	1,148.80	$	1.12
Hypothetical 5% Return		0.21%	$	1,000	$	1,023.75	$	1.05


Schwab Emerging Markets Equity ETF^tm
Actual Return		0.16%	$	1,000	$	1,116.00	$	0.84
Hypothetical 5% Return		0.16%	$	1,000	$	1,024.00	$	0.80


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

12 Schwab International Equity ETFs

Schwab International Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			10/30/09¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.96			25.99			23.82			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.17			0.76			0.68			0.38
Net realized and unrealized gains (losses)		3.18			(1.04	)		1.96	²		(1.52	)

Total from investment operations		3.35			(0.28	)		2.64			(1.14	)
Less distributions:
Distributions from net investment income		(0.72	)		(0.75	)		(0.47	)		(0.04	)

Net asset value at end of period		27.59			24.96			25.99			23.82

Total return (%)		13.55	³		(0.75	)		11.04			(4.57	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.09	^4,5		0.13			0.13			0.14	^4,6
Gross operating expenses		0.09	^4,5		0.13			0.13			0.14	⁴
Net investment income (loss)		1.95	⁴		3.40			3.10			2.94	⁴
Portfolio turnover rate⁷		4	³		8			6			6	³
Net assets, end of period ($ x 1,000)		1,156,140			768,666			634,208			285,869

* Unaudited.

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

⁶ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

⁷ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 13

Schwab International Equity ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	98	.9%	Common Stock		1,059,954,709		1,143,430,535
	0	.3%	Other Investment Companies		3,899,632		3,917,169
	0	.5%	Preferred Stock		4,119,587		5,468,197


	99	.7%	Total Investments		1,067,973,928		1,152,815,901
	0	.3%	Collateral Invested for Securities on Loan		3,009,954		3,009,954
		—%	Other Assets and Liabilities, Net				314,519


	100	.0%	Net Assets				1,156,140,374


	Number		Value
Security	of Shares		($)

Common Stock 98.9% of net assets

Australia 8.0%


Banks 2.5%
Australia & New Zealand Banking Group Ltd.		230,869		6,788,033
Bank of Queensland Ltd.		23,045		214,690
Bendigo & Adelaide Bank Ltd.		39,386		400,392
Commonwealth Bank of Australia		121,811		8,388,839
National Australia Bank Ltd.		191,064		5,907,173
Westpac Banking Corp.		245,636		7,737,727

				29,436,854


Capital Goods 0.0%
CSR Ltd.		98,884		201,452
GWA Group Ltd.		73,325		190,669
Leighton Holdings Ltd.		3,771		91,148

				483,269


Commercial & Professional Services 0.2%
ALS Ltd.		10,475		125,575
Brambles Ltd.		153,490		1,374,935
Downer EDI Ltd. *		58,241		329,126

				1,829,636


Consumer Services 0.1%
Crown Ltd.		56,984		700,632
Echo Entertainment Group Ltd.		135,756		522,565
Flight Centre Ltd.		1,676		55,764
Tatts Group Ltd.		113,549		370,824

				1,649,785


Diversified Financials 0.2%
ASX Ltd.		18,855		703,587
Challenger Ltd.		39,386		145,560
IOOF Holdings Ltd.		35,615		301,167
Macquarie Group Ltd.		29,330		1,132,603

				2,282,917


Energy 0.5%
Aquila Resources Ltd. *		20,950		56,621
Caltex Australia Ltd.		2,095		42,788
Energy Resources of Australia Ltd. *		81,705		109,576
New Hope Corp., Ltd.		33,520		141,382
Oil Search Ltd.		130,309		1,033,880
Origin Energy Ltd.		96,935		1,207,717
Paladin Energy Ltd. *		69,973		84,171
Santos Ltd.		75,420		1,035,402
Whitehaven Coal Ltd.		12,989		37,233
Woodside Petroleum Ltd.		51,118		1,962,452
WorleyParsons Ltd.		22,207		605,645

				6,316,867


Food & Staples Retailing 0.7%
Metcash Ltd.		87,571		365,775
Wesfarmers Ltd.		78,353		3,291,176
Wesfarmers Ltd., Price Protected Shares		18,017		764,357
Woolworths Ltd.		95,113		3,401,201

				7,822,509


Food, Beverage & Tobacco 0.1%
Coca-Cola Amatil Ltd.		50,280		745,860
Goodman Fielder Ltd. *		77,096		58,406
Treasury Wine Estates Ltd.		71,802		389,589

				1,193,855


Health Care Equipment & Services 0.1%
Ansell Ltd.		8,380		135,720
Cochlear Ltd.		4,190		303,869
Ramsay Health Care Ltd.		12,570		413,337
Sonic Healthcare Ltd.		39,805		547,278

				1,400,204


Insurance 0.4%
AMP Ltd.		238,875		1,340,125
Insurance Australia Group Ltd.		215,366		1,254,536
QBE Insurance Group Ltd.		80,867		1,107,698
Suncorp Group Ltd.		106,567		1,229,534

				4,931,893


Materials 1.7%
Adelaide Brighton Ltd.		47,347		177,406
Alumina Ltd. *		98,046		123,963
Amcor Ltd.		156,287		1,471,989
Atlas Iron Ltd.		51,537		77,295
BHP Billiton Ltd.		240,506		9,127,302
Boral Ltd.		49,861		263,904
DuluxGroup Ltd.		28,911		121,942
Fortescue Metals Group Ltd.		191,483		925,265
Gunns Ltd. *(b)(c)		346,320		—
Iluka Resources Ltd.		50,699		546,021
Incitec Pivot Ltd.		162,572		537,579
James Hardie Industries plc CDI		14,665		147,130
Lynas Corp., Ltd. *		137,013		86,966
Newcrest Mining Ltd.		57,822		1,341,365
Nufarm Ltd.		21,369		122,727

14 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Orica Ltd.		28,911		808,311
OZ Minerals Ltd.		22,834		148,673
Rio Tinto Ltd.		43,905		3,013,746
Sims Metal Management Ltd.		3,771		42,041

				19,083,625


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
CSL Ltd.		46,509		2,856,815


Real Estate 0.7%
CFS Retail Property Trust Group		353,636		756,653
Commonwealth Property Office Fund		458,410		523,266
Dexus Property Group		516,627		576,498
Goodman Group		40,224		191,484
GPT Group		178,147		716,745
Lend Lease Group		59,120		644,582
Mirvac Group		271,093		455,152
Shopping Centres Australasia Property Group *		18,993		32,083
Stockland		245,115		943,521
Westfield Group		186,036		2,133,089
Westfield Retail Trust		215,366		701,129

				7,674,202


Retailing 0.0%
Harvey Norman Holdings Ltd.		56,565		144,192


Software & Services 0.1%
Computershare Ltd.		53,632		558,941


Telecommunication Services 0.1%
Telstra Corp., Ltd.		308,384		1,449,100


Transportation 0.2%
Asciano Ltd.		84,638		483,497
Aurizon Holdings Ltd.		93,856		387,223
Macquarie Atlas Roads Group *		77,934		130,448
Qantas Airways Ltd. *		62,012		104,432
Sydney Airport		23,650		76,751
Toll Holdings Ltd.		20,950		132,546
Transurban Group		186,874		1,178,484

				2,493,381


Utilities 0.1%
AGL Energy Ltd.		61,593		1,005,110
APA Group		29,749		187,301
Envestra Ltd.		129,052		138,723
SP Ausnet		96,370		117,404

				1,448,538

				93,056,583

Austria 0.3%


Banks 0.1%
Erste Group Bank AG *		22,626		729,889
Raiffeisen Bank International AG		4,609		174,531

				904,420


Capital Goods 0.0%
Andritz AG		4,066		287,153
Strabag SE		4,609		113,582

				400,735


Energy 0.1%
OMV AG		15,084		657,467


Insurance 0.0%
Vienna Insurance Group AG		3,771		191,235


Materials 0.1%
Voestalpine AG		15,503		524,127


Real Estate 0.0%
Immofinanz AG *		77,152		323,271


Telecommunication Services 0.0%
Telekom Austria AG		31,006		205,111

				3,206,366

Belgium 1.0%


Banks 0.0%
Dexia S.A. *		344,418		22,514
KBC GROEP N.V.		11,732		435,748

				458,262


Capital Goods 0.0%
NV Bekaert S.A.		8,380		228,260


Diversified Financials 0.1%
Groupe Bruxelles Lambert S.A.		7,542		603,336


Food & Staples Retailing 0.0%
Colruyt S.A.		8,380		413,519
Delhaize Group		2,095		101,394

				514,913


Food, Beverage & Tobacco 0.5%
Anheuser-Busch InBev N.V.		64,769		6,076,333


Insurance 0.1%
Ageas		23,648		806,449


Materials 0.1%
Solvay S.A.		2,933		419,681
Umicore S.A.		9,218		461,439

				881,120


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
UCB S.A.		12,151		702,938


Telecommunication Services 0.1%
Belgacom S.A.		16,341		457,390
Telenet Group Holding N.V.		6,285		322,218

				779,608

				11,051,219

Canada 8.2%


Automobiles & Components 0.1%
Magna International, Inc.		15,050		802,969


Banks 2.3%
Bank of Montreal		47,260		2,951,768
Bank of Nova Scotia		88,100		5,264,319
Canadian Imperial Bank of Commerce		41,900		3,388,518
National Bank of Canada		5,690		434,810
Royal Bank of Canada		125,700		7,827,746
The Toronto-Dominion Bank		83,800		6,916,424

				26,783,585


Capital Goods 0.1%
Bombardier, Inc., B Shares		167,600		676,562

See financial notes 15

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Finning International, Inc.		21,100		536,300

				1,212,862


Consumer Services 0.0%
Tim Hortons, Inc.		5,360		259,801


Diversified Financials 0.1%
CI Financial Corp.		18,950		497,690
IGM Financial, Inc.		11,740		520,509

				1,018,199


Energy 2.0%
Cameco Corp.		6,120		130,966
Canadian Natural Resources Ltd.		90,580		2,777,182
Canadian Oil Sands Ltd.		41,900		860,375
Cenovus Energy, Inc.		57,650		1,872,412
Crescent Point Energy Corp.		33,069		1,262,544
Enbridge, Inc.		83,800		3,747,993
EnCana Corp.		64,390		1,161,845
Husky Energy, Inc.		41,900		1,292,397
Imperial Oil Ltd.		41,900		1,747,650
MEG Energy Corp. *		5,490		177,829
Pacific Rubiales Energy Corp.		16,140		396,416
Penn West Petroleum Ltd.		41,900		408,383
Suncor Energy, Inc.		116,835		3,551,475
Talisman Energy, Inc.		83,800		1,055,600
TransCanada Corp.		59,660		2,787,867

				23,230,934


Food & Staples Retailing 0.1%
Alimentation Couche-Tard, Inc., B Shares		6,450		335,158
George Weston Ltd.		3,440		249,455
Loblaw Cos. Ltd.		2,150		86,728
Shoppers Drug Mart Corp.		20,870		873,127

				1,544,468


Food, Beverage & Tobacco 0.1%
Saputo, Inc.		13,130		651,870


Insurance 0.6%
Great-West Lifeco, Inc.		41,900		1,116,736
Intact Financial Corp.		2,680		170,776
Manulife Financial Corp.		149,615		2,226,652
Power Corp. of Canada		41,900		1,123,257
Power Financial Corp.		41,900		1,215,774
Sun Life Financial, Inc.		41,900		1,174,203

				7,027,398


Materials 1.3%
Agnico-Eagle Mines Ltd.		16,370		658,590
Agrium, Inc.		11,180		1,161,337
Barrick Gold Corp.		83,800		2,548,928
Eldorado Gold Corp.		41,900		414,904
First Quantum Minerals Ltd.		42,858		800,839
Goldcorp, Inc.		64,773		2,120,771
IAMGOLD Corp.		13,030		88,088
Kinross Gold Corp.		83,800		639,881
Osisko Mining Corp. *		41,900		243,318
Potash Corp. of Saskatchewan, Inc.		71,500		2,877,944
Silver Wheaton Corp.		28,970		921,472
Teck Resources Ltd., Class B		45,962		1,427,525
Turquoise Hill Resources Ltd. *		44,580		285,766
Yamana Gold, Inc.		64,950		959,040

				15,148,403


Media 0.2%
Shaw Communications, Inc., B Shares		41,900		1,005,470
Thomson Reuters Corp.		41,900		1,284,246

				2,289,716


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Valeant Pharmaceuticals International, Inc. *		21,608		1,461,832


Real Estate 0.3%
Brookfield Asset Management, Inc., Class A		41,900		1,593,997
Brookfield Office Properties, Inc.		83,800		1,402,033

				2,996,030


Retailing 0.0%
Canadian Tire Corp. Ltd., Class A		4,930		330,025


Software & Services 0.1%
CGI Group, Inc., A Shares *		27,350		724,953


Technology Hardware & Equipment 0.1%
Research In Motion Ltd. *		44,304		602,471


Telecommunication Services 0.2%
BCE, Inc.		41,900		1,894,782
Rogers Communications, Inc., B Shares		11,740		559,336

				2,454,118


Transportation 0.4%
Canadian National Railway Co.		33,537		3,414,214
Canadian Pacific Railway Ltd.		14,100		1,720,582

				5,134,796


Utilities 0.1%
Canadian Utilities Ltd., Class A		7,640		577,877
Fortis, Inc.		12,170		398,465
TransAlta Corp.		22,207		332,657

				1,308,999

				94,983,429

Denmark 1.1%


Banks 0.1%
Danske Bank A/S *		91,478		1,705,087


Capital Goods 0.0%
FLSmidth & Co. A/S		5,866		401,147
Rockwool International A/S, B Shares		1,257		156,381

				557,528


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		11,313		1,164,428


Health Care Equipment & Services 0.1%
Coloplast A/S Class B		12,570		656,602
William Demant Holding A/S *		2,514		201,279

				857,881


Materials 0.1%
Novozymes A/S, B Shares		24,302		848,418


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Novo Nordisk A/S, B Shares		38,400		6,716,465


Transportation 0.1%
AP Moller - Maersk A/S, B Shares		70		560,687

16 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
DSV A/S		20,531		505,085

				1,065,772

				12,915,579

Finland 0.7%


Automobiles & Components 0.0%
Nokian Renkaat Oyj		11,732		533,910


Capital Goods 0.2%
Kone Oyj, B Shares (a)		17,306		1,402,750
Wartsila Oyj Abp		20,112		930,787

				2,333,537


Food & Staples Retailing 0.0%
Kesko Oyj, B Shares		5,028		157,300


Insurance 0.2%
Sampo Oyj, A Shares		46,090		1,705,841


Materials 0.1%
Stora Enso Oyj, R Shares		64,526		434,444
UPM-Kymmene Oyj		49,861		583,739

				1,018,183


Technology Hardware & Equipment 0.1%
Nokia Oyj		313,705		1,138,500


Utilities 0.1%
Fortum Oyj		38,548		736,282

				7,623,553

France 8.5%


Automobiles & Components 0.3%
Compagnie Generale des Etablissements Michelin, B Shares		13,101		1,172,213
Peugeot S.A. *		12,989		98,457
Renault S.A.		21,369		1,358,146
Valeo S.A.		6,704		379,326

				3,008,142


Banks 0.7%
BNP Paribas S.A.		89,473		5,042,102
Credit Agricole S.A. *		90,923		855,851
Natixis		28,492		118,936
Societe Generale *		64,194		2,468,206

				8,485,095


Capital Goods 1.2%
Alstom S.A.		24,302		1,073,867
Bouygues S.A.		23,045		651,968
Compagnie de Saint-Gobain		45,252		1,807,640
Eiffage S.A.		1,676		74,071
European Aeronautic Defence & Space Co., N.V.		29,749		1,523,803
Legrand S.A.		15,964		734,956
Rexel S.A.		8,799		204,300
Safran S.A.		17,179		787,861
Schneider Electric S.A.		44,420		3,421,631
Thales S.A.		6,285		221,728
Vallourec S.A.		10,056		536,780
Vinci S.A.		49,442		2,291,417
Wendel		2,933		323,475
Zodiac Aerospace		3,352		377,661

				14,031,158


Commercial & Professional Services 0.2%
Bureau Veritas S.A.		6,285		811,727
Edenred		25,140		870,970
Societe BIC S.A.		3,580		418,467

				2,101,164


Consumer Durables & Apparel 0.6%
Christian Dior S.A.		5,866		981,238
Hermes International		3,352		1,118,347
LVMH Moet Hennessy Louis Vuitton S.A.		28,546		4,922,457

				7,022,042


Consumer Services 0.2%
Accor S.A.		25,140		908,109
Sodexo		15,922		1,476,661

				2,384,770


Diversified Financials 0.0%
Eurazeo		3,615		197,408


Energy 0.9%
Compagnie Generale De Geophysique-Veritas *		16,953		421,550
Technip S.A.		9,218		999,764
Total S.A.		167,834		8,402,605

				9,823,919


Food & Staples Retailing 0.2%
Carrefour S.A.		51,956		1,418,267
Casino Guichard Perrachon S.A.		5,447		548,328

				1,966,595


Food, Beverage & Tobacco 0.5%
Danone S.A.		50,699		3,525,505
Pernod-Ricard S.A.		20,531		2,667,747

				6,193,252


Health Care Equipment & Services 0.2%
bioMerieux		1,676		163,173
Essilor International S.A.		18,146		1,875,317

				2,038,490


Household & Personal Products 0.3%
L’Oreal S.A.		23,464		3,513,897


Insurance 0.3%
AXA S.A.		190,243		3,309,143
CNP Assurances		15,084		224,809
SCOR SE		14,665		415,367

				3,949,319


Materials 0.5%
Air Liquide S.A.		25,776		3,140,678
Arkema S.A.		4,190		426,282
Eramet		1,257		160,784
Imerys S.A.		3,352		226,211
Lafarge S.A.		18,855		1,272,931

				5,226,886


Media 0.4%
Eutelsat Communications		10,475		377,900
JC Decaux S.A.		4,609		125,332
Lagardere S.C.A.		10,894		389,384
Publicis Groupe		11,313		748,672

See financial notes 17

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SES		28,073		865,415
Societe Television Francaise 1		13,408		151,065
Vivendi		110,776		2,334,547

				4,992,315


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Sanofi		100,141		9,502,127


Real Estate 0.2%
Fonciere Des Regions		3,352		277,702
Gecina S.A.		2,095		238,147
Klepierre		7,542		310,345
Unibail-Rodamco SE		7,961		1,840,102

				2,666,296


Retailing 0.2%
PPR		8,380		1,881,076


Semiconductors & Semiconductor Equipment 0.0%
STMicroelectronics N.V.		27,654		220,789


Software & Services 0.1%
AtoS		5,447		405,121
Cap Gemini S.A.		12,151		598,808
Dassault Systemes S.A.		4,190		476,240

				1,480,169


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		316,764		443,110
Gemalto N.V.		4,510		411,197

				854,307


Telecommunication Services 0.1%
France Telecom S.A.		157,963		1,532,120


Transportation 0.1%
Aeroports de Paris		3,352		283,531
Bollore		838		326,203
Groupe Eurotunnel S.A. - Reg’d		35,615		301,810

				911,544


Utilities 0.4%
Electricite de France S.A.		28,492		539,552
GDF Suez		143,298		2,712,693
Suez Environnement Co.		34,358		458,837
Veolia Environnement		43,995		554,347

				4,265,429

				98,248,309

Germany 6.6%


Automobiles & Components 0.8%
Bayerische Motoren Werke AG		24,721		2,284,954
Continental AG		7,123		837,265
Daimler AG - Reg’d		87,261		5,209,494
Volkswagen AG		2,095		432,335

				8,764,048


Banks 0.1%
Commerzbank AG *		390,508		721,380


Capital Goods 0.9%
Bilfinger SE		2,933		308,444
Brenntag AG		838		119,635
GEA Group AG		18,017		642,450
Hochtief AG *		5,447		367,023
MAN SE		12,151		1,397,934
Siemens AG - Reg’d		68,029		7,081,222

				9,916,708


Consumer Durables & Apparel 0.2%
Adidas AG		20,112		1,835,281
Puma SE		838		255,704

				2,090,985


Diversified Financials 0.4%
Deutsche Bank AG - Reg’d		73,744		3,383,000
Deutsche Boerse AG		18,855		1,170,509

				4,553,509


Food & Staples Retailing 0.0%
Metro AG		16,760		519,295


Food, Beverage & Tobacco 0.0%
Suedzucker AG		5,028		220,536


Health Care Equipment & Services 0.2%
Celesio AG		7,123		128,975
Fresenius Medical Care AG & Co. KGaA		19,693		1,352,419
Fresenius SE & Co. KGaA		11,732		1,443,903

				2,925,297


Household & Personal Products 0.1%
Beiersdorf AG		6,704		585,379
Henkel AG & Co. KGaA		12,151		900,238

				1,485,617


Insurance 0.7%
Allianz SE - Reg’d		33,939		4,645,555
Hannover Rueckversicherung AG - Reg’d		5,447		426,770
Muenchener Rueckversicherungs-Gesellschaft AG - Reg’d		17,179		3,092,600

				8,164,925


Materials 1.1%
BASF SE		78,353		7,393,745
HeidelbergCement AG		17,598		1,215,216
K+S AG		16,768		789,289
Lanxess AG		6,704		568,990
Linde AG		10,475		1,902,165
Salzgitter AG		4,190		200,186
ThyssenKrupp AG *		33,520		757,032
Wacker Chemie AG		1,676		150,376

				12,976,999


Media 0.1%
Axel Springer AG		5,028		237,298
Kabel Deutschland Holding AG		6,285		545,835

				783,133


Pharmaceuticals, Biotechnology & Life Sciences 0.7%
Bayer AG - Reg’d		72,487		7,188,941
Merck KGaA		5,447		769,083
QIAGEN N.V. *		19,693		419,139

				8,377,163


Retailing 0.0%
Fielmann AG		1,257		119,339


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		97,627		837,398


Software & Services 0.5%
SAP AG		71,025		5,557,344

18 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Software AG		2,933		115,935

				5,673,279


Telecommunication Services 0.2%
Deutsche Telekom AG - Reg’d		238,634		2,566,645


Transportation 0.2%
Deutsche Lufthansa AG - Reg’d		18,855		380,844
Deutsche Post AG - Reg’d		73,744		1,656,793
Fraport AG		3,771		224,414
Hamburger Hafen und Logistik AG		3,771		89,283

				2,351,334


Utilities 0.3%
E.ON SE		135,181		2,260,363
RWE AG		41,481		1,525,766

				3,786,129

				76,833,719

Greece 0.1%


Banks 0.0%
Alpha Bank AE *		38,141		50,861
Eurobank Ergasias S.A. *		37,009		18,627
National Bank of Greece S.A. ADR *		89,299		111,624

				181,112


Food, Beverage & Tobacco 0.1%
Coca Cola Hellenic Bottling Co. S.A. ADR *		13,408		361,882


Telecommunication Services 0.0%
Hellenic Telecommunications Organization S.A. *		38,631		317,672


Utilities 0.0%
Public Power Corp. S.A. *		14,592		144,030

				1,004,696

Hong Kong 4.4%


Automobiles & Components 0.0%
Geely Automobile Holdings Ltd.		210,000		115,631
Xinyi Glass Holdings Ltd.		306,000		205,582

				321,213


Banks 0.4%
BOC Hong Kong Holdings Ltd.		419,000		1,412,903
Dah Sing Banking Group Ltd.		348,960		434,240
Hang Seng Bank Ltd.		83,800		1,355,090
The Bank of East Asia Ltd.		251,400		1,027,664

				4,229,897


Capital Goods 0.3%
Hutchison Whampoa Ltd.		218,000		2,348,711
Jardine Matheson Holdings Ltd.		15,800		1,000,456
Jardine Strategic Holdings Ltd.		5,000		192,000
Johnson Electric Holdings Ltd.		433,000		308,773
Melco International Development Ltd.		81,000		129,101
Shun Tak Holdings Ltd.		178,000		98,929

				4,077,970


Consumer Durables & Apparel 0.1%
Hutchison Harbour Ring Ltd.		1,036,000		89,508
Prada S.p.A.		31,200		308,586
Techtronic Industries Co., Ltd.		209,500		417,658
Texwinca Holdings Ltd.		12,000		12,070
Yue Yuen Industrial Holdings Ltd.		40,000		135,141

				962,963


Consumer Services 0.2%
Cafe de Coral Holdings Ltd.		10,000		29,852
China Travel International Investment Hong Kong Ltd.		838,000		176,140
Galaxy Entertainment Group Ltd. *		153,000		642,198
Sands China Ltd.		167,600		798,574
SJM Holdings Ltd.		49,000		122,455
Wynn Macau Ltd. *		80,000		210,965

				1,980,184


Diversified Financials 0.2%
First Pacific Co., Ltd.		12,000		15,877
Hong Kong Exchanges & Clearing Ltd.		105,400		1,896,013

				1,911,890


Energy 0.0%
Brightoil Petroleum Holdings Ltd. *(a)		1,142,000		209,113
Mongolia Energy Corp., Ltd. *		478,000		24,347

				233,460


Food & Staples Retailing 0.0%
Sun Art Retail Group Ltd.		209,500		291,766


Food, Beverage & Tobacco 0.2%
China Huiyuan Juice Group Ltd. *		209,500		84,018
China Mengniu Dairy Co., Ltd.		74,000		206,593
China Yurun Food Group Ltd. *(a)		15,000		10,755
Tingyi Cayman Islands Holding Corp.		178,000		467,101
Want Want China Holdings Ltd.		838,000		1,175,708

				1,944,175


Household & Personal Products 0.1%
Hengan International Group Co., Ltd.		99,500		1,009,775


Insurance 0.4%
AIA Group Ltd.		1,019,800		4,418,561


Materials 0.1%
China Zhongwang Holdings Ltd. *(a)		167,600		63,540
Fosun International		209,500		136,428
Hidili Industry International Development Ltd. (a)		448,000		122,473
Huabao International Holdings Ltd. (a)		175,000		97,713
Lee & Man Paper Manufacturing Ltd.		165,000		123,619
Mongolian Mining Corp. *(a)		100,000		42,812
Shougang Fushan Resources Group Ltd. (a)		140,000		61,742
United Co. RUSAL plc *		389,000		216,199

				864,526


Media 0.0%
Television Broadcasts Ltd.		24,000		182,905

See financial notes 19

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Real Estate 1.3%
Agile Property Holdings Ltd.		30,000		38,763
Cheung Kong (Holdings) Ltd.		129,000		2,006,151
Evergrande Real Estate Group Ltd. (a)		838,000		413,875
Hang Lung Group Ltd.		50,000		304,648
Hang Lung Properties Ltd.		175,000		678,124
Henderson Land Development Co., Ltd.		70,000		486,986
Hongkong Land Holdings Ltd.		219,000		1,692,870
Hopewell Holdings Ltd.		209,500		915,820
Hysan Development Co., Ltd.		31,000		159,500
Kerry Properties Ltd.		65,500		337,009
Kowloon Development Co., Ltd.		25,000		36,106
New World Development Co., Ltd.		544,000		1,001,737
Sino Land Co., Ltd.		225,000		409,099
SOHO China Ltd.		209,500		162,903
Sun Hung Kai Properties Ltd.		153,000		2,367,551
Swire Pacific Ltd., Class A		72,000		929,380
Swire Properties Ltd.		167,600		626,756
The Link REIT		209,500		1,119,786
Wharf Holdings Ltd.		114,000		996,692
Wheelock & Co., Ltd.		30,000		163,833

				14,847,589


Retailing 0.2%
Belle International Holdings Ltd.		419,000		771,558
Chow Tai Fook Jewellery Group Ltd. (a)		30,000		43,869
Esprit Holdings Ltd. (a)		138,700		181,002
Golden Eagle Retail Group Ltd. (a)		20,000		41,058
GOME Electrical Appliances Holdings Ltd. *		152,000		16,857
L’Occitane International S.A.		15,500		46,571
Li & Fung Ltd.		444,000		595,447
Lifestyle International Holdings Ltd.		209,500		504,106
Parkson Retail Group Ltd.		419,000		272,315

				2,472,783


Semiconductors & Semiconductor Equipment 0.1%
ASM Pacific Technology Ltd. (a)		41,900		552,194
GCL- Poly Energy Holdings Ltd. (a)		1,257,000		335,530

				887,724


Software & Services 0.2%
Tencent Holdings Ltd.		79,800		2,759,868


Technology Hardware & Equipment 0.1%
AAC Technologies Holdings, Inc.		68,000		288,929
Foxconn International Holdings Ltd. *		191,000		80,539
Kingboard Chemical Holdings Ltd.		47,000		143,336
VTech Holdings Ltd. (a)		38,900		451,209

				964,013


Telecommunication Services 0.0%
PCCW Ltd.		419,000		199,373


Transportation 0.1%
Cathay Pacific Airways Ltd.		62,000		115,768
Hopewell Highway Infrastructure Ltd. (a)		2,391,500		1,316,815
Orient Overseas International Ltd.		2,000		14,094

				1,446,677


Utilities 0.4%
Cheung Kong Infrastructure Holdings Ltd.		22,000		144,258
CLP Holdings Ltd.		124,500		1,071,636
ENN Energy Holdings Ltd.		40,000		200,906
Hong Kong & China Gas Co., Ltd.		588,000		1,645,370
Power Assets Holdings Ltd.		142,500		1,270,673

				4,332,843

				50,340,155

Ireland 0.1%


Food, Beverage & Tobacco 0.1%
Kerry Group plc, A Shares		12,989		729,511


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Elan Corp. plc *		59,079		660,144


Transportation 0.0%
Ryanair Holdings plc		11,021		81,522

				1,471,177

Israel 0.5%


Banks 0.1%
Bank Hapoalim B.M. *		95,532		423,672
Bank Leumi Le-Israel *		81,705		291,289
First International Bank of Israel Ltd. *		11,313		159,867
Israel Discount Bank Ltd., A Shares *		76,683		134,007
Mizrahi Tefahot Bank Ltd. *		9,218		96,778

				1,105,613


Capital Goods 0.0%
Delek Group Ltd.		419		110,850
Elbit Systems Ltd.		1,257		48,875
Ormat Industries Ltd. *		2,933		17,162

				176,887


Energy 0.0%
Avner Oil Exploration LP *		108,940		74,890
Delek Drilling LP *		20,112		80,908
Isramco Negev 2 LP *		813,765		137,609
Oil Refineries Ltd. *		67,040		34,876
Ratio Oil Exploration 1992 LP *		653,640		61,426

				389,709


Food, Beverage & Tobacco 0.0%
Osem Investments Ltd.		5,447		93,166
Strauss Group Ltd.		1,676		22,822

				115,988


Insurance 0.0%
Migdal Insurance & Financial Holding Ltd.		34,358		55,139


Materials 0.1%
Israel Chemicals Ltd.		42,738		552,386
The Israel Corp., Ltd.		196		140,809

				693,195


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.		79,341		2,971,749

20 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Real Estate 0.0%
Azrieli Group		3,352		89,862
Gazit-Globe Ltd.		6,285		84,415
Jerusalem Economy Ltd. *		10,894		68,319

				242,596


Semiconductors & Semiconductor Equipment 0.0%
Mellanox Technologies Ltd. *		2,095		108,029


Software & Services 0.0%
NICE Systems Ltd. *		4,190		150,281


Telecommunication Services 0.0%
Bezeq Israeli Telecommunication Corp., Ltd.		155,030		198,706

				6,207,892

Italy 1.9%


Automobiles & Components 0.1%
Fiat S.p.A. *		54,470		292,679
Pirelli & C. S.p.A.		40,275		468,353

				761,032


Banks 0.4%
Banca Carige S.p.A.		89,666		75,024
Banca Monte dei Paschi di Siena S.p.A. *		419,000		115,582
Banco Popolare Societa Cooperativa *		125,700		212,319
Intesa Sanpaolo S.p.A.		1,019,427		1,656,606
UniCredit S.p.A. *		364,733		1,855,837
Unione di Banche Italiane S.c.p.A.		59,079		270,947

				4,186,315


Capital Goods 0.1%
Fiat Industrial S.p.A.		74,163		903,154
Finmeccanica S.p.A. *		9,637		47,448
Prysmian S.p.A.		11,485		250,599

				1,201,201


Consumer Durables & Apparel 0.0%
Luxottica Group S.p.A.		11,313		525,934


Consumer Services 0.0%
Autogrill S.p.A.		19,274		247,317


Diversified Financials 0.0%
EXOR S.p.A.		7,961		223,352
Mediobanca S.p.A.		49,023		298,532

				521,884


Energy 0.6%
Eni S.p.A.		227,098		5,183,815
Saipem S.p.A.		29,330		785,297
Tenaris S.A.		38,548		794,237

				6,763,349


Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.		98,465		236,345


Insurance 0.2%
Assicurazioni Generali S.p.A.		138,689		2,251,933


Materials 0.0%
Buzzi Unicem S.p.A.		6,704		105,612


Media 0.0%
Mediaset S.p.A.		69,554		154,402


Telecommunication Services 0.1%
Telecom Italia S.p.A.		1,051,690		777,521
Telecom Italia S.p.A. - RSP		543,024		350,702

				1,128,223


Transportation 0.1%
Atlantia S.p.A.		42,473		735,734


Utilities 0.3%
Enel Green Power S.p.A.		42,319		78,397
Enel S.p.A.		640,232		2,320,184
Snam S.p.A.		142,879		678,432
Terna-Rete Elettrica Nazionale S.p.A.		131,147		548,999

				3,626,012

				22,445,293

Japan 16.4%


Automobiles & Components 2.2%
Aisin Seiki Co., Ltd.		8,200		298,190
Bridgestone Corp.		52,900		1,630,692
Denso Corp.		41,900		1,766,649
Honda Motor Co., Ltd.		125,700		4,707,278
Isuzu Motors Ltd.		96,000		593,106
Mitsubishi Motors Corp. *		838,000		926,469
NHK Spring Co., Ltd.		5,000		43,735
Nissan Motor Co., Ltd.		209,500		2,127,699
Nok Corp.		41,900		580,405
Sumitomo Rubber Industries Ltd.		41,900		655,795
Suzuki Motor Corp.		41,900		1,006,853
Toyota Motor Corp.		202,100		10,437,963
Yamaha Motor Co., Ltd.		41,900		503,200

				25,278,034


Banks 2.0%
Aozora Bank Ltd.		297,000		904,585
Fukuoka Financial Group, Inc.		107,000		488,261
Hokuhoku Financial Group, Inc.		419,000		726,642
Mitsubishi UFJ Financial Group, Inc.		1,146,500		6,374,967
Mizuho Financial Group, Inc.		2,095,000		4,632,343
North Pacific Bank Ltd. *		83,800		278,849
Resona Holdings, Inc.		209,500		965,071
Senshu Ikeda Holdings, Inc.		60,380		323,955
Shinsei Bank Ltd.		429,000		948,580
Sumitomo Mitsui Financial Group, Inc.		115,000		4,624,431
Sumitomo Mitsui Trust Holdings, Inc.		374,000		1,459,354
The 77 Bank Ltd.		28,000		132,322
The Awa Bank Ltd.		5,000		29,861
The Bank of Yokohama Ltd.		62,000		320,551
The Chiba Bank Ltd.		45,000		288,261
The Hokkoku Bank Ltd.		2,000		7,956
The Joyo Bank Ltd.		37,000		185,682
The Juroku Bank Ltd.		20,000		74,789
The Nanto Bank Ltd.		4,000		17,863
The San-In Godo Bank Ltd.		2,000		16,735
The Shiga Bank Ltd.		8,000		46,651
The Shizuoka Bank Ltd.		35,000		349,393
Yamaguchi Financial Group, Inc.		9,000		84,479

				23,281,581

See financial notes 21

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Capital Goods 2.1%
Chiyoda Corp.		1,000		12,541
COMSYS Holdings Corp.		41,900		557,244
Daikin Industries Ltd.		41,900		1,560,010
FANUC Corp.		12,090		1,875,221
Hitachi Cable Ltd. *		7,000		10,850
Hoshizaki Electric Co., Ltd.		1,600		44,084
IHI Corp.		419,000		1,180,793
ITOCHU Corp.		83,800		971,884
JTEKT Corp.		41,900		419,636
Kandenko Co., Ltd.		2,000		9,625
Kawasaki Heavy Industries Ltd.		302,000		965,640
Keihan Electric Railway Co., Ltd.		8,000		33,471
Komatsu Ltd.		73,100		1,852,458
LIXIL Group Corp.		41,900		862,887
Mitsubishi Corp.		125,700		2,505,553
Mitsubishi Electric Corp.		94,000		769,239
Mitsubishi Heavy Industries Ltd.		419,000		2,334,338
Mitsui & Co., Ltd.		125,700		1,872,012
SMC Corp.		4,000		697,160
Sojitz Corp.		209,500		322,447
Sumitomo Corp.		125,700		1,545,023
Sumitomo Electric Industries Ltd.		83,800		980,967
The Japan Steel Works Ltd.		1,000		5,875
THK Co., Ltd.		41,900		786,136
Toyota Tsusho Corp.		41,900		1,072,705
Ushio, Inc.		41,900		462,326

				23,710,125


Commercial & Professional Services 0.2%
Kokuyo Co., Ltd.		9,300		63,808
Nissha Printing Co., Ltd. *		3,200		59,727
Secom Co., Ltd.		41,900		2,161,760

				2,285,295


Consumer Durables & Apparel 0.6%
Haseko Corp. *		219,500		195,090
Makita Corp.		20,400		928,680
NAMCO BANDAI Holdings, Inc.		41,900		669,419
Nikon Corp.		41,900		944,635
Panasonic Corp.		237,700		1,721,045
Sega Sammy Holdings, Inc.		41,900		777,053
Sony Corp.		94,800		1,374,836
Sumitomo Forestry Co., Ltd.		41,900		415,548
TSI Holdings Co., Ltd.		44,900		230,194

				7,256,500


Consumer Services 0.0%
Benesse Holdings, Inc.		2,000		83,351
Oriental Land Co., Ltd.		2,000		296,770

				380,121


Diversified Financials 0.4%
Acom Co., Ltd. *		400		9,950
Credit Saison Co., Ltd.		41,900		894,678
Daiwa Securities Group, Inc.		130,000		807,392
Mitsubishi UFJ Lease & Finance Co., Ltd.		8,380		389,208
Nomura Holdings, Inc.		317,400		1,830,228
ORIX Corp.		8,380		937,368

				4,868,824


Energy 0.3%
Cosmo Oil Co., Ltd.		30,000		70,887
Idemitsu Kosan Co., Ltd.		1,000		91,372
Inpex Corp.		235		1,255,745
JX Holdings, Inc.		171,000		1,049,057
Showa Shell Sekiyu K.K.		41,900		304,735
TonenGeneral Sekiyu K.K.		15,000		149,577

				2,921,373


Food & Staples Retailing 0.3%
Aeon Co., Ltd.		83,800		946,451
Seven & i Holdings Co., Ltd.		83,800		2,457,867

				3,404,318


Food, Beverage & Tobacco 0.6%
Ajinomoto Co., Inc.		52,000		692,694
Asahi Group Holdings Ltd.		41,900		1,062,714
Japan Tobacco, Inc.		83,800		2,656,785
Kagome Co., Ltd.		41,900		777,961
Kewpie Corp.		41,900		572,231
Kirin Holdings Co., Ltd.		49,000		714,340
Nissin Foods Holdings Co., Ltd.		6,000		239,649
Sapporo Holdings Ltd.		52,000		182,051
Yakult Honsha Co., Ltd.		13,000		485,422

				7,383,847


Health Care Equipment & Services 0.1%
Alfresa Holdings Corp.		1,900		94,011
M3, Inc.		96		166,070
Medipal Holdings Corp.		14,400		186,984
Miraca Holdings, Inc.		2,100		101,859
Olympus Corp. *		22,300		491,393
Suzuken Co., Ltd.		2,100		73,407
Terumo Corp.		9,600		423,499

				1,537,223


Household & Personal Products 0.2%
Kao Corp.		41,900		1,346,104
Kobayashi Pharmaceutical Co., Ltd.		1,300		61,928
Lion Corp.		11,000		57,230
Shiseido Co., Ltd.		14,200		189,159
Unicharm Corp.		8,600		500,564

				2,154,985


Insurance 0.4%
Sony Financial Holdings, Inc.		61,300		972,720
T&D Holdings, Inc.		83,800		999,133
The Dai-ichi Life Insurance Co., Ltd.		838		1,180,793
Tokio Marine Holdings, Inc.		67,100		1,904,052

				5,056,698


Materials 1.2%
Asahi Kasei Corp.		60,000		356,384
Hitachi Chemical Co., Ltd.		41,900		577,226
JFE Holdings, Inc.		45,000		969,163
JSR Corp.		41,900		858,346
Kobe Steel Ltd. *		419,000		567,689
Kuraray Co. Ltd.		41,900		572,231
Mitsubishi Chemical Holdings Corp.		209,500		987,779
Nippon Paper Group, Inc.		5,200		90,969
Nippon Steel & Sumitomo Metal Corp.		656,000		1,784,695
Nissan Chemical Industries Ltd.		11,200		143,247
Nitto Denko Corp.		20,100		1,187,351
Shin-Etsu Chemical Co., Ltd.		41,900		2,588,663
Showa Denko K.K.		419,000		653,978
Sumitomo Chemical Co., Ltd.		79,000		234,620

22 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sumitomo Metal Mining Co., Ltd.		37,000		585,920
Sumitomo Osaka Cement Co., Ltd.		37,000		111,088
Taiheiyo Cement Corp.		32,000		79,428
Tokyo Steel Manufacturing Co., Ltd.		56,300		278,876
Toray Industries, Inc.		100,000		618,903

				13,246,556


Media 0.1%
Dentsu, Inc.		28,400		887,770
Hakuhodo DY Holdings, Inc.		8,380		639,445
SKY Perfect JSAT Holdings, Inc.		131		66,380

				1,593,595


Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Astellas Pharma, Inc.		41,900		2,275,298
Chugai Pharmaceutical Co., Ltd.		41,900		910,573
Daiichi Sankyo Co., Ltd.		41,900		753,437
Dainippon Sumitomo Pharma Co., Ltd.		41,900		608,109
Eisai Co., Ltd.		41,900		1,875,645
Kissei Pharmaceutical Co., Ltd.		1,700		33,794
Otsuka Holdings Co., Ltd.		41,900		1,347,921
Shionogi & Co., Ltd.		41,900		857,892
Takeda Pharmaceutical Co., Ltd.		41,900		2,177,655

				10,840,324


Real Estate 0.6%
Aeon Mall Co., Ltd.		7,500		186,809
Daito Trust Construction Co., Ltd.		3,800		341,860
Daiwa House Industry Co., Ltd.		47,000		867,050
Mitsubishi Estate Co., Ltd.		78,000		1,952,959
Mitsui Fudosan Co., Ltd.		70,000		1,789,074
Nomura Real Estate Holdings, Inc.		6,500		117,304
NTT Urban Development Corp.		419		428,719
Sumitomo Real Estate Sales Co., Ltd.		4,190		185,975
Sumitomo Realty & Development Co., Ltd.		30,000		1,019,402
Tokyo Tatemono Co., Ltd.		1,000		5,604
Tokyu Land Corp.		32,000		242,792

				7,137,548


Retailing 0.4%
Aoyama Trading Co., Ltd.		4,100		88,079
DeNA Co., Ltd.		5,400		152,179
Fast Retailing Co., Ltd.		4,100		1,130,100
Isetan Mitsukoshi Holdings Ltd.		83,800		931,918
J Front Retailing Co., Ltd.		34,000		201,951
Komeri Co., Ltd.		4,500		125,840
Marui Group Co., Ltd.		41,900		359,234
Point, Inc.		4,190		155,320
USS Co., Ltd.		4,190		462,780
Yamada Denki Co., Ltd.		16,760		612,196

				4,219,597


Semiconductors & Semiconductor Equipment 0.1%
Tokyo Electron Ltd.		19,400		904,184
Ulvac, Inc. *		19,600		187,162

				1,091,346


Software & Services 0.3%
Gree, Inc.		1,700		20,785
KONAMI Corp.		24,500		478,262
Nintendo Co., Ltd.		6,800		660,395
Nomura Research Institute Ltd.		41,900		953,718
NTT Data Corp.		100		318,990
Trend Micro, Inc.		2,800		79,514
Yahoo! Japan Corp.		1,257		534,763

				3,046,427


Technology Hardware & Equipment 1.4%
Alps Electric Co., Ltd.		41,900		273,399
Brother Industries Ltd.		41,900		440,527
Canon, Inc.		102,100		3,723,894
FUJIFILM Holdings Corp.		41,900		808,389
Fujitsu Ltd.		71,000		327,834
Hamamatsu Photonics K.K.		2,100		83,763
Hitachi Ltd.		419,000		2,361,587
Hoya Corp.		41,900		807,481
Keyence Corp.		2,800		792,413
Konica Minolta Holdings, Inc.		10,000		76,740
Kyocera Corp.		17,500		1,528,832
Murata Manufacturing Co., Ltd.		27,200		1,760,069
NEC Corp. *		212,000		526,209
OMRON Corp.		41,900		1,019,570
Ricoh Co., Ltd.		47,000		506,373
Taiyo Yuden Co., Ltd.		3,300		36,448
Toshiba Corp.		225,000		1,041,351
Yokogawa Electric Corp.		10,000		100,910

				16,215,789


Telecommunication Services 0.8%
KDDI Corp.		23,800		1,795,448
Nippon Telegraph & Telephone Corp.		41,900		1,930,143
NTT DoCoMo, Inc.		1,357		2,109,189
SOFTBANK Corp.		79,800		2,971,093

				8,805,873


Transportation 0.8%
All Nippon Airways Co., Ltd. (a)		419,000		862,887
Central Japan Railway Co.		15,200		1,484,414
East Japan Railway Co.		41,900		3,106,395
Fukuyama Transporting Co., Ltd.		2,000		10,665
Kawasaki Kisen Kaisha Ltd. *		6,000		13,527
Kintetsu Corp.		132,000		557,988
Nishi-Nippon Railroad Co., Ltd.		15,000		60,156
Sotetsu Holdings, Inc.		4,000		13,484
Tobu Railway Co., Ltd.		89,000		491,014
Tokyu Corp.		192,000		1,154,997
West Japan Railway Co.		41,900		1,859,750

				9,615,277


Utilities 0.4%
Chubu Electric Power Co., Inc.		48,100		605,812
Electric Power Development Co., Ltd.		11,000		283,763
Hokkaido Electric Power Co., Inc.		3,000		26,696
Hokuriku Electric Power Co.		2,000		23,087
Kyushu Electric Power Co., Inc.		41,900		403,741
Osaka Gas Co., Ltd.		92,000		358,985
Shikoku Electric Power Co., Inc.		8,500		104,569
The Chugoku Electric Power Co., Inc.		42,500		536,663
The Kansai Electric Power Co., Inc.		83,800		726,642
Toho Gas Co., Ltd.		22,000		122,090
Tohoku Electric Power Co., Inc. *		17,600		136,779
Tokyo Electric Power Co., Inc. *		125,700		286,115

See financial notes 23

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Tokyo Gas Co., Ltd.		100,000		485,584

				4,100,526

				189,431,782

Netherlands 2.1%


Capital Goods 0.2%
Koninklijke Boskalis Westminster N.V.		3,352		143,825
Koninklijke Philips Electronics N.V.		62,354		1,770,582

				1,914,407


Commercial & Professional Services 0.1%
Randstad Holding N.V.		12,151		517,315


Diversified Financials 0.2%
ING Groep N.V. CVA *		304,613		2,452,336


Energy 0.1%
Fugro N.V. CVA		7,123		339,851
SBM Offshore N.V. *		13,827		194,144

				533,995


Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		100,560		1,446,139


Food, Beverage & Tobacco 0.7%
DE Master Blenders 1753 N.V. *		64,945		783,766
Heineken Holding N.V.		9,218		578,455
Heineken N.V.		23,045		1,723,014
Unilever N.V. CVA		128,633		4,996,283

				8,081,518


Insurance 0.1%
AEGON N.V.		168,857		1,011,500


Materials 0.3%
Akzo Nobel N.V.		19,274		1,232,932
ArcelorMittal		105,588		1,589,536
Koninklijke DSM N.V.		15,503		908,810

				3,731,278


Media 0.1%
Reed Elsevier N.V.		58,241		886,286
Wolters Kluwer N.V.		25,140		501,547

				1,387,833


Real Estate 0.0%
Corio N.V.		6,773		312,880


Semiconductors & Semiconductor Equipment 0.2%
ASML Holding N.V.		24,452		1,742,859


Telecommunication Services 0.0%
Koninklijke (Royal) KPN N.V.		133,242		455,343


Transportation 0.0%
Koninklijke Vopak N.V.		2,095		150,941
PostNL N.V. *		29,072		68,907
TNT Express N.V.		37,710		285,941

				505,789

				24,093,192

New Zealand 0.1%


Consumer Services 0.0%
SKYCITY Entertainment Group Ltd.		77,934		274,614


Health Care Equipment & Services 0.0%
Fisher & Paykel Healthcare Corp., Ltd.		25,978		55,353


Materials 0.0%
Fletcher Building Ltd.		32,263		244,756


Real Estate 0.0%
Kiwi Income Property Trust		213,690		204,632


Telecommunication Services 0.0%
Chorus Ltd.		38,967		93,692
Telecom Corp. of New Zealand Ltd.		166,762		334,595

				428,287


Transportation 0.1%
Auckland International Airport Ltd.		243,020		570,211

				1,777,853

Norway 0.9%


Banks 0.1%
DnB A.S.A.		97,208		1,452,590


Capital Goods 0.1%
Orkla A.S.A.		83,800		688,215


Energy 0.4%
Aker Solutions A.S.A.		8,799		173,929
Kvaerner A.S.A.		21,788		50,265
Seadrill Ltd.		29,330		1,070,842
Statoil A.S.A.		117,320		2,925,977
Subsea 7 S.A.		17,179		407,430

				4,628,443


Insurance 0.0%
Gjensidige Forsikring A.S.A.		8,380		134,377
Storebrand A.S.A. *		32,093		144,880

				279,257


Materials 0.1%
Norsk Hydro A.S.A.		83,889		372,404
Yara International A.S.A.		20,950		1,004,715

				1,377,119


Telecommunication Services 0.2%
Telenor A.S.A.		75,001		1,620,170

				10,045,794

Portugal 0.2%


Banks 0.0%
Banco Comercial Portugues S.A. - Reg’d *		1,200,633		171,091
Banco Espirito Santo S.A. - Reg’d *		29,900		36,002

				207,093


Energy 0.0%
Galp Energia, SGPS, S.A.		28,492		440,284


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A.		28,492		568,606


Telecommunication Services 0.0%
Portugal Telecom, SGPS, S.A. - Reg’d		47,766		242,232

24 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Utilities 0.1%
EDP - Energias de Portugal S.A.		296,233		889,970

				2,348,185

Republic of Korea 5.0%


Automobiles & Components 0.5%
Halla Climate Control Corp.		250		5,749
Hankook Tire Co., Ltd.		7,937		361,364
Hankook Tire Worldwide Co., Ltd.		1,082		18,786
Hyundai Mobis		5,316		1,536,636
Hyundai Motor Co.		12,262		2,468,650
Hyundai Wia Corp.		2,062		302,780
Kia Motors Corp.		26,068		1,345,741
Mando Corp.		1,575		190,543

				6,230,249


Banks 0.4%
BS Financial Group, Inc.		4,800		69,374
DGB Financial Group, Inc.		1,200		18,009
Hana Financial Group, Inc.		15,600		582,033
Industrial Bank of Korea		3,300		39,923
KB Financial Group, Inc. ADR		44,015		1,559,452
Shinhan Financial Group Co., Ltd. ADR		49,570		1,926,290
Woori Finance Holdings Co., Ltd.		31,050		377,076

				4,572,157


Capital Goods 0.6%
CJ Corp.		1,000		138,065
Daelim Industrial Co., Ltd.		1,800		160,746
Daewoo Engineering & Construction Co., Ltd. *		7,000		58,763
Daewoo International Corp.		5,027		178,039
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		4,930		136,815
Doosan Corp.		1,746		208,006
Doosan Heavy Industries & Construction Co., Ltd.		2,150		87,066
Doosan Infracore Co., Ltd. *		4,610		67,267
GS Engineering & Construction Corp.		2,000		101,217
Hyundai Development Co.		4,000		91,428
Hyundai Engineering & Construction Co., Ltd.		5,409		341,676
Hyundai Heavy Industries Co., Ltd.		6,038		1,196,085
Hyundai Mipo Dockyard Co., Ltd.		620		67,564
KCC Corp.		300		78,960
LG Corp.		5,536		336,917
LG Hausys Ltd.		1,709		125,631
LS Corp.		1,683		135,998
Samsung C&T Corp.		15,500		947,614
Samsung Engineering Co., Ltd.		4,432		630,322
Samsung Heavy Industries Co., Ltd.		17,240		615,359
Samsung Techwin Co., Ltd.		3,201		192,741
SK Holdings Co., Ltd.		3,220		523,372
STX Offshore & Shipbuilding Co., Ltd. *		3,100		19,038

				6,438,689


Consumer Durables & Apparel 0.1%
Coway Co., Ltd. *		4,500		207,166
LG Electronics, Inc.		6,330		457,728

				664,894


Consumer Services 0.0%
Kangwon Land, Inc.		7,430		225,406


Diversified Financials 0.1%
Daewoo Securities Co., Ltd.		20,008		226,351
Hyundai Securities Co., Ltd.		9,000		74,140
Korea Investment Holdings Co., Ltd.		2,650		112,698
Samsung Card Co., Ltd.		2,960		106,473
Samsung Securities Co., Ltd.		11,836		627,420
Woori Investment & Securities Co., Ltd.		24,960		293,898

				1,440,980


Energy 0.2%
GS Holdings		2,180		140,525
S-Oil Corp.		7,700		710,392
SK Innovation Co., Ltd.		5,855		962,473

				1,813,390


Food & Staples Retailing 0.0%
E-Mart Co., Ltd.		1,147		234,098
Shinsegae Co., Ltd.		352		73,630

				307,728


Food, Beverage & Tobacco 0.1%
CJ CheilJedang Corp.		500		178,469
KT&G Corp.		6,506		463,845
Lotte Chilsung Beverage Co., Ltd.		55		73,345
Lotte Confectionery Co., Ltd.		50		84,455
NongShim Co., Ltd.		270		71,812
ORION Corp.		264		260,873

				1,132,799


Household & Personal Products 0.1%
Amorepacific Corp.		203		191,972
AMOREPACIFIC Group		700		272,805
LG Household & Health Care Ltd.		1,120		642,320

				1,107,097


Industrials 0.0%
Neo Holdings Co., Ltd. *(b)(c)		1,746		—


Insurance 0.2%
Dongbu Insurance Co., Ltd.		3,650		159,945
Hanwha Life Insurance Co., Ltd.		20,000		133,724
Hyundai Marine & Fire Insurance Co., Ltd.		6,000		174,266
Samsung Fire & Marine Insurance Co., Ltd.		2,930		616,942
Samsung Life Insurance Co., Ltd.		8,602		826,180

				1,911,057


Materials 0.5%
Cheil Industries, Inc. *		3,550		289,160
Hanwha Chemical Corp.		5,040		92,624
Hanwha Corp.		4,090		131,823
Hyosung Corp.		1,350		70,441
Hyundai Steel Co.		6,037		474,452
Korea Zinc Co., Ltd.		1,111		385,784
Kumho Petro Chemical Co., Ltd.		1,158		117,102
LG Chem Ltd.		3,825		1,047,365
Lotte Chemical Corp.		1,026		225,510
OCI Co., Ltd.		1,468		235,216

See financial notes 25

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
POSCO ADR		32,870		2,652,280
Samsung Fine Chemicals Co., Ltd.		1,257		65,124

				5,786,881


Media 0.0%
Cheil Worldwide, Inc.		10,000		221,642


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Celltrion, Inc.		8,812		218,505
Yuhan Corp.		434		71,543

				290,048


Retailing 0.1%
Hyundai Department Store Co., Ltd.		2,016		281,131
Lotte Shopping Co., Ltd.		788		283,086

				564,217


Semiconductors & Semiconductor Equipment 1.6%
Samsung Electronics Co., Ltd. GDR - Reg’d		23,722		16,842,620
SK Hynix, Inc. *		50,740		1,241,761

				18,084,381


Software & Services 0.1%
Daum Communications Corp.		1,876		165,627
NCsoft Corp.		1,050		138,665
NHN Corp.		4,259		1,034,440
SK C&C Co. Ltd.		2,800		266,340

				1,605,072


Technology Hardware & Equipment 0.1%
LG Display Co., Ltd. ADR *		63,365		880,774
Samsung Electro-Mechanics Co., Ltd.		2,664		234,952
Samsung SDI Co., Ltd.		2,800		359,430

				1,475,156


Telecommunication Services 0.1%
KT Corp. ADR *		28,911		467,780
LG Uplus Corp. *		12,400		97,338
SK Telecom Co., Ltd. ADR		47,347		860,295

				1,425,413


Transportation 0.1%
CJ Korea Express Co., Ltd. *		1,164		123,621
Hanjin Shipping Co., Ltd. *		9,500		96,068
Hyundai Glovis Co., Ltd.		500		94,891
Hyundai Merchant Marine Co., Ltd. *		3,788		62,269
Korean Air Lines Co., Ltd. *		2,299		93,843

				470,692


Utilities 0.1%
Korea Electric Power Corp. ADR *		102,045		1,526,593

				57,294,541

Singapore 1.6%


Banks 0.4%
DBS Group Holdings Ltd.		61,000		744,666
Oversea-Chinese Banking Corp., Ltd.		419,000		3,419,026
United Overseas Bank Ltd.		30,000		462,452

				4,626,144


Capital Goods 0.3%
Cosco Corp. Singapore Ltd. (a)		28,000		21,038
Fraser and Neave Ltd. (b)		39,000		297,443
Keppel Corp., Ltd.		75,000		705,312
Noble Group Ltd.		469,181		449,186
Singapore Technologies Engineering Ltd.		419,000		1,438,699
Yangzijiang Shipbuilding Holdings Ltd.		466,000		363,313

				3,274,991


Consumer Services 0.1%
Genting Singapore plc (a)		419,000		533,165


Diversified Financials 0.0%
Singapore Exchange Ltd.		8,000		49,121


Food & Staples Retailing 0.0%
Olam International Ltd. (a)		154,772		208,197


Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.		838,000		440,073
Indofood Agri Resources Ltd. (a)		37,000		37,067
Wilmar International Ltd.		266,000		762,917

				1,240,057


Media 0.0%
Singapore Press Holdings Ltd.		69,000		233,020


Real Estate 0.4%
CapitaCommercial Trust		419,000		561,939
Capitaland Ltd.		419,000		1,323,603
CapitaMall Trust		419,000		727,813
Keppel Land Ltd.		33,000		110,911
Wing Tai Holdings Ltd.		491,000		769,574
Yanlord Land Group Ltd. *(a)		355,000		440,254

				3,934,094


Retailing 0.0%
Jardine Cycle & Carriage Ltd.		10,000		416,885


Technology Hardware & Equipment 0.0%
Venture Corp., Ltd.		23,000		158,691


Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		838,000		2,329,000


Transportation 0.1%
ComfortDelGro Corp., Ltd.		419,000		649,953
Hutchison Port Holdings Trust		95,000		76,950
Neptune Orient Lines Ltd. *(a)		446,000		425,191
Singapore Post Ltd.		419,000		407,914

				1,560,008

				18,563,373

Spain 2.5%


Banks 1.0%
Banco Bilbao Vizcaya Argentaria S.A.		405,592		3,940,294
Banco de Sabadell S.A. *		280,730		611,810
Banco Popular Espanol S.A.		402,404		349,845
Banco Santander S.A.		815,374		6,194,406
Bankinter S.A.		28,911		162,526

				11,258,881


Capital Goods 0.0%
ACS, Actividades de Construccion y Servicios S.A.		16,760		398,784

26 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Zardoya Otis S.A.		12,616		178,295

				577,079


Diversified Financials 0.1%
CaixaBank		112,292		461,261
Corporacion Financiera Alba S.A.		3,352		144,526

				605,787


Energy 0.2%
Repsol S.A.		100,141		2,135,295


Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.		46,090		360,510


Insurance 0.0%
Mapfre S.A.		62,012		202,111


Materials 0.0%
Acerinox S.A.		20,112		217,184


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Grifols S.A. *		20,112		717,416


Retailing 0.2%
Inditex S.A.		21,369		2,867,709


Software & Services 0.1%
Amadeus IT Holding S.A.		32,682		837,446


Telecommunication Services 0.4%
Telefonica S.A.		329,856		4,312,373


Transportation 0.1%
Abertis Infraestructuras S.A.		31,425		552,984
Ferrovial S.A.		42,319		664,462

				1,217,446


Utilities 0.3%
Enagas S.A.		18,855		452,206
Gas Natural SDG S.A.		44,833		890,616
Iberdrola S.A.		399,307		1,978,509
Red Electrica Corporacion S.A.		2,095		116,074

				3,437,405

				28,746,642

Sweden 2.9%


Banks 0.7%
Nordea Bank AB		267,322		3,104,344
Skandinaviska Enskilda Banken AB, A Shares		178,913		1,869,489
Svenska Handelsbanken AB, A Shares		49,861		2,174,529
Swedbank AB, A Shares		56,565		1,364,651

				8,513,013


Capital Goods 1.0%
Alfa Laval AB		29,749		694,628
Assa Abloy AB, B Shares		37,202		1,480,461
Atlas Copco AB, A Shares		60,755		1,772,080
Atlas Copco AB, B Shares		36,453		946,743
Hexagon AB, B Shares		20,531		587,373
Sandvik AB		77,934		1,270,788
Scania AB, B Shares		36,034		752,490
Skanska AB, B Shares		36,453		649,260
SKF AB, B Shares		44,833		1,106,653
Volvo AB, B Shares		123,186		1,853,858

				11,114,334


Commercial & Professional Services 0.0%
Securitas AB, B Shares		41,481		387,748


Consumer Durables & Apparel 0.1%
Electrolux AB, Series B		25,978		665,421
Husqvarna AB, B Shares		11,848		73,472

				738,893


Diversified Financials 0.2%
Industrivarden AB, A Shares		24,302		454,331
Investment AB Kinnevik, B Shares		11,732		268,477
Investor AB, B Shares		49,442		1,453,613
Ratos AB, B Shares		4,190		43,197

				2,219,618


Energy 0.0%
Lundin Petroleum AB *		14,665		334,231


Food, Beverage & Tobacco 0.1%
Swedish Match AB		27,766		912,395


Health Care Equipment & Services 0.1%
Elekta AB, B Shares		11,732		176,558
Getinge AB, B Shares		17,598		531,585

				708,143


Materials 0.2%
Boliden AB		15,922		271,234
Holmen AB, B Shares		12,570		387,699
SSAB AB, A Shares		9,637		74,907
Svenska Cellulosa AB, B Shares		48,185		1,181,917

				1,915,757


Media 0.0%
Modern Times Group, B Shares		3,352		140,882


Retailing 0.1%
Hennes & Mauritz AB, B Shares		50,699		1,825,652


Technology Hardware & Equipment 0.2%
Telefonaktiebolaget LM Ericsson, B Shares		223,222		2,716,898


Telecommunication Services 0.2%
Tele2 AB, B Shares		38,129		609,307
TeliaSonera AB		180,170		1,240,547

				1,849,854

				33,377,418

Switzerland 7.7%


Banks 0.0%
Banque Cantonale Vaudoise - Reg’d		419		239,762


Capital Goods 0.7%
ABB Ltd. - Reg’d *		214,947		4,931,435
Geberit AG - Reg’d *		5,028		1,220,901
Schindler Holding AG		5,028		782,325
Schindler Holding AG - Reg’d		7,123		1,076,236
Sulzer AG - Reg’d		1,257		221,039

				8,231,936


Commercial & Professional Services 0.2%
Adecco S.A. - Reg’d *		14,246		815,954
SGS S.A. - Reg’d		419		1,069,501

				1,885,455

See financial notes 27

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Consumer Durables & Apparel 0.5%
Compagnie Financiere Richemont S.A., A Shares		42,319		3,416,992
The Swatch Group AG		2,933		1,675,192
The Swatch Group AG - Reg’d		7,123		727,031

				5,819,215


Diversified Financials 0.8%
Credit Suisse Group AG - Reg’d *		99,722		2,683,261
GAM Holding AG *		15,922		272,135
Julius Baer Group Ltd. *		24,909		948,101
Pargesa Holding S.A.		2,095		150,300
UBS AG - Reg’d *		333,980		5,307,462

				9,361,259


Energy 0.1%
Transocean Ltd. *		28,911		1,527,958


Food, Beverage & Tobacco 1.7%
Aryzta AG *		7,961		459,387
Nestle S.A. - Reg’d		263,905		18,523,122

				18,982,509


Health Care Equipment & Services 0.1%
Nobel Biocare Holding AG - Reg’d *		9,637		93,974
Sonova Holding AG - Reg’d *		4,609		554,147
Straumann Holding AG - Reg’d		838		116,379

				764,500


Insurance 0.6%
Baloise Holding AG - Reg’d		3,771		339,843
Swiss Re AG *		31,844		2,557,552
Zurich Insurance Group AG *		12,570		3,454,999

				6,352,394


Materials 0.6%
Givaudan S.A. - Reg’d *		1,257		1,508,615
Holcim Ltd. - Reg’d *		18,017		1,462,481
Syngenta AG - Reg’d		9,891		4,219,468

				7,190,564


Pharmaceuticals, Biotechnology & Life Sciences 2.3%
Actelion Ltd. - Reg’d *		1,257		65,140
Novartis AG - Reg’d		197,768		13,488,998
Roche Holding AG		56,565		13,013,829

				26,567,967


Real Estate 0.0%
Swiss Prime Site AG - Reg’d *		2,721		219,412


Telecommunication Services 0.1%
Swisscom AG - Reg’d		2,514		1,148,703


Transportation 0.0%
Kuehne & Nagel International AG - Reg’d		4,190		484,014

				88,775,648

United Kingdom 18.1%


Automobiles & Components 0.1%
GKN plc		137,851		571,255


Banks 2.6%
Barclays plc		900,224		4,195,141
HSBC Holdings plc		1,466,081		16,276,857
Lloyds Banking Group plc *		3,387,271		2,800,689
Royal Bank of Scotland Group plc *		165,146		811,964
Standard Chartered plc		201,169		5,484,348

				29,568,999


Capital Goods 0.7%
BAE Systems plc		282,825		1,524,495
Bunzl plc		22,626		433,092
Cobham plc		81,705		286,992
IMI plc		17,598		326,699
Invensys plc		64,526		350,749
Meggitt plc		53,632		370,093
Rolls-Royce Holdings plc *		147,907		2,308,020
Smiths Group plc		38,548		737,861
The Weir Group plc		15,084		536,700
Wolseley plc		26,039		1,228,070

				8,102,771


Commercial & Professional Services 0.3%
Aggreko plc		22,626		582,494
Capita plc		52,375		654,704
Experian plc		82,543		1,370,740
G4S plc		118,996		524,008
Hays plc		129,471		192,895
Rentokil Initial plc		186,874		262,532

				3,587,373


Consumer Durables & Apparel 0.1%
Burberry Group plc		41,481		866,414


Consumer Services 0.5%
Carnival plc		23,883		898,354
Compass Group plc		188,550		2,291,108
InterContinental Hotels Group plc		20,284		589,323
Ladbrokes plc		118,577		413,266
TUI Travel plc		82,543		397,565
Whitbread plc		24,721		946,762
William Hill plc		97,208		597,163

				6,133,541


Diversified Financials 0.2%
3i Group plc		90,085		438,130
Ashmore Group plc		28,911		157,242
Hargreaves Lansdown plc		19,274		253,658
ICAP plc		69,973		353,698
Investec plc		33,101		240,878
London Stock Exchange Group plc		8,380		169,690
Man Group plc		56,565		86,120
Schroders plc		12,989		392,756
Schroders plc, Non-Voting Shares		8,380		204,417

				2,296,589


Energy 3.0%
AMEC plc		27,654		438,244
BG Group plc		273,798		4,843,956
BP plc		1,512,351		10,231,819
Cairn Energy plc *		29,749		122,693
Essar Energy plc *		37,291		76,191
John Wood Group plc		42,319		493,349
Petrofac Ltd.		21,788		480,883
Royal Dutch Shell plc, A Shares		297,372		9,795,293
Royal Dutch Shell plc, B Shares		208,259		7,029,081
Tullow Oil plc		82,962		1,528,817

				35,040,326


Food & Staples Retailing 0.5%
J Sainsbury plc		164,248		862,150

28 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Tesco plc		662,020		3,714,160
William Morrison Supermarkets plc		221,232		871,787

				5,448,097


Food, Beverage & Tobacco 2.4%
Associated British Foods plc		31,006		871,655
British American Tobacco plc		150,922		7,868,169
Diageo plc		209,500		6,296,611
Imperial Tobacco Group plc		82,962		3,009,780
SABMiller plc		99,722		4,960,495
Tate & Lyle plc		46,090		568,444
Unilever plc		109,778		4,379,235

				27,954,389


Health Care Equipment & Services 0.1%
Smith & Nephew plc		71,230		764,434


Household & Personal Products 0.4%
Reckitt Benckiser Group plc		67,040		4,507,101


Insurance 0.8%
Aviva plc		235,059		1,273,091
Legal & General Group plc		550,985		1,339,025
Old Mutual plc		432,559		1,329,621
Prudential plc		245,534		3,658,134
Resolution Ltd.		291,662		1,156,407
Standard Life plc		178,494		955,081

				9,711,359


Materials 2.1%
Anglo American plc		116,063		3,386,139
Antofagasta plc		21,788		361,489
BHP Billiton plc		182,684		5,792,907
CRH plc		61,174		1,335,314
Fresnillo plc		17,179		404,974
Glencore International plc		443,607		2,609,322
Johnson Matthey plc		16,383		571,977
Kazakhmys plc		26,816		251,966
Randgold Resources Ltd.		7,123		593,058
Rexam plc		78,056		609,606
Rio Tinto plc		99,315		5,338,244
Vedanta Resources plc		10,056		179,511
Xstrata plc		181,944		3,210,616

				24,645,123


Media 0.5%
Aegis Group plc		101,398		367,092
British Sky Broadcasting Group plc		96,789		1,249,562
Daily Mail & General Trust plc, A Shares		18,436		198,693
ITV plc		382,966		722,004
Pearson plc		59,498		1,043,139
Reed Elsevier plc		87,571		942,463
WPP plc		102,236		1,635,694

				6,158,647


Pharmaceuticals, Biotechnology & Life Sciences 1.3%
AstraZeneca plc		117,359		5,336,338
GlaxoSmithKline plc		385,266		8,514,903
Shire plc		43,995		1,379,053

				15,230,294


Real Estate 0.3%
British Land Co. plc		114,806		988,981
Hammerson plc		88,828		666,632
Intu Properties plc		90,504		457,065
Land Securities Group plc		65,783		828,300
SEGRO plc		82,543		320,633

				3,261,611


Retailing 0.2%
Kingfisher plc		174,304		732,900
Marks & Spencer Group plc		118,158		665,956
Next plc		13,408		854,609

				2,253,465


Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc		109,610		1,588,953


Software & Services 0.1%
The Sage Group plc		107,683		555,755

				555,755


Telecommunication Services 1.1%
BT Group plc		625,986		2,543,728
Inmarsat plc		36,453		360,500
Vodafone Group plc		3,815,624		9,588,537

				12,492,765


Transportation 0.0%
International Consolidated Airlines Group S.A. *		96,370		349,914


Utilities 0.7%
Centrica plc		448,749		2,398,431
Drax Group plc		30,587		285,542
National Grid plc		275,702		3,052,972
Severn Trent plc		21,369		525,156
SSE plc		75,001		1,646,239
United Utilities Group plc		52,794		590,622

				8,498,962

				209,588,137

Total Common Stock
(Cost $1,059,954,709)				1,143,430,535




Preferred Stock 0.5% of net assets

Germany 0.5%


Automobiles & Components 0.4%
Porsche Automobil Holding SE		13,408		1,064,534
Volkswagen AG		14,588		3,189,729

				4,254,263


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		12,570		1,109,418

				5,363,681

Italy 0.0%


Diversified Financials 0.0%
EXOR S.p.A.		3,771		104,516

Total Preferred Stock
(Cost $4,119,587)				5,468,197

See financial notes 29

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Other Investment Companies 0.3% of net assets

Equity Fund 0.2%
iShares MSCI EAFE Index Fund		55,000		3,199,900

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		717,269		717,269

Total Other Investment Companies
(Cost $3,899,632)				3,917,169



End of Investments



Collateral Invested for Securities on Loan 0.3% of net assets


State Street Institutional U.S. Government Money Market Fund		3,009,954		3,009,954

Total Collateral Invested for Securities on Loan
(Cost $3,009,954)				3,009,954



End of Collateral Invested for Securities on Loan

At 02/28/13, the tax basis cost of the fund’s investments was $1,068,577,613 and the unrealized appreciation and depreciation were $146,425,503 and ($62,187,215), respectively, with a net unrealized appreciation of $84,238,288.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)		Illiquid security. At the period end, the value of these amounted to $0 or 0.0% of net assets.


ADR —		American Depositary Receipt
CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
GDR —		Global Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$1,124,867,162		$—		$—		$1,124,867,162
Singapore¹		15,288,382		—		—		15,288,382
Capital Goods		2,977,548		—		297,443		3,274,991
Preferred Stock¹		5,468,197		—		—		5,468,197
Other Investment Companies¹		3,917,169		—		—		3,917,169

Total		$1,152,518,458		$—		$297,443		$1,152,815,901

Other Financial Instruments
Collateral Invested for Securities on Loan		$3,009,954		$—		$—		$3,009,954


¹		As categorized in Portfolio Holdings.

30 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Balance				Change in											Balance
	as of		Realized		Unrealized						Gross		Gross			as of
	August 31,		Gains		Gains		Gross		Gross		Transfers		Transfers			February 28,
Investments in Securities	2012		(Losses)		(Losses)		Purchases		Sales		in		out			2013

Common Stock
Singapore		$—		$—		$40,757		$—		$—		$256,686		$—			$297,443
Republic of Korea		213,385		—		—		—		—		—		(213,385	)		—

Total		$213,385		$—		$40,757		$—		$—		$256,686		($213,385	)		$297,443

All net realized and change in unrealized gains (losses) in the tables above are reflected on the accompanying Statement of Operations. The change in net unrealized gains (losses) for Level 3 investments held by the fund at February 28, 2013 was $40,757.

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 transfers into and out of Level 3 from Level 1 due to the result of fair valued securities for which no quoted value was available. There were no transfers between Level 1 and Level 2 for the period ended February 28, 2013.

See financial notes 31

Schwab International Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments, at value (cost $1,067,973,928) including securities on loan of $3,336,081		$1,152,815,901
Collateral invested for securities on loan		3,009,954
Foreign currency, at value (cost $330,878)		328,702
Receivables:
Dividends		2,485,079
Foreign tax reclaims		512,324
Income from securities on loan		6,859
Interest	+	6

Total assets		1,159,158,825

Liabilities

Collateral held for securities on loan		3,009,954
Payables:
Investment adviser fees	+	8,497

Total liabilities		3,018,451

Net Assets

Total assets		1,159,158,825
Total liabilities	—	3,018,451

Net assets		$1,156,140,374

Net Assets by Source
Capital received from investors		1,100,440,109
Net investment income not yet distributed		266,971
Net realized capital losses		(29,375,169	)
Net unrealized capital gains		84,808,463

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$1,156,140,374

41,900,000

$27.59

32 See financial notes

Schwab International Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$9,225,759			$23,365,319
Net realized losses		(4,717,458	)		(19,150,730	)
Net unrealized gains (losses)	+	111,370,648			(6,217,419	)

Net increase (decrease) in net assets resulting from operations		115,878,949			(2,002,830	)

Distributions to Shareholders

Distributions from net investment income		($26,201,560	)		($19,440,541	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

11,100,000

$297,796,665

6,400,000

$155,902,019

Shares redeemed

—

)

(24

)

Net transactions in fund shares

11,100,000

$297,796,665

6,399,999

$155,901,995

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

30,800,000

$768,666,320

24,400,001

$634,207,696

Total increase

11,100,000

387,474,054

6,399,999

134,458,624

End of period

41,900,000

$1,156,140,374

30,800,000

$768,666,320

Net investment income not yet distributed

$266,971

$17,242,772

34 See financial notes

Schwab International Small-Cap Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			1/13/10¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		24.94			27.48			23.54			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.23			0.67			0.72			0.21
Net realized and unrealized gains (losses)		3.44			(2.39	)		3.88			(1.67	)

Total from investment operations		3.67			(1.72	)		4.60			(1.46	)
Less distributions:
Distributions from net investment income		(0.81	)		(0.82	)		(0.66	)		—

Net asset value at end of period		27.80			24.94			27.48			23.54

Total return (%)		14.88	²		(5.91	)		19.52			(5.84	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.21	^3,4		0.35			0.35			0.35	³
Gross operating expenses		0.21	^3,4		0.35			0.35			0.35	³
Net investment income (loss)		1.70	³		2.65			2.46			2.18	³
Portfolio turnover rate⁵		8	²		25			18			7	²
Net assets, end of period ($ x 1,000)		241,824			159,610			162,139			58,848

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

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

See financial notes 35

Schwab International Small-Cap Equity ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	98	.2%	Common Stock		218,196,866		237,537,849
	0	.9%	Other Investment Companies		2,014,902		2,087,014
	0	.5%	Preferred Stock		977,153		1,298,392
	0	.0%	Rights		—		13,538


	99	.6%	Total Investments		221,188,921		240,936,793
	4	.3%	Collateral Invested for Securities on Loan		10,363,920		10,363,920
	(3	.9)%	Other Assets and Liabilities, Net				(9,476,311	)


	100	.0%	Net Assets				241,824,402


	Number		Value
Security	of Shares		($)

Common Stock 98.2% of net assets

Australia 6.7%


Capital Goods 0.7%
Ausenco Ltd.		17,400		71,965
Boart Longyear Ltd.		84,216		149,585
Bradken Ltd. (c)		30,855		228,696
Cardno Ltd. (c)		17,400		127,543
Macmahon Holdings Ltd.		463,000		146,939
Monadelphous Group Ltd. (c)		15,660		398,874
NRW Holdings Ltd.		64,902		136,209
Seven Group Holdings Ltd.		17,400		200,577
UGL Ltd. (c)		24,113		252,041

				1,712,429


Commercial & Professional Services 0.5%
Cabcharge Australia Ltd. (c)		36,833		181,374
Mineral Resources Ltd.		8,700		100,378
SAI Global Ltd.		34,800		128,968
Seek Ltd.		48,728		503,841
Transfield Services Ltd.		98,944		198,536
Transpacific Industries Group Ltd. *		65,250		60,788

				1,173,885


Consumer Durables & Apparel 0.1%
Billabong International Ltd.		39,090		34,216
G.U.D. Holdings Ltd. (c)		25,849		195,031

				229,247


Consumer Services 0.3%
Invocare Ltd.		31,764		364,206
Navitas Ltd. (c)		46,424		236,682

				600,888


Diversified Financials 0.1%
FlexiGroup Ltd.		43,500		179,914


Energy 0.5%
Aurora Oil & Gas Ltd. *		87,000		345,577
AWE Ltd. *		114,094		151,845
Beach Energy Ltd.		130,500		189,043
Coalspur Mines Ltd. *(c)		89,175		65,731
Drillsearch Energy Ltd. *		53,425		76,571
Karoon Gas Australia Ltd. *		50,025		357,980

				1,186,747


Food, Beverage & Tobacco 0.3%
GrainCorp Ltd.		52,200		656,240
Senex Energy Ltd. *		120,446		85,082

				741,322


Health Care Equipment & Services 0.3%
Primary Health Care Ltd.		130,032		657,614
Sigma Pharmaceuticals Ltd.		217,935		147,253

				804,867


Materials 1.1%
Beadell Resources Ltd. *		66,349		55,019
CuDeco Ltd. *(c)		20,619		78,947
Discovery Metals Ltd. *		65,250		41,750
Evolution Mining Ltd. *		69,600		96,904
Independence Group NL		43,110		197,278
Kingsgate Consolidated Ltd. (c)		32,494		119,091
Medusa Mining Ltd.		44,232		193,809
Mineral Deposits Ltd. *		7,221		30,679
Mirabela Nickel Ltd. *(c)		130,500		49,432
Mount Gibson Iron Ltd.		139,200		104,742
PanAust Ltd.		109,707		309,983
Perseus Mining Ltd. *		115,827		190,910
Regis Resources Ltd. *		71,516		325,805
Resolute Mining Ltd.		130,065		181,089
Sandfire Resources NL *		20,640		144,742
Silver Lake Resources Ltd. *		66,261		148,558
St. Barbara Ltd. *		74,339		100,458
Sundance Resources Ltd. *		665,115		204,273
Troy Resources Ltd.		13,050		39,412
Western Areas Ltd. (c)		21,750		88,844

				2,701,725


Media 0.0%
Southern Cross Media Group Ltd.		43,500		68,581


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Acrux Ltd.		26,100		108,215
Mesoblast Ltd. *(c)		43,516		294,027
Pharmaxis Ltd. *(c)		60,900		34,602

				436,844


Real Estate 1.0%
Abacus Property Group		95,221		216,411
BWP Trust		158,570		383,113
Challenger Diversified Property Group		34,826		96,263
Charter Hall Group		65,016		250,266
Charter Hall Retail REIT		89,555		362,144
Federation Centres		182,875		458,685
FKP Property Group (c)		71,995		126,035
Investa Office Fund		165,942		518,144

				2,411,061

36 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Retailing 0.8%
Automotive Holdings Group		74,244		315,430
David Jones Ltd. (c)		97,179		277,569
JB Hi-Fi Ltd. (c)		15,074		199,844
Myer Holdings Ltd. (c)		111,468		318,382
Pacific Brands Ltd.		246,558		199,407
Premier Investments Ltd.		17,400		140,903
Super Retail Group Ltd.		21,750		254,284
Wotif.com Holdings Ltd. (c)		25,536		128,621

				1,834,440


Semiconductors & Semiconductor Equipment 0.0%
Silex Systems Ltd. *		21,141		70,124


Software & Services 0.2%
carsales.com Ltd.		21,664		204,708
Iress Ltd.		40,455		332,569

				537,277


Telecommunication Services 0.1%
TPG Telecom Ltd.		85,094		226,499


Transportation 0.2%
Australian Infrastructure Fund		87,000		275,215
Qube Holdings Ltd.		43,500		78,601
Virgin Australia Holdings Ltd. *		576,375		244,876
Virgin Australia International Holdings Ltd. (a)(b)		424,000		—

				598,692


Utilities 0.3%
DUET Group		130,500		295,255
Energy World Corp. Ltd. *		200,100		71,698
Infigen Energy *(c)		181,743		53,027
Spark Infrastructure Group		200,100		335,958

				755,938

				16,270,480

Austria 0.7%


Automobiles & Components 0.1%
Semperit AG Holding		3,623		148,206


Capital Goods 0.1%
Wienerberger AG		24,186		262,442


Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG		2,212		222,066


Materials 0.0%
Mayr Melnhof Karton AG		910		103,372


Real Estate 0.3%
Atrium European Real Estate Ltd.		37,445		224,844
CA Immobilien Anlagen AG *		17,400		250,568
Conwert Immobilien Invest SE		17,400		220,996
S IMMO AG		8,700		54,709

				751,117


Transportation 0.1%
Oesterreichische Post AG		6,216		250,377

				1,737,580

Belgium 1.1%


Consumer Durables & Apparel 0.0%
Van de Velde N.V.		1,131		51,899


Diversified Financials 0.4%
Ackermans & van Haaren N.V.		5,006		456,617
RHJ International *		28,634		151,985
Sofina S.A.		3,514		327,462

				936,064


Materials 0.2%
Nyrstar *		36,063		206,692
Tessenderlo Chemie N.V.		6,121		179,732

				386,424


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
ThromboGenics N.V. *		3,480		183,757


Real Estate 0.2%
Befimmo S.C.A. Sicafi		3,153		208,165
Cofinimmo		2,262		268,220

				476,385


Retailing 0.1%
D’Ieteren S.A. N.V.		6,090		267,436


Semiconductors & Semiconductor Equipment 0.0%
Melexis N.V.		4,350		83,712


Technology Hardware & Equipment 0.1%
Barco N.V.		1,479		125,644
EVS Broadcast Equipment S.A.		3,668		235,212

				360,856

				2,746,533

Canada 19.2%


Automobiles & Components 0.1%
Linamar Corp.		9,600		240,455


Banks 0.5%
Canadian Western Bank		9,600		285,745
Genworth MI Canada, Inc.		9,600		235,973
Home Capital Group, Inc. (c)		8,700		485,247
Laurentian Bank of Canada		2,930		128,594

				1,135,559


Capital Goods 0.8%
Aecon Group, Inc.		9,600		112,524
ATS Automation Tooling Systems, Inc. *		19,200		179,478
CAE, Inc.		43,500		426,516
Russel Metals, Inc. (c)		9,600		266,695
Superior Plus Corp.		17,400		194,133
Toromont Industries Ltd.		17,400		389,788
Westport Innovations, Inc. *(c)		8,700		252,694

				1,821,828


Commercial & Professional Services 0.5%
Progressive Waste Solutions Ltd.		18,750		391,943
Ritchie Bros. Auctioneers, Inc. (c)		19,200		436,088
Stantec, Inc.		9,600		398,455
Transcontinental, Inc., Class A		8,700		106,037

				1,332,523

See financial notes 37

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Consumer Durables & Apparel 0.4%
Dorel Industries, Inc., Class B		8,700		311,763
Gildan Activewear, Inc.		17,400		641,805

				953,568


Diversified Financials 0.7%
AGF Management Ltd., Class B		9,600		109,349
Dundee Corp., Class A *		9,600		320,763
Onex Corp.		20,670		934,930
TMX Group Ltd.		4,510		239,922

				1,604,964


Energy 5.2%
Advantage Oil & Gas Ltd. *		28,810		89,677
AltaGas Ltd.		17,400		589,845
Athabasca Oil Corp. *		64,740		638,552
Bankers Petroleum Ltd. *		45,750		136,620
Baytex Energy Corp.		17,400		728,970
Birchcliff Energy Ltd. *		17,400		132,694
BlackPearl Resources, Inc. *		52,200		127,447
Bonavista Energy Corp. (c)		26,100		333,089
Bonterra Energy Corp.		1,240		58,933
Calfrac Well Services Ltd.		8,700		206,488
Celtic Exploration Ltd. *		17,060		449,048
Chinook Energy, Inc. *		26,100		27,927
Crew Energy, Inc. *		9,600		60,231
Denison Mines Corp. *(c)		87,000		111,707
Enerflex Ltd.		9,600		117,566
Enerplus Corp. (c)		26,100		355,684
Ensign Energy Services, Inc.		26,100		435,148
Gibson Energy, Inc.		17,400		426,516
Keyera Corp.		11,520		610,149
Legacy Oil & Gas, Inc. *		18,750		116,726
Mullen Group Ltd.		9,600		204,597
Nuvista Energy Ltd. *		19,200		106,080
Paramount Resources Ltd., A Shares *		8,700		321,072
Pason Systems, Inc.		9,600		151,557
Pembina Pipeline Corp. (c)		43,560		1,226,231
Pengrowth Energy Corp. (c)		60,904		260,073
PetroBakken Energy Ltd. (c)		22,755		188,583
Petrobank Energy & Resources Ltd. *		12,310		9,340
Peyto Exploration & Development Corp.		17,400		426,008
Precision Drilling Corp. (c)		43,500		363,893
Savanna Energy Services Corp.		19,200		134,468
ShawCor Ltd., Class A		9,600		371,562
Tourmaline Oil Corp. *		26,100		933,258
Trican Well Service Ltd.		26,100		337,405
Trilogy Energy Corp.		10,500		278,318
Trinidad Drilling Ltd.		26,100		178,731
Uranium One, Inc. *		95,700		255,063
Veresen, Inc.		26,100		328,519
Vermilion Energy, Inc. (c)		14,680		762,095

				12,589,870


Food & Staples Retailing 0.8%
Empire Co., Ltd., A Shares		8,700		560,649
Metro, Inc.		17,400		1,093,201
The Jean Coutu Group, Inc., A Shares		19,200		296,017

				1,949,867


Food, Beverage & Tobacco 0.2%
Cott Corp.		19,200		184,147
Maple Leaf Foods, Inc.		19,200		245,778

				429,925


Health Care Equipment & Services 0.7%
Catamaran Corp. *		28,580		1,544,857
Extendicare, Inc. (c)		19,200		150,343

				1,695,200


Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.		9,600		345,509


Materials 4.0%
Alacer Gold Corp. *		43,500		149,788
Alamos Gold, Inc.		19,880		279,428
AuRico Gold, Inc. *		47,817		300,005
Aurizon Mines Ltd. *		28,810		123,866
B2Gold Corp. *		66,990		203,306
Canfor Corp. *		19,200		362,877
Capstone Mining Corp. *		38,410		87,427
CCL Industries, Inc., Class B		9,600		543,849
Centerra Gold, Inc.		26,100		170,099
China Gold International Resources Corp. Ltd. *		28,130		85,097
Detour Gold Corp. *		17,400		340,874
Dundee Precious Metals, Inc. *		18,750		144,083
Endeavour Silver Corp. *		8,700		50,691
First Majestic Silver Corp. *		17,400		282,482
Franco-Nevada Corp.		19,990		969,896
Harry Winston Diamond Corp. *		9,600		150,810
HudBay Minerals, Inc.		30,050		289,670
Imperial Metals Corp. *		18,750		253,879
Inmet Mining Corp.		10,390		686,232
Kirkland Lake Gold, Inc. *		9,150		54,470
Lake Shore Gold Corp. *		43,500		24,542
Lundin Mining Corp. *		78,300		355,684
Major Drilling Group International, Inc.		18,300		162,876
Methanex Corp.		19,200		705,024
Nevsun Resources Ltd.		26,100		95,712
New Gold, Inc. *		65,530		586,427
NovaGold Resources, Inc. *		43,500		173,061
OceanaGold Corp. *(c)		36,600		86,155
Pan American Silver Corp.		26,280		436,871
Pretium Resources, Inc. *		8,700		67,278
Rubicon Minerals Corp. *		43,500		95,205
Seabridge Gold, Inc. *(c)		8,700		109,591
SEMAFO, Inc.		46,210		127,656
Sherritt International Corp.		39,880		205,985
Silver Standard Resources, Inc. *		9,600		98,984
Silvercorp Metals, Inc.		28,130		103,977
Sino-Forest Corp. *(a)(b)		17,700		—
Tahoe Resources, Inc. *(c)		17,400		263,865
Taseko Mines Ltd. *		28,810		82,390
West Fraser Timber Co., Ltd.		5,080		420,019

				9,730,131


Media 1.0%
Aimia, Inc.		34,800		533,145
Astral Media, Inc., A Shares		9,600		448,881
Cineplex, Inc.		8,700		287,983
Cogeco Cable, Inc.		8,700		362,708

38 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Corus Entertainment, Inc.		8,700		215,120
Imax Corp. *		9,150		236,304
Quebecor, Inc., Class B		9,150		393,484
Torstar Corp.		9,150		69,512

				2,547,137


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Nordion, Inc.		19,200		135,402


Real Estate 2.2%
Allied Properties Real Estate Investment Trust		9,600		320,296
Artis Real Estate Investment Trust		17,400		271,650
Boardwalk Real Estate Investment Trust		9,600		603,613
Calloway Real Estate Investment Trust		17,400		494,048
Canadian Apartment Properties Real Estate Investment Trust		9,600		237,093
Canadian Real Estate Investment Trust		9,600		438,983
Chartwell Retirement Residences		34,800		372,017
Cominar Real Estate Investment Trust		17,400		382,172
Dundee Real Estate Investment Trust		12,310		440,887
First Capital Realty, Inc.		19,200		354,286
FirstService Corp. *		2,820		89,917
H&R Real Estate Investment Trust		28,130		634,810
InnVest Real Estate Investment Trust		26,100		113,484
Morguard Real Estate Investment Trust		9,600		175,649
Primaris Retail Real Estate Investment Trust		12,540		333,489

				5,262,394


Retailing 0.3%
Dollarama, Inc.		9,370		552,329
Reitmans (Canada) Ltd., Class A		9,150		99,061
RONA, Inc.		17,400		189,563

				840,953


Software & Services 0.4%
MacDonald, Dettwiler & Associates Ltd.		7,790		539,894
Open Text Corp. *		8,700		480,423

				1,020,317


Technology Hardware & Equipment 0.1%
Celestica, Inc. *		19,880		162,822


Telecommunication Services 0.1%
Manitoba Telecom Services, Inc.		8,700		273,004


Transportation 0.1%
TransForce, Inc.		9,600		206,371


Utilities 0.9%
ATCO Ltd., Class I		8,700		754,020
Atlantic Power Corp.		17,400		173,653
Capital Power Corp.		8,700		193,540
Emera, Inc.		18,750		646,369
Innergex Renewable Energy, Inc.		8,700		88,858
Just Energy Group, Inc. (c)		8,700		65,585
Northland Power, Inc.		8,700		158,167

				2,080,192

				46,357,991

Denmark 1.1%


Banks 0.3%
Jyske Bank A/S *		11,487		382,497
Sydbank A/S *		14,914		303,092

				685,589


Capital Goods 0.1%
NKT Holding A/S		3,969		159,929


Consumer Durables & Apparel 0.1%
Bang & Olufsen A/S *		4,350		49,961
Pandora A/S		6,873		184,027

				233,988


Health Care Equipment & Services 0.2%
GN Store Nord A/S		32,625		584,653


Insurance 0.2%
Topdanmark A/S *		1,939		447,095


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Alk-Abello A/S		2,316		166,096
Genmab A/S *		5,220		94,185

				260,281


Software & Services 0.1%
SimCorp A/S		910		234,242

				2,605,777

Finland 2.2%


Capital Goods 0.7%
Cargotec Oyj, B Shares		7,221		222,982
Konecranes Oyj		8,199		299,381
Outotec Oyj		6,960		459,052
Ramirent Oyj		17,228		182,437
Uponor Oyj		8,700		122,156
YIT Oyj		19,065		426,460

				1,712,468


Commercial & Professional Services 0.1%
Lassila & Tikanoja Oyj *		8,702		141,297


Consumer Durables & Apparel 0.1%
Amer Sports Oyj		18,493		306,562


Diversified Financials 0.2%
Pohjola Bank plc, A Shares		28,226		448,350


Materials 0.4%
Huhtamaki Oyj		20,108		389,065
Kemira Oyj		17,400		254,777
Metsa Board Oyj *		53,368		166,054
Tikkurila Oyj		8,700		182,211

				992,107


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Orion Oyj, Class B		10,932		324,427


Real Estate 0.2%
Citycon Oyj (c)		48,726		158,618
Sponda Oyj		49,468		243,813

				402,431

See financial notes 39

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Retailing 0.0%
Stockmann Oyj Abp, B Shares		4,350		78,082


Software & Services 0.2%
Tieto Oyj		14,225		331,586


Telecommunication Services 0.2%
Elisa Oyj		21,054		444,253


Transportation 0.0%
Finnair Oyj *		17,400		68,699

				5,250,262

France 2.9%


Capital Goods 0.2%
Mersen		3,045		85,111
Nexans S.A. (c)		5,319		265,983
Saft Groupe S.A.		4,470		121,435

				472,529


Commercial & Professional Services 0.2%
Teleperformance		11,345		467,649


Consumer Durables & Apparel 0.1%
Nexity		5,509		187,617


Energy 0.3%
Bourbon S.A. (c)		10,179		277,462
Etablissements Maurel et Prom		17,939		328,101
Maurel & Prom Nigeria *		21,856		94,007

				699,570


Food & Staples Retailing 0.1%
Rallye S.A.		5,224		190,853


Food, Beverage & Tobacco 0.2%
Remy Cointreau S.A.		4,185		529,618
Vilmorin & Cie		474		59,812

				589,430


Health Care Equipment & Services 0.2%
Medica S.A.		12,289		226,531
Orpea		6,090		256,727

				483,258


Materials 0.1%
S.A. des Ciments Vicat		2,784		163,421


Media 0.5%
Havas S.A.		69,600		438,852
Ipsos		5,699		223,779
Metropole Television S.A.		16,066		263,914
Societe d’Edition de Canal +		23,505		158,870
Technicolor S.A. *		21,750		75,637

				1,161,052


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Virbac S.A.		1,274		274,652


Real Estate 0.2%
Mercialys		8,700		184,258
Societe Immobiliere de Location pour l’Industrie et le Commerce		2,212		241,181

				425,439


Software & Services 0.3%
Alten		6,738		269,112
Altran Technologies S.A. *		31,073		240,490
Groupe Steria SCA		5,604		92,093
UbiSoft Entertainment S.A. *		23,519		257,972

				859,667


Technology Hardware & Equipment 0.2%
Ingenico		5,655		343,038
Neopost S.A.		4,883		282,770

				625,808


Utilities 0.2%
Rubis		6,118		420,154

				7,021,099

Germany 4.3%


Automobiles & Components 0.3%
ElringKlinger AG		8,700		314,035
Leoni AG		8,700		392,742

				706,777


Banks 0.1%
Aareal Bank AG *		6,525		150,819


Capital Goods 1.0%
Deutz AG *		27,448		158,105
Gildemeister AG		12,901		320,119
Krones AG		3,696		240,970
KUKA AG *		6,234		279,790
MTU Aero Engines Holding AG		6,406		596,459
Pfeiffer Vacuum Technology AG		2,126		241,810
Rheinmetall AG		2,316		127,623
SGL Carbon SE (c)		6,525		277,155
Vossloh AG		1,566		164,727

				2,406,758


Consumer Durables & Apparel 0.2%
Gerry Weber International AG		4,736		214,725
Rational AG		819		271,588

				486,313


Health Care Equipment & Services 0.1%
Rhoen Klinikum AG		7,221		153,831


Materials 0.8%
Aurubis AG (c)		8,358		587,208
Fuchs Petrolub AG		8,057		574,066
Symrise AG		18,705		710,266

				1,871,540


Media 0.2%
Sky Deutschland AG *		90,050		577,097


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
MorphoSys AG *		7,335		284,805
Stada Arzneimittel AG		11,859		464,031

				748,836


Real Estate 0.5%
Alstria Office REIT-AG		11,691		136,932
Deutsche Euroshop AG		8,199		339,898
Deutsche Wohnen AG		21,750		400,079
DIC Asset AG		8,700		91,367
GAGFAH S.A. *		17,228		190,094
IVG Immobilien AG *(c)		26,100		78,446
Patrizia Immobilien AG *		4,350		37,079

				1,273,895

40 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Retailing 0.1%
BayWa AG		2,610		131,335


Semiconductors & Semiconductor Equipment 0.2%
Aixtron SE (c)		17,328		231,295
Dialog Semiconductor plc *		11,710		217,083

				448,378


Software & Services 0.2%
Bechtle AG		1,305		63,859
Wirecard AG		15,781		415,308

				479,167


Technology Hardware & Equipment 0.1%
Wincor Nixdorf AG		5,538		281,097


Telecommunication Services 0.2%
Freenet AG		24,858		556,368

				10,272,211

Greece 0.4%


Banks 0.1%
Bank of Cyprus plc *		334,986		101,603
Cyprus Popular Bank plc *		654,630		35,945
Piraeus Bank S.A. *		138,078		48,198

				185,746


Capital Goods 0.0%
Ellaktor S.A. *		16,000		42,463
Metka S.A.		3,200		51,039

				93,502


Consumer Services 0.0%
Intralot S.A. Integrated Lottery Systems & Services		19,200		57,983


Diversified Financials 0.0%
Marfin Investment Group Holdings S.A. *		75,016		42,073


Energy 0.1%
Motor Oil (Hellas) Corinth Refineries S.A.		11,800		137,144


Materials 0.1%
Mytilineos Holdings S.A. *		3,603		24,023
Titan Cement Co. S.A. *		8,550		164,538
Viohalco Hellenic Copper and Aluminum Industry S.A. *		23,738		141,204

				329,765


Retailing 0.1%
JUMBO S.A. *		15,000		143,155


Utilities 0.0%
Athens Water Supply & Sewage Co. S.A.		4,500		35,592

				1,024,960

Hong Kong 4.7%


Automobiles & Components 0.1%
Minth Group Ltd.		190,000		248,438


Capital Goods 0.2%
China Liansu Group Holdings Ltd. (c)		87,000		60,918
China Singyes Solar Technologies Holdings Ltd.		157,800		177,236
Haitian International Holdings Ltd.		91,000		117,581
Lonking Holdings Ltd. (c)		174,000		46,894
Singamas Container Holdings Ltd.		348,000		99,623

				502,252


Consumer Durables & Apparel 0.7%
Billion Industrial Holdings Ltd.		87,000		59,460
Daphne International Holdings Ltd.		191,000		229,796
Haier Electronics Group Co., Ltd. *		91,000		164,284
Samsonite International S.A.		156,600		370,758
Shenzhou International Group Holdings Ltd.		87,000		246,813
Skyworth Digital Holdings Ltd.		420,000		282,172
Stella International Holdings Ltd.		43,500		125,931
Trinity Ltd.		208,000		118,016

				1,597,230


Consumer Services 0.1%
Ajisen China Holdings Ltd. (c)		174,000		125,650
Regal Hotels International Holdings Ltd.		64,000		31,279
REXLot Holdings Ltd. (c)		2,175,000		199,133

				356,062


Diversified Financials 0.1%
Value Partners Group Ltd.		174,000		122,060


Energy 0.1%
Sino Oil & Gas Holdings Ltd. *(c)		5,655,000		117,405
United Energy Group Ltd. *(c)		696,000		113,085

				230,490


Food, Beverage & Tobacco 0.1%
C.P. Pokphand Co., Ltd.		1,668,000		206,488
Uni-President China Holdings Ltd.		122,000		150,241

				356,729


Household & Personal Products 0.1%
NVC Lighting Holdings Ltd.		174,000		43,753
Vinda International Holdings Ltd. (c)		87,000		122,958

				166,711


Materials 0.5%
China Lumena New Materials Corp. (c)		348,000		81,673
China Precious Metal Resources Holdings Co., Ltd. *(c)		348,000		62,825
China Shanshui Cement Group Ltd.		380,000		271,959
China Vanadium Titano - Magnetite Mining Co., Ltd.		261,000		60,918
Dongyue Group (c)		261,000		172,994
Fufeng Group Ltd.		190,000		81,342
North Mining Shares Co., Ltd. *		1,740,000		103,213
West China Cement Ltd.		870,000		166,038
Yingde Gases		130,500		152,800

				1,153,762


Media 0.1%
Phoenix Satellite Television Holdings Ltd.		174,000		73,595
VODone Ltd.		933,999		79,491

				153,086

See financial notes 41

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Anxin-China Holdings Ltd.		696,000		160,653
China Medical System Holdings Ltd.		380,600		348,461
China Shineway Pharmaceutical Group Ltd.		87,000		148,313
Sihuan Pharmaceutical Holdings Group Ltd. (c)		174,000		80,775
Sino Biopharmaceutical Ltd.		696,000		400,286

				1,138,488


Real Estate 0.3%
C C Land Holdings Ltd.		348,000		114,432
Glorious Property Holdings Ltd. *(c)		522,000		99,623
K Wah International Holdings Ltd.		174,000		99,847
Kaisa Group Holdings Ltd. *(c)		348,000		115,778
Lai Sun Development Co., Ltd. *		3,306,000		127,894
Sunlight Real Estate Investment Trust		174,000		80,102
Yuexiu Real Estate Investment Trust		348,000		183,539

				821,215


Retailing 0.7%
China ZhengTong Auto Services Holdings Ltd. *(c)		130,500		104,335
Chow Sang Sang Holdings International Ltd. (c)		26,000		70,575
Emperor Watch & Jewellery Ltd. (c)		1,060,000		116,185
Giordano International Ltd. (c)		174,000		175,013
Hengdeli Holdings Ltd. (c)		380,000		123,974
Intime Department Store Group Co., Ltd.		130,500		160,036
Luk Fook Holdings International Ltd.		103,000		342,012
New World Department Store China Ltd.		174,000		108,149
PCD Stores Group Ltd.		696,000		105,008
SA SA International Holdings Ltd. (c)		348,000		370,220
Silver Base Group Holdings Ltd. (c)		265,800		79,519

				1,755,026


Semiconductors & Semiconductor Equipment 0.1%
Hanergy Solar Group Ltd. *		3,480,000		215,401


Software & Services 0.2%
G-Resources Group Ltd. *		5,529,000		313,708
Kingsoft Corp., Ltd.		174,000		150,781

				464,489


Technology Hardware & Equipment 0.2%
China Wireless Technologies Ltd.		696,000		186,680
Digital China Holdings Ltd.		174,000		273,290
Ju Teng International Holdings Ltd.		174,000		94,238
Tech Pro Technology Development Ltd. *		174,000		65,966

				620,174


Telecommunication Services 0.1%
SmarTone Telecommunications Holding Ltd.		87,000		158,858


Transportation 0.1%
Pacific Basin Shipping Ltd.		570,000		335,906


Utilities 0.4%
China Gas Holdings Ltd.		552,000		537,418
China Oil & Gas Group Ltd. *(c)		600,000		118,378
China Water Affairs Group Ltd.		348,000		112,188
Towngas China Co., Ltd.		182,000		159,825

				927,809

				11,324,186

Ireland 1.3%


Banks 0.3%
The Governor & Co. of the Bank of Ireland *		4,437,000		765,694


Capital Goods 0.5%
DCC plc		13,065		459,893
Grafton Group plc		57,855		361,090
Kingspan Group plc		29,580		344,176

				1,165,159


Consumer Services 0.1%
Paddy Power plc		3,480		287,988


Food, Beverage & Tobacco 0.2%
C&C Group plc		69,600		445,404
Glanbia plc		9,791		113,628

				559,032


Materials 0.2%
Smurfit Kappa Group plc		26,100		406,903


Transportation 0.0%
Aer Lingus Group plc		34,800		56,415

				3,241,191

Israel 0.2%


Health Care Equipment & Services 0.0%
Given Imaging Ltd. *		5,220		82,817


Materials 0.0%
Frutarom Industries Ltd.		4,350		60,558


Semiconductors & Semiconductor Equipment 0.1%
Nova Measuring Instruments Ltd. *		8,700		79,884
Tower Semiconductor Ltd. *		5,784		39,918

				119,802


Software & Services 0.0%
Allot Communications Ltd. *		4,350		62,314


Technology Hardware & Equipment 0.1%
Ceragon Networks Ltd. *		8,700		40,481
Ituran Location and Control Ltd.		3,480		53,084

				93,565

				419,056

Italy 2.2%


Automobiles & Components 0.0%
Piaggio & C S.p.A.		30,450		78,622


Banks 0.5%
Banca Piccolo Credito Valtellinese Scarl		39,150		54,100
Banca Popolare dell’Emilia Romagna Scrl		46,948		337,576
Banca Popolare di Milano Scarl *		604,650		411,054
Banca Popolare di Sondrio Scrl		45,675		276,831

42 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Credito Emiliano S.p.A.		19,890		93,716

				1,173,277


Capital Goods 0.3%
Danieli & C Officine Meccaniche S.p.A.		12,996		223,253
Impregilo S.p.A.		69,600		362,692

				585,945


Consumer Durables & Apparel 0.2%
De’Longhi S.p.A.		4,350		67,220
Tod’s S.p.A.		2,667		386,675

				453,895


Diversified Financials 0.3%
Azimut Holding S.p.A.		30,760		490,210
Banca Generali S.p.A.		12,901		225,837

				716,047


Energy 0.1%
ERG S.p.A.		20,804		186,987


Health Care Equipment & Services 0.2%
DiaSorin S.p.A. (c)		6,090		228,901
Sorin S.p.A. *		123,279		309,444

				538,345


Insurance 0.2%
Fondiaria-Sai S.p.A. *		145,708		221,923
Societa Cattolica di Assicurazioni Scrl *		12,047		200,493

				422,416


Media 0.0%
Arnoldo Mondadori Editore S.p.A. *		17,400		22,975
Gruppo Editoriale L’Espresso S.p.A.		43,500		43,733

				66,708


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		20,488		203,834


Real Estate 0.0%
Beni Stabili S.p.A.		139,328		88,525


Retailing 0.1%
Yoox S.p.A. *(c)		5,221		96,925


Transportation 0.1%
Ansaldo STS S.p.A.		31,456		304,112


Utilities 0.1%
ACEA S.p.A.		17,323		104,313
Hera S.p.A.		121,064		205,597

				309,910

				5,225,548

Japan 13.5%


Automobiles & Components 0.7%
Akebono Brake Industry Co., Ltd. (c)		17,400		77,136
Daido Metal Co., Ltd. (c)		7,000		59,788
Keihin Corp.		8,700		130,415
Musashi Seimitsu Industry Co., Ltd. (c)		8,700		185,297
Nissin Kogyo Co., Ltd.		17,400		280,633
Press Kogyo Co., Ltd.		32,000		158,508
Showa Corp.		8,700		93,073
Toyo Tire & Rubber Co., Ltd.		20,000		82,809
TPR Co., Ltd.		8,700		113,630
TS Tech Co., Ltd.		17,400		426,419
Unipres Corp.		8,700		195,010

				1,802,718


Banks 0.7%
Bank of the Ryukyus Ltd.		8,700		115,422
FIDEA Holdings Co., Ltd.		43,500		106,086
Kiyo Holdings, Inc.		261,000		393,226
The Bank of Okinawa Ltd.		3,200		130,761
The Fukui Bank Ltd.		95,000		187,405
The Miyazaki Bank Ltd.		31,000		90,722
The Oita Bank Ltd.		91,000		332,397
The Toho Bank Ltd.		23,000		71,049
The Tokyo Tomin Bank Ltd.		8,700		87,509
The Tsukuba Bank Ltd.		22,800		92,426
The Yachiyo Bank Ltd.		2,200		54,559
TOMONY Holdings, Inc.		17,400		78,645

				1,740,207


Capital Goods 3.2%
Aica Kogyo Co., Ltd.		17,400		291,006
Aida Engineering Ltd.		8,700		69,687
Amano Corp.		9,100		86,995
Asahi Diamond Industrial Co., Ltd. (c)		9,100		83,247
Central Glass Co., Ltd.		87,000		286,668
Daifuku Co., Ltd.		47,500		349,068
Denyo Co., Ltd.		8,700		111,744
Futaba Corp.		19,000		211,294
Hanwa Co., Ltd.		95,000		402,612
Hitachi Zosen Corp.		227,500		355,084
Inaba Denki Sangyo Co., Ltd.		9,500		289,757
Iseki & Co., Ltd.		91,000		320,561
Iwatani Corp.		87,000		351,734
Kitz Corp.		8,700		43,189
Kyowa Exeo Corp.		28,500		308,601
Maeda Corp. (c)		32,000		136,310
Meidensha Corp.		95,000		293,464
Mirait Holdings Corp.		17,400		169,926
Miura Co., Ltd.		9,100		223,407
Nachi-Fujikoshi Corp.		26,000		104,271
Nichias Corp.		19,000		101,322
Nippo Corp.		8,000		105,615
Nitto Boseki Co., Ltd.		87,000		340,418
Noritz Corp.		17,400		327,217
Oiles Corp. (c)		8,700		169,172
Okumura Corp.		95,000		399,523
OSG Corp.		28,500		389,844
Penta-Ocean Construction Co., Ltd. (c)		43,500		113,630
Sankyo Tateyama, Inc. *		8,700		167,663
Sanwa Holdings Corp.		45,000		231,194
SHO-BOND Holdings Co., Ltd. (c)		9,500		348,038
Sintokogio Ltd.		23,400		216,094
Taikisha Ltd.		8,700		190,955
Takasago Thermal Engineering Co., Ltd.		17,400		131,264
Tsubakimoto Chain Co.		24,000		120,963

				7,841,537


Commercial & Professional Services 0.4%
Daiseki Co., Ltd.		9,500		148,379

See financial notes 43

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Duskin Co., Ltd.		19,000		376,664
Meitec Corp.		9,800		255,994
Mitsubishi Pencil Co., Ltd.		8,700		167,852

				948,889


Consumer Durables & Apparel 0.6%
Alpine Electronics, Inc.		8,700		84,209
Gunze Ltd.		87,000		221,602
JVC Kenwood Corp.		26,100		70,441
Mizuno Corp.		39,000		172,469
Pioneer Corp. *		88,300		183,759
Sangetsu Co., Ltd.		9,500		245,583
Seiko Holdings Corp. *		18,000		53,653
Tamron Co., Ltd.		8,700		201,988
Token Corp.		870		47,715
Tomy Co., Ltd. (c)		38,000		218,296

				1,499,715


Consumer Services 0.5%
Accordia Golf Co., Ltd.		348		330,045
Colowide Co., Ltd. (c)		8,000		84,891
Doutor Nichires Holdings Co., Ltd.		17,400		237,821
HIS Co., Ltd.		4,100		158,872
Saizeriya Co., Ltd.		20,100		259,910
Zensho Holdings Co., Ltd. (c)		8,700		114,573

				1,186,112


Diversified Financials 0.7%
Aiful Corp. *(c)		75,900		493,605
Fuyo General Lease Co., Ltd.		8,700		311,657
IBJ Leasing Co., Ltd.		8,700		230,466
Jaccs Co., Ltd.		14,000		66,161
Japan Securities Finance Co., Ltd.		17,400		120,325
kabu.com Securities Co., Ltd.		17,400		85,812
Orient Corp. *(c)		87,000		291,383

				1,599,409


Energy 0.1%
Itochu Enex Co., Ltd.		8,700		46,395
Modec, Inc.		3,200		83,833
Shinko Plantech Co., Ltd.		8,700		72,421

				202,649


Food & Staples Retailing 0.4%
Ain Pharmaciez, Inc.		1,400		73,444
Arcs Co., Ltd. (c)		8,700		166,626
Cocokara fine, Inc.		8,700		277,050
Cosmos Pharmaceutical Corp.		1,700		194,028
Izumiya Co., Ltd. (c)		10,000		53,219
Ministop Co., Ltd.		2,600		41,934
Okuwa Co., Ltd.		4,000		46,347
Valor Co., Ltd.		8,700		150,501

				1,003,149


Food, Beverage & Tobacco 0.7%
Calbee, Inc.		500		42,814
Fuji Oil Co., Ltd.		26,100		381,910
Fujiya Co., Ltd. (c)		87,000		183,882
Hokuto Corp. (c)		8,700		165,494
Megmilk Snow Brand Co., Ltd.		8,700		136,167
Morinaga Milk Industry Co., Ltd.		95,000		299,642
The Nisshin Oillio Group Ltd.		87,000		317,787
Yonekyu Corp. (c)		26,100		257,153

				1,784,849


Health Care Equipment & Services 0.4%
Nagaileben Co., Ltd.		8,700		113,630
Nihon Kohden Corp.		8,700		303,642
Nikkiso Co., Ltd.		5,000		55,441
Ship Healthcare Holdings, Inc.		8,700		249,986
Toho Holdings Co., Ltd.		17,400		361,353

				1,084,052


Household & Personal Products 0.3%
Aderans Co., Ltd. *(c)		10,400		150,713
Dr Ci:Labo Co., Ltd. (c)		20		57,706
Fancl Corp. (c)		18,200		203,187
Mandom Corp.		9,500		297,686

				709,292


Materials 1.5%
Adeka Corp.		26,100		230,560
Asahi Holdings, Inc.		8,700		171,246
Daio Paper Corp.		10,000		69,911
Earth Chemical Co., Ltd.		8,700		286,197
FP Corp.		1,900		120,475
Fujimi, Inc.		8,700		131,547
Hokuetsu Kishu Paper Co., Ltd.		13,500		72,870
Kureha Corp. (c)		32,000		115,847
Kyoei Steel Ltd.		8,700		158,328
Nifco, Inc.		8,700		179,545
Nihon Parkerizing Co., Ltd.		7,000		114,795
Nippon Light Metal Holdings Co., Ltd. *(c)		194,600		225,690
Nippon Soda Co., Ltd.		13,000		59,885
NOF Corp.		32,000		152,959
Okabe Co., Ltd.		8,700		67,706
Sanyo Special Steel Co., Ltd. (c)		30,000		124,864
Sumitomo Light Metal Industries Ltd.		87,000		85,812
Toagosei Co., Ltd.		58,000		236,375
Toho Zinc Co., Ltd.		25,000		101,886
Tokyo Ohka Kogyo Co., Ltd.		8,700		178,602
Topy Industries Ltd.		50,000		115,435
Toyo Ink SC Holdings Co., Ltd.		50,000		216,779
Yodogawa Steel Works Ltd.		87,000		324,388

				3,541,702


Media 0.3%
Avex Group Holdings, Inc.		8,700		240,084
Kadokawa Group Holdings, Inc. (c)		8,700		229,146
Shochiku Co., Ltd.		20,000		210,709

				679,939


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Kaken Pharmaceutical Co., Ltd.		3,000		52,450
KYORIN Holdings, Inc.		9,300		212,188
Nichi-iko Pharmaceutical Co., Ltd.		9,500		204,498
Seikagaku Corp.		19,400		209,855

				678,991


Real Estate 0.3%
Daibiru Corp.		8,700		87,038
Daikyo, Inc.		25,000		60,427
Heiwa Real Estate Co., Ltd.		8,700		129,849
Kenedix, Inc. *		447		117,637
Leopalace21 Corp. *(c)		26,100		95,619
TOC Co., Ltd.		17,400		117,307

				607,877

44 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Retailing 0.6%
AOKI Holdings, Inc.		2,600		61,914
Arc Land Sakamoto Co., Ltd.		8,700		140,882
Bic Camera, Inc. (c)		87		41,303
DCM Holdings Co., Ltd. (c)		17,400		122,777
EDION Corp.		17,400		76,005
Geo Holdings Corp.		87		91,187
Gulliver International Co., Ltd.		1,170		48,824
Joshin Denki Co., Ltd.		10,000		100,043
Megane TOP Co., Ltd.		8,700		99,580
Parco Co., Ltd. (c)		8,700		83,643
Tsutsumi Jewelry Co., Ltd.		8,700		235,747
Xebio Co., Ltd.		8,700		171,152
Yellow Hat Ltd.		8,700		136,167

				1,409,224


Semiconductors & Semiconductor Equipment 0.1%
Sanken Electric Co., Ltd. (c)		18,000		81,357
Tokyo Seimitsu Co., Ltd.		8,700		167,475

				248,832


Software & Services 0.5%
Fuji Soft, Inc.		8,700		200,102
GMO internet, Inc.		13,300		107,974
Ines Corp.		10,100		75,755
IT Holdings Corp.		8,700		120,420
Net One Systems Co., Ltd.		17,400		158,610
Nihon Unisys Ltd.		17,400		136,733
SCSK Corp.		8,700		169,078
Transcosmos, Inc.		8,700		118,534

				1,087,206


Technology Hardware & Equipment 0.9%
Anritsu Corp.		12,000		178,322
Canon Electronics, Inc.		8,700		175,773
Daiwabo Holdings Co., Ltd.		87,000		170,681
Horiba Ltd.		9,500		298,098
Hosiden Corp.		34,800		212,361
Nichicon Corp.		30,100		275,030
Oki Electric Industry Co., Ltd. *(c)		87,000		98,071
Riso Kagaku Corp.		2,600		52,304
Ryosan Co., Ltd.		9,500		194,098
Star Micronics Co., Ltd. (c)		8,700		88,924
Topcon Corp. (c)		8,700		84,774
Wacom Co., Ltd.		87		314,486

				2,142,922


Transportation 0.3%
Japan Airport Terminal Co., Ltd.		10,400		117,459
Nippon Konpo Unyu Soko Co., Ltd.		8,700		121,834
Sankyu, Inc.		87,000		403,599
The Sumitomo Warehouse Co., Ltd.		32,000		183,828

				826,720

				32,625,991

Netherlands 1.7%


Capital Goods 0.4%
Aalberts Industries N.V.		16,530		366,298
Arcadis N.V.		9,599		268,554
Koninklijke BAM Groep N.V.		38,674		157,748
Royal Imtech N.V. (c)		13,138		147,164

				939,764


Consumer Durables & Apparel 0.1%
Koninklijke Ten Cate N.V.		5,846		141,277
TomTom N.V. *(c)		10,440		44,099

				185,376


Diversified Financials 0.1%
BinckBank N.V.		14,979		151,689


Food & Staples Retailing 0.0%
Sligro Food Group N.V.		3,415		110,945


Food, Beverage & Tobacco 0.3%
CSM N.V.		12,901		288,664
Nutreco N.V.		5,267		490,545

				779,209


Insurance 0.2%
Delta Lloyd N.V.		21,750		385,577


Real Estate 0.3%
Eurocommercial Properties N.V.		7,833		300,353
Nieuwe Steen Investments N.V.		10,353		74,510
VastNed Retail N.V.		4,090		173,218
Wereldhave N.V.		3,332		234,140

				782,221


Retailing 0.0%
Beter Bed Holding N.V.		2,610		50,842


Semiconductors & Semiconductor Equipment 0.1%
ASM International N.V.		9,048		360,190


Software & Services 0.1%
Unit 4 N.V.		4,350		144,364


Technology Hardware & Equipment 0.1%
TKH Group N.V.		9,096		238,368

				4,128,545

New Zealand 0.3%


Insurance 0.0%
TOWER Ltd.		39,150		62,322


Real Estate 0.1%
Goodman Property Trust		210,471		183,226
Precinct Properties New Zealand Ltd.		87,000		74,296

				257,522


Transportation 0.1%
Freightways Ltd.		26,100		96,296
Mainfreight Ltd.		8,700		86,197

				182,493


Utilities 0.1%
Infratil Ltd.		147,572		290,586

				792,923

Norway 2.0%


Banks 0.1%
Sparebanken 1 SMN		26,645		213,283


Capital Goods 0.1%
Kongsberg Gruppen A.S.A.		12,180		249,062


Commercial & Professional Services 0.2%
Tomra Systems A.S.A.		42,487		412,120

See financial notes 45

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Energy 0.8%
DNO International A.S.A. *		182,700		329,848
Fred. Olsen Energy A.S.A.		5,101		222,879
Petroleum Geo-Services A.S.A.		32,625		516,029
Prosafe SE		34,800		350,938
TGS Nopec Geophysical Co. A.S.A.		16,095		610,978

				2,030,672


Food, Beverage & Tobacco 0.3%
Austevoll Seafood A.S.A.		13,050		82,109
Cermaq A.S.A. *		10,875		187,215
Marine Harvest *		391,500		413,621

				682,945


Media 0.2%
Schibsted A.S.A.		12,574		535,115


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Algeta A.S.A. *(c)		8,016		269,829


Real Estate 0.1%
Norwegian Property A.S.A.		102,688		161,524


Semiconductors & Semiconductor Equipment 0.0%
Nordic Semiconductor A.S.A. *(c)		35,984		99,367


Software & Services 0.1%
Atea A.S.A.		20,488		235,435
Opera Software A.S.A.		8,700		54,739

				290,174

				4,944,091

Portugal 0.3%


Banks 0.0%
Banco BPI S.A. - Reg’d *		52,200		85,032


Capital Goods 0.1%
Sonae		194,235		180,293


Materials 0.1%
Altri SGPS S.A.		23,364		55,744
Portucel S.A.		32,494		115,421

				171,165


Media 0.1%
Zon Multimedia Servicos de Telecomunicacoes e Multimedia, SGPS, S.A.		78,513		353,095

				789,585

Republic of Korea 4.1%


Automobiles & Components 0.1%
Nexen Tire Corp.		9,130		131,112
S&T Dynamics Co., Ltd.		3,200		35,906
Ssangyong Motor Co. *		20,300		118,295

				285,313


Banks 0.1%
Jeonbuk Bank		18,054		89,701


Capital Goods 0.4%
Doosan Engineering & Construction Co., Ltd. *		14,500		37,428
Hanjin Heavy Industries & Construction Holdings Co., Ltd.		4,290		26,029
Hyundai Elevator Co., Ltd. *		1,469		117,078
Korea Electric Terminal Co., Ltd.		2,000		54,118
LG International Corp.		6,563		257,592
LS Industrial Systems Co., Ltd.		2,126		131,154
Sung Kwang Bend Co., Ltd.		3,300		72,837
Taihan Electric Wire Co., Ltd. *		19,579		70,156
TK Corp. *		3,399		79,731
Unison Co., Ltd. *		4,000		23,642

				869,765


Commercial & Professional Services 0.0%
KEPCO Plant Service & Engineer Co., Ltd.		1,420		68,848


Consumer Durables & Apparel 0.3%
Fila Korea Ltd.		1,500		81,592
Handsome Co., Ltd.		2,000		50,054
Hanssem Co., Ltd.		2,000		36,202
LG Fashion Corp.		5,800		159,084
Youngone Corp.		4,000		138,526
Youngone Holdings Co., Ltd.		1,780		114,412

				579,870


Consumer Services 0.3%
Grand Korea Leisure Co., Ltd.		2,500		64,068
Hana Tour Service, Inc.		2,970		185,964
Hotel Shilla Co., Ltd.		7,420		326,519
MegaStudy Co., Ltd.		600		43,719
Paradise Co., Ltd.		4,500		81,038

				701,308


Diversified Financials 0.3%
KIWOOM Securities Co., Ltd.		2,840		161,825
Macquarie Korea Infrastructure Fund		59,000		366,698
TONGYANG Securities, Inc.		32,590		124,302

				652,825


Energy 0.0%
SK Gas Co., Ltd.		500		35,140


Food, Beverage & Tobacco 0.3%
Binggrae Co., Ltd.		960		121,017
Daesang Corp.		12,320		372,049
Lotte Samkang Co., Ltd.		60		41,114
Maeil Dairy Industry Co., Ltd.		2,000		62,614
Ottogi Corp.		200		46,545
Samyang Holdings Corp.		1,310		83,960

				727,299


Health Care Equipment & Services 0.0%
Chabio & Diostech Co., Ltd. *		6,400		64,129


Insurance 0.3%
Korean Reinsurance Co.		23,700		256,080
LIG Insurance Co., Ltd.		7,100		153,104
Meritz Fire & Marine Insurance Co., Ltd.		19,082		204,420

				613,604


Materials 0.6%
Capro Corp.		4,950		52,799
EG Corp.		2,310		85,759
Foosung Co., Ltd. *		20,000		86,902
Hansol Paper Co.		5,000		50,101
Huchems Fine Chemical Corp.		4,000		90,319
Kolon Industries, Inc.		2,920		151,012
Lock & Lock Co., Ltd.		2,000		51,070

46 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Poongsan Corp.		5,250		141,332
Seah Besteel Corp.		5,890		181,951
SK Chemicals Co., Ltd.		5,070		268,290
Soulbrain Co., Ltd.		1,540		59,733
Ssangyong Cement Industrial Co., Ltd. *		7,030		51,938
Taekwang Industrial Co., Ltd.		140		133,817
Young Poong Corp.		100		98,723

				1,503,746


Media 0.1%
CJ CGV Co., Ltd.		4,500		174,959
KT Skylife Co., Ltd.		2,500		72,496
SM Entertainment Co. *		1,728		69,578

				317,033


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Dong-A Pharmaceutical Co., Ltd. (a)		3,000		343,546
Green Cross Corp.		400		54,857
Hanmi Pharm Co., Ltd. *		920		129,144
Ilyang Pharmaceutical Co., Ltd. *		1,500		44,883
LG Life Sciences Ltd. *		1,920		99,650
Medipost Co., Ltd. *		701		61,501
Seegene, Inc. *		1,250		73,765

				807,346


Retailing 0.3%
CJ O Shopping Co., Ltd.		408		115,487
Dongsuh Cos., Inc.		3,600		70,648
GS Home Shopping, Inc.		448		80,347
Hyundai Greenfood Co. Ltd.		10,010		161,314
Hyundai Home Shopping Network Corp.		1,540		193,420
Interpark Corp.		7,700		50,346
Lotte Himart Co., Ltd.		2,000		129,476

				801,038


Semiconductors & Semiconductor Equipment 0.2%
GemVax & Kael Co., Ltd. *		3,295		111,373
Hansol Technics Co., Ltd. *		1,340		26,730
Seoul Semiconductor Co., Ltd.		11,280		301,057
Silicon Works Co., Ltd.		1,920		37,768
STS Semiconductor & Telecommunications *		2,630		14,184

				491,112


Software & Services 0.0%
Daou Technology, Inc.		4,100		66,640


Technology Hardware & Equipment 0.3%
Daeduck Electronics Co., Ltd.		9,350		97,142
Daeduck GDS Co., Ltd.		3,200		56,445
LG Innotek Co., Ltd. *		2,750		192,252
Partron Co., Ltd.		3,200		69,743
SFA Engineering Corp.		3,616		196,691
Sindoh Co., Ltd.		750		45,021

				657,294


Telecommunication Services 0.1%
SK Broadband Co., Ltd. *		59,000		246,554


Transportation 0.1%
Asiana Airlines, Inc. *		23,700		130,229
Hanjin Shipping Holdings Co., Ltd. *		8,740		45,846
Hanjin Transportation Co., Ltd.		3,950		74,781

				250,856


Utilities 0.0%
Samchully Co., Ltd.		590		62,115

				9,891,536

Singapore 2.4%


Capital Goods 0.1%
Gallant Venture Ltd. *(c)		435,000		100,162
STX OSV Holdings Ltd. (c)		87,000		88,915
Tat Hong Holdings Ltd.		87,000		106,839

				295,916


Consumer Durables & Apparel 0.0%
China Hongxing Sports Ltd. *(a)(b)		884,000		—


Consumer Services 0.0%
GuocoLeisure Ltd. (c)		87,000		52,014
Raffles Education Corp., Ltd. *		174,000		53,419

				105,433


Energy 0.2%
Ezion Holdings Ltd. (a)(c)		87,000		140,226
Ezra Holdings Ltd. *(c)		190,000		173,460
Swiber Holdings Ltd. (c)		87,000		48,499

				362,185


Food, Beverage & Tobacco 0.2%
GMG Global Ltd.		1,653,000		185,633
Pacific Andes Resources Development Ltd. (c)		348,000		40,205
Super Group Ltd.		87,000		264,989

				490,827


Health Care Equipment & Services 0.2%
Biosensors International Group Ltd. *		174,000		179,939
Raffles Medical Group Ltd.		87,000		227,736

				407,675


Materials 0.0%
Midas Holdings Ltd. (c)		174,000		73,100


Real Estate 1.2%
Ascendas India Trust (c)		87,000		58,691
Ascott Residence Trust (c)		87,000		94,538
CDL Hospitality Trusts		190,000		317,754
Fortune Real Estate Investment Trust		174,000		150,780
Frasers Centrepoint Trust		87,000		144,092
Keppel REIT (c)		87,000		94,187
Lippo Malls Indonesia Retail Trust		261,000		109,651
Mapletree Commercial Trust		174,000		189,077
Mapletree Industrial Trust		174,000		196,809
Mapletree Logistics Trust		522,000		514,514
Parkway Life Real Estate Investment Trust		87,000		170,099
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (c)		87,000		87,510
Suntec Real Estate Investment Trust		446,000		646,795

				2,774,497


Software & Services 0.0%
CSE Global Ltd.		87,000		61,854

See financial notes 47

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Technology Hardware & Equipment 0.1%
LionGold Corp., Ltd. *(c)		273,000		237,104


Transportation 0.2%
Goodpack Ltd. (c)		100,000		154,716
SATS Ltd.		174,000		413,299

				568,015


Utilities 0.2%
Cityspring Infrastructure Trust		174,000		64,666
Hyflux Ltd. (c)		261,000		296,267
Sound Global Ltd. (c)		174,000		91,376

				452,309

				5,828,915

Spain 1.4%


Capital Goods 0.3%
Abengoa S.A. *		30,500		79,828
Construcciones y Auxiliar de Ferrocarriles S.A.		637		273,694
Obrascon Huarte Lain S.A.		12,374		413,326
Sacyr Vallehermoso S.A. *(c)		25,250		55,656

				822,504


Commercial & Professional Services 0.1%
Prosegur, Compagnia de Seguridad S.A. - Reg’d		52,200		307,097


Consumer Services 0.1%
Melia Hotels International S.A.		17,717		140,711
NH Hoteles S.A. *		34,800		139,672

				280,383


Diversified Financials 0.1%
Bolsas y Mercados Espanoles (c)		8,700		227,479


Energy 0.1%
Tecnicas Reunidas S.A.		5,679		286,509


Food, Beverage & Tobacco 0.3%
Ebro Foods S.A.		17,593		337,873
Viscofan S.A.		5,101		267,685

				605,558


Insurance 0.1%
Grupo Catalana Occidente S.A.		11,060		247,977


Materials 0.1%
Ence Energia Y Celulosa S.A.		42,911		132,956
Tubacex S.A. *		38,076		117,478

				250,434


Media 0.1%
Antena 3 de Television S.A.		16,284		96,865
Promotora de Informaciones S.A., A Shares *		67,755		19,930

				116,795


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Almirall S.A.		10,353		131,695
Faes Farma S.A.		34,800		102,593
Zeltia S.A. *		66,063		115,301

				349,589

				3,494,325

Sweden 2.8%


Capital Goods 0.5%
Lindab International AB		13,517		108,841
NCC AB, B Shares		13,586		355,169
Peab AB		36,738		214,540
Trelleborg AB, B Shares		42,384		602,996

				1,281,546


Commercial & Professional Services 0.1%
Intrum Justitia AB		4,350		78,287
Loomis AB, B Shares		15,005		288,670

				366,957


Consumer Durables & Apparel 0.1%
JM AB		8,700		200,105


Consumer Services 0.2%
Betsson AB *		6,193		204,656
Rezidor Hotel Group AB *(c)		41,772		200,257
SkiStar AB		5,191		70,469

				475,382


Diversified Financials 0.3%
Avanza Bank Holding AB (c)		7,540		212,905
Investment AB Oresund *		6,090		112,437
L E Lundbergforetagen AB, B Shares		7,753		323,568

				648,910


Food & Staples Retailing 0.2%
Axfood AB		7,569		318,237
Hakon Invest AB		7,435		202,789

				521,026


Food, Beverage & Tobacco 0.2%
AarhusKarlshamn AB		8,700		409,658


Materials 0.2%
BillerudKorsnas AB		20,894		212,328
Hoganas AB, B Shares		5,089		256,601

				468,929


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		31,158		352,887


Real Estate 0.7%
Castellum AB		30,978		467,157
Fabege AB		26,709		296,283
Hufvudstaden AB, A Shares		21,759		300,788
Kungsleden AB		31,514		203,395
Wallenstam AB, B Shares		17,400		230,812
Wihlborgs Fastigheter AB		10,818		180,006

				1,678,441


Retailing 0.1%
Mekonomen AB		3,654		125,853


Technology Hardware & Equipment 0.1%
Axis Communications AB (c)		7,420		194,551

				6,724,245

Switzerland 3.0%


Automobiles & Components 0.1%
Rieter Holding AG - Reg’d *		1,001		182,029

48 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Banks 0.2%
Basler Kantonalbank		910		96,929
St. Galler Kantonalbank AG - Reg’d		455		194,540
Valiant Holding AG - Reg’d *		2,786		255,851

				547,320


Capital Goods 0.9%
Belimo Holding AG - Reg’d		95		203,601
Bucher Industries AG - Reg’d		1,740		382,979
Georg Fischer AG - Reg’d *		910		414,922
Huber & Suhner AG - Reg’d		4,565		227,712
Kaba Holding AG, B Shares - Reg’d *		910		397,125
OC Oerlikon Corp. AG - Reg’d *		39,513		486,926
Schweiter Technologies AG *		198		117,756

				2,231,021


Commercial & Professional Services 0.0%
Gategroup Holding AG *		2,175		43,700


Consumer Durables & Apparel 0.1%
Forbo Holding AG - Reg’d *		438		288,652


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d *		546		169,674


Diversified Financials 0.1%
Vontobel Holding AG - Reg’d		6,738		234,660


Food, Beverage & Tobacco 0.0%
Emmi AG *		348		96,211


Health Care Equipment & Services 0.2%
Galenica AG - Reg’d		783		453,506


Insurance 0.2%
Helvetia Holding AG - Reg’d		1,092		442,908


Materials 0.0%
Schmolz + Bickenbach AG - Reg’d *		26,100		70,760


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Tecan Group AG - Reg’d *		2,534		224,155


Real Estate 0.2%
Allreal Holding AG - Reg’d *		1,748		258,304
Mobimo Holding AG - Reg’d *		1,305		298,422

				556,726


Retailing 0.3%
Dufry AG - Reg’d *		3,915		535,733
Valora Holding AG - Reg’d		546		116,958

				652,691


Software & Services 0.1%
Temenos Group AG - Reg’d *		9,001		204,963


Technology Hardware & Equipment 0.1%
Logitech International S.A. - Reg’d *(c)		30,891		209,537


Transportation 0.3%
Flughafen Zuerich AG - Reg’d		546		253,488
Panalpina Welttransport Holding AG - Reg’d		3,332		353,123

				606,611

				7,215,124

United Kingdom 19.7%


Banks 0.1%
Paragon Group Cos. plc		70,657		334,846


Capital Goods 2.5%
Ashtead Group plc		79,605		622,308
Balfour Beatty plc		95,299		412,857
Bodycote plc		31,518		261,222
Carillion plc		68,218		320,181
Chemring Group plc		29,669		124,750
Fenner plc		30,102		193,831
Galliford Try plc		8,700		119,516
Interserve plc		13,050		97,798
Keller Group plc		8,700		98,122
Kier Group plc		6,090		118,974
Melrose Industries plc		189,427		743,868
Morgan Crucible Co. plc		42,630		190,313
Qinetiq Group plc		107,233		334,013
Senior plc		87,000		320,118
SIG plc		123,279		260,861
Spirax-Sarco Engineering plc		14,112		515,611
Travis Perkins plc		34,800		672,987
Ultra Electronics Holdings plc		11,786		302,708
Vesuvius plc		46,478		270,000

				5,980,038


Commercial & Professional Services 1.4%
Babcock International Group plc		42,418		690,888
Berendsen plc		36,833		381,590
De La Rue plc		18,566		261,250
Homeserve plc		55,427		198,980
ITE Group plc		66,738		269,471
Michael Page International plc		57,257		373,119
Mitie Group plc		72,308		314,901
Regus plc		148,516		300,737
RPS Group plc		54,421		201,399
Shanks Group plc		60,900		76,266
Sthree plc		17,400		93,830
WS Atkins plc		23,695		312,561

				3,474,992


Consumer Durables & Apparel 1.3%
Barratt Developments plc *		162,255		591,354
Bellway plc		24,797		436,255
Bovis Homes Group plc		21,498		210,645
Persimmon plc		43,935		609,224
Redrow plc *		75,895		214,857
Taylor Wimpey plc		540,705		665,639
The Berkeley Group Holdings plc *		15,751		455,471

				3,183,445


Consumer Services 1.2%
Betfair Group plc		8,700		92,047
Bwin.Party Digital Entertainment plc		121,800		273,817
Dignity plc		12,371		238,300
Domino’s Pizza Group plc		25,114		204,714
Greene King plc		41,269		436,631
J.D. Wetherspoon plc		27,500		218,528
Marston’s plc		134,244		286,101
Millennium & Copthorne Hotels plc		33,545		275,475
Mitchells & Butlers plc *		70,157		364,106
Rank Group plc		43,500		108,290

See financial notes 49

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Restaurant Group plc		42,289		268,903

				2,766,912


Diversified Financials 1.7%
Aberdeen Asset Management plc		160,950		1,050,306
Close Brothers Group plc		23,790		377,010
F&C Asset Management plc		87,000		135,627
Henderson Group plc		110,929		267,395
IG Group Holdings plc		55,340		414,304
Intermediate Capital Group plc		77,627		460,613
International Personal Finance		42,497		257,711
Jupiter Fund Management plc		43,500		221,930
Provident Financial plc		21,750		483,676
Rathbone Brothers plc		7,097		151,790
Tullett Prebon plc		41,079		174,472

				3,994,834


Energy 0.9%
Afren plc *		161,646		348,917
Anglo Pacific Group plc		8,700		37,539
Bumi plc *		10,440		53,263
Enquest plc *		123,279		248,885
Heritage Oil plc *		17,400		50,632
Hunting plc		26,535		350,023
Premier Oil plc *		80,475		467,251
Salamander Energy plc *		62,329		190,738
SOCO International plc *		60,405		338,618

				2,085,866


Food & Staples Retailing 0.1%
Booker Group plc		185,780		329,100


Food, Beverage & Tobacco 0.6%
Britvic plc		49,890		320,870
Cranswick plc		16,398		247,793
Dairy Crest Group plc		43,015		277,502
Devro plc		55,114		295,321
Greggs plc		23,490		178,462

				1,319,948


Health Care Equipment & Services 0.1%
United Drug plc		49,044		213,140


Household & Personal Products 0.1%
PZ Cussons plc		52,200		320,910


Insurance 1.2%
Amlin plc		75,568		489,461
Beazley plc		126,193		388,473
Catlin Group Ltd.		60,779		465,911
Hiscox Ltd.		62,933		498,662
Jardine Lloyd Thompson Group plc		25,536		309,324
Lancashire Holdings Ltd.		28,101		387,956
Phoenix Group Holdings		16,758		164,201
St. James’s Place plc		30,855		228,093

				2,932,081


Materials 1.8%
Alent plc *		46,478		263,157
AZ Electronic Materials S.A.		43,500		255,275
Croda International plc		19,116		752,124
DS Smith plc		161,844		593,050
Elementis plc		67,860		253,503
Filtrona plc		39,150		379,446
Hochschild Mining plc		32,474		191,359
Kenmare Resources plc *		289,493		153,803
Mondi plc		59,378		761,172
Petropavlovsk plc		37,208		170,456
RPC Group plc		21,750		145,268
Victrex plc		14,320		352,575

				4,271,188


Media 0.6%
Informa plc		91,350		695,404
Rightmove plc		13,920		364,068
UBM plc		30,450		357,755

				1,417,227


Pharmaceuticals, Biotechnology & Life Sciences 0.4%
BTG plc *		60,900		304,138
Dechra Pharmaceuticals plc		13,050		138,764
Genus plc		10,133		221,492
Hikma Pharmaceuticals plc		27,275		358,542

				1,022,936


Real Estate 1.0%
Big Yellow Group plc		31,419		178,084
Capital & Counties Properties plc		105,758		425,579
Derwent London plc		14,035		469,337
Grainger plc		66,643		137,983
Great Portland Estates plc		54,829		409,730
Helical Bar plc		26,765		93,241
Londonmetric Property plc		43,500		71,710
Savills plc		30,148		243,002
Shaftesbury plc		37,981		336,407
Unite Group plc		35,794		157,622

				2,522,695


Retailing 1.1%
Carpetright plc *		9,694		97,855
Debenhams plc		243,600		348,881
Dixons Retail plc *		389,728		161,149
Dunelm Group plc		13,050		148,569
Halfords Group plc		37,350		178,647
Home Retail Group plc (c)		126,774		244,779
Howden Joinery Group plc		117,450		381,526
Inchcape plc		66,990		514,030
N Brown Group plc		52,200		314,888
Sports Direct International plc *		13,054		82,729
WH Smith plc (c)		20,880		213,782

				2,686,835


Semiconductors & Semiconductor Equipment 0.1%
CSR plc		28,634		199,548
Wolfson Microelectronics plc *		17,400		51,570

				251,118


Software & Services 0.6%
Aveva Group plc		10,579		370,307
Computacenter plc		17,400		128,179
Fidessa Group plc		8,484		241,597
Micro Focus International plc		32,203		336,068
SDL plc		8,700		68,672
Telecity Group plc		24,360		345,737

				1,490,560


Technology Hardware & Equipment 1.5%
Domino Printing Sciences plc		14,840		157,685
Electrocomponents plc		79,650		311,088
Halma plc		47,850		357,795

50 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Imagination Technologies Group plc *		40,455		313,184
Laird plc		76,560		288,095
Oxford Instruments plc		10,986		286,331
Premier Farnell plc		78,300		261,482
Renishaw plc		4,350		129,222
Rotork plc		14,048		608,165
Spectris plc		14,101		508,360
Spirent Communications plc		123,279		287,247

				3,508,654


Telecommunication Services 0.3%
Cable & Wireless Communications plc		208,021		132,874
Colt Group S.A. *		102,688		202,794
Kcom Group plc		78,300		90,865
TalkTalk Telecom Group plc		87,000		335,437

				761,970


Transportation 0.9%
BBA Aviation plc		73,950		286,580
easyJet plc		36,596		553,842
FirstGroup plc		78,049		229,367
Go-Ahead Group plc		12,289		265,821
National Express Group plc		97,749		326,432
Stagecoach Group plc		96,448		435,550
Stobart Group Ltd. (c)		102,688		143,717

				2,241,309


Utilities 0.2%
Pennon Group plc		49,795		495,091

				47,605,695

Total Common Stock
(Cost $218,196,866)				237,537,849




Other Investment Companies 0.9% of net assets

Switzerland 0.2%
BB Biotech AG - Reg’d *		2,221		242,996
Schroder ImmoPLUS		190		210,116
Swisscanto Real Estate Fund Ifca		1,181		149,840

				602,952

United Kingdom 0.1%
F&C Commercial Property Trust Ltd.		92,430		144,092

United States 0.6%
iShares MSCI EAFE Small Cap Index Fund (c)		24,000		1,032,000
State Street Institutional U.S. Government Money Market Fund		307,970		307,970

				1,339,970

Total Other Investment Companies
(Cost $2,014,902)				2,087,014




Preferred Stock 0.5% of net assets

Germany 0.5%


Capital Goods 0.1%
Jungheinrich AG		2,485		109,223
KSB AG		182		108,726

				217,949


Materials 0.2%
Fuchs Petrolub AG		4,878		377,023


Media 0.2%
ProSiebenSat.1 Media AG		17,340		598,474


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Biotest AG		870		60,077

				1,253,523

Italy 0.0%


Insurance 0.0%
Unipol Gruppo Finanziario S.p.A. *		21,874		44,869

Total Preferred Stock
(Cost $977,153)				1,298,392




Rights 0.0% of net assets

Finland 0.0%


Real Estate 0.0%
Citycon Oyj *		45,750		12,560

Republic of Korea 0.0%


Capital Goods 0.0%
Doosan Engineering & Construction Co., Ltd. *(a)		11,145		978

Total Rights
(Cost $—)				13,538



End of Investments



Collateral Invested for Securities on Loan 4.3% of net assets


State Street Institutional U.S. Government Money Market Fund		10,363,920		10,363,920

Total Collateral Invested for Securities on Loan
(Cost $10,363,920)				10,363,920



End of Collateral Invested for Securities on Loan

See financial notes 51

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued

At 02/28/13, the tax basis cost of the fund’s investments was $221,191,970 and the unrealized appreciation and depreciation were $36,715,337 and ($16,970,514), respectively, with a net unrealized appreciation of $19,744,823.


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)		Illiquid security. At the period end, the value of these amounted to $0 or 0.0% of net assets.
(c)		All or a portion of this security is on loan.


Reg’d —		Registered
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$221,817,398		$—		$—		$221,817,398
Republic of Korea¹		9,084,190		—		—		9,084,190
Pharmaceuticals, Biotechnology & Life Sciences		463,800		—		343,546		807,346
Singapore¹		5,466,730		—		—		5,466,730
Consumer Durables & Apparel		—		—		—		—
Energy		221,959		—		140,226		362,185
Preferred Stock¹		1,298,392		—		—		1,298,392
Rights¹		12,560		—		—		12,560
Republic of Korea¹		—		—		978		978
Other Investment Companies¹		2,087,014		—		—		2,087,014

Total		$240,452,043		$—		$484,750		$240,936,793

Other Financial Instruments
Collateral Invested for Securities on Loan		$10,363,920		$—		$—		$10,363,920


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Balance				Change in												Balance
	as of		Realized		Unrealized								Gross		Gross		as of
	August 31,		Gains		Gains			Gross		Gross			Transfers		Transfers		February 28,
Investments in Securities	2012		(Losses)		(Losses)			Purchases		Sales			in		out		2013

Common Stock
Republic of Korea		$—		$—		$90,775			$—		$—			$252,771		$—		$343,546
Singapore		—		—		55,866			30,231		—			54,129		—		$140,226
Rights
Australia		19,152		1,242		(19,152	)		—		(1,242	)		—		—		—
Republic of Korea		—		—		978			—		—			—		—		978
Norway		1,383		—		(1,383	)		—		—			—		—		—

Total		$20,535		$1,242		$127,084			$30,231		($1,242	)		$306,900		$—		$484,750

All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized gains (losses) for Level 3 investments held by the fund at February 28, 2013 was $123,503.

52 See financial notes

Schwab International Small-Cap Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments, at value (cost $221,188,921) including securities on loan of $10,529,896		$240,936,793
Collateral invested for securities on loan		10,363,920
Foreign currency, at value (cost $287,069)		282,000
Receivables:
Fund shares sold		2,779,579
Dividends		316,505
Foreign tax reclaims		40,309
Income from securities on loan		16,187
Interest	+	2

Total assets		254,735,295

Liabilities

Collateral held for securities on loan		10,363,920
Payables:
Investments bought		2,543,083
Investment adviser fees	+	3,890

Total liabilities		12,910,893

Net Assets

Total assets		254,735,295
Total liabilities	—	12,910,893

Net assets		$241,824,402

Net Assets by Source
Capital received from investors		238,356,968
Distributions in excess of net investment income		(2,775,166	)
Net realized capital losses		(13,497,103	)
Net unrealized capital gains		19,739,703

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$241,824,402

8,700,000

$27.80

54 See financial notes

Schwab International Small-Cap Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$1,645,914			$4,049,282
Net realized losses		(3,086,659	)		(6,245,748	)
Net unrealized gains (losses)	+	27,933,193			(8,319,145	)

Net increase (decrease) in net assets resulting from operations		26,492,448			(10,515,611	)

Distributions to Shareholders

Distributions from net investment income		($6,079,500	)		($4,859,831	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

2,300,000

$61,801,853

900,000

$23,266,002

Shares redeemed

—

(400,001

)

(10,419,659

)

Net transactions in fund shares

2,300,000

$61,801,853

499,999

$12,846,343

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

6,400,000

$159,609,601

5,900,001

$162,138,700

Total increase

2,300,000

82,214,801

499,999

(2,529,099

)

End of period

8,700,000

$241,824,402

6,400,000

$159,609,601

(Distributions in excess of net investment income)/
Net investment income not yet distributed

($2,775,166

)

$1,658,420

56 See financial notes

Schwab Emerging Markets Equity ETF™

Financial Statements

Financial Highlights


	9/1/12–			9/1/11–			9/1/10–			1/13/10¹–
	2/28/13*			8/31/12			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		23.65			26.10			24.30			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.04			0.63			0.62			0.27
Net realized and unrealized gains (losses)		2.70			(2.51	)		1.41	²		(0.97	)

Total from investment operations		2.74			(1.88	)		2.03			(0.70	)
Less distributions:
Distributions from net investment income		(0.56	)		(0.57	)		(0.23	)		—

Net asset value at end of period		25.83			23.65			26.10			24.30

Total return (%)		11.60	³		(7.04	)		8.31			(2.80	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.16	^4,5		0.25			0.25			0.30	^4,6
Gross operating expenses		0.16	^4,5		0.25			0.25			0.30	⁴
Net investment income (loss)		1.10	⁴		2.96			2.78			2.94	⁴
Portfolio turnover rate⁷		3	³		9			9			23	³
Net assets, end of period ($ x 1,000)		857,577			515,595			396,661			148,222

* Unaudited.

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

⁶ Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.

⁷ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 57

Schwab Emerging Markets Equity ETF

Portfolio Holdings as of February 28, 2013 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)

	93	.1%	Common Stock		775,174,671		798,302,912
	0	.0%	Corporate Bonds		1,295		258
	0	.3%	Other Investment Companies		2,185,307		2,190,282
	6	.5%	Preferred Stock		64,202,877		55,956,987
	0	.0%	Rights		—		27,828


	99	.9%	Total Investments		841,564,150		856,478,267
	0	.8%	Collateral Invested for Securities on Loan		6,770,744		6,770,744
	(0	.7)%	Other Assets and Liabilities, Net				(5,671,913	)


	100	.0%	Net Assets				857,577,098


	Number		Value
Security	of Shares		($)

Common Stock 93.1% of net assets

Brazil 9.1%


Banks 1.7%
Banco Bradesco S.A. ADR		456,942		8,211,248
Banco do Brasil S.A.		265,600		3,538,467
Banco Santander Brasil S.A. ADR		187,912		1,373,637
Itau Unibanco Holding S.A.		66,400		1,144,225

				14,267,577


Capital Goods 0.3%
Embraer S.A. ADR		44,604		1,513,860
Weg S.A.		66,400		889,654

				2,403,514


Consumer Durables & Apparel 0.2%
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		81,008		712,933
MRV Engenharia e Participacoes S.A.		79,680		511,828
PDG Realty S.A. Empreendimentos e Participacoes		297,472		482,973

				1,707,734


Diversified Financials 0.6%
BM&FBOVESPA S.A.		535,884		3,634,720
CETIP S.A. - Mercados Organizados		34,873		421,559
Grupo BTG Pactual		44,604		820,970

				4,877,249


Energy 1.1%
OGX Petroleo e Gas Participacoes S.A. *		298,800		476,061
OSX Brasil S.A. *		8,696		32,108
Petroleo Brasileiro S.A. ADR		454,092		6,661,530
Ultrapar Participacoes S.A. ADR		99,600		2,588,604

				9,758,303


Food, Beverage & Tobacco 1.2%
BRF - Brasil Foods S.A. ADR		239,947		5,180,456
Companhia de Bebidas das Americas ADR (a)		33,200		1,469,100
Cosan S.A. Industria e Comercio		33,200		783,527
JBS S.A. *		139,440		483,819
Souza Cruz S.A.		166,000		2,652,339

				10,569,241


Health Care Equipment & Services 0.1%
Amil Participacoes S.A.		33,200		526,102


Household & Personal Products 0.2%
Hypermarcas S.A. *		44,604		394,580
Natura Cosmeticos S.A.		66,400		1,716,170

				2,110,750


Insurance 0.1%
Porto Seguro S.A.		26,560		352,637
Sul America S.A.		27,070		258,364

				611,001


Materials 1.2%
Companhia Siderurgica Nacional S.A. ADR		261,948		1,325,457
Duratex S.A.		79,130		662,385
Fibria Celulose S.A. ADR *(a)		33,200		384,456
Gerdau S.A.		33,200		242,648
Usinas Siderurgicas de Minas Gerais S.A.		66,400		345,585
Vale S.A. ADR		385,043		7,311,967

				10,272,498


Real Estate 0.2%
BR Malls Participacoes S.A.		103,664		1,342,268
Multiplan Empreendimentos Imobiliarios S.A.		16,600		475,641

				1,817,909


Retailing 0.2%
Cia Hering		20,222		392,862
Lojas Americanas S.A.		29,658		258,013
Lojas Renner S.A.		33,200		1,265,466

				1,916,341


Software & Services 0.2%
Cielo S.A.		66,400		1,995,929


Telecommunication Services 0.5%
Oi S.A. ADR (a)		251,001		926,194
Oi S.A. ADR		42,828		192,726
Telefonica Brasil S.A. ADR		51,460		1,356,486
Tim Participacoes S.A.		42,225		184,738
Tim Participacoes S.A. ADR		56,299		1,225,066

				3,885,210

58 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Transportation 0.6%
All America Latina Logistica S.A.		200,528		993,968
CCR S.A.		398,400		3,999,919

				4,993,887


Utilities 0.7%
Centrais Eletricas Brasileiras S.A. ADR		112,216		391,634
Companhia de Saneamento Basico do Estado de Sao Paulo ADR *		26,560		1,284,442
Companhia Energetica de Minas Gerais ADR		136,897		1,629,074
CPFL Energia S.A. ADR		32,868		674,451
EDP - Energias do Brasil S.A.		99,600		605,026
Light S.A.		33,200		324,091
Tractebel Energia S.A.		66,400		1,175,459

				6,084,177

				77,797,422

Chile 2.5%


Banks 0.5%
Banco de Chile		16,608		2,757
Banco de Chile ADR (a)		14,914		1,484,987
Banco de Chile, T Shares *		137,257		21,036
Banco de Credito e Inversiones		6,703		521,220
Banco Santander Chile ADR		44,836		1,302,934
Corpbanca S.A.		49,076,671		721,652
Sociedad Matriz Banco de Chile S.A., B Shares		1,286,984		544,394

				4,598,980


Capital Goods 0.2%
Empresas Copec S.A.		123,504		1,905,468


Food & Staples Retailing 0.2%
Cencosud S.A.		227,518		1,421,717


Food, Beverage & Tobacco 0.1%
Cia Cervecerias Unidas S.A.		24,900		404,258


Materials 0.5%
Cap S.A.		32,536		1,170,072
Empresas CMPC S.A.		320,712		1,237,221
Sociedad Quimica y Minera de Chile S.A. ADR		30,634		1,697,736

				4,105,029


Retailing 0.3%
S.A.C.I. Falabella		220,116		2,568,896


Telecommunication Services 0.0%
Empresa Nacional de Telecomunicaciones S.A.		13,280		280,176


Transportation 0.2%
Latam Airlines Group S.A. (a)		89,314		2,108,704


Utilities 0.5%
Colbun S.A. *		3,042,116		955,689
Empresa Nacional de Electricidad S.A. ADR (a)		36,215		1,842,257
Enersis S.A. ADR		66,400		1,234,376

				4,032,322

				21,425,550

China 18.2%


Automobiles & Components 0.4%
Brilliance China Automotive Holdings Ltd. *		820,000		1,131,421
Dongfeng Motor Group Co., Ltd., H Shares		734,000		1,075,229
Great Wall Motor Co., Ltd., H Shares		339,000		1,326,738
Guangzhou Automobile Group Co., Ltd., H Shares		215,662		179,652

				3,713,040


Banks 5.4%
Agricultural Bank of China Ltd., H Shares		5,312,000		2,739,963
Bank of China Ltd., H Shares		20,450,000		9,651,637
Bank of Communications Co., Ltd., H Shares		2,802,200		2,218,677
China CITIC Bank Corp., Ltd., H Shares		2,718,800		1,745,956
China Construction Bank Corp., H Shares		17,596,000		14,521,802
China Merchants Bank Co., Ltd., H Shares		946,158		2,052,184
China Minsheng Banking Corp., Ltd., H Shares		1,436,600		2,000,719
Chongqing Rural Commercial Bank, H Shares		232,684		130,522
Industrial & Commercial Bank of China Ltd., H Shares		15,484,336		11,121,782

				46,183,242


Capital Goods 1.0%
Beijing Enterprises Holdings Ltd.		166,000		1,269,374
China Communications Construction Co., Ltd., H Shares		1,328,000		1,256,958
China International Marine Containers Group Co., Ltd., H Shares *		521,900		1,091,603
China Railway Construction Corp., Ltd., H Shares (a)		498,000		522,091
China Railway Group Ltd., H Shares		664,000		360,476
Citic Pacific Ltd. (a)		332,000		510,318
CITIC Resources Holdings Ltd. *		664,000		95,899
CSR Corp., Ltd., H Shares (a)		692,000		566,639
Metallurgical Corp. of China Ltd., H Shares *(a)		412,000		87,661
Shanghai Electric Group Co., Ltd., H Shares		664,000		269,715
Shanghai Industrial Holdings Ltd.		332,000		1,083,142
Shanghai Waigaoqiao Free Trade Zone Development Co., Ltd., B Shares		66,400		63,279
Shanghai Zhenhua Heavy Industry Co., Ltd., B Shares *		1,029,200		406,534
Weichai Power Co., Ltd., H Shares (a)		30,000		113,735

See financial notes 59

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Zhuzhou CSR Times Electric Co., Ltd., H Shares		74,000		244,763
Zoomlion Heavy Industry Science & Technology Co., Ltd., H Shares (a)		281,300		371,447

				8,313,634


Commercial & Professional Services 0.0%
Tianjin Capital Environmental Protection Group Co., Ltd., H Shares		52,000		20,452


Consumer Durables & Apparel 0.0%
Shanghai Haixin Group Co., B Shares *		166,000		80,842
Weiqiao Textile Co., Ltd., H Shares (a)		205,000		106,798

				187,640


Consumer Services 0.0%
Shanghai Jinjiang International Hotels Development Co., Ltd., B Shares		33,200		54,016


Diversified Financials 0.2%
China Everbright Ltd.		100,000		185,690
CITIC Securities Co., Ltd., H Shares (a)		316,000		797,044
Far East Horizon Ltd.		410,000		301,889
Haitong Securities Co., Ltd., H Shares *		208,400		350,968

				1,635,591


Energy 3.4%
China Coal Energy Co., H Shares		996,000		987,671
China Oilfield Services Ltd., H Shares		664,000		1,409,368
China Petroleum & Chemical Corp., H Shares		4,648,000		5,286,416
China Shenhua Energy Co., Ltd., H Shares		664,000		2,517,341
CNOOC Ltd.		4,044,000		7,947,357
Inner Mongolia Yitai Coal Co., Ltd., B Shares		232,400		1,336,068
Kunlun Energy Co., Ltd.		664,000		1,376,831
PetroChina Co., Ltd., H Shares		5,312,000		7,302,001
Yanzhou Coal Mining Co., Ltd., H Shares		664,000		1,029,198

				29,192,251


Food & Staples Retailing 0.0%
Lianhua Supermarket Holdings Co., Ltd., H Shares (a)		100,000		92,072
Shanghai Friendship Group, Inc., Ltd., B Shares		82,000		113,160
Wumart Stores, Inc., H Shares		80,000		156,805

				362,037


Food, Beverage & Tobacco 0.1%
Anhui Gujing Distillery Co., Ltd., B Shares		13,000		41,909
China Foods Ltd. (a)		180,000		118,610
Tsingtao Brewery Co., Ltd., H Shares		80,000		500,848
Yantai Changyu Pioneer Wine Co., Ltd., B Shares		54,980		271,679

				933,046


Health Care Equipment & Services 0.2%
Shandong Weigao Group Medical Polymer Co., Ltd., H Shares		176,000		163,634
Shanghai Pharmaceuticals Holding Co., Ltd., H Shares		166,000		357,480
Sinopharm Group Co., H Shares		282,800		893,454

				1,414,568


Insurance 1.8%
China Life Insurance Co., Ltd., H Shares		1,992,000		5,985,106
China Pacific Insurance (Group) Co., Ltd., H Shares		488,900		1,803,070
China Taiping Insurance Holdings Co., Ltd. *		332,000		662,729
New China Life Insurance Co., Ltd., H Shares (a)		39,400		159,788
People’s Insurance Co. Group of China Ltd., H Shares *(a)		316,000		192,741
PICC Property & Casualty Co., Ltd., H Shares		1,328,000		1,907,699
Ping An Insurance (Group) Co., H Shares		518,000		4,335,119

				15,046,252


Materials 0.7%
Aluminum Corp. of China Ltd., H Shares *(a)		664,000		286,840
Angang Steel Co., Ltd., H Shares *(a)		150,000		100,969
Anhui Conch Cement Co., Ltd., H Shares		332,000		1,213,718
BBMG Corp., H Shares		332,000		292,406
Bengang Steel Plates Co., B Shares		166,000		65,502
China BlueChemical Ltd., H Shares		1,328,000		851,101
China National Building Material Co., Ltd., H Shares (a)		664,000		1,013,786
China Resources Cement Holdings Ltd. (a)		664,000		421,269
Jiangxi Copper Co., Ltd., H Shares		335,000		802,633
Maanshan Iron & Steel Co., Ltd., H Shares *(a)		664,000		198,647
Zhaojin Mining Industry Co., Ltd., H Shares		166,000		218,769
Zijin Mining Group Co., Ltd., H Shares (a)		1,992,000		685,847

				6,151,487


Real Estate 1.0%
China Overseas Land & Investment Ltd.		878,000		2,666,318
China Resources Land Ltd.		664,000		1,939,380
China Vanke Co., Ltd., B Shares		556,500		1,130,244
Guangzhou R&F Properties Co., Ltd., H Shares (a)		308,400		523,356

60 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sino-Ocean Land Holdings Ltd. (a)		1,328,000		917,888
Yuexiu Property Co., Ltd.		3,320,000		1,147,359

				8,324,545


Retailing 0.1%
China Resources Enterprise Ltd.		328,000		1,065,862


Technology Hardware & Equipment 0.3%
BOE Technology Group Co., Ltd., B Shares *		352,800		79,160
BYD Co., Ltd., H Shares *(a)		80,000		283,693
Lenovo Group Ltd.		1,992,000		2,224,507
ZTE Corp., H Shares (a)		216,960		370,420

				2,957,780


Telecommunication Services 2.5%
China Mobile Ltd.		1,494,000		16,462,253
China Telecom Corp., Ltd., H Shares		5,312,000		2,753,662
China Unicom (Hong Kong) Ltd.		1,328,000		1,914,549

				21,130,464


Transportation 0.7%
Air China Ltd., H Shares		1,126,000		911,853
China COSCO Holdings Co., Ltd., H Shares *(a)		851,000		456,509
China Merchants Holdings International Co., Ltd.		664,000		2,303,281
China Shipping Container Lines Co., Ltd., H Shares *(a)		410,000		121,601
Cosco Pacific Ltd.		664,000		1,063,448
Guangdong Provincial Expressway Development Co., Ltd., B Shares		132,800		50,518
Jiangsu Expressway Co., Ltd., H Shares		96,000		97,054
Shanghai Jinjiang International Industrial Investment Co., Ltd., B Shares		33,200		27,490
Zhejiang Expressway Co., Ltd., H Shares		664,000		557,411

				5,589,165


Utilities 0.4%
China Longyuan Power Group Corp., H Shares		664,000		605,361
China Resources Power Holdings Co., Ltd.		664,000		1,793,819
Datang International Power Generation Co., Ltd., H Shares		1,992,000		865,657
Huadian Energy Co., Ltd., B Shares *		265,600		78,883
Huaneng Power International, Inc., H Shares		320,000		329,291

				3,673,011

				155,948,083

Colombia 1.1%


Banks 0.2%
Bancolombia S.A. ADR		30,958		2,010,413


Diversified Financials 0.2%
Corp. Financiera Colombiana S.A.		39,176		765,958
Grupo de Inversiones Suramericana S.A.		44,156		940,703

				1,706,661


Energy 0.4%
Ecopetrol S.A. ADR		63,305		3,643,203


Food & Staples Retailing 0.1%
Almacenes Exito S.A.		42,496		819,629


Materials 0.1%
Cementos Argos S.A.		66,400		340,292


Utilities 0.1%
Interconexion Electrica S.A. ESP		69,720		376,517
Isagen S.A. ESP		58,432		82,270

				458,787

				8,978,985

Czech Republic 0.3%


Banks 0.1%
Komercni Banka A/S		4,316		878,078


Telecommunication Services 0.0%
Telefonica Czech Republic A/S		23,730		392,357


Utilities 0.2%
CEZ A/S		53,120		1,599,854

				2,870,289

Egypt 0.4%


Banks 0.1%
Commercial International Bank GDR - Reg’d		202,520		1,012,600


Capital Goods 0.2%
Orascom Construction Industries GDR *		46,148		1,729,627


Telecommunication Services 0.1%
Orascom Telecom Holding SAE GDR - Reg’d *		296,488		936,902
Orascom Telecom Media & Technology Holding SAE GDR (b)(d)		176,826		82,631

				1,019,533

				3,761,760

Hungary 0.4%


Banks 0.2%
OTP Bank plc		81,672		1,696,600


Energy 0.1%
MOL Hungarian Oil & Gas plc		18,704		1,437,614


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt.		3,652		558,490

				3,692,704

See financial notes 61

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

India 8.5%


Automobiles & Components 0.5%
Bajaj Auto Ltd.		32,064		1,162,803
Hero Motocorp Ltd.		21,249		651,257
Mahindra & Mahindra Ltd.		61,752		991,687
Maruti Suzuki India Ltd.		19,920		495,885
Tata Motors Ltd.		234,060		1,237,091

				4,538,723


Banks 1.5%
Axis Bank Ltd.		77,840		1,923,144
Bank of Baroda		24,636		315,008
Canara Bank		55,112		421,001
HDFC Bank Ltd.		277,470		3,189,337
Housing Development Finance Corp., Ltd.		236,855		3,298,468
ICICI Bank Ltd.		127,649		2,441,063
State Bank of India		38,180		1,460,321

				13,048,342


Capital Goods 0.3%
Bharat Heavy Electricals Ltd.		185,920		687,397
Cummins India Ltd.		39,840		349,264
Jaiprakash Associates Ltd.		309,756		395,984
Larsen & Toubro Ltd.		53,212		1,337,807
Siemens Ltd.		20,252		187,723

				2,958,175


Consumer Durables & Apparel 0.1%
Titan Industries Ltd.		162,680		780,134


Diversified Financials 0.4%
Bajaj Holdings & Investment Ltd.		38,180		670,194
IDFC Ltd.		310,752		852,776
Kotak Mahindra Bank Ltd.		83,664		1,014,333
Power Finance Corp., Ltd.		66,400		245,865
Rural Electrification Corp., Ltd.		66,400		278,512
Shriram Transport Finance Co., Ltd.		13,280		169,805

				3,231,485


Energy 1.2%
Bharat Petroleum Corp., Ltd.		97,608		667,315
Cairn India Ltd.		61,088		334,550
Coal India Ltd.		133,796		761,879
Hindustan Petroleum Corp., Ltd.		92,296		491,550
Indian Oil Corp., Ltd.		91,632		492,982
Oil & Natural Gas Corp., Ltd.		421,972		2,431,157
Reliance Industries Ltd.		333,078		4,982,548
The Great Eastern Shipping Co., Ltd.		79,016		344,501

				10,506,482


Food, Beverage & Tobacco 0.6%
ITC Ltd.		725,792		3,932,791
Nestle India Ltd.		8,632		755,516

				4,688,307


Household & Personal Products 0.3%
Colgate-Palmolive (India) Ltd.		26,560		621,076
Dabur India Ltd.		52,456		121,872
Hindustan Unilever Ltd.		183,928		1,497,827

				2,240,775


Materials 0.7%
Ambuja Cements Ltd.		57,768		203,391
Asian Paints Ltd.		7,090		556,748
Hindalco Industries Ltd.		434,588		790,015
Jindal Steel & Power Ltd.		113,876		730,288
JSW Steel Ltd.		55,776		757,879
Sesa Goa Ltd.		114,540		326,009
Sterlite Industries (India) Ltd. ADR		114,364		806,266
Tata Chemicals Ltd.		88,976		535,197
Tata Steel Ltd.		65,072		408,457
Ultratech Cement Ltd.		23,240		797,969

				5,912,219


Media 0.1%
Zee Entertainment Enterprises Ltd.		173,968		697,087


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Cipla Ltd.		153,117		1,012,759
Dr. Reddys Laboratories Ltd.		27,224		878,419
Lupin Ltd.		73,704		792,448
Piramal Healthcare Ltd.		21,580		227,462
Sun Pharmaceutical Industries Ltd.		94,620		1,395,082

				4,306,170


Real Estate 0.1%
DLF Ltd.		131,804		671,921
Unitech Ltd. *		734,552		367,242

				1,039,163


Software & Services 1.4%
HCL Technologies Ltd.		65,072		865,234
Infosys Ltd.		129,530		6,921,123
Mphasis Ltd.		19,920		138,677
Satyam Computer Services Ltd. *		137,780		299,340
Tata Consultancy Services Ltd.		81,008		2,258,784
Wipro Ltd. ADR		111,410		1,069,536

				11,552,694


Telecommunication Services 0.4%
Bharti Airtel Ltd.		405,040		2,403,960
Idea Cellular Ltd. *		439,568		950,155

				3,354,115


Transportation 0.0%
Adani Ports & Special Economic Zone Ltd.		99,600		253,829
Container Corp. Of India Ltd.		6,640		126,685

				380,514


Utilities 0.4%
GAIL India Ltd.		110,224		673,743
NHPC Ltd.		332,000		165,069
NTPC Ltd.		389,436		1,080,156
Power Grid Corp. of India Ltd.		319,052		611,655
Reliance Infrastructure Ltd.		29,880		230,121
Reliance Power Ltd. *		185,256		244,829
Tata Power Co., Ltd.		332,000		576,065

				3,581,638

				72,816,023

62 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Indonesia 3.5%


Automobiles & Components 0.7%
Astra International Tbk PT		7,083,300		5,827,313


Banks 1.1%
Bank Danamon Indonesia Tbk PT		332,000		216,443
PT Bank Central Asia Tbk		3,154,000		3,590,211
PT Bank Mandiri (Persero) Tbk		2,158,459		2,244,788
PT Bank Negara Indonesia (Persero) Tbk		996,316		474,264
PT Bank Rakyat Indonesia (Persero) Tbk		3,320,000		3,246,650

				9,772,356


Capital Goods 0.2%
PT United Tractors Tbk		664,000		1,326,145


Energy 0.2%
PT Adaro Energy Tbk		3,652,000		593,329
PT Bumi Resources Tbk		5,478,000		464,838
PT Tambang Batubara Bukit Asam (Persero) Tbk		332,000		518,777

				1,576,944


Food, Beverage & Tobacco 0.3%
Charoen Pokphand Indonesia Tbk PT		2,051,000		933,865
PT Astra Agro Lestari Tbk		149,400		285,241
PT Gudang Garam Tbk		126,160		630,571
PT Indofood Sukses Makmur Tbk		1,185,400		895,475

				2,745,152


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		374,000		884,348


Materials 0.3%
PT Indocement Tunggal Prakarsa Tbk		332,000		754,116
PT Semen Gresik (Persero) Tbk		734,000		1,317,835
PT Vale Indonesia Tbk		830,000		231,904

				2,303,855


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
PT Kalbe Farma Tbk		8,300,000		1,107,984


Telecommunication Services 0.4%
Indosat Tbk PT		205,000		134,708
PT Telekomunikasi Indonesia (Persero) Tbk		2,656,000		2,954,623

				3,089,331


Transportation 0.0%
Jasa Marga Persero Tbk PT		668,000		383,650


Utilities 0.1%
PT Perusahaan Gas Negara (Persero) Tbk		2,656,000		1,319,273

				30,336,351

Malaysia 4.6%


Automobiles & Components 0.2%
UMW Holdings Berhad		303,600		1,257,428


Banks 1.2%
Alliance Financial Group Berhad		534,600		745,551
CIMB Group Holdings Berhad		1,243,400		2,896,774
Hong Leong Bank Berhad		171,600		809,555
Malayan Banking Berhad		1,202,400		3,559,929
Public Bank Berhad - Foreign Market		349,200		1,819,162
RHB Capital Berhad		171,600		435,871

				10,266,842


Capital Goods 0.5%
Gamuda Berhad		732,600		910,268
IJM Corp. Berhad		340,500		565,205
Sime Darby Berhad		1,063,800		3,170,231

				4,645,704


Consumer Services 0.4%
Berjaya Sports Toto Berhad		310,346		421,761
Genting Berhad		699,600		2,148,262
Genting Malaysia Berhad		778,500		932,034

				3,502,057


Diversified Financials 0.2%
AMMB Holdings Berhad		666,600		1,363,181


Energy 0.1%
Petronas Dagangan Berhad		99,600		757,998


Food, Beverage & Tobacco 0.5%
British American Tobacco Malaysia Berhad		33,200		655,298
Felda Global Ventures Holdings Berhad		132,800		192,937
IOI Corp. Berhad		1,152,200		1,826,818
Kuala Lumpur Kepong Berhad		138,600		930,129
PPB Group Berhad		138,600		555,207

				4,160,389


Health Care Equipment & Services 0.1%
IHH Healthcare Berhad *		498,000		552,707


Materials 0.2%
Lafarge Malayan Cement Berhad		99,600		314,543
Petronas Chemicals Group Berhad		796,800		1,637,172

				1,951,715


Real Estate 0.1%
SP Setia Berhad		545,400		555,900
UEM Land Holdings Berhad *		332,000		246,006

				801,906


Retailing 0.0%
Parkson Holdings Berhad		33,200		49,523


Telecommunication Services 0.8%
Axiata Group Berhad		1,603,200		3,320,006
DiGi.com Berhad		1,427,600		2,111,028
Maxis Berhad		567,600		1,169,912
Telekom Malaysia Berhad		166,000		285,753

				6,886,699


Utilities 0.3%
Petronas Gas Berhad		184,300		1,092,501
Tenaga Nasional Berhad		332,250		746,098
YTL Corp. Berhad		1,270,640		678,387

See financial notes 63

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
YTL Power International Berhad		830,000		408,219

				2,925,205

				39,121,354

Mexico 6.2%


Banks 0.8%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		575,400		4,270,711
Grupo Financiero Inbursa S.A.B. de C.V., O Shares		531,200		1,497,410
Grupo Financiero Santander Mexico S.A.B. de C.V., B Shares		332,000		991,483

				6,759,604


Capital Goods 0.3%
Alfa S.A.B. de C.V., A Shares		514,600		1,251,669
Grupo Carso S.A.B. de C.V., Series A1		232,400		1,127,448

				2,379,117


Food & Staples Retailing 0.6%
Organizacion Soriana S.A.B. de C.V., B Shares		41,000		141,213
Wal-Mart de Mexico S.A.B. de C.V., Series V		1,777,000		5,580,786

				5,721,999


Food, Beverage & Tobacco 1.4%
Arca Continental S.A.B. de C.V.		99,600		749,848
Coca-Cola Femsa S.A.B. de C.V., Series L		111,800		1,888,831
Fomento Economico Mexicano S.A.B. de C.V.		597,800		6,685,861
Grupo Bimbo S.A.B. de C.V., Series A		464,800		1,261,127
Grupo Modelo S.A.B. de C.V., Series C		166,000		1,485,795

				12,071,462


Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares		398,400		1,261,179


Materials 1.3%
Cemex S.A.B. de C.V., Series CPO *		2,501,000		2,685,385
Grupo Mexico S.A.B. de C.V., Series B		1,132,700		4,448,201
Industrias Penoles S.A.B. de C.V.		41,500		1,914,925
Mexichem S.A.B. de C.V.		214,597		1,074,669
Minera Frisco S.A.B. de C.V., Series A1 *		199,200		841,201

				10,964,381


Media 0.5%
Grupo Televisa S.A.B., Series CPO		750,000		4,025,881


Retailing 0.1%
Grupo Elektra S.A. de C.V.		20,040		830,570


Telecommunication Services 1.1%
America Movil S.A.B. de C.V., Series L		8,823,900		9,232,744

				53,246,937

Pakistan 0.0%


Energy 0.0%
Oil & Gas Development Co., Ltd. GDR - Reg’d (d)		9,984		189,696

Peru 0.5%


Banks 0.3%
Credicorp Ltd.		15,376		2,306,093


Materials 0.2%
Companhia de Minas Buenaventura S.A. ADR		64,076		1,641,627

				3,947,720

Philippines 1.3%


Banks 0.3%
Bank of the Philippine Islands		574,599		1,497,971
BDO Unibank, Inc. *		463,220		1,127,860

				2,625,831


Capital Goods 0.4%
Aboitiz Equity Ventures, Inc.		464,800		669,879
DMCI Holdings, Inc.		232,400		305,789
San Miguel Corp.		215,800		657,590
SM Investments Corp.		73,040		1,875,400

				3,508,658


Consumer Services 0.1%
Jollibee Foods Corp.		106,240		331,575


Diversified Financials 0.1%
Ayala Corp.		40,080		571,234


Real Estate 0.2%
Ayala Land, Inc.		1,328,000		1,045,155
SM Prime Holdings, Inc.		1,660,000		775,701

				1,820,856


Telecommunication Services 0.1%
Philippine Long Distance Telephone Co.		13,280		953,704


Utilities 0.1%
Aboitiz Power Corp.		664,000		628,726
Energy Development Corp.		2,857,200		532,651

				1,161,377

				10,973,235

Poland 1.5%


Banks 0.5%
Bank Handlowy w Warszawie S.A.		14,276		404,282
Bank Pekao S.A.		29,880		1,509,742
BRE Bank S.A. *		2,988		317,667
Getin Noble Bank S.A. *		491,754		292,771

64 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Powszechna Kasa Oszczednosci Bank Polski S.A.		148,404		1,664,230

				4,188,692


Energy 0.2%
Polski Koncern Naftowy Orlen S.A. *		70,716		1,195,103
Polskie Gornictwo Naftowe I Gazownictwo S.A. *		365,200		658,028

				1,853,131


Insurance 0.3%
Powszechny Zaklad Ubezpieczen S.A.		16,600		2,106,799


Materials 0.3%
Jastrzebska Spolka Weglowa S.A.		13,360		399,805
KGHM Polska Miedz S.A.		39,652		2,257,050
Synthos S.A.		66,086		115,120

				2,771,975


Telecommunication Services 0.0%
Telekomunikacja Polska S.A.		160,356		343,488


Utilities 0.2%
PGE S.A.		263,608		1,347,705
Tauron Polska Energia S.A.		144,752		200,630

				1,548,335

				12,812,420

Russia 6.8%


Banks 1.2%
Sberbank of Russia ADR		643,144		8,868,956
VTB Bank OJSC GDR - Reg’d		311,416		1,129,817

				9,998,773


Consumer Durables & Apparel 0.0%
PIK Group GDR - Reg’d *		35,856		76,517


Energy 3.6%
Gazprom OAO ADR		1,099,696		9,787,294
LUKOIL OAO ADR		155,708		10,074,308
NovaTek OAO GDR - Reg’d		23,904		2,772,864
Rosneft Oil Co. OJSC GDR - Reg’d		486,240		3,858,314
Surgutneftegas OAO ADR		181,272		1,711,208
Tatneft OAO ADR		67,396		2,803,674

				31,007,662


Food & Staples Retailing 0.4%
Magnit OJSC GDR - Reg’d		84,992		3,605,360


Materials 0.7%
MMC Norilsk Nickel OJSC ADR		126,160		2,233,032
Novolipetsk Steel OJSC GDR - Reg’d		19,256		369,523
Severstal OAO GDR - Reg’d		74,368		833,665
Uralkali OJSC GDR - Reg’d		61,752		2,343,488

				5,779,708


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Pharmstandard OJSC GDR - Reg’d *		8,300		168,739


Real Estate 0.0%
LSR Group GDR - Reg’d		45,152		214,201


Telecommunication Services 0.7%
MegaFon OAO GDR *		25,912		744,970
Mobile TeleSystems OJSC ADR		133,918		2,770,763
Rostelecom OJSC ADR		60,805		1,471,481
Sistema JSFC GDR - Reg’d		31,360		616,538

				5,603,752


Utilities 0.2%
Federal Hydrogenerating Co. JSC ADR		863,232		1,918,965

				58,373,677

South Africa 9.8%


Banks 1.0%
ABSA Group Ltd.		90,968		1,647,475
Nedbank Group Ltd.		64,740		1,390,301
Standard Bank Group Ltd.		397,442		5,159,876

				8,197,652


Capital Goods 0.5%
Aveng Ltd.		130,808		478,173
Barloworld Ltd.		58,764		604,491
Bidvest Group Ltd.		87,648		2,326,027
Reunert Ltd.		57,104		505,953

				3,914,644


Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd. *		446,367		1,296,910


Consumer Services 0.0%
Sun International Ltd.		26,560		299,502


Diversified Financials 1.0%
African Bank Investments Ltd.		199,200		639,379
FirstRand Ltd.		1,077,008		3,702,976
Investec Ltd.		83,996		599,216
JSE Ltd.		44,194		335,419
Remgro Ltd.		127,820		2,421,724
RMB Holdings Ltd.		243,356		1,110,368

				8,809,082


Energy 0.7%
Sasol Ltd.		146,537		6,269,145


Food & Staples Retailing 0.5%
Clicks Group Ltd.		62,488		412,631
Massmart Holdings Ltd.		26,288		546,403
Pick n Pay Stores Ltd.		70,384		351,187
Shoprite Holdings Ltd.		136,452		2,614,163
The Spar Group Ltd.		59,096		719,213

				4,643,597


Food, Beverage & Tobacco 0.3%
AVI Ltd.		129,148		798,836
Tiger Brands Ltd.		41,832		1,414,960

				2,213,796


Health Care Equipment & Services 0.3%
Life Healthcare Group Holdings Ltd.		225,096		846,678
Mediclinic International Ltd.		84,115		533,412
Netcare Ltd.		368,852		822,165

				2,202,255

See financial notes 65

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Insurance 0.5%
Discovery Holdings Ltd.		106,904		894,769
MMI Holdings Ltd.		370,180		922,077
Sanlam Ltd.		552,780		2,789,559

				4,606,405


Materials 1.6%
AECI Ltd.		40,504		428,843
African Rainbow Minerals Ltd.		23,904		509,266
Anglo American Platinum Ltd.		25,896		1,226,587
AngloGold Ashanti Ltd.		92,628		2,275,362
ArcelorMittal South Africa Ltd. *		41,832		134,969
Exxaro Resources Ltd.		38,512		737,602
Gold Fields Ltd.		191,896		1,634,582
Harmony Gold Mining Co., Ltd.		134,460		850,125
Impala Platinum Holdings Ltd.		155,205		2,404,348
Kumba Iron Ore Ltd.		23,904		1,514,077
Mondi Ltd.		10,172		129,691
Nampak Ltd.		213,476		729,692
Northam Platinum Ltd.		32,064		140,010
PPC Ltd.		156,372		601,424
Sappi Ltd. *		79,680		253,088
Sibanye Gold Ltd. *		191,896		278,026

				13,847,692


Media 0.8%
Naspers Ltd., N Shares		99,131		6,439,035


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Aspen Pharmacare Holdings Ltd. *		108,896		1,980,413


Real Estate 0.3%
Capital Property Fund		172,972		207,427
Fountainhead Property Trust		437,730		424,426
Growthpoint Properties Ltd.		527,216		1,607,026
Hyprop Investments Ltd.		3,652		29,447

				2,268,326


Retailing 0.7%
Imperial Holdings Ltd.		59,434		1,371,075
Mr. Price Group Ltd.		66,400		857,020
The Foschini Group Ltd.		73,372		875,374
Truworths International Ltd.		121,180		1,256,679
Woolworths Holdings Ltd.		229,412		1,652,701

				6,012,849


Telecommunication Services 1.2%
Allied Technologies Ltd.		9,762		39,558
MTN Group Ltd.		452,878		8,862,533
Telkom SA Ltd. *		143,786		243,577
Vodacom Group Ltd.		110,888		1,472,501

				10,618,169


Transportation 0.0%
Grindrod Ltd.		99,268		197,038

				83,816,510

Taiwan 12.9%


Automobiles & Components 0.3%
Cheng Shin Rubber Industry Co., Ltd.		632,224		1,717,670
China Motor Corp.		50,000		46,686
Yulon Motor Co., Ltd.		348,000		622,884

				2,387,240


Banks 1.2%
Chang Hwa Commercial Bank		1,448,956		847,400
China Development Financial Holding Corp. *		3,675,268		1,093,915
Chinatrust Financial Holding Co., Ltd.		3,167,597		1,873,875
E.Sun Financial Holding Co., Ltd.		1,412,093		844,881
First Financial Holding Co., Ltd.		1,525,715		972,006
Hua Nan Financial Holdings Co., Ltd.		2,071,668		1,211,583
Mega Financial Holding Co., Ltd.		2,368,069		1,951,672
SinoPac Financial Holdings Co., Ltd.		1,355,049		616,627
Taishin Financial Holding Co., Ltd.		702,326		286,456
Taiwan Cooperative Financial Holding		1,491,669		854,781

				10,553,196


Capital Goods 0.2%
Far Eastern New Century Corp.		1,033,592		1,146,248
Taiwan Glass Industrial Corp.		358,036		338,527
Walsin Lihwa Corp. *		1,328,000		456,596

				1,941,371


Commercial & Professional Services 0.0%
Taiwan Secom Co., Ltd.		48,000		107,920


Consumer Durables & Apparel 0.2%
Formosa Taffeta Co., Ltd.		332,000		321,744
Giant Manufacturing Co., Ltd.		38,000		208,147
Pou Chen Corp.		901,580		914,754
Tatung Co., Ltd. *		664,000		178,833

				1,623,478


Diversified Financials 0.5%
Capital Securities Corp.		1,015,629		385,142
Fubon Financial Holding Co., Ltd.		1,895,078		2,555,176
Yuanta Financial Holding Co., Ltd.		2,685,316		1,389,433

				4,329,751


Energy 0.1%
Formosa Petrochemical Corp.		410,000		1,140,175


Food & Staples Retailing 0.1%
President Chain Store Corp.		141,000		779,465


Food, Beverage & Tobacco 0.3%
Uni-President Enterprises Corp.		1,156,134		2,162,892


Insurance 0.4%
Cathay Financial Holding Co., Ltd.		2,163,551		2,742,134
Shin Kong Financial Holding Co., Ltd. *		2,017,151		611,268

				3,353,402


Materials 1.9%
Asia Cement Corp.		687,187		857,058
China Steel Corp.		2,757,519		2,528,256
Feng Hsin Iron & Steel Co.		60,000		104,562

66 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Formosa Chemicals & Fibre Corp.		1,026,000		2,614,586
Formosa Plastics Corp.		1,660,000		4,196,653
Nan Ya Plastics Corp.		1,992,000		3,820,633
Oriental Union Chemical Corp.		91,300		101,405
Taiwan Cement Corp.		851,690		1,092,370
Taiwan Fertilizer Co., Ltd.		82,000		198,736
YFY, Inc.		664,000		340,209

				15,854,468


Real Estate 0.0%
Cathay Real Estate Development Co., Ltd.		410,000		210,069


Retailing 0.0%
Hotai Motor Co., Ltd.		50,000		380,901


Semiconductors & Semiconductor Equipment 3.8%
Advanced Semiconductor Engineering, Inc.		2,133,488		1,769,127
Epistar Corp.		89,000		172,801
Inotera Memories, Inc. *		785,000		167,762
Macronix International Co., Ltd.		1,020,383		290,639
MediaTek, Inc.		332,099		3,733,336
MStar Semiconductor, Inc.		72,255		543,133
Novatek Microelectronics Corp.		79,000		330,204
Realtek Semiconductor Corp.		100,000		237,979
Siliconware Precision Industries Co. ADR		211,484		1,118,750
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		1,235,798		22,553,314
United Microelectronics Corp. ADR		663,884		1,228,185
Winbond Electronics Corp. *		996,000		186,667

				32,331,897


Technology Hardware & Equipment 3.2%
Acer, Inc. *		664,086		592,084
Advantech Co., Ltd.		47,500		211,349
Asustek Computer, Inc.		176,426		2,140,912
AU Optronics Corp. ADR *		232,400		1,008,616
Catcher Technology Co., Ltd.		120,200		542,929
Cheng Uei Precision Industry Co., Ltd.		70,929		134,128
Chicony Electronics Co., Ltd.		85,956		225,129
Chimei Innolux Corp. *		1,896,000		1,048,132
Compal Communications, Inc. *		332,000		344,685
Compal Electronics, Inc.		999,610		699,169
Delta Electronics, Inc.		632,000		2,354,036
Foxconn Technology Co., Ltd.		360,557		990,524
Hon Hai Precision Industry Co., Ltd.		2,843,880		7,831,898
HTC Corp.		202,650		1,892,170
Inventec Corp.		1,025,145		407,757
Largan Precision Co., Ltd.		17,000		458,430
Lite-On Technology Corp.		666,835		1,028,355
Nan Ya Printed Circuit Board Corp.		30,000		34,332
Pegatron Corp. *		358,441		483,294
Quanta Computer, Inc.		664,000		1,416,790
Synnex Technology International Corp.		338,053		683,706
TPK Holding Co., Ltd.		54,996		1,041,840
Unimicron Technology Corp.		664,000		631,177
Wistron Corp.		706,891		786,321
Yageo Corp. *		434,000		131,956

				27,119,719


Telecommunication Services 0.6%
Chunghwa Telecom Co., Ltd. ADR (a)		96,280		2,986,606
Far EasTone Telecommunications Co., Ltd.		366,000		847,562
Taiwan Mobile Co., Ltd.		393,600		1,373,185

				5,207,353


Transportation 0.1%
China Airlines Ltd. *		890,000		366,002
Eva Airways Corp. *		382,000		240,147
Evergreen Marine Corp., Ltd. *		427,199		272,881
U-Ming Marine Transport Corp.		30,000		46,517
Yang Ming Marine Transport Corp. *		347,200		164,433

				1,089,980

				110,573,277

Thailand 2.9%


Banks 0.9%
Bangkok Bank PCL NVDR		132,800		977,587
Kasikornbank PCL NVDR		398,400		2,839,018
Krung Thai Bank PCL NVDR		1,405,300		1,204,543
Siam Commercial Bank PCL NVDR		473,100		2,830,649

				7,851,797


Energy 0.6%
Banpu PCL NVDR		33,200		436,343
IRPC PCL NVDR		4,017,200		575,236
PTT Exploration & Production PCL NVDR		385,604		2,047,914
PTT PCL NVDR		199,200		2,343,529
Thai Oil PCL NVDR		132,800		312,470

				5,715,492


Food & Staples Retailing 0.3%
Big C Supercenter PCL NVDR		66,400		484,330
CP ALL PCL NVDR		1,282,800		2,037,388

				2,521,718


Food, Beverage & Tobacco 0.1%
Charoen Pokphand Foods PCL NVDR		1,029,200		1,124,336


Health Care Equipment & Services 0.0%
Bangkok Dusit Medical Services PCL NVDR		82,000		410,689


Materials 0.3%
Indorama Ventures PCL NVDR		332,000		265,600
PTT Global Chemical PCL NVDR		339,014		900,239
Siam Cement PCL NVDR		99,600		1,553,425

				2,719,264


Media 0.1%
BEC World PCL NVDR		232,400		525,341


Real Estate 0.1%
Central Pattana PCL NVDR		132,800		428,531

See financial notes 67

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Land & Houses PCL NVDR		664,000		267,832

				696,363


Telecommunication Services 0.3%
Advanced Info Service PCL NVDR		298,800		2,079,045
Total Access Communication PCL NVDR		99,600		285,409

				2,364,454


Transportation 0.1%
Airports of Thailand PCL NVDR		99,600		395,052
Thai Airways International PCL NVDR *		99,600		82,024

				477,076


Utilities 0.1%
Electricity Generating PCL NVDR		66,400		339,254
Glow Energy PCL NVDR		143,500		414,823

				754,077

				25,160,607

Turkey 2.2%


Automobiles & Components 0.0%
Ford Otomotiv Sanayi A/S		23,240		273,921


Banks 1.0%
Akbank T.A.S.		398,106		1,934,477
Turkiye Garanti Bankasi A/S		443,220		2,119,196
Turkiye Halk Bankasi A/S		125,164		1,238,662
Turkiye Is Bankasi, C Shares		400,392		1,429,137
Turkiye Vakiflar Bankasi Tao, D Shares		283,974		871,507
Yapi ve Kredi Bankasi A/S *		257,964		728,578

				8,321,557


Capital Goods 0.2%
Dogan Sirketler Grubu Holdings A/S *		463,012		278,016
Enka Insaat ve Sanayi A/S		63,249		192,702
KOC Holding A/S		237,734		1,250,362

				1,721,080


Consumer Durables & Apparel 0.1%
Arcelik A/S		49,468		313,532
Turkiye Sise ve Cam Fabrikalari A/S		103,000		168,360

				481,892


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		196,922		1,072,935


Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S		31,208		874,480


Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S		23,904		1,132,970


Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/S		62,416		936,943
Coca-Cola Icecek A/S		2,988		70,603

				1,007,546


Materials 0.1%
Eregli Demir ve Celik Fabrikalari T.A.S.		480,595		619,898


Real Estate 0.0%
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S		205,840		334,169


Telecommunication Services 0.3%
Turk Telekomunikasyon A/S		198,668		819,569
Turkcell Iletisim Hizmetleri A/S *		194,884		1,294,784

				2,114,353


Transportation 0.1%
Turk Hava Yollari Anonim Ortakligi *		241,032		999,693

				18,954,494

United Arab Emirates 0.4%


Banks 0.1%
Abu Dhabi Commercial Bank PJSC		327,352		358,278
First Gulf Bank PJSC		182,700		673,995

				1,032,273


Diversified Financials 0.0%
Dubai Financial Market *		671,968		221,367


Energy 0.0%
Dana Gas PJSC *		701,216		97,365


Real Estate 0.2%
Aldar Properties PJSC		293,366		123,001
Emaar Properties PJSC		754,662		1,088,949

				1,211,950


Transportation 0.1%
DP World Ltd.		72,250		942,863

				3,505,818

Total Common Stock
(Cost $775,174,671)				798,302,912



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

Corporate Bonds 0.0% of net assets

India 0.0%


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Dr. Reddy’s Laboratories Ltd. 9.25%, 03/24/14 (INR)		285,360		258

Total Corporate Bond
(Cost $1,295)				258

68 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Other Investment Companies 0.3% of net assets

United States 0.3%
iShares MSCI Emerging Markets Index Fund		49,999		2,160,500
State Street Institutional U.S. Government Money Market Fund		29,782		29,782

Total Other Investment Companies
(Cost $2,185,307)				2,190,282




Preferred Stock 6.5% of net assets

Brazil 6.4%


Banks 1.6%
Itau Unibanco Holding S.A. ADR		552,295		9,753,530
Itausa - Investimentos Itau S.A.		753,513		3,944,595

				13,698,125


Energy 1.3%
Petroleo Brasileiro S.A. ADR		667,827		11,172,746


Food & Staples Retailing 0.2%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR		33,200		1,682,576


Food, Beverage & Tobacco 1.2%
Companhia de Bebidas das Americas ADR		239,847		10,644,410


Materials 1.8%
Bradespar S.A.		66,400		975,631
Braskem S.A., A Shares		66,400		489,662
Gerdau S.A.		211,816		1,762,366
Klabin S.A.		166,000		1,117,526
Metalurgica Gerdau S.A.		66,400		703,596
Usinas Siderurgicas de Minas Gerais S.A., A Shares		132,800		658,257
Vale S.A. ADR		511,465		9,395,612

				15,102,650


Retailing 0.1%
Lojas Americanas S.A.		146,950		1,342,328


Utilities 0.2%
AES Tiete S.A.		33,200		342,394
Centrais Eletricas Brasileiras S.A. ADR (a)		72,376		471,892
Companhia Energetica de Sao Paulo, B Shares		33,200		307,970
Companhia Paranaense de Energia - Copel, B Shares		33,200		486,976

				1,609,232

				55,252,067

Chile 0.0%


Food, Beverage & Tobacco 0.0%
Embotelladora Andina S.A., B Shares		30,876		208,551

Colombia 0.1%


Diversified Financials 0.0%
Grupo de Inversiones Suramericana S.A.		9,960		218,116


Materials 0.1%
Grupo Argos S.A.		22,244		278,253

				496,369

Total Preferred Stock
(Cost $64,202,877)				55,956,987




Rights 0.0% of net assets

Brazil 0.0%


Energy 0.0%
OSX Brasil S.A. *(c)		378		—

Chile 0.0%


Food & Staples Retailing 0.0%
Cencosud S.A. *		27,196		21,135


Utilities 0.0%
Enersis S.A. *		33,466		6,693

				27,828

Total Rights
(Cost $—)				27,828



End of Investments



Collateral Invested for Securities on Loan 0.8% of net assets


State Street Institutional U.S. Government Money Market Fund		6,770,744		6,770,744

Total Collateral Invested for Securities on Loan
(Cost $6,770,744)				6,770,744



End of Collateral Invested for Securities on Loan

At 02/28/13, the tax basis cost of the fund’s investments was $844,019,091 and the unrealized appreciation and depreciation were $80,591,067 and ($68,131,891), respectively, with a net unrealized appreciation of $12,459,176.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		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 $82,631 or 0.0% of net assets.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(d)		Illiquid security. At the period end, the value of these amounted to $272,327 or 0.0% of net assets.

See financial notes 69

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered
INR —		Indian rupee

The following is a summary of the inputs used to value the fund’s investments as of February 28, 2013 (see financial note 2(a) for additional information):


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

Common Stock¹		$798,302,912		$—		$—		$798,302,912
Corporate Bonds¹		—		258		—		258
Other Investment Companies¹		2,190,282		—		—		2,190,282
Preferred Stock¹		55,956,987		—		—		55,956,987
Rights¹		27,828		—		—		27,828

Total		$856,478,009		$258		$—		$856,478,267

Other Financial Instruments
Collateral Invested for Securities on Loan		$6,770,744		$—		$—		$6,770,744


¹		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

February 28,

Investments in Securities

2012

(Losses)

Purchases

Sales

out

2013

Rights

Thailand

$23,654

$—

($23,654

)

$—

Total

$23,654

$—

($23,654

)

$—

70 See financial notes

Schwab Emerging Markets Equity ETF

Statement of

Assets and Liabilities

As of February 28, 2013; unaudited



Assets

Investments, at value (cost $841,564,150) including securities on loan of $6,506,998		$856,478,267
Collateral invested for securities on loan		6,770,744
Foreign currency, at value (cost $370,703)		368,624
Receivables:
Dividends		728,095
Income from securities on loan		10,553
Foreign tax reclaims		1,563
Interest	+	455

Total assets		864,358,301

Liabilities

Collateral held for securities on loan		6,770,744
Payables:
Investment adviser fees	+	10,459

Total liabilities		6,781,203

Net Assets

Total assets		864,358,301
Total liabilities	—	6,781,203

Net assets		$857,577,098

Net Assets by Source
Capital received from investors		865,419,314
Net investment income not yet distributed		395,274
Net realized capital losses		(23,153,032	)
Net unrealized capital gains		14,915,542

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$857,577,098

33,200,000

$25.83

See financial notes 71

Schwab Emerging Markets Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/12-2/28/13				9/1/11-8/31/12
Net investment income		$3,671,151			$14,057,415
Net realized losses		(2,920,364	)		(14,134,817	)
Net unrealized gains (losses)	+	60,795,205			(31,226,970	)

Net increase (decrease) in net assets resulting from operations		61,545,992			(31,304,372	)

Distributions to Shareholders

Distributions from net investment income		($14,760,500	)		($9,535,681	)

Transactions in Fund Shares

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

VALUE

SHARES

VALUE

Shares sold

11,400,000

$295,196,120

7,800,000

$186,779,297

Shares redeemed

—

(1,200,001

)

(27,004,871

)

Net transactions in fund shares

11,400,000

$295,196,120

6,599,999

$159,774,426

Shares Outstanding and Net Assets

9/1/12-2/28/13

9/1/11-8/31/12

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

21,800,000

$515,595,486

15,200,001

$396,661,113

Total increase

11,400,000

341,981,612

6,599,999

118,934,373

End of period

33,200,000

$857,577,098

21,800,000

$515,595,486

Net investment income not yet distributed

$395,274

$11,484,623

See financial notes 73

Schwab International Equity ETFs

Financial Notes, unaudited

1. Business Structure of the Funds



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

The funds issue and redeem shares at their net assets value per share (“NAV”) only in large blocks of shares, typically 100,000 shares or more (“Creation Units”). These transactions are usually in exchange for a basket of securities and an amount of cash. As a practical matter, only institutions or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

2. Significant Accounting Policies:

(a) Security Valuation:

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


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when 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. Each 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

Schwab International Equity ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


		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 funds pursuant to the valuation procedures.


	•	Bonds and notes: valued 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 independent bond-pricing services.

	•	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.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The levels associated with valuing the funds’ investments as of February 28, 2013 are disclosed in the Portfolio Holdings.

(b) Accounting Policies for certain Portfolio Investments (if held):

Schwab International Equity ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

If applicable, the value of the securities on loan as of February 28, 2013 and the value of the related collateral are disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities.

(c) Security Transactions:

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

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholdings taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations on the Statement of Operations. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

(d) Investment Income:

(e) Expenses:

(f) Distributions to Shareholders:

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

(g) Accounting Estimates:

Schwab International Equity ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(h) Federal Income Taxes:

(i) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of February 28, 2013, if any, are reflected in the funds’ Statements of Assets and Liabilities.

(j) Indemnification:

(k) New Accounting Pronouncements:

3. Risk Factors:

Certain funds invest in large- and mid-cap stocks. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger more established companies. During a period when large- and mid-cap U.S. stocks fall behind other types of investments — small-cap stocks, for instance — a fund’s large- and mid-cap holdings could reduce performance.

Schwab International Equity ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

A fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with investments in emerging markets. Foreign securities also include ADRs, GDRs, and EDRs, which are receipts issued by U.S. and foreign banks that represent shares of foreign-based corporations. Investment in ADRs, GDRs and EDRs may be less liquid than the underlying shares in their primary trading market and GDRs, many of which are issued by companies in emerging markets, may be more volatile.

Certain funds invest in emerging markets. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries, and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.

To the extent a fund uses statistical sampling techniques, the fund may not fully replicate the index and may hold securities not included in the index. As a result, a fund is subject to the risk that the adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. If a fund uses a sampling approach it may not track the return of the index as well as it would if a fund purchased all of the securities in its benchmark index.

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

Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

Schwab International Equity ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

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

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

4. Affiliates and Affiliated Transactions:

CSIM, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser pursuant to an Advisory Agreement between CSIM and the trust.

For its advisory services to the following funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:

Effective September 20, 2012, the rate is:


		Schwab		Schwab
Schwab		International		Emerging
International		Small-Cap		Markets
Equity ETF		Equity ETF		Equity ETF

	0.09%		0.20%		0.15%

Prior to September 20, 2012, the rate was:


		Schwab		Schwab
Schwab		International		Emerging
International		Small-Cap		Markets
Equity ETF		Equity ETF		Equity ETF

	0.13%		0.35%		0.25%

The funds may engage in certain transactions involving affiliates. For instance, a fund may own shares of The Charles Schwab Corporation if that company is included in its index. During the period ended February 28, 2013, there were no transactions involving affiliates.

Certain Schwab Funds may own shares of other Schwab Funds. As of February 28, 2013, the percentages of the outstanding shares of the funds owned by other Schwab Funds are less than 1%.

5. Other Service Providers:

SEI Investments Distribution Co. is the principal underwriter and distributor of shares of the funds.

Schwab International Equity ETFs

Financial Notes, unaudited (continued)

5. Other Service Providers (continued):

6. Board of Trustees:

7. Borrowing from Banks:

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended February 28, 2013, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab International Equity ETF		$60,228,725		$35,435,099
Schwab International Small-Cap Equity ETF		17,002,853		15,900,002
Schwab Emerging Markets Equity ETF		111,712,045		21,022,424

9. In-Kind Transactions:

The in-kind transactions for the period ended February 28, 2013 were as follows:


	In-kind Purchases of Securities		In-kind Sales of Securities

Schwab International Equity ETF		$256,493,190		$—
Schwab International Small-Cap Equity ETF		56,066,939		—
Schwab Emerging Markets Equity ETF		195,726,904		—

For the period ended February 28, 2013, there were no in-kind redemptions. However, if the funds have such transactions, they will realize net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses will be disclosed in the funds’ Statements of Operations.

Schwab International Equity ETFs

Financial Notes, unaudited (continued)

10. Federal Income Taxes

Schwab

International

Emerging

International

Small-Cap

Markets

Expiration Date

Equity ETF

August 31, 2019

$2,345,874

$215,545

$1,091,404

No expiration*

5,735,648

3,734,494

4,557,003

Total

$8,081,522

$3,950,039

$5,648,407


*		As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital losses, which may increase the likelihood that the pre-enactment capital losses may expire unused. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital loss, irrespective of the character of the original loss.

Schwab

International

Emerging

International

Small-Cap

Markets

Equity ETF

Deferred capital losses

$16,186,912

$6,450,568

$13,331,689

11. Subsequent Events:

Trustees and Officers

Independent Trustees


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

Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired/Private Investor (January 2009 – present). Consulting Managing Director, PIMCO (investment adviser) (March 2003 – December 2008).	17	Director, PS Business Parks, Inc. (2005 – 2012). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (2006 – 2008). Director and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Director, PCM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Stephen Timothy Kochis 1946 Trustee (Trustee of Schwab Strategic Trust since 2012.)	CEO and Owner, Kochis Global (wealth management consulting) (May 2012 – present); Chairman and CEO, Aspiriant (wealth management) (January 2008 – April 2012); CEO, Kochis Fitz (wealth management) (June 1991 – December 2007).	17	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (January 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	17	None

Interested Trustees


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

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services.	94	None

Officers of the Trust


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

Marie Chandoha 1961 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2010.)		Executive Vice President, Charles Schwab & Co., Inc. (Sept. 2010 – present); Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer (Nov. 2004 – present); Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present).


Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer — Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer — Equities, Schwab Funds and Laudus Funds (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).


Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds and Laudus Funds (June 2011 – present); Senior Managing Director, Global Head of Active Fixed Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies, Loomis, Sayles & Company (April 2006 – Jan. 2008).

Officers of the Trust (continued)


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

David Lekich 1964 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President, Charles Schwab & Co., Inc. (Sept. 2011 – present); Senior Vice President and Chief Counsel, Charles Schwab Investment Management Inc. (Sept. 2011 – present); Vice President, Charles Schwab & Co., Inc., (March 2004 – Sept. 2011) and Charles Schwab Investment Management, Inc. (Jan 2011 – Sept. 2011); Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds (April 2011 – present); Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.


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


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

Glossary

American Depositary Receipt (ADR) U.S. dollar-denominated receipts issued by U.S. banks or trust companies that represent shares of foreign-based corporations.

ask See “offer.”

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

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

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

cap, capitalization See “market cap.”

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

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

gross domestic product (GDP) The output of goods and services produced by labor and property located in the United States.

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

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

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

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

MSCI Emerging Markets Index A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

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

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

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

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

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

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

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

sampling If a fund uses a sampling method, the fund will not fully replicate the benchmark index and may hold

Proxy Voting Policies, Procedures and Results

Schwab ETFs

U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

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

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

Schwab U.S. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

Schwab U.S. Dividend Equity ETF^tm

Schwab U.S. REIT ETF^tm

International ETFs

Schwab International Equity ETF^tm

Schwab International Small-Cap Equity ETF^tm

Schwab Emerging Markets Equity ETF^tm

Fixed Income ETFs

Schwab U.S. Aggregate Bond ETF^tm

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

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

Schwab U.S. TIPS ETF^tm

Item 11: 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 the second fiscal quarter of the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting 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 12: Exhibits.

(a)

(1) Code of ethics – not applicable to this semi-annual report.

	(2)		Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached.

	(3)		Not applicable.

(b)

A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission.



Investment Income

Dividends (net of foreign withholding tax of $90)		$6,759,098
Interest		133
Securities on loan	+	10,540

Total investment income		6,769,771

Expenses

Investment adviser fees		160,863

Total expenses	−	160,863

Net investment income		6,608,908

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(461,552	)
Net realized gains on in-kind redemptions	+	10,951,402

Net realized gains		10,489,850
Net unrealized gains on investments	+	28,784,976

Net realized and unrealized gains		39,274,826

Net increase in net assets resulting from operations		$45,883,734



Investment Income

Dividends		$2,940,443
Interest		57
Securities on loan	+	67,009

Total investment income		3,007,509

Expenses

Investment adviser fees		107,936

Total expenses	−	107,936

Net investment income		2,899,573

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(4,075,489	)
Net realized gains on in-kind redemptions	+	2,801,311

Net realized losses		(1,274,178	)
Net unrealized gains on investments	+	43,430,302

Net realized and unrealized gains		42,156,124

Net increase in net assets resulting from operations		$45,055,697



Investment Income

Dividends (net of foreign withholding tax of $224)		$8,753,228
Interest		185
Securities on loan	+	510,251

Total investment income		9,263,664

Expenses

Investment adviser fees		379,163

Total expenses	−	379,163

Net investment income		8,884,501

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(2,146,260	)
Net realized gains on in-kind redemptions	+	24,387,502

Net realized gains		22,241,242
Net unrealized gains on investments	+	65,615,873

Net realized and unrealized gains		87,857,115

Net increase in net assets resulting from operations		$96,741,616


¹		As categorized in Portfolio Holdings.
²		The fund had no Other Financial Instruments.



Assets

Investments, at value (cost $630,428,196)		$683,648,044
Receivables:
Fund shares sold		3,060,227
Dividends		2,806,583
Interest	+	3

Total assets		689,514,857

Liabilities

Payables:
Investments bought		3,038,790
Investment adviser fees	+	3,945

Total liabilities		3,042,735

Net Assets

Total assets		689,514,857
Total liabilities	—	3,042,735

Net assets		$686,472,122

Net Assets by Source
Capital received from investors		621,937,695
Net investment income not yet distributed		3,308,594
Net realized capital gains		8,005,985
Net unrealized capital gains		53,219,848

Net Asset Value (NAV)



Investment Income

Dividends		$9,673,154
Interest	+	176

Total investment income		9,673,330

Expenses

Investment adviser fees		223,453

Total expenses	−	223,453

Net investment income		9,449,877

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(265,749	)
Net realized gains on in-kind redemptions	+	8,662,317

Net realized gains		8,396,568
Net unrealized gains on investments	+	30,844,599

Net realized and unrealized gains		39,241,167

Net increase in net assets resulting from operations		$48,691,044



Investment Income

Dividends (net of foreign withholding tax of $752,241)		$9,601,372
Interest		525
Securities on loan	+	65,225

Total investment income		9,667,122

Expenses

Investment adviser fees		441,363

Total expenses	−	441,363

Net investment income		9,225,759

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(4,640,361	)
Net realized losses on foreign currency transactions	+	(77,097	)

Net realized losses		(4,717,458	)
Net unrealized gains on investments		111,403,045
Net unrealized losses on foreign currency translations	+	(32,397	)

Net unrealized gains	+	111,370,648

Net realized and unrealized gains		106,653,190

Net increase in net assets resulting from operations		$115,878,949



Investment Income

Dividends (net of foreign withholding tax of $151,988)		$1,766,152
Securities on loan	+	86,415

Total investment income		1,852,567

Expenses

Investment adviser fees		206,653

Total expenses	−	206,653

Net investment income		1,645,914

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(3,077,664	)
Net realized losses on foreign currency transactions	+	(8,995	)

Net realized losses		(3,086,659	)
Net unrealized gains on investments		27,948,363
Net unrealized losses on foreign currency translations	+	(15,170	)

Net unrealized gains	+	27,933,193

Net realized and unrealized gains		24,846,534

Net increase in net assets resulting from operations		$26,492,448



Investment Income

Dividends (net of foreign withholding tax of $439,501)		$4,144,488
Interest (net of foreign withholding tax of $37)		1,036
Securities on loan	+	55,871

Total investment income		4,201,395

Expenses

Investment adviser fees		530,244

Total expenses	−	530,244

Net investment income		3,671,151

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(2,873,813	)
Net realized losses on foreign currency transactions	+	(46,551	)

Net realized losses		(2,920,364	)
Net unrealized gains on investments		60,791,346
Net unrealized gains on foreign currency translations	+	3,859

Net unrealized gains	+	60,795,205

Net realized and unrealized gains		57,874,841

Net increase in net assets resulting from operations		$61,545,992


By:		/s/ Marie Chandoha Marie Chandoha
		Chief Executive Officer

Date		April 12, 2013


By:		/s/ Marie Chandoha Marie Chandoha
		Chief Executive Officer

Date:		April 12, 2013

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

Date:		April 12, 2013