nvcsrs

Purchases of Securities

Sales/Maturities of Securities

$48,911,344

$45,304,084

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 Since Inception to August 31, 2013*

Schwab Fundamental U.S. Broad Market Index ETF (Ticker Symbol: FNDB)


Market Price Return¹			-3.33%
NAV Return¹			-3.29%
Russell Fundamental U.S. Index			-3.29%
ETF Category: Morningstar Large Blend²			-2.86%


Performance Details			page 5




Schwab Fundamental U.S. Large Company Index ETF (Ticker Symbol: FNDX)


Market Price Return¹			-3.05%
NAV Return¹			-3.25%
Russell Fundamental U.S. Large Company Index			-3.25%
ETF Category: Morningstar Large Blend²			-2.86%


Performance Details			page 6




Schwab Fundamental U.S. Small Company Index ETF (Ticker Symbol: FNDA)


Market Price Return¹			-3.78%
NAV Return¹			-3.70%
Russell Fundamental U.S. Small Company Index			-3.69%
ETF Category: Morningstar Small Blend²			-3.52%


Performance Details			page 7




Schwab Fundamental International Large Company Index ETF (Ticker Symbol: FNDF)


Market Price Return¹			-3.78%
NAV Return¹			-4.33%
Russell Fundamental Developed ex-US Large Company Index			-4.34%
ETF Category: Morningstar Foreign Large Blend²			-4.19%


Performance Details			pages 8-9




Schwab Fundamental International Small Company Index ETF (Ticker Symbol: FNDC)


Market Price Return¹			-3.73%
NAV Return¹			-4.25%
Russell Fundamental Developed ex-US Small Company Index			-4.24%
ETF Category: Morningstar Foreign Small/Mid Blend²			-3.89%


Performance Details			pages 10-11




Schwab Fundamental Emerging Markets Large Company Index ETF (Ticker Symbol: FNDE)


Market Price Return¹			-2.23%
NAV Return¹			-2.15%
Russell Fundamental Emerging Markets Large Company Index			-2.10%
ETF Category: Morningstar Diversified Emerging Markets²			-5.08%


Performance Details			pages 12-13

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.

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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 — each of the names identifying the Russell Fundamental Indexes is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental Index ETFs are not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the funds.


*		Inception represents the date that the shares began trading in the secondary market. Total returns are since inception date of 8/15/13. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.
¹		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
²		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 Fundamental Index 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 our new Schwab Fundamental Index ETFs. We launched these funds on August 15, 2013, and are excited to offer six additional “core” investment solutions as a way to help investors diversify their portfolios.

Fundamentally weighted strategies have enjoyed significant asset growth in recent years, as investors have embraced the value of alternatives to traditional index funds. Unlike equity indices that are often weighted based on market capitalization, fundamentally weighted indices select and weight stocks by non-price measures. By using this methodology, our new funds can be used in a portfolio as a complement to traditional cap-weighted and actively managed investment vehicles, potentially helping shareholders achieve better risk-adjusted performance over time. These core products also provide the benefits of an ETF, including transparency, trading flexibility, and potential tax efficiency.

From August 15, 2013, through August 31, 2013, the funds generated modestly negative returns that were closely aligned with their respective indices, and reflected losses by many global stock markets. The backdrop for these results included concern about the Federal Reserve potentially “tapering” its policies aimed at stimulating economic growth, and rising tensions in the Middle East. The depreciation of many overseas currencies versus the U.S. dollar also played a role, reducing the returns of international investments in U.S. dollar terms.

For more information about the performance, holdings, and portfolio characteristics of the Schwab Fundamental Index ETFs, please continue reading this report. In addition, you can find further details about these ETFs and about ETF investing by visiting www.schwabetfs.com. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

Schwab Fundamental Index 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.

		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 and 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.

		Jane Qin, Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2013, Ms. Qin worked at The Bank of New York Mellon Corporation, where she spent more than two years as an associate equity portfolio manager, and nearly two years as a performance analyst. Prior to that, Ms. Qin worked at Wells Fargo Fund Management as a mutual fund analyst and at CIGNA Reinsurance in the Variable Annuity Death Benefits (VADBe) Risk Management group as a risk analyst.

4 Schwab Fundamental Index ETFs

Schwab Fundamental U.S. Broad Market Index ETF

Performance and Fund Facts as of 08/31/13

Total Returns¹


	Since Inception*


Fund: Schwab Fundamental U.S. Broad Market Index ETF (8/15/13)
Market Price Return²		-3.33	%
NAV Return²		-3.29	%
Russell Fundamental U.S. Index		-3.29	%
ETF Category: Morningstar Large Blend³		-2.86	%

Fund Expense Ratio⁴: 0.32%

Statistics


Number of Holdings			1,451
Weighted Average Market Cap ($ x 1,000,000)			$85,725
Price/Earnings Ratio (P/E)			22.8
Price/Book Ratio (P/B)			1.7
Portfolio Turnover Rate^5,6			1%

Sector Weightings % of Investments


Financials			15.1%
Energy			14.2%
Consumer Discretionary			13.1%
Information Technology			12.8%
Industrials			11.5%
Health Care			11.1%
Consumer Staples			10.9%
Utilities			4.0%
Materials			3.8%
Telecommunication Services			3.4%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Exxon Mobil Corp.			4.1%
Chevron Corp.			2.2%
ConocoPhillips			1.8%
AT&T, Inc.			1.7%
Microsoft Corp.			1.7%
Bank of America Corp.			1.6%
The Procter & Gamble Co.			1.4%
General Electric Co.			1.3%
Johnson & Johnson			1.2%
Wal-Mart Stores, Inc.			1.2%
Total			18.2%

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.

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

Index ownership — “Russell Fundamental U.S. Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental U.S. Broad Market Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

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. Total returns are since inception date of 8/15/13. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.
¹		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 Fundamental Index ETFs 5

Schwab Fundamental U.S. Large Company Index ETF

Performance and Fund Facts as of 08/31/13

Total Returns¹


	Since Inception*


Fund: Schwab Fundamental U.S. Large Company Index ETF (8/15/13)
Market Price Return²		-3.05	%
NAV Return²		-3.25	%
Russell Fundamental U.S. Large Company Index		-3.25	%
ETF Category: Morningstar Large Blend³		-2.86	%

Fund Expense Ratio⁴: 0.32%

Statistics


Number of Holdings			614
Weighted Average Market Cap ($ x 1,000,000)			$94,260
Price/Earnings Ratio (P/E)			21.5
Price/Book Ratio (P/B)			1.7
Portfolio Turnover Rate^5,6			2%

Sector Weightings % of Investments


Energy			15.0%
Financials			14.6%
Information Technology			12.6%
Consumer Discretionary			12.5%
Consumer Staples			11.6%
Health Care			11.6%
Industrials			10.6%
Utilities			4.1%
Telecommunication Services			3.7%
Materials			3.6%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Exxon Mobil Corp.			4.5%
Chevron Corp.			2.5%
ConocoPhillips			1.9%
AT&T, Inc.			1.9%
Microsoft Corp.			1.9%
Bank of America Corp.			1.8%
The Procter & Gamble Co.			1.6%
General Electric Co.			1.5%
Johnson & Johnson			1.4%
Wal-Mart Stores, Inc.			1.4%
Total			20.4%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

Index ownership — “Russell Fundamental U.S. Large Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental U.S. Large Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

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. Total returns are since inception date of 8/15/13. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.
¹		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 Fundamental Index ETFs

Schwab Fundamental U.S. Small Company Index ETF

Performance and Fund Facts as of 08/31/13

Total Returns¹


	Since Inception*


Fund: Schwab Fundamental U.S. Small Company Index ETF (8/15/13)
Market Price Return²		-3.78	%
NAV Return²		-3.70	%
Russell Fundamental U.S. Small Company Index		-3.69	%
ETF Category: Morningstar Small Blend³		-3.52	%

Fund Expense Ratio⁴: 0.32%

Statistics


Number of Holdings			867
Weighted Average Market Cap ($ x 1,000,000)			$3,511
Price/Earnings Ratio (P/E)			61.2
Price/Book Ratio (P/B)			2.0
Portfolio Turnover Rate^5,6			2%

Sector Weightings % of Investments


Industrials			20.6%
Financials			19.9%
Consumer Discretionary			18.7%
Information Technology			14.7%
Health Care			6.3%
Energy			6.2%
Materials			5.8%
Consumer Staples			3.6%
Utilities			3.2%
Telecommunication Services			0.9%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Southwest Airlines Co.			0.7%
Delta Air Lines, Inc.			0.7%
SunEdison, Inc.			0.4%
United Continental Holdings, Inc.			0.4%
TD Ameritrade Holding Corp.			0.3%
Caesars Entertainment Corp.			0.3%
Office Depot, Inc.			0.3%
Huntington Ingalls Industries, Inc.			0.3%
NCR Corp.			0.3%
Covance, Inc.			0.3%
Total			4.0%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

Investments in smaller companies typically exhibit higher volatility.

Index ownership — “Russell Fundamental U.S. Small Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental U.S. Small Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.

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. Total returns are since inception date of 8/15/13. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.
¹		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 Fundamental Index ETFs 7

Schwab Fundamental International Large Company Index ETF

Performance and Fund Facts as of 08/31/13

Total Returns¹


	Since Inception*


Fund: Schwab Fundamental International Large Company Index ETF (8/15/13)
Market Price Return²		-3.78	%
NAV Return²		-4.33	%
Russell Fundamental Developed ex-US Large Company Index		-4.34	%
ETF Category: Morningstar Foreign Large Blend³		-4.19	%

Fund Expense Ratio⁴: 0.32%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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.

Index ownership — “Russell Fundamental Developed ex-U.S. Large Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental International Large Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.


*		Inception represents the date that the shares began trading in the secondary market. Total returns are since inception date of 8/15/13. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.
¹		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 Fundamental Index ETFs

Schwab Fundamental International Large Company Index ETF

Performance and Fund Facts as of 08/31/13 continued

Statistics


Number of Holdings			735
Weighted Average Market Cap ($ x 1,000,000)			$50,866
Price/Earnings Ratio (P/E)			30.1
Price/Book Ratio (P/B)			1.3
Portfolio Turnover Rate^1,2			0%

Sector Weightings % of Investments


Financials			19.1%
Energy			13.1%
Industrials			13.0%
Consumer Discretionary			11.3%
Materials			9.0%
Consumer Staples			8.8%
Telecommunication Services			8.2%
Health Care			6.3%
Utilities			6.3%
Information Technology			4.6%
Other			0.3%
Total			100.0%

Top Equity Holdings % of Net Assets³


BP plc			2.4%
Total S.A.			2.1%
Royal Dutch Shell plc, A Shares			1.7%
Vodafone Group plc			1.5%
HSBC Holdings plc			1.4%
Royal Dutch Shell plc, B Shares			1.3%
Toyota Motor Corp.			1.2%
Nestle S.A. – Reg’d			1.1%
Banco Santander S.A.			1.0%
GlaxoSmithKline plc			1.0%
Total			14.7%

Country Weightings % of Investments


Japan			21.1%
United Kingdom			18.1%
France			11.5%
Germany			9.0%
Canada			6.0%
Switzerland			5.8%
Netherlands			5.7%
Australia			4.5%
Italy			4.0%
Spain			4.0%
Other Countries			10.3%
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 Fundamental Index ETFs 9

Schwab Fundamental International Small Company Index ETF

Performance and Fund Facts as of 08/31/13

Total Returns¹


	Since Inception*


Fund: Schwab Fundamental International Small Company Index ETF (8/15/13)
Market Price Return²		-3.73	%
NAV Return²		-4.25	%
Russell Fundamental Developed ex-US Small Company Index		-4.24	%
ETF Category: Morningstar Foreign Small/Mid Blend³		-3.89	%

Fund Expense Ratio⁴: 0.46%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

Investments in smaller companies typically exhibit higher volatility.

Index ownership — “Russell Fundamental Developed ex-U.S. Small Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental International Small Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.


*		Inception represents the date that the shares began trading in the secondary market. Total returns are since inception date of 8/15/13. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.
¹		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 Fundamental Index ETFs

Schwab Fundamental International Small Company Index ETF

Performance and Fund Facts as of 08/31/13 continued

Statistics


Number of Holdings			1,222
Weighted Average Market Cap ($ x 1,000,000)			$3,083
Price/Earnings Ratio (P/E)			33.1
Price/Book Ratio (P/B)			1.2
Portfolio Turnover Rate^1,2			0%

Sector Weightings % of Investments


Industrials			24.7%
Consumer Discretionary			19.9%
Financials			17.1%
Materials			10.6%
Information Technology			9.1%
Consumer Staples			7.1%
Health Care			4.5%
Energy			3.9%
Utilities			1.6%
Telecommunication Services			1.1%
Other			0.4%
Total			100.0%

Top Equity Holdings % of Net Assets³


Gamesa Corp. Tecnologica S.A.			0.4%
Enterprise Inns plc			0.4%
Daiwa Securities Group, Inc.			0.3%
Nihon Parkerizing Co., Ltd.			0.3%
Methanex Corp.			0.3%
SBM Offshore N.V.			0.3%
KYB Co., Ltd.			0.3%
iShares MSCI EAFE Small Cap ETF			0.2%
Koito Manufacturing Co., Ltd.			0.2%
Darty plc			0.2%
Total			2.9%

Country Weightings % of Investments


Japan			38.6%
United Kingdom			13.8%
Canada			8.1%
France			4.8%
Australia			4.3%
Germany			3.8%
Italy			2.9%
Switzerland			2.8%
Hong Kong			2.7%
Sweden			2.3%
Other Countries			15.9%
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 Fundamental Index ETFs 11

Schwab Fundamental Emerging Markets Large Company Index ETF

Performance and Fund Facts as of 08/31/13

Total Returns¹


	Since Inception*


Fund: Schwab Fundamental Emerging Markets Large Company Index ETF (8/15/13)
Market Price Return²		-2.23	%
NAV Return²		-2.15	%
Russell Fundamental Emerging Markets Large Company Index		-2.10	%
ETF Category: Morningstar Diversified Emerging Markets³		-5.08	%

Fund Expense Ratio⁴: 0.46%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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

Index ownership — “Russell Fundamental Emerging Markets Large Company Index” is a joint trademark of Russell Investments (“Russell”) and Research Affiliates LLC (“RA”) and is used by the fund under license. “Research Affiliates” and “Fundamental Index” are trademarks of RA. Subject to RA’s intellectual property rights in certain content, Russell is the owner of all copyrights related to the Russell Fundamental Indexes. Russell is the owner of the trademarks and copyrights related to the Russell Indexes. Schwab Fundamental Emerging Markets Large Company Index ETF is not sponsored, endorsed, sold or promoted by Russell or RA, and Russell and RA do not make any representation regarding the advisability of investing in shares of the fund.


*		Inception represents the date that the shares began trading in the secondary market. Total returns are since inception date of 8/15/13. These total returns may differ from those disclosed in the Financial Highlights, as the total returns in the Financial Highlights are calculated from the commencement of operations date which is the first day the NAV was determined.
¹		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.

12 Schwab Fundamental Index ETFs

Schwab Fundamental Emerging Markets Large Company Index ETF

Performance and Fund Facts as of 08/31/13 continued

Statistics


Number of Holdings			272
Weighted Average Market Cap ($ x 1,000,000)			$38,088
Price/Earnings Ratio (P/E)			8.1
Price/Book Ratio (P/B)			1.0
Portfolio Turnover Rate^1,2			1%

Sector Weightings % of Investments


Energy			24.5%
Financials			16.0%
Information Technology			15.5%
Materials			12.6%
Telecommunication Services			11.2%
Consumer Discretionary			6.5%
Industrials			6.2%
Utilities			3.4%
Consumer Staples			2.7%
Other			1.4%
Total			100.0%

Top Equity Holdings % of Net Assets³


LUKOIL OAO			4.4%
Gazprom OAO			4.0%
Samsung Electronics Co., Ltd.			3.9%
China Mobile Ltd.			2.0%
Taiwan Semiconductor Manufacturing Co., Ltd.			1.8%
Petroleo Brasileiro S.A. Pfd			1.7%
China Construction Bank Corp., H Shares			1.7%
POSCO			1.5%
Surgutneftegas OAO			1.5%
Petroleo Brasileiro S.A.			1.4%
Total			23.9%

Country Weightings % of Investments


Republic of Korea			21.9%
Russia			15.5%
Taiwan			13.7%
Brazil			12.1%
China			12.1%
South Africa			7.2%
Mexico			3.8%
Poland			2.1%
India			1.7%
Malaysia			1.7%
Other Countries			8.2%
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 Fundamental Index ETFs 13

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you may 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. The Hypothetical expense examples are based on an investment of $1,000 invested for the six months beginning March 1, 2013 and held through August 31, 2013. The Actual expense examples are based on an investment of $1,000 invested for the period beginning from commencement of operations on August 14, 2013 and held through August 31, 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 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 a 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 a fund. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning funds. In addition, if these transactional costs were included, your costs would have been higher.


					Ending
					Account Value		Expenses Paid
	Expense Ratio¹		Beginning		(Net of Expenses)		During Period
	(Annualized)		Account Value		at 8/31/13		Ended 8/31/13^2,3

Schwab Fundamental U.S. Broad Market Index ETF
Actual Return		0.32%	$	1,000.00	$	962.80	$	0.15
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental U.S. Large Company Index ETF
Actual Return		0.32%	$	1,000.00	$	963.20	$	0.15
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental U.S. Small Company Index ETF
Actual Return		0.32%	$	1,000.00	$	958.80	$	0.15
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental International Large Company Index ETF
Actual Return		0.32%	$	1,000.00	$	962.80	$	0.15
Hypothetical 5% Return		0.32%	$	1,000.00	$	1,023.59	$	1.63


Schwab Fundamental International Small Company Index ETF
Actual Return		0.46%	$	1,000.00	$	964.40	$	0.22
Hypothetical 5% Return		0.46%	$	1,000.00	$	1,022.89	$	2.35


Schwab Fundamental Emerging Markets Large Company Index ETF
Actual Return		0.46%	$	1,000.00	$	982.40	$	0.22
Hypothetical 5% Return		0.46%	$	1,000.00	$	1,022.89	$	2.35


¹		The expense ratio provided is for the period from 8/14/13 (commencement of operations) through 8/31/13.
²		Actual expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 18 days of the period from commencement of operations on 8/14/13 through 8/31/13, and divided by the 365 days of the fiscal year.
³		Hypothetical expenses for each fund are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

14 Schwab Fundamental Index ETFs

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings as of August 31, 2013 (Unaudited)

This section shows the fund’s 50 largest portfolio holdings in unaffiliated issuers, any holdings exceeding 1% of the fund’s net assets as of the report date, and any affiliated issuers. The remaining securities held by the fund are grouped as “Other Securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by calling Schwab ETFs^TM at 1-800-435-4000. This complete schedule, filed on the fund’s Form N-CSR, is also available on the SEC’s website at http://www.sec.gov.

In addition, 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 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

($)

.8%

Common Stock

8,591,321

8,408,700

.1%

Other Investment Companies

8,126

8,065

.9%

Total Investments

8,599,447

8,416,765

.1%

Other Assets and Liabilities, Net

6,581

100

.0%

Net Assets

8,423,346


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.1%
Other Securities				1.1		92,680

Banks 2.7%
Wells Fargo & Co.		1,779		0.9		73,081
Other Securities				1.8		152,947

				2.7		226,028

Capital Goods 8.4%
3M Co.		294		0.4		33,392
General Electric Co.		4,858		1.3		112,414
United Technologies Corp.		490		0.6		49,049
Other Securities				6.1		515,325

				8.4		710,180

Commercial & Professional Services 1.1%
Other Securities				1.1		93,902

Consumer Durables & Apparel 1.3%
Other Securities				1.3		108,978

Consumer Services 1.8%
McDonald’s Corp.		441		0.5		41,613
Other Securities				1.3		112,822

				1.8		154,435

Diversified Financials 7.2%
Bank of America Corp.		9,835		1.6		138,870
Berkshire Hathaway, Inc., Class B *		498		0.7		55,388
Citigroup, Inc.		1,736		1.0		83,901
JPMorgan Chase & Co.		1,960		1.2		99,039
The Charles Schwab Corp. (a)		399		0.1		8,331
The Goldman Sachs Group, Inc.		238		0.4		36,207
Other Securities				2.2		183,937

				7.2		605,673

Energy 14.2%
Chevron Corp.		1,561		2.2		187,991
ConocoPhillips		2,234		1.8		148,114
Exxon Mobil Corp.		3,976		4.1		346,548
Marathon Oil Corp.		1,030		0.4		35,463
Occidental Petroleum Corp.		399		0.4		35,196
Phillips 66		932		0.6		53,217
Schlumberger Ltd.		400		0.4		32,376
Valero Energy Corp.		1,099		0.5		39,047
Other Securities				3.8		319,378

				14.2		1,197,330

Food & Staples Retailing 4.0%
Costco Wholesale Corp.		301		0.4		33,673
CVS Caremark Corp.		1,037		0.7		60,198
Wal-Mart Stores, Inc.		1,442		1.2		105,237
Walgreen Co.		841		0.5		40,427
Other Securities				1.2		98,043

				4.0		337,578

Food, Beverage & Tobacco 4.8%
Altria Group, Inc.		1,114		0.4		37,742
Mondelez International, Inc., Class A		1,107		0.4		33,952
PepsiCo, Inc.		652		0.6		51,984
Philip Morris International, Inc.		533		0.5		44,473
The Coca-Cola Co.		1,044		0.5		39,860
Other Securities				2.4		192,348

				4.8		400,359

Health Care Equipment & Services 5.8%
UnitedHealth Group, Inc.		883		0.8		63,346
WellPoint, Inc.		749		0.8		63,770
Other Securities				4.2		362,241

				5.8		489,357

Household & Personal Products 2.1%
The Procter & Gamble Co.		1,534		1.4		119,483
Other Securities				0.7		55,965

				2.1		175,448

Insurance 3.7%
The Travelers Cos., Inc.		484		0.5		38,672
Other Securities				3.2		273,651

				3.7		312,323

Materials 3.8%
Other Securities				3.8		318,966

Media 3.9%
Comcast Corp., Class A		876		0.4		36,871

16 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)
The Walt Disney Co.		827		0.6		50,306
Time Warner, Inc.		1,016		0.7		61,498
Other Securities				2.2		180,312

				3.9		328,987

Pharmaceuticals, Biotechnology & Life Sciences 5.2%
Amgen, Inc.		350		0.5		38,129
Johnson & Johnson		1,218		1.2		105,247
Merck & Co., Inc.		1,022		0.6		48,330
Pfizer, Inc.		3,410		1.1		96,196
Other Securities				1.8		153,716

				5.2		441,618

Real Estate 1.5%
Other Securities				1.5		126,503

Retailing 4.9%
Best Buy Co., Inc.		910		0.4		32,760
Lowe’s Cos., Inc.		1,009		0.5		46,232
Target Corp.		574		0.4		36,340
The Home Depot, Inc.		665		0.6		49,536
Other Securities				3.0		250,948

				4.9		415,816

Semiconductors & Semiconductor Equipment 2.4%
Intel Corp.		3,283		0.9		72,160
Other Securities				1.5		130,121

				2.4		202,281

Software & Services 5.8%
International Business Machines Corp.		483		1.0		88,036
Microsoft Corp.		4,236		1.7		141,482
Other Securities				3.1		257,775

				5.8		487,293

Technology Hardware & Equipment 4.6%
Apple, Inc.		77		0.4		37,503
Cisco Systems, Inc.		2,464		0.7		57,436
Hewlett-Packard Co.		4,368		1.2		97,581
Other Securities				2.3		197,806

				4.6		390,326

Telecommunication Services 3.4%
AT&T, Inc.		4,298		1.7		145,401
Verizon Communications, Inc.		2,121		1.2		100,493
Other Securities				0.5		39,987

				3.4		285,881

Transportation 2.0%
Other Securities				2.0		165,531

Utilities 4.1%
Other Securities				4.1		341,227

Total Common Stock
(Cost $8,591,321)						8,408,700




Other Investment Companies 0.1% of net assets

Equity Fund 0.1%
Other Securities				0.1		4,890

Money Market Fund 0.0%
Other Securities				0.0		3,175

Total Other Investment Companies
(Cost $8,126)						8,065



End of Investments.

At 08/31/13, the tax basis cost of the fund’s investments was $8,599,447 and the unrealized appreciation and depreciation were $27,333 and ($210,015), respectively, with a net unrealized depreciation of ($182,682).

For the following notes, please refer to complete schedule of holdings.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.
(b)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
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 August 31, 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

$8,408,700

$—

$8,408,700

Other Investment Companies¹

8,065

—

8,065

Total

$8,416,765

$—

$8,416,765


¹		As categorized in Portfolio Holdings.

See financial notes 17

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings as of August 31, 2013 (Unaudited)

Cost

Value

Holdings by Category

($)

.8%

Common Stock

6,166,040

6,007,820

.1%

Other Investment Companies

7,286

7,187

.9%

Total Investments

6,173,326

6,015,007

.1%

Other Assets and Liabilities, Net

4,543

100

.0%

Net Assets

6,019,550


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.1%
Other Securities				1.1		66,082

Banks 2.5%
Wells Fargo & Co.		1,407		1.0		57,799
Other Securities				1.5		90,351

				2.5		148,150

Capital Goods 8.2%
3M Co.		231		0.4		26,237
General Electric Co.		3,841		1.5		88,881
United Technologies Corp.		387		0.6		38,739
Other Securities				5.7		338,886

				8.2		492,743

Commercial & Professional Services 0.8%
Other Securities				0.8		47,776

Consumer Durables & Apparel 1.0%
Other Securities				1.0		60,076

Consumer Services 1.5%
McDonald’s Corp.		348		0.5		32,837
Other Securities				1.0		55,014

				1.5		87,851

Diversified Financials 7.6%
Bank of America Corp.		7,742		1.8		109,317
Berkshire Hathaway, Inc., Class B *		397		0.7		44,154
Citigroup, Inc.		1,375		1.1		66,454
JPMorgan Chase & Co.		1,551		1.3		78,372
The Charles Schwab Corp. (a)		315		0.1		6,577
The Goldman Sachs Group, Inc.		187		0.5		28,448
Other Securities				2.1		123,697

				7.6		457,019

Energy 15.0%
Chevron Corp.		1,231		2.5		148,249
ConocoPhillips		1,767		1.9		117,152
Exxon Mobil Corp.		3,128		4.5		272,637
Marathon Oil Corp.		814		0.5		28,026
Occidental Petroleum Corp.		312		0.5		27,522
Phillips 66		738		0.7		42,140
Schlumberger Ltd.		316		0.4		25,577
Valero Energy Corp.		868		0.5		30,840
Other Securities				3.5		212,473

				15.0		904,616

Food & Staples Retailing 4.3%
Costco Wholesale Corp.		237		0.4		26,513
CVS Caremark Corp.		823		0.8		47,775
Wal-Mart Stores, Inc.		1,140		1.4		83,197
Walgreen Co.		664		0.5		31,918
Other Securities				1.2		71,202

				4.3		260,605

Food, Beverage & Tobacco 5.0%
Altria Group, Inc.		880		0.5		29,814
Mondelez International, Inc., Class A		878		0.4		26,928
PepsiCo, Inc.		517		0.7		41,220
Philip Morris International, Inc.		423		0.6		35,295
The Coca-Cola Co.		828		0.5		31,613
Other Securities				2.3		137,008

				5.0		301,878

Health Care Equipment & Services 6.0%
UnitedHealth Group, Inc.		699		0.8		50,146
WellPoint, Inc.		592		0.8		50,403
Other Securities				4.4		259,010

				6.0		359,559

Household & Personal Products 2.2%
The Procter & Gamble Co.		1,209		1.6		94,169
Other Securities				0.6		40,917

				2.2		135,086

Insurance 3.6%
The Travelers Cos., Inc.		382		0.5		30,522
Other Securities				3.1		187,464

				3.6		217,986

Materials 3.6%
Other Securities				3.6		214,893

Media 4.1%
Comcast Corp., Class A		693		0.5		29,168

22 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)
The Walt Disney Co.		654		0.7		39,783
Time Warner, Inc.		804		0.8		48,666
Other Securities				2.1		127,136

				4.1		244,753

Pharmaceuticals, Biotechnology & Life Sciences 5.6%
Amgen, Inc.		277		0.5		30,176
Johnson & Johnson		964		1.4		83,299
Merck & Co., Inc.		808		0.6		38,210
Pfizer, Inc.		2,697		1.3		76,082
Other Securities				1.8		107,193

				5.6		334,960

Real Estate 0.9%
Other Securities				0.9		54,555

Retailing 4.8%
Best Buy Co., Inc.		723		0.4		26,028
Lowe’s Cos., Inc.		799		0.6		36,610
Target Corp.		453		0.5		28,679
The Home Depot, Inc.		523		0.6		38,958
Other Securities				2.7		161,377

				4.8		291,652

Semiconductors & Semiconductor Equipment 2.3%
Intel Corp.		2,597		0.9		57,082
Other Securities				1.4		78,871

				2.3		135,953

Software & Services 5.8%
International Business Machines Corp.		382		1.2		69,627
Microsoft Corp.		3,350		1.9		111,890
Other Securities				2.7		165,726

				5.8		347,243

Technology Hardware & Equipment 4.6%
Apple, Inc.		60		0.5		29,223
Cisco Systems, Inc.		1,948		0.8		45,408
Hewlett-Packard Co.		3,454		1.3		77,162
Other Securities				2.0		125,723

				4.6		277,516

Telecommunication Services 3.6%
AT&T, Inc.		3,384		1.9		114,481
Verizon Communications, Inc.		1,677		1.3		79,456
Other Securities				0.4		26,183

				3.6		220,120

Transportation 1.6%
Other Securities				1.6		97,404

Utilities 4.1%
Other Securities				4.1		249,344

Total Common Stock
(Cost $6,166,040)						6,007,820




Other Investment Companies 0.1% of net assets

Equity Fund 0.1%
Other Securities				0.1		4,932

Money Market Fund 0.0%
Other Securities				0.0		2,255

Total Other Investment Companies
(Cost $7,286)						7,187



End of Investments.

At 08/31/13, the tax basis cost of the fund’s investments was $6,175,895 and the unrealized appreciation and depreciation were $4,151 and ($165,039), respectively, with a net unrealized depreciation of ($160,888).

For the following notes, please refer to complete schedule of holdings.


*		Non-income producing security.
(a)		Issuer is affiliated with the fund’s adviser.
(b)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
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 August 31, 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

$6,007,820

$—

$6,007,820

Other Investment Companies¹

7,187

—

7,187

Total

$6,015,007

$—

$6,015,007


¹		As categorized in Portfolio Holdings.

See financial notes 23

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings as of August 31, 2013 (Unaudited)

Cost

Value

Holdings by Category

($)

.8%

Common Stock

6,193,842

5,984,632

.1%

Other Investment Companies

3,785

3,708

.9%

Total Investments

6,197,627

5,988,340

.1%

Other Assets and Liabilities, Net

3,311

100

.0%

Net Assets

5,991,651


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.1%
Dana Holding Corp.		735		0.3		15,406
Thor Industries, Inc.		311		0.3		15,932
Other Securities				0.5		32,621

				1.1		63,959

Banks 4.8%
CapitalSource, Inc.		1,430		0.3		16,517
Synovus Financial Corp.		4,968		0.3		15,848
Other Securities				4.2		258,105

				4.8		290,470

Capital Goods 10.9%
Carlisle Cos., Inc.		220		0.2		14,652
Chicago Bridge & Iron Co. N.V.		253		0.3		15,137
Huntington Ingalls Industries, Inc.		300		0.3		18,996
Lincoln Electric Holdings, Inc.		255		0.3		15,945
Trinity Industries, Inc.		366		0.3		15,453
Other Securities				9.5		574,475

				10.9		654,658

Commercial & Professional Services 4.3%
Other Securities				4.3		257,660

Consumer Durables & Apparel 4.1%
Hanesbrands, Inc.		261		0.3		15,524
PVH Corp.		115		0.2		14,806
The Jones Group, Inc.		1,116		0.3		16,439
Other Securities				3.3		197,849

				4.1		244,618

Consumer Services 5.5%
Caesars Entertainment Corp. *		940		0.3		20,182
Other Securities				5.2		307,973

				5.5		328,155

Diversified Financials 3.3%
Federated Investors, Inc., Class B		589		0.3		15,997
TD Ameritrade Holding Corp.		792		0.3		20,331
Other Securities				2.7		163,525

				3.3		199,853

Energy 6.2%
Exterran Holdings, Inc. *		526		0.2		14,428
Oceaneering International, Inc.		200		0.3		15,516
Tidewater, Inc.		301		0.3		16,242
Other Securities				5.4		327,530

				6.2		373,716

Food & Staples Retailing 0.9%
Other Securities				0.9		52,404

Food, Beverage & Tobacco 2.2%
Other Securities				2.2		133,365

Health Care Equipment & Services 4.3%
Kindred Healthcare, Inc.		1,127		0.3		16,567
Other Securities				4.0		238,058

				4.3		254,625

Household & Personal Products 0.4%
Other Securities				0.4		26,745

Insurance 4.4%
Aspen Insurance Holdings Ltd.		446		0.3		15,864
CNO Financial Group, Inc.		1,116		0.3		15,166
Kemper Corp.		455		0.3		15,447
Markel Corp. *		30		0.3		15,321
Old Republic International Corp.		1,146		0.3		16,273
Protective Life Corp.		400		0.3		16,716
StanCorp Financial Group, Inc.		306		0.3		16,010
The Hanover Insurance Group, Inc.		276		0.2		14,703
Other Securities				2.1		136,461

				4.4		261,961

Materials 5.8%
Crown Holdings, Inc. *		334		0.2		14,516
Rock-Tenn Co., Class A		136		0.3		15,111
Other Securities				5.3		319,470

				5.8		349,097

Media 2.4%
Lamar Advertising Co., Class A *		360		0.3		15,145

28 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)
Other Securities				2.1		127,895

				2.4		143,040

Pharmaceuticals, Biotechnology & Life Sciences 2.0%
Covance, Inc. *		210		0.3		17,018
Endo Health Solutions, Inc. *		406		0.3		16,682
Other Securities				1.4		86,417

				2.0		120,117

Real Estate 7.3%
Other Securities				7.3		438,808

Retailing 5.7%
Group 1 Automotive, Inc.		209		0.3		16,037
Office Depot, Inc. *		4,565		0.3		19,127
Saks, Inc. *		1,015		0.3		16,169
Other Securities				4.8		290,446

				5.7		341,779

Semiconductors & Semiconductor Equipment 3.8%
SunEdison, Inc. *		3,418		0.4		25,156
Other Securities				3.4		204,594

				3.8		229,750

Software & Services 6.0%
Compuware Corp.		1,411		0.3		15,055
Convergys Corp.		821		0.2		14,474
Electronic Arts, Inc. *		630		0.3		16,783
Lender Processing Services, Inc.		470		0.3		14,993
VeriSign, Inc. *		345		0.3		16,557
Other Securities				4.6		281,252

				6.0		359,114

Technology Hardware & Equipment 4.9%
Benchmark Electronics, Inc. *		686		0.3		15,071
NCR Corp. *		486		0.3		17,292
Sanmina Corp. *		961		0.3		15,635
SYNNEX Corp. *		345		0.3		16,391
Other Securities				3.7		228,692

				4.9		293,081

Telecommunication Services 0.9%
Other Securities				0.9		53,155

Transportation 5.4%
Arkansas Best Corp.		631		0.3		15,699
Con-way, Inc.		388		0.3		16,141
Delta Air Lines, Inc.		2,227		0.7		43,939
Southwest Airlines Co.		3,442		0.7		44,092
United Continental Holdings, Inc. *		859		0.4		24,447
Other Securities				3.0		178,055

				5.4		322,373

Utilities 3.2%
Other Securities				3.2		192,129

Total Common Stock
(Cost $6,193,842)						5,984,632




Other Investment Companies 0.1% of net assets

Equity Fund 0.1%
Other Securities				0.1		3,513

Money Market Fund 0.0%
Other Securities				0.0		195

Total Other Investment Companies
(Cost $3,785)						3,708



End of Investments.

At 08/31/13, the tax basis cost of the fund’s investments was $6,199,356 and the unrealized appreciation and depreciation were $12,285 and ($223,301), respectively, with a net unrealized depreciation of ($211,016).

For the following notes, please refer to complete schedule of holdings.


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 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

$5,984,632

$—

$5,984,632

Other Investment Companies¹

3,708

—

3,708

Total

$5,988,340

$—

$5,988,340


¹		As categorized in Portfolio Holdings.

See financial notes 29

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings as of August 31, 2013 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	99	.1%	Common Stock		12,388,393		11,935,436
	0	.3%	Other Investment Companies		33,021		32,438
	0	.4%	Preferred Stock		54,160		50,452


	99	.8%	Total Investments		12,475,574		12,018,326
	0	.2%	Other Assets and Liabilities, Net				18,575


	100	.0%	Net Assets				12,036,901


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.1% of net assets

Australia 4.4%
BHP Billiton Ltd.		2,182		0.6		69,476
Other Securities				3.8		467,132

				4.4		536,608

Austria 0.4%
Other Securities				0.4		51,249

Belgium 0.9%
Other Securities				0.9		110,468

Canada 6.0%
Other Securities				6.0		718,657

Denmark 0.8%
Other Securities				0.8		97,239

Finland 1.4%
Nokia Oyj *		20,045		0.6		77,338
Other Securities				0.8		90,179

				1.4		167,517

France 11.5%
AXA S.A.		2,675		0.5		58,147
BNP Paribas S.A.		1,200		0.6		75,026
Carrefour S.A.		1,700		0.4		53,093
Compagnie de Saint-Gobain		1,155		0.4		53,822
GDF Suez		2,875		0.5		62,172
Orange		9,000		0.8		91,094
Sanofi		900		0.7		86,264
Total S.A.		4,470		2.1		247,053
Vivendi		2,675		0.4		54,126
Other Securities				5.1		601,621

				11.5		1,382,418

Germany 8.6%
Allianz SE - Reg’d		510		0.6		72,898
BASF SE		1,005		0.7		87,635
Bayer AG - Reg’d		552		0.5		61,170
Daimler AG - Reg’d		1,550		0.9		106,116
Deutsche Telekom AG - Reg’d		7,000		0.7		89,459
E.ON SE		5,000		0.7		78,984
Siemens AG - Reg’d		750		0.7		79,205
Other Securities				3.8		460,597

				8.6		1,036,064

Hong Kong 0.9%
Other Securities				0.9		104,487

Ireland 0.7%
Other Securities				0.7		80,384

Israel 0.3%
Other Securities				0.3		34,264

Italy 4.0%
Enel S.p.A.		16,820		0.5		55,492
Eni S.p.A.		4,750		0.9		108,231
Intesa Sanpaolo S.p.A.		29,500		0.5		57,181
UniCredit S.p.A.		12,000		0.6		67,691
Other Securities				1.5		196,157

				4.0		484,752

Japan 21.0%
Honda Motor Co., Ltd.		1,700		0.5		61,423
Mitsubishi UFJ Financial Group, Inc.		8,000		0.4		46,965
Nippon Telegraph & Telephone Corp.		1,000		0.4		50,910
Panasonic Corp. *		6,000		0.5		54,671
Sony Corp.		2,500		0.4		50,247
Tokyo Electric Power Co., Inc. *		15,500		0.7		78,989
Toyota Motor Corp.		2,300		1.2		139,245
Other Securities				16.9		2,047,639

				21.0		2,530,089

Luxembourg 0.5%
Other Securities				0.5		63,091

Netherlands 5.7%
ING Groep N.V. CVA *		4,750		0.4		51,453
Royal Dutch Shell plc, A Shares		6,400		1.7		206,672
Royal Dutch Shell plc, B Shares		4,510		1.3		151,600
Other Securities				2.3		272,535

				5.7		682,260

34 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)

New Zealand 0.1%
Other Securities				0.1		12,750

Norway 0.8%
Other Securities				0.8		95,692

Portugal 0.2%
Other Securities				0.2		32,186

Singapore 0.7%
Other Securities				0.7		80,705

Spain 4.0%
Banco Bilbao Vizcaya Argentaria S.A.		7,000		0.6		66,642
Banco Santander S.A.		17,465		1.0		122,977
Repsol S.A.		2,000		0.4		46,296
Telefonica S.A. *		9,005		1.0		122,005
Other Securities				1.0		120,269

				4.0		478,189

Sweden 2.4%
Other Securities				2.4		286,777

Switzerland 5.7%
Nestle S.A. - Reg’d		1,945		1.1		127,351
Novartis AG - Reg’d		1,270		0.8		92,417
Roche Holding AG		312		0.6		77,664
Other Securities				3.2		395,502

				5.7		692,934

United Kingdom 18.1%
Anglo American plc		2,397		0.5		54,822
AstraZeneca plc		1,740		0.7		85,539
Barclays plc		16,375		0.6		71,774
BP plc		41,785		2.4		288,411
British American Tobacco plc		1,030		0.4		51,862
BT Group plc		10,500		0.4		52,837
GlaxoSmithKline plc		4,800		1.0		122,181
HSBC Holdings plc		16,625		1.4		173,848
Rio Tinto plc		1,020		0.4		45,963
Tesco plc		11,880		0.6		67,362
Vodafone Group plc		57,750		1.5		184,250
Other Securities				8.2		977,807

				18.1		2,176,656

Total Common Stock
(Cost $12,388,393)						11,935,436




Other Investment Companies 0.3% of net assets

United States 0.3%

Equity Fund 0.1%
Other Securities				0.1		11,834

Money Market Fund 0.2%
Other Securities				0.2		20,604

Total Other Investment Companies
(Cost $33,021)						32,438




Preferred Stock 0.4% of net assets

Germany 0.4%
Other Securities				0.4		50,452

Total Preferred Stock
(Cost $54,160)						50,452



End of Investments.

At 08/31/13, the tax basis cost of the fund’s investments was $12,475,574 and the unrealized appreciation and depreciation were $38,258 and ($495,506), respectively, with a net unrealized depreciation of ($457,248).

For the following notes, please refer to complete schedule of holdings.


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.


CVA —		Dutch Certificate
ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

See financial notes 35

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings as of August 31, 2013 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	99	.2%	Common Stock		7,436,054		7,179,138
	0	.4%	Other Investment Companies		31,222		30,729
	0	.4%	Preferred Stock		26,939		25,819
	0	.0%	Rights		—		155


	100	.0%	Total Investments		7,494,215		7,235,841
	(0	.0%)	Other Assets and Liabilities, Net				(1,850	)


	100	.0%	Net Assets				7,233,991


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 99.2% of net assets

Australia 4.3%
Other Securities				4.3		313,802

Austria 0.7%
Other Securities				0.7		48,085

Belgium 1.1%
Other Securities				1.1		76,374

Canada 8.1%
CI Financial Corp.		432		0.2		13,125
Methanex Corp.		396		0.3		18,375
Precision Drilling Corp.		1,584		0.2		15,571
Quebecor, Inc., Class B		636		0.2		13,607
Other Securities				7.2		523,226

				8.1		583,904

Denmark 1.5%
Other Securities				1.5		110,522

Finland 2.2%
Rautaruukki Oyj		2,055		0.2		14,470
Other Securities				2.0		142,350

				2.2		156,820

France 4.8%
Neopost S.A.		204		0.2		14,257
Technicolor S.A. *		2,985		0.2		14,170
Teleperformance		312		0.2		14,031
Zodiac Aerospace		96		0.2		13,867
Other Securities				4.0		291,589

				4.8		347,914

Germany 3.4%
Wacker Chemie AG		135		0.2		13,221
Wincor Nixdorf AG		228		0.2		14,262
Other Securities				3.0		221,337

				3.4		248,820

Hong Kong 2.7%
Other Securities				2.7		193,043

Ireland 0.8%
Grafton Group plc		1,908		0.2		16,102
Other Securities				0.6		41,002

				0.8		57,104

Israel 1.4%
Bank Hapoalim B.M.		2,949		0.2		13,721
Other Securities				1.2		84,008

				1.4		97,729

Italy 2.8%
Other Securities				2.8		205,394

Japan 38.6%
Aiful Corp. *		1,650		0.2		13,672
Daiwa Securities Group, Inc.		3,000		0.3		24,339
Ebara Corp.		3,000		0.2		16,022
Hirose Electric Co., Ltd.		100		0.2		13,209
Hitachi Chemical Co., Ltd.		900		0.2		14,897
Kandenko Co., Ltd.		3,000		0.2		15,594
Koito Manufacturing Co., Ltd.		1,000		0.2		17,724
KYB Co., Ltd.		3,000		0.3		18,101
Maeda Road Construction Co., Ltd.		1,000		0.2		15,574
Marui Group Co., Ltd.		1,500		0.2		14,065
Mitsumi Electric Co., Ltd. *		2,100		0.2		15,411
Nihon Parkerizing Co., Ltd.		1,000		0.3		19,324
Nippo Corp.		1,000		0.2		16,093
Nippon Paint Co., Ltd.		1,000		0.2		14,452
Nitori Holdings Co., Ltd.		150		0.2		13,438
Nomura Real Estate Holdings, Inc.		600		0.2		13,760
NTN Corp. *		4,000		0.2		14,840
Rengo Co., Ltd.		3,000		0.2		14,830
Sankyo Co., Ltd.		300		0.2		13,989
Santen Pharmaceutical Co., Ltd.		300		0.2		13,943
The Nippon Road Co., Ltd.		3,000		0.2		15,319
Tokuyama Corp.		4,000		0.2		14,187
Unipres Corp.		600		0.2		13,075
Other Securities				33.7		2,436,047

				38.6		2,791,905

See financial notes 41

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued

Number

% of Net

Value

Security

of Shares

Assets

($)

Luxembourg 0.5%

Other Securities

0.5

39,177

Netherlands 1.8%

SBM Offshore N.V. *

933

0.3

18,288

Other Securities

1.5

108,464

1.8

126,752

New Zealand 0.4%

Other Securities

0.4

30,815

Norway 1.1%

Other Securities

1.1

80,057

Portugal 0.4%

Other Securities

0.4

28,690

Singapore 1.6%

Other Securities

1.6

112,243

Spain 2.1%

Gamesa Corp. Tecnologica S.A.

4,302

0.4

30,065

Other Securities

1.7

125,527

2.1

155,592

Sweden 2.3%

Other Securities

2.3

169,289

Switzerland 2.8%

Georg Fischer AG - Reg’d *

0.2

14,609

Other Securities

2.6

191,441

2.8

206,050

United Kingdom 13.8%

Ashtead Group plc

1,446

0.2

14,428

Bellway plc

648

0.2

13,442

Berendsen plc

996

0.2

13,266

Booker Group plc

7,500

0.2

14,467

Darty plc

13,275

0.2

16,531

Enterprise Inns plc *

11,616

0.4

25,642

Invensys plc

1,953

0.2

14,770

London Stock Exchange Group plc

579

0.2

13,972

Mitchells & Butlers plc *

2,094

0.2

13,799

UBM plc

1,317

0.2

14,078

Other Securities

11.6

844,662

13.8

999,057

Total Common Stock

(Cost $7,436,054)

7,179,138

Other Investment Companies 0.4% of net assets

United States 0.4%

Equity Fund 0.2%

iShares MSCI EAFE Small Cap ETF

400

0.2

17,832

Money Market Fund 0.2%

Other Securities

0.2

12,897

Total Other Investment Companies

(Cost $31,222)

30,729

Preferred Stock 0.4% of net assets

Germany 0.4%

Other Securities

0.4

24,332

Italy 0.0%

Other Securities

0.0

1,487

Total Preferred Stock

(Cost $26,939)

25,819

Rights 0.0% of net assets

Germany 0.0%

Other Securities

0.0

155

Total Rights

(Cost $—)

155

End of Investments.

At 08/31/13, the tax basis cost of the fund’s investments was $7,494,215 and the unrealized appreciation and depreciation were $27,862 and ($286,236), respectively, with a net unrealized depreciation of ($258,374).

For the following notes, please refer to complete schedule of holdings.


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust

42 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings as of August 31, 2013 (Unaudited)


				Cost		Value
Holdings by Category				($)		($)

	89	.4%	Common Stock		8,859,346		8,778,092
	1	.4%	Other Investment Companies		147,796		138,976
	9	.2%	Preferred Stock		935,145		909,590
	0	.0%	Rights		—		257


	100	.0%	Total Investments		9,942,287		9,826,915
	(0	.0%)	Other Assets and Liabilities, Net				(4,315	)


	100	.0%	Net Assets				9,822,600


	Number		% of Net		Value
Security	of Shares		Assets		($)

Common Stock 89.4% of net assets

Brazil 5.1%
Banco do Brasil S.A.		5,400		0.5		52,360
Petroleo Brasileiro S.A.		19,800		1.4		133,016
Vale S.A.		6,400		0.9		92,667
Other Securities				2.3		225,389

				5.1		503,432

Chile 0.7%
Other Securities				0.7		70,492

China 12.1%
Bank of China Ltd., H Shares		240,000		1.0		100,898
China Construction Bank Corp., H Shares		223,000		1.7		163,345
China Mobile Ltd.		18,000		2.0		193,477
China Petroleum & Chemical Corp., H Shares		145,000		1.1		104,528
CNOOC Ltd.		44,000		0.9		87,383
Industrial & Commercial Bank of China Ltd., H Shares		160,000		1.1		105,024
PetroChina Co., Ltd., H Shares		88,000		1.0		95,780
Other Securities				3.3		336,544

				12.1		1,186,979

Colombia 0.3%
Other Securities				0.3		25,551

Czech Republic 0.4%
Other Securities				0.4		38,585

Egypt 0.2%
Other Securities				0.2		22,082

Greece 1.6%
OPAP S.A.		5,500		0.6		54,392
Other Securities				1.0		99,801

				1.6		154,193

Hungary 0.7%
Other Securities				0.7		65,277

India 1.7%
Reliance Industries Ltd. GDR (b)		3,120		0.8		78,499
Other Securities				0.9		90,105

				1.7		168,604

Indonesia 0.7%
Other Securities				0.7		68,711

Malaysia 1.7%
Other Securities				1.7		166,972

Mexico 3.8%
America Movil S.A.B. de C.V., Series L		108,400		1.1		104,405
Cemex S.A.B. de C.V., Series CPO *		74,800		0.9		84,985
Other Securities				1.8		179,577

				3.8		368,967

Philippines 0.0%
Other Securities				0.0		4,194

Poland 2.1%
Other Securities				2.1		207,765

Republic of Korea 21.1%
Hyundai Heavy Industries Co., Ltd.		260		0.5		53,286
Hyundai Motor Co.		576		1.3		129,205
Korea Electric Power Corp. *		2,480		0.7		68,588
LG Corp.		2,140		1.3		129,165
LG Display Co., Ltd. *		1,920		0.5		50,679
LG Electronics, Inc.		1,400		0.9		91,311
POSCO		520		1.5		151,074
Samsung Electronics Co., Ltd.		313		3.9		385,734
Shinhan Financial Group Co., Ltd.		1,760		0.7		64,848
SK Holdings Co., Ltd.		500		0.9		84,230
SK Innovation Co., Ltd.		424		0.5		53,475
SK Telecom Co., Ltd.		328		0.7		65,449
Other Securities				7.7		746,572

				21.1		2,073,616

Russia 14.1%
Gazprom OAO		99,600		4.0		393,400
LUKOIL OAO		7,439		4.4		429,904

48 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		% of Net		Value
Security	of Shares		Assets		($)
MMC Norilsk Nickel OJSC		452		0.6		59,271
Mobile TeleSystems OJSC ADR *		3,000		0.6		63,480
Rosneft OJSC GDR - Reg’d		7,400		0.6		54,390
Sberbank of Russia		20,400		0.5		54,003
Surgutneftegas OAO		186,000		1.5		145,933
Tatneft OAO		9,000		0.6		56,427
Other Securities				1.3		124,287

				14.1		1,381,095

South Africa 7.2%
MTN Group Ltd.		6,000		1.1		110,058
Sasol Ltd.		2,800		1.3		131,737
Other Securities				4.8		463,231

				7.2		705,026

Taiwan 13.7%
AU Optronics Corp. *		133,000		0.5		52,445
China Steel Corp.		68,000		0.6		57,491
Chunghwa Telecom Co., Ltd.		17,500		0.6		55,323
Formosa Chemicals & Fibre Corp.		26,000		0.7		67,510
Formosa Plastics Corp.		21,000		0.5		52,352
Hon Hai Precision Industry Co., Ltd.		47,000		1.3		127,534
Nan Ya Plastics Corp.		28,000		0.6		54,831
Taiwan Semiconductor Manufacturing Co., Ltd.		53,000		1.8		177,998
Other Securities				7.1		704,297

				13.7		1,349,781

Thailand 1.1%
Other Securities				1.1		105,915

Turkey 1.1%
Other Securities				1.1		110,855

Total Common Stock
(Cost $8,859,346)						8,778,092




Other Investment Companies 1.4% of net assets

India 1.2%

Equity Funds 1.2%
WisdomTree India Earnings Fund		5,760		0.8		79,949
Other Securities				0.4		34,794

				1.2		114,743

United States 0.2%

Money Market Fund 0.2%
Other Securities				0.2		24,233

Total Other Investment Companies
(Cost $147,796)						138,976




Preferred Stock 9.2% of net assets

Brazil 6.9%
Banco Bradesco S.A.		5,200		0.6		60,614
Itau Unibanco Holding S.A.		8,200		1.0		100,034
Petroleo Brasileiro S.A.		23,200		1.7		163,958
Vale S.A.		8,600		1.1		112,510
Other Securities				2.5		248,372

				6.9		685,488

Colombia 0.1%
Other Securities				0.1		8,717

Republic of Korea 0.8%
Other Securities				0.8		77,988

Russia 1.4%
AK Transneft OAO		46		1.1		105,858
Other Securities				0.3		31,539

				1.4		137,397

Total Preferred Stock
(Cost $935,145)						909,590




Rights 0.0% of net assets

China 0.0%
Other Securities				0.0		257

Total Rights
(Cost $—)						257



End of Investments.

At 08/31/13, the tax basis cost of the fund’s investments was $9,942,287 and the unrealized appreciation and depreciation were $119,964 and ($235,336), respectively, with a net unrealized depreciation of ($115,372).

For the following notes, please refer to complete schedule of holdings.


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(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 $78,499 or 0.8% of net assets.
(c)		The rate shown is the 7-day yield.


ADR —		American Depositary Receipt
ETF —		Exchange Traded Fund
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered

See financial notes 49

Schwab Fundamental Index 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. Mid-Cap ETF
Schwab Fundamental U.S. Broad Market Index ETF		Schwab U.S. Small-Cap ETF
Schwab Fundamental U.S. Large Company Index ETF		Schwab U.S. Dividend Equity ETF
Schwab Fundamental U.S. Small Company Index ETF		Schwab U.S. REIT ETF
Schwab Fundamental International Large Company Index ETF		Schwab International Equity ETF
Schwab Fundamental International Small Company Index ETF		Schwab International Small-Cap Equity ETF
Schwab Fundamental Emerging Markets Large Company Index ETF		Schwab Emerging Markets Equity 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 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).

The funds commenced operations on August 14, 2013.

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”). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the Securities Exchange Commission (“SEC”).

(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: Traded securities are 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

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


		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 Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.


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

	•	Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (ETFs) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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 and ETFs. Investments in mutual funds are valued daily at their NAVs, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which are classified as Level 1 prices.

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

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

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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 August 31, 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 governments, 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 daily. The lending agent provides the fund with indemnification against borrower default. The fund bears the risk of loss with respect to the investment of cash collateral. 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. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the borrower, and is allocated between the fund and the lending agent.

As of August 31, 2013, the funds did not have any securities on loan.

(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 withholding 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:

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. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(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 make distributions from net investment income quarterly and from 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) 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 August 31, 2013, if any, are reflected in the funds’ Statements of Assets and Liabilities.

(j) 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.

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.

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.

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

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. Mid-cap stocks tend to go in and out of favor based on market and economic conditions. Stocks of mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. 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.

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. To the extent a fund’s investments in a single country or a limited number of countries represent a larger percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political and social conditions in those countries and the fund may be subject to increased price volatility.

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. Such countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. 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.

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 certain 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 their respective benchmark index.

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.

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

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 the fund’s NAV, there may be times when the market price and the NAV vary significantly. Investors may pay more than NAV when they buy shares of 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 the 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 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:

Schwab

Fundamental

International

Emerging

U.S. Broad

U.S. Large

U.S. Small

Large

Small

Markets Large

Market

Company

Index ETF

0.32%

0.46%

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

Realized

Dividends

of Shares

Market

Gain (Loss)

Received

Held at

Gross

Held at

Value at

8/14/13(a) to

Fund

8/14/13(a)

Purchases

Sales

8/31/13

Schwab Fundamental U.S. Broad Market Index ETF

—

399

—

399

$8,331

$—

Schwab Fundamental U.S. Large Company Index ETF

—

315

—

315

6,577

—


(a)		Commencement of operations.

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 to be charged on a loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

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.

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 August 31, 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 Fundamental U.S. Broad Market Index ETF		$170,052		$44,230
Schwab Fundamental U.S. Large Company Index ETF		201,531		105,118
Schwab Fundamental U.S. Small Company Index ETF		235,817		124,242
Schwab Fundamental International Large Company Index ETF		10,208,558		—
Schwab Fundamental International Small Company Index ETF		5,550,520		—
Schwab Fundamental Emerging Markets Large Company Index ETF		8,429,972		50,896

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 are subject to a standard creation transaction fee and a standard redemption transaction fee paid to the custodian to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Purchasers and redeemers of Creation Units for cash are subject to an additional variable charge paid to the fund that will offset the transaction costs to the fund of buying or selling portfolio securities. In addition, purchasers and redeemers of shares in Creation Units are responsible for payment of the costs of transferring securities

Schwab Fundamental Index ETFs

Financial Notes, unaudited (continued)

9. In-Kind Transactions (continued):

to or out of the fund. From time to time, the Adviser may cover the cost of any transaction fees when believed to be in the best interests of the fund.

The in-kind transactions for the period ended August 31, 2013 were as follows:


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

Schwab Fundamental U.S. Broad Market Index ETF		$8,471,600		$—
Schwab Fundamental U.S. Large Company Index ETF		6,077,140		—
Schwab Fundamental U.S. Small Company Index ETF		6,088,073		—
Schwab Fundamental International Large Company Index ETF		2,246,339		—
Schwab Fundamental International Small Company Index ETF		1,930,798		—
Schwab Fundamental Emerging Markets Large Company Index ETF		1,544,534		—

For the period ended August 31, 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.

10. Subsequent Events:

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

Investment Advisory Agreement Approval

The Investment Company Act of 1940 (the “1940 Act”) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.

Initial Approval of Investment Advisory Agreement

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) called and held a meeting on February 13, 2013, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (“CSIM”) as investment adviser to Schwab Fundamental U.S. Broad Market Index ETF, Schwab Fundamental U.S. Large Company Index ETF, Schwab Fundamental U.S. Small Company Index ETF, Schwab Fundamental International Large Company Index ETF, Schwab Fundamental International Small Company Index ETF, and Schwab Fundamental Emerging Markets Large Company Index ETF (the “Funds”) under the investment advisory agreement between Schwab Strategic Trust (the “Trust’) and CSIM (the “Agreement”). In preparation for the meeting, the Board requested and reviewed a variety of materials provided by CSIM with respect to the services to be provided to the Funds under the Agreement. In recognition of the fact that the Funds had not yet commenced operations, the Board also considered information provided by CSIM in connection with the Board’s consideration of approval of the investment advisory agreement with respect to the other funds within the Trust. The Board also took into account the detailed information about other funds within the Trust that the Board reviews during the course of each year, including information that relates to fund operations and fund performance. The Independent Trustees met in executive session outside the presence of fund management and participated in question and answer sessions with representatives of CSIM.

The Board, including a majority of the Independent Trustees approved the Agreement with respect to the Funds. The Board’s approval was based on consideration and evaluation of a variety of specific factors discussed at this meeting, including:


1.	the nature, extent and quality of the services to be provided to the Funds under the Agreement, including the resources of CSIM and its affiliates to be dedicated to the Funds;

2.	CSIM’s investment performance in managing other funds having relevant investment objectives and strategies;

3.	each Fund’s estimated expenses and how those expenses compared to those of certain other comparable exchange-traded funds;

4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to management of other funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and

5.	the extent to which economies of scale would be realized as the Funds grow and whether fee levels in the Agreement relating to the Funds reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services to be provided by CSIM to the Funds and the resources of CSIM and its affiliates will dedicate to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’s personnel, experience, track record and compliance program. The Trustees also considered the fact that Schwab’s extensive branch network, Internet access, investment and research tools, telephone services, and array of account features may be expected to benefit the Funds and their shareholders. The Trustees also considered Schwab’s excellent reputation as a full service brokerage firm and its overall financial condition. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services to be provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds supported approval of the Agreement with respect to the Funds.

Performance. With regard to Fund performance, since the Funds had not commenced operations and therefore did not have any performance of its own, the Board considered performance of other funds having comparable investment objectives in determining whether to approve the Agreement. The Trustees also considered both risk and shareholder risk expectations for the Funds and the appropriateness of the benchmark that would be used to compare the performance of the Funds. Following such evaluation the Board concluded, within the context of its full deliberations, that the performance of CSIM supported approval of the Agreement with respect to the Funds.

Fund Expenses. With respect to the Funds’ expenses, the Trustees considered the rate of compensation called for by the Agreement, and each Fund’s estimated net operating expense ratio in comparison to those of other comparable

exchange-traded funds. The Board evaluated each Fund’s unitary fee through review of comparative information with respect to fees paid by similar exchange-traded funds tracking equity indexes. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Funds are reasonable and supported approval of the Agreement with respect to the Funds.

Profitability. With regard to profitability, the Trustees considered the compensation flowing to CSIM and its affiliates directly or indirectly. The Trustees also considered any other benefits derived by CSIM from its relationship with the Funds, such as whether, by virtue of its management of the Funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the varied levels of compensation and profitability under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the Funds by CSIM and its affiliates. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM, albeit uncertain, is reasonable and supported approval of the Agreement with respect to the Funds.

Economies of Scale. Recognizing that the Funds had not yet commenced operations and had no assets, the Trustees considered the possible development of any economies of scale and whether those could be expected to be passed along to the Funds’ shareholders through various efficiencies that may result from increases in the Funds’ assets. The Board determined that such economies of scale will be shared by way of the relatively low advisory fee and unitary fee structure of the Funds, although the Board will continue to monitor fees as the Funds grow in size and assess whether breakpoints may be warranted. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Funds may be expected to obtain reasonable benefit from economies of scale if such economies develop.

In the course of their deliberations, the Trustees did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously approved the Agreement as it relates to the Funds and concluded that the compensation under the Agreement relating to the Funds is fair and reasonable in light of such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.

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 99 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).	23	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).	23	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).	23	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.	99	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 Chief Legal Officer and Secretary (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 Schwab ETF’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

144A securities These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.

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 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.

European Depositary Receipt (EDR) A negotiable security (receipt) that is issued by a European bank, and that represents shares of foreign-based corporations.

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.

Global Depositary Receipt (GDR) A negotiable security (receipt) that is issued by a foreign bank, and that represents shares of foreign-based corporations.

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.

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.

Schwab ETFs^tm are designed to be low-cost, diversified investments. Each fund follows broad market indices and provides exposure to specific segments of the market, making each an 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^tm

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

Fundamental Index* ETFs

Schwab Fundamental U.S. Broad Market Index ETF

Schwab Fundamental U.S. Large Company Index ETF

Schwab Fundamental U.S. Small Company Index ETF

Schwab Fundamental International Large Company Index ETF

Schwab Fundamental International Small Company Index ETF

Schwab Fundamental Emerging Markets Large Company Index ETF


*		FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

Performance at a Glance


Total Return for the 6 Months Ended August 31, 2013

Schwab U.S. REIT ETF^tm (Ticker Symbol: SCHH)


Market Price Return¹			-5.18%
NAV Return¹			-4.93%
Dow Jones U.S. Select REIT Index			-4.88%
ETF Category: Morningstar Real Estate²			-6.73%


Performance Details			page 6

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

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 CSIM. The “Dow Jones U.S. U.S. Select REIT 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. REIT 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.


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. REIT ETF

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc. and the fund 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. REIT ETF. This fund is designed to track the performance of the Dow Jones U.S. Select REIT Index, while also providing the benefits of an ETF, including transparency, trading flexibility, and potential tax efficiency.

For the six months ended August 31, 2013, the fund’s performance was closely aligned with the -4.9% return for the Dow Jones U.S. Select REIT Index. The backdrop for this performance included healthy overall returns for U.S. REITs through mid-May, as rising occupancy rates, solid operating results among many sub-industries, and improving underlying property fundamentals supported the market’s performance. However, with the U.S. economy generally improving, the Federal Reserve revealed that it was starting to consider “tapering” some of its stimulative policies. Bond yields and financial market volatility rose in response, while income-oriented stocks like U.S. REITs erased their gains from earlier in the report period.

Amid this environment, the performance of U.S. REITs within the Dow Jones U.S. Select REIT Index varied widely from one sub-industry to another. For example, Lodging and Self-Storage REITs were some of the better performers and generated overall returns of more than 4%. By comparison, Health Care REITs were some of the worst performers, returning approximately -10%.

Asset Class Performance Comparison % returns during the six months ended 8/31/2013

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

		−4.88%		Dow Jones U.S. Select REIT Index: measures U.S. real estate investment trusts (REITs)

		3.71%		MSCI EAFE^® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		−2.61%		Barclays U.S. Aggregate Bond Index: measures the U.S. bond market

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. REIT ETF 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 fund. 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 fund. 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 fund. 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 and 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. REIT ETF 5

Schwab U.S. REIT ETF™

Performance and Fund Facts as of 08/31/13

Average Annual Total Returns¹


	6 Months			1 Year			Since Inception


Fund: Schwab U.S. REIT ETF^tm (1/13/11)
Market Price Return²		-5.18	%		-0.95	%	9.35%
NAV Return²		-4.93	%		-0.65	%	9.44%
Dow Jones U.S. Select REIT Index		-4.88	%		-0.54	%	9.60%
ETF Category: Morningstar Real Estate³		-6.73	%		0.14	%	8.69%

Fund Expense Ratio⁴: 0.07%

Statistics


Number of Holdings			86
Weighted Average Market Cap ($ x 1,000,000)			$14,529
Price/Earnings Ratio (P/E)			47.7
Price/Book Ratio (P/B)			2.2
Portfolio Turnover Rate^5,6			8%

Sector Weightings % of Investments


Specialized REITs			28.7%
Retail REITs			25.6%
Residential REITs			18.0%
Office REITs			15.1%
Diversified REITs			6.9%
Industrial REITs			5.5%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets⁷


Simon Property Group, Inc.			10.9%
Public Storage			5.3%
HCP, Inc.			4.4%
Ventas, Inc.			4.4%
ProLogis, Inc.			4.2%
Health Care REIT, Inc.			4.2%
Equity Residential			4.0%
Boston Properties, Inc.			3.7%
AvalonBay Communities, Inc.			3.6%
Vornado Realty Trust			3.3%
Total			48.0%

Since ETFs are baskets of securities that trade on a stock exchange, ETF performance must be shown based on both a market price and NAV basis.

Investing in REITs may pose additional risks such as real estate industry risk, interest rate risk and liquidity risk. The Schwab U.S. REIT ETF is non-diversified and may invest in securities of relatively few issuers. As a result, the fund may experience increased 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 “The Dow Jones U.S. Select REIT 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. REIT 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.

6 Schwab U.S. REIT ETF

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2013 and held through August 31, 2013.

Actual Return line in the table below provides 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 the fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return line in the table below provides information about hypothetical account values and hypothetical expenses based on the 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. Therefore, the hypothetical return line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 3/1/13		at 8/31/13		3/1/13–8/31/13

Schwab U.S. REIT ETF^tm
Actual Return		0.07%	$	1,000.00	$	950.70	$	0.34
Hypothetical 5% Return		0.07%	$	1,000.00	$	1,024.85	$	0.36


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²		Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days of the period, and divided by 365 days of the fiscal year.

Schwab U.S. REIT ETF 7

Schwab U.S. REIT ETF™

Financial Statements

Financial Highlights


	3/1/13–			3/1/12–			3/1/11–			1/12/11¹–
	8/31/13*			2/28/13			2/29/12			2/28/11


Per-Share Data ($)

Net asset value at beginning of period		31.96			28.30			27.28			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.54			0.72			0.65			0.06
Net realized and unrealized gains (losses)		(2.10	)		3.71			0.98			2.22

Total from investment operations		(1.56	)		4.43			1.63			2.28
Less distributions:
Distributions from net investment income		(0.34	)		(0.77	)		(0.61	)		—

Net asset value at end of period		30.06			31.96			28.30			27.28

Total return (%)		(4.93	)²		15.83			6.15			9.12	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.07	³		0.10	⁴		0.13			0.13	³
Gross operating expenses		0.07	³		0.10	⁴		0.13			0.13	³
Net investment income (loss)		3.25	³		2.43			2.50			3.82	³
Portfolio turnover rate⁵		8	²		7			5			—	²
Net assets, end of period ($ x 1,000)		533,537			466,567			277,370			69,566

* 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.

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

8 See financial notes

Schwab U.S. REIT ETF

Portfolio Holdings as of August 31, 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

($)

.8%

Common Stock

549,644,208

532,139,566

.2%

Other Investment Companies

1,196,210

1,192,997

100

.0%

Total Investments

550,840,418

533,332,563

.0%

Other Assets and
Liabilities, Net

204,885

100

.0%

Net Assets

533,537,448


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Diversified REITs 6.9%
Cousins Properties, Inc.		213,710		2,122,140
Duke Realty Corp.		412,510		6,018,521
First Potomac Realty Trust		74,283		924,081
Liberty Property Trust		181,050		6,264,330
PS Business Parks, Inc.		23,075		1,676,860
Vornado Realty Trust		217,615		17,692,099
Washington REIT		85,200		2,075,472

				36,773,503

Industrial REITs 5.5%
DCT Industrial Trust, Inc.		398,665		2,667,069
EastGroup Properties, Inc.		38,340		2,154,708
First Industrial Realty Trust, Inc.		124,605		1,885,274
Prologis, Inc.		637,225		22,455,809

				29,162,860

Office REITs 15.1%
Alexandria Real Estate Equities, Inc.		89,815		5,538,891
BioMed Realty Trust, Inc.		239,625		4,411,496
Boston Properties, Inc.		194,185		19,903,962
Brandywine Realty Trust		200,220		2,566,820
CommonWealth REIT		150,520		3,695,266
Corporate Office Properties Trust		109,340		2,490,765
Digital Realty Trust, Inc.		164,365		9,138,694
Douglas Emmett, Inc.		170,755		3,944,441
DuPont Fabros Technology, Inc.		82,005		1,868,894
Franklin Street Properties Corp.		113,245		1,379,324
Highwoods Properties, Inc.		113,955		3,849,400
Kilroy Realty Corp.		96,915		4,728,483
Mack-Cali Realty Corp.		107,210		2,315,736
Parkway Properties, Inc.		53,605		876,442
Piedmont Office Realty Trust, Inc., Class A		213,355		3,665,439
SL Green Realty Corp.		117,150		10,214,309

				80,588,362

Residential REITs 18.0%
American Campus Communities, Inc.		133,480		4,446,219
Apartment Investment & Management Co., Class A		187,440		5,160,223
Associated Estates Realty Corp.		64,965		894,568
AvalonBay Communities, Inc.		155,490		19,265,211
BRE Properties, Inc.		99,045		4,753,170
Camden Property Trust		108,630		6,712,248
Colonial Properties Trust		105,790		2,336,901
Education Realty Trust, Inc.		146,260		1,256,373
Equity Lifestyle Properties, Inc.		99,755		3,466,486
Equity Residential		410,025		21,276,197
Essex Property Trust, Inc.		48,635		6,969,882
Home Properties, Inc.		71,355		4,117,184
Mid-America Apartment Communities, Inc.		55,025		3,392,842
Post Properties, Inc.		69,580		3,147,103
Sun Communities, Inc.		41,890		1,800,013
UDR, Inc.		321,275		7,257,602

				96,252,222

Retail REITs 25.6%
Acadia Realty Trust		69,935		1,631,583
CBL & Associates Properties, Inc.		210,160		4,035,072
Cedar Realty Trust, Inc.		73,840		360,339
DDR Corp.		317,725		4,931,092
Equity One, Inc.		78,810		1,675,501
Federal Realty Investment Trust		83,425		8,118,087
General Growth Properties, Inc.		576,520		11,057,654
Glimcher Realty Trust		183,890		1,820,511
Inland Real Estate Corp.		110,405		1,083,073
Kimco Realty Corp.		522,915		10,473,987
Kite Realty Group Trust		114,310		659,569
Pennsylvania REIT		79,875		1,481,681
Ramco-Gershenson Properties Trust		77,745		1,125,748
Regency Centers Corp.		117,505		5,587,363
Rouse Properties, Inc.		29,315		543,500
Saul Centers, Inc.		16,386		711,316
Simon Property Group, Inc.		397,517		57,890,401
Tanger Factory Outlet Centers		120,345		3,712,643
Taubman Centers, Inc.		81,295		5,480,096
The Macerich Co.		175,725		9,889,803
Weingarten Realty Investors		142,710		4,097,204

				136,366,223

Specialized REITs 28.7%
Ashford Hospitality Trust Inc.		91,945		1,060,126
CubeSmart		156,555		2,606,641
DiamondRock Hospitality Co.		248,855		2,411,405
Extra Space Storage, Inc.		133,125		5,488,744
FelCor Lodging Trust, Inc. *		143,779		792,222
HCP, Inc.		581,490		23,684,088
Health Care REIT, Inc.		363,875		22,356,480
Healthcare Realty Trust, Inc.		121,765		2,738,495
Hersha Hospitality Trust		224,999		1,178,995
Hospitality Properties Trust		179,630		4,853,602

See financial notes 9

Schwab U.S. REIT ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Host Hotels & Resorts, Inc.		952,820		16,226,524
LaSalle Hotel Properties		121,765		3,230,425
LTC Properties, Inc.		43,665		1,547,051
Pebblebrook Hotel Trust		78,100		1,999,360
Public Storage		184,600		28,182,882
Senior Housing Properties Trust		241,400		5,491,850
Sovran Self Storage, Inc.		40,115		2,658,421
Sunstone Hotel Investors, Inc. *		207,320		2,494,060
Universal Health Realty Income Trust		16,330		654,996
Ventas, Inc.		374,880		23,340,029

				152,996,396

Total Common Stock
(Cost $549,644,208)				532,139,566




Other Investment Companies 0.2% of net assets

Equity Fund 0.0%
SPDR Dow Jones REIT ETF		2,000		142,400

Money Market Fund 0.2%
State Street Institutional U.S. Government Money Market Fund 0.00% (a)		1,050,597		1,050,597

Total Other Investment Companies
(Cost $1,196,210)				1,192,997



End of Investments

At 08/31/13, the tax basis cost of the fund’s investments was $551,336,165 and the unrealized appreciation and depreciation were $6,913,252 and ($24,916,854), respectively, with a net unrealized depreciation of ($18,003,602).


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of August 31, 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

$532,139,566

$—

$532,139,566

Other Investment Companies¹

1,192,997

—

1,192,997

Total

$533,332,563

$—

$533,332,563


¹		As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended August 31, 2013.

10 See financial notes

Schwab U.S. REIT ETF

Statements of

Changes in Net Assets

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



Operations


3/1/13-8/31/13				3/1/12-2/28/13
Net investment income		$9,114,251			$8,649,882
Net realized gains		3,235,748			13,507,377
Net unrealized gains (losses)	+	(49,513,470	)		26,002,721

Net increase (decrease) in net assets resulting from operations		(37,163,471	)		48,159,980

Distributions to Shareholders

Distributions from net investment income		($5,431,501	)		($8,847,056	)

Transactions in Fund Shares

3/1/13-8/31/13

3/1/12-2/28/13

SHARES

VALUE

SHARES

VALUE

Shares sold

4,550,000

$154,228,462

8,700,000

$266,668,088

Shares redeemed

(1,400,001

)

(44,662,877

)

(3,900,000

)

(116,783,827

)

Net transactions in fund shares

3,149,999

$109,565,585

4,800,000

$149,884,261

Shares Outstanding and Net Assets

3/1/13-8/31/13

3/1/12-2/28/13

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

14,600,001

$466,566,835

9,800,001

$277,369,650

Total increase

3,149,999

66,970,613

4,800,000

189,197,185

End of period

17,750,000

$533,537,448

14,600,001

$466,566,835

Net investment income not yet distributed

$4,476,205

$793,455

See financial notes 13

Schwab U.S. REIT ETF

Financial Notes, unaudited

1. Business Structure of the Funds

Schwab U.S. REIT ETF 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 fund discussed in this report, which is highlighted:



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

The fund issues and redeems shares at its 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 fund 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).

The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the 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 fund uses in its preparation of financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the Securities Exchange Commission (“SEC”).

(a) Security Valuation:

Under procedures approved by the fund’s 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 fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

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


	•	Securities traded on an exchange or over-the-counter: Traded securities are 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 the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


		determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.


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

	•	Underlying funds: Mutual funds are valued at their respective NAVs. Exchange traded funds (ETFs) traded on a recognized securities exchange are valued at the last reported sale price that day or the official closing price, if applicable.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and ETFs. Investments in mutual funds are valued daily at their NAV, and investments in ETFs are valued daily at the last reported sale price or the official closing price, which are classified as Level 1 prices.

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

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

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

The levels associated with valuing the fund’s investments as of August 31, 2013 are disclosed in the Portfolio Holdings.

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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

As of August 31, 2013, the fund did not have any securities on loan.

(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) Real Estate Investment Trusts:

The fund invests in real estate investment trusts (REITs) which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital or realized gains, are recorded as a reduction to the cost of the individual REITs or as realized gains on investments, respectively.

(e) 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 fund records certain foreign security dividends on the day it learns of the ex-dividend date. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

(f) 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 the 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 the fund are charged directly to the fund.

(g) Distributions to Shareholders:

The fund makes distributions from net investment income quarterly and from net realized capital gains, if any, once a year.

(h) Accounting Estimates:

(i) Federal Income Taxes:

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

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(j) Indemnification:

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

3. Risk Factors:

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

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

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

The fund will invest in large-cap segments of the U.S. stock market. 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 — the fund’s large-cap holdings could reduce performance.

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

In addition to the risks associated with investing in securities of real estate companies and real estate related companies, REITs are subject to certain additional risks. Equity REITs may be affected by changes in the value of the underlying properties owned by the trusts. Further, REITs are dependent upon specialized management skills and may have their investments in relatively few properties, or in a small geographic area or a single property type. Failure of a company to qualify as a REIT under federal tax law may have adverse consequences to the fund. In addition, REITs have their own expenses, and the fund will bear a proportionate share of those expenses.

The fund has a policy of concentrating its investments in real estate companies and companies related to the real estate industry. As such, the fund is subject to risks associated with the direct ownership of real estate securities and an investment in the fund will be closely linked to the performance of the real estate markets. These risks include, among others, declines in the value of real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds or other limits to accessing the credit or capital markets; defaults by borrowers or tenants, particularly during an economic downturn; and changes in interest rates.

As an index fund, the 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 the 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.

The fund is non-diversified, which means that it may invest in securities of relatively few issuers. As a result, a single adverse economic, political or regulatory occurrence may have a more significant effect on the fund’s investments, and the fund may experience increased volatility.

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

The fund may invest in derivative instruments. The principal types of derivatives the 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. The 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. The 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 the fund to realize higher amounts of short-term capital gain. These risks could cause the fund to lose more than the principal amount invested.

To the extent that the fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class (including the real estate industry, as described above), 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.

A particular investment may be difficult to purchase or sell. The 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.

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

An investment in the 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 fund’s prospectus for a more complete description of the principal risks of investing in the fund.

4. Affiliates and Affiliated Transactions:

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

For its advisory services to the fund, CSIM is entitled to receive an annual fee equal to 0.07% of the fund’s average daily net assets. Prior to September 20, 2012, the rate was 0.13%.

Certain Schwab funds may own shares of other Schwab Funds. As of August 31, 2013, the percentage of outstanding shares of the fund owned by other Schwab funds is less than 1%, for each fund.

Pursuant to an exemptive order issued by the SEC, the fund 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 to be charged on a 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 fund had no interfund borrowing or lending activity during the period.

Schwab U.S. REIT ETF

Financial Notes, unaudited (continued)

5. Other Service Providers:

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

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

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

6. Board of Trustees:

7. Borrowing from Banks:

The fund has access to custodian overdraft facilities and to an uncommitted line of credit of $100 million with State Street. The fund pays interest on the amounts it borrows at rates that are negotiated periodically.

There were no borrowings from the line of credit by the fund during the period. However, the fund may have utilized its 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 August 31, 2013, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:

9. In-Kind Transactions:

The in-kind transactions for the period ended August 31, 2013 were as follows:

For the period ended August 31, 2013, the fund realized net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the fund 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 fund’s tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended August 31, 2013 are disclosed in the fund’s Statement of Operations.

Schwab U.S. REIT ETF

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 February 28, 2013, the fund had capital loss carryforwards of $62,851 with no expiration*.


*		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 February 28, 2013, the fund had capital losses deferred in the amount of $268,537.

As of February 28, 2013, 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 fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended February 28, 2013, the fund did not incur any interest or penalties.

11. Subsequent Events:

Trustees and Officers

The tables below give information about the trustees and officers for the Schwab Strategic Trust which includes the fund 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 99 funds.

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).	23	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).	23	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).	23	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.	99	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 Chief Legal Officer and Secretary (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 Schwab ETF’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

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.

Dow Jones U.S. Select REIT Index A float-adjusted market capitalization weighted index comprised of real estate investment trusts (REITs).

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

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.

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 this fund), 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.

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.

real estate investment trust (REIT) A real estate company that owns and commonly operates income producing commercial and/or residential real estate.

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

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.

Proxy Voting Policies, Procedures and Results

Schwab ETFs^tm

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

Fundamental Index* ETFs

Schwab Fundamental U.S. Broad Market Index ETF

Schwab Fundamental U.S. Large Company Index ETF

Schwab Fundamental U.S. Small Company Index ETF

Schwab Fundamental International Large Company Index ETF

Schwab Fundamental International Small Company Index ETF

Schwab Fundamental Emerging Markets Large Company Index ETF


*		FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings as of August 31, 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

($)

.8%

Common Stock

8,591,321

8,408,700

.1%

Other Investment Companies

8,126

8,065

.9%

Total Investments

8,599,447

8,416,765

.1%

Other Assets and Liabilities, Net

6,581

100

.0%

Net Assets

8,423,346


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.1%
BorgWarner, Inc.		42		4,056
Cooper Tire & Rubber Co.		35		1,118
Dana Holding Corp.		91		1,907
Delphi Automotive plc		154		8,473
Drew Industries, Inc.		14		587
Ford Motor Co.		1,134		18,360
General Motors Co. *		378		12,882
Gentex Corp.		56		1,262
Harley-Davidson, Inc.		119		7,138
Johnson Controls, Inc.		448		18,157
Lear Corp.		70		4,813
Superior Industries International, Inc.		21		366
Tenneco, Inc. *		21		969
The Goodyear Tire & Rubber Co. *		203		4,084
Thor Industries, Inc.		42		2,152
TRW Automotive Holdings Corp. *		63		4,351
Visteon Corp. *		28		2,005

				92,680

Banks 2.7%
Associated Banc-Corp.		98		1,563
Astoria Financial Corp.		84		1,033
BancorpSouth, Inc.		49		950
Bank of Hawaii Corp.		28		1,442
BankUnited, Inc.		7		207
BB&T Corp.		357		12,124
BOK Financial Corp.		7		449
CapitalSource, Inc.		175		2,021
Capitol Federal Financial, Inc.		42		514
Cathay General Bancorp		28		617
CIT Group, Inc. *		49		2,346
City Holding Co.		7		286
City National Corp.		14		917
Comerica, Inc.		98		4,002
Commerce Bancshares, Inc.		28		1,209
Cullen/Frost Bankers, Inc.		21		1,488
CVB Financial Corp.		35		446
East West Bancorp, Inc.		28		818
F.N.B. Corp.		49		591
Fifth Third Bancorp		448		8,194
First Financial Bancorp		7		105
First Horizon National Corp.		133		1,471
First Midwest Bancorp, Inc.		35		526
First Niagara Financial Group, Inc.		98		990
First Republic Bank		14		620
FirstMerit Corp.		77		1,629
Fulton Financial Corp.		84		1,016
Glacier Bancorp, Inc.		28		661
Hancock Holding Co.		14		450
Hudson City Bancorp, Inc.		406		3,731
Huntington Bancshares, Inc.		406		3,345
International Bancshares Corp.		28		614
KeyCorp		602		7,025
M&T Bank Corp.		42		4,760
MB Financial, Inc.		21		567
NBT Bancorp, Inc.		14		300
New York Community Bancorp, Inc.		210		3,076
Northwest Bancshares, Inc.		28		374
Old National Bancorp		28		368
People’s United Financial, Inc.		112		1,593
Popular, Inc. *		105		3,261
Prosperity Bancshares, Inc.		7		419
Provident Financial Services, Inc.		35		566
Regions Financial Corp.		981		9,221
SunTrust Banks, Inc.		350		11,207
Susquehanna Bancshares, Inc.		49		618
SVB Financial Group *		7		580
Synovus Financial Corp.		637		2,032
TCF Financial Corp.		98		1,377
The PNC Financial Services Group, Inc.		197		14,237
Trustmark Corp.		28		696
U.S. Bancorp		721		26,050
UMB Financial Corp.		7		418
Umpqua Holdings Corp.		35		568
United Bankshares, Inc.		21		583
Valley National Bancorp		98		989
Washington Federal, Inc.		42		877
Webster Financial Corp.		28		741
Wells Fargo & Co.		1,779		73,081
Westamerica Bancorp		14		659
Wintrust Financial Corp.		7		277
Zions Bancorp		112		3,133

				226,028

Capital Goods 8.4%
3M Co.		294		33,392
A.O. Smith Corp.		21		883
AAR Corp.		42		1,054
Actuant Corp., Class A		28		1,000
Acuity Brands, Inc.		21		1,795
AECOM Technology Corp. *		77		2,243
Aegion Corp. *		21		449
AGCO Corp.		63		3,563
Aircastle Ltd.		49		799

See financial notes 1

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Albany International Corp., Class A		21		678
Alliant Techsystems, Inc.		28		2,709
AMETEK, Inc.		42		1,803
Apogee Enterprises, Inc.		21		586
Applied Industrial Technologies, Inc.		28		1,333
Armstrong World Industries, Inc. *		21		1,020
Astec Industries, Inc.		14		484
B/E Aerospace, Inc. *		21		1,432
Barnes Group, Inc.		28		876
Beacon Roofing Supply, Inc. *		21		763
Brady Corp., Class A		28		924
Briggs & Stratton Corp.		49		935
Carlisle Cos., Inc.		28		1,865
Caterpillar, Inc.		267		22,038
Chart Industries, Inc. *		7		799
Chicago Bridge & Iron Co. N.V.		35		2,094
CIRCOR International, Inc.		7		402
CLARCOR, Inc.		21		1,125
CNH Global N.V.		21		963
Crane Co.		21		1,206
Cubic Corp.		7		351
Cummins, Inc.		70		8,624
Curtiss-Wright Corp.		28		1,169
Danaher Corp.		127		8,321
Deere & Co.		154		12,881
Donaldson Co., Inc.		42		1,480
Dover Corp.		92		7,825
Dycom Industries, Inc. *		42		1,067
Eaton Corp. plc		154		9,751
EMCOR Group, Inc.		56		2,105
Emerson Electric Co.		399		24,088
Encore Wire Corp.		21		792
EnerSys, Inc.		21		1,077
EnPro Industries, Inc. *		7		399
ESCO Technologies, Inc.		7		215
Esterline Technologies Corp. *		14		1,068
Exelis, Inc.		322		4,737
Fastenal Co.		56		2,463
Flowserve Corp.		49		2,734
Fluor Corp.		140		8,880
Fortune Brands Home & Security, Inc.		21		774
Franklin Electric Co., Inc.		14		503
GATX Corp.		35		1,584
Generac Holdings, Inc.		7		277
General Cable Corp.		56		1,710
General Dynamics Corp.		252		20,979
General Electric Co.		4,858		112,414
Gibraltar Industries, Inc. *		28		361
Graco, Inc.		21		1,459
GrafTech International Ltd. *		77		602
Granite Construction, Inc.		42		1,189
Greenbrier Cos., Inc. *		14		316
H&E Equipment Services, Inc.		21		506
Harsco Corp.		98		2,306
HEICO Corp.		7		437
Hexcel Corp. *		21		747
Honeywell International, Inc.		295		23,473
Hubbell, Inc., Class B		21		2,129
Huntington Ingalls Industries, Inc.		35		2,216
IDEX Corp.		28		1,662
Illinois Tool Works, Inc.		190		13,579
Ingersoll-Rand plc		175		10,349
ITT Corp.		182		5,979
Jacobs Engineering Group, Inc. *		112		6,527
Joy Global, Inc.		49		2,407
Kaman Corp.		14		493
Kaydon Corp.		21		597
KBR, Inc.		119		3,553
Kennametal, Inc.		35		1,488
L-3 Communications Holdings, Inc.		134		12,104
Layne Christensen Co. *		28		532
Lennox International, Inc.		35		2,403
Lincoln Electric Holdings, Inc.		35		2,189
Lockheed Martin Corp.		217		26,565
Masco Corp.		301		5,695
MasTec, Inc. *		14		445
Meritor, Inc. *		98		730
Moog, Inc., Class A *		21		1,067
MRC Global, Inc. *		28		735
MSC Industrial Direct Co., Inc., Class A		14		1,064
Mueller Industries, Inc.		21		1,124
Mueller Water Products, Inc., Class A		112		846
National Presto Industries, Inc.		7		483
Navistar International Corp. *		49		1,679
Nordson Corp.		14		933
Northrop Grumman Corp.		316		29,157
Orbital Sciences Corp. *		42		729
Oshkosh Corp. *		70		3,144
Owens Corning *		70		2,621
PACCAR, Inc.		182		9,757
Pall Corp.		28		1,936
Parker Hannifin Corp.		84		8,396
Pentair Ltd. - Reg’d		49		2,945
Polypore International, Inc. *		7		299
Precision Castparts Corp.		35		7,393
Quanex Building Products Corp.		28		466
Quanta Services, Inc. *		77		2,013
Raven Industries, Inc.		14		409
Raytheon Co.		316		23,830
Regal-Beloit Corp.		14		892
Rockwell Automation, Inc.		42		4,084
Rockwell Collins, Inc.		70		4,954
Roper Industries, Inc.		14		1,732
Rush Enterprises, Inc., Class A *		28		701
Simpson Manufacturing Co., Inc.		21		657
Snap-On, Inc.		21		1,966
Spirit AeroSystems Holdings, Inc., Class A *		70		1,581
SPX Corp.		42		3,110
Stanley Black & Decker, Inc.		49		4,178
TAL International Group, Inc. *		14		599
Teledyne Technologies, Inc. *		14		1,080
Tennant Co.		7		360
Terex Corp. *		84		2,436
Textron, Inc.		168		4,526
The Babcock & Wilcox Co.		35		1,085
The Boeing Co.		259		26,915
The Manitowoc Co., Inc.		63		1,259
The Middleby Corp. *		5		930
The Toro Co.		28		1,479
Timken Co.		49		2,747
Titan International, Inc.		14		227
TransDigm Group, Inc.		14		1,918
Trinity Industries, Inc.		42		1,773

2 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Triumph Group, Inc.		14		1,008
Tutor Perini Corp. *		84		1,611
United Rentals, Inc. *		49		2,684
United Technologies Corp.		490		49,049
Universal Forest Products, Inc.		35		1,310
URS Corp.		91		4,506
Valmont Industries, Inc.		7		945
W.W. Grainger, Inc.		25		6,184
WABCO Holdings, Inc. *		21		1,638
Wabtec Corp.		21		1,229
Watsco, Inc.		14		1,257
Watts Water Technologies, Inc., Class A		14		725
WESCO International, Inc. *		35		2,582
Woodward, Inc.		21		810
Xylem, Inc.		77		1,908

				710,180

Commercial & Professional Services 1.1%
ABM Industries, Inc.		63		1,521
Cintas Corp.		70		3,343
Clean Harbors, Inc. *		14		796
Consolidated Graphics, Inc. *		14		749
Copart, Inc. *		35		1,112
Covanta Holding Corp.		56		1,183
Deluxe Corp.		28		1,102
Equifax, Inc.		42		2,482
FTI Consulting, Inc. *		28		936
G&K Services, Inc., Class A		14		720
Healthcare Services Group, Inc.		21		508
Herman Miller, Inc.		42		1,070
HNI Corp.		42		1,406
Huron Consulting Group, Inc. *		7		333
ICF International, Inc. *		14		460
IHS, Inc., Class A *		7		750
Insperity, Inc.		21		670
Interface, Inc.		21		371
Iron Mountain, Inc.		56		1,445
KAR Auction Services, Inc.		7		186
Kelly Services, Inc., Class A		77		1,401
Kforce, Inc.		28		456
Knoll, Inc.		28		426
Korn/Ferry International *		28		496
Manpowergroup, Inc.		148		9,598
McGrath Rentcorp		14		463
Mine Safety Appliances Co.		14		674
Navigant Consulting, Inc. *		49		669
Nielsen Holdings N.V.		35		1,208
Pitney Bowes, Inc.		287		4,684
Quad/Graphics, Inc.		35		1,097
R.R. Donnelley & Sons Co.		540		9,007
Republic Services, Inc.		126		4,096
Resources Connection, Inc.		49		600
Robert Half International, Inc.		112		3,950
Rollins, Inc.		14		347
Steelcase, Inc., Class A		91		1,321
Stericycle, Inc. *		14		1,576
Tetra Tech, Inc. *		28		638
The ADT Corp. *		21		836
The Brink’s Co.		56		1,447
The Corporate Executive Board Co.		14		908
The Dun & Bradstreet Corp.		28		2,785
Towers Watson & Co., Class A		14		1,152
TrueBlue, Inc. *		42		1,021
UniFirst Corp.		7		671
United Stationers, Inc.		63		2,504
Verisk Analytics, Inc., Class A *		28		1,741
Viad Corp.		21		474
Waste Connections, Inc.		28		1,186
Waste Management, Inc.		379		15,327

				93,902

Consumer Durables & Apparel 1.3%
Arctic Cat, Inc.		7		376
Blyth, Inc.		21		194
Brunswick Corp.		28		1,018
Callaway Golf Co.		91		630
Carter’s, Inc.		14		1,031
Coach, Inc.		112		5,915
Columbia Sportswear Co.		7		396
Crocs, Inc. *		28		377
D.R. Horton, Inc.		133		2,374
Deckers Outdoor Corp. *		14		822
Ethan Allen Interiors, Inc.		21		547
Fossil Group, Inc. *		14		1,626
G-III Apparel Group Ltd. *		7		321
Garmin Ltd.		70		2,854
Hanesbrands, Inc.		35		2,082
Harman International Industries, Inc.		42		2,689
Hasbro, Inc.		105		4,786
Helen of Troy Ltd. *		14		562
JAKKS Pacific, Inc.		42		218
Jarden Corp. *		49		2,104
KB Home		56		898
La-Z-Boy, Inc.		42		893
Leggett & Platt, Inc.		119		3,441
Lennar Corp., Class A		42		1,336
M.D.C Holdings, Inc.		14		390
Mattel, Inc.		140		5,670
Meritage Homes Corp. *		14		559
Mohawk Industries, Inc. *		35		4,112
NACCO Industries, Inc., Class A		7		389
Newell Rubbermaid, Inc.		147		3,719
NIKE, Inc., Class B		301		18,909
NVR, Inc. *		4		3,423
Polaris Industries, Inc.		14		1,529
PulteGroup, Inc.		84		1,293
PVH Corp.		14		1,802
Quiksilver, Inc. *		133		658
Ralph Lauren Corp.		21		3,474
Skechers U.S.A., Inc., Class A *		35		1,076
Steven Madden Ltd. *		7		378
Tempur Sealy International, Inc. *		35		1,348
The Jones Group, Inc.		140		2,062
The Ryland Group, Inc.		28		975
Toll Brothers, Inc. *		42		1,286
Tupperware Brands Corp.		21		1,696
Under Armour, Inc., Class A *		7		508
VF Corp.		35		6,552
Whirlpool Corp.		63		8,105
Wolverine World Wide, Inc.		28		1,575

				108,978

See financial notes 3

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Consumer Services 1.8%
Apollo Group, Inc., Class A *		175		3,250
Bally Technologies, Inc. *		14		1,010
Bob Evans Farms, Inc.		28		1,373
Boyd Gaming Corp. *		98		1,188
Brinker International, Inc.		77		3,079
Buffalo Wild Wings, Inc. *		7		727
Burger King Worldwide, Inc.		7		137
Caesars Entertainment Corp. *		119		2,555
Career Education Corp. *		294		770
Carnival Corp.		147		5,305
CEC Entertainment, Inc.		28		1,133
Chipotle Mexican Grill, Inc. *		4		1,633
Choice Hotels International, Inc.		7		269
Cracker Barrel Old Country Store, Inc.		21		2,067
Darden Restaurants, Inc.		105		4,852
DeVry, Inc.		42		1,260
DineEquity, Inc.		7		464
Domino’s Pizza, Inc.		28		1,720
H&R Block, Inc.		126		3,517
Hillenbrand, Inc.		28		693
Hyatt Hotels Corp., Class A *		14		608
International Game Technology		168		3,173
International Speedway Corp., Class A		21		651
ITT Educational Services, Inc. *		63		1,815
Jack in the Box, Inc. *		42		1,659
Las Vegas Sands Corp.		28		1,578
Life Time Fitness, Inc. *		14		700
Marriott International, Inc., Class A		112		4,479
Marriott Vacations Worldwide Corp. *		7		305
Matthews International Corp., Class A		21		775
McDonald’s Corp.		441		41,613
MGM Resorts International *		189		3,343
Outerwall, Inc. *		7		435
Panera Bread Co., Class A *		7		1,148
Papa John’s International, Inc. *		7		477
Penn National Gaming, Inc. *		28		1,472
Pinnacle Entertainment, Inc. *		28		663
Red Robin Gourmet Burgers, Inc. *		14		908
Regis Corp.		70		1,105
Royal Caribbean Cruises Ltd.		91		3,339
Ruby Tuesday, Inc. *		105		762
Service Corp. International		126		2,278
Six Flags Entertainment Corp.		14		462
Sonic Corp. *		77		1,229
Sotheby’s		21		968
Starbucks Corp.		140		9,873
Starwood Hotels & Resorts Worldwide, Inc.		91		5,819
Steiner Leisure Ltd. *		7		390
Stewart Enterprises, Inc., Class A		42		549
Strayer Education, Inc.		14		559
Texas Roadhouse, Inc.		28		696
The Cheesecake Factory, Inc.		35		1,462
The Wendy’s Co.		196		1,482
Vail Resorts, Inc.		14		952
Weight Watchers International, Inc.		21		755
WMS Industries, Inc. *		35		899
Wyndham Worldwide Corp.		63		3,740
Wynn Resorts Ltd.		28		3,949
Yum! Brands, Inc.		148		10,363

				154,435

Diversified Financials 7.2%
Affiliated Managers Group, Inc. *		7		1,220
American Capital Ltd. *		35		437
American Express Co.		379		27,254
Ameriprise Financial, Inc.		70		6,031
Ares Capital Corp.		42		738
Bank of America Corp.		9,835		138,870
Berkshire Hathaway, Inc., Class B *		498		55,388
BlackRock, Inc.		21		5,467
Capital One Financial Corp.		267		17,235
Cash America International, Inc.		14		599
CBOE Holdings, Inc.		14		642
Citigroup, Inc.		1,736		83,901
CME Group, Inc.		70		4,978
DFC Global Corp. *		7		79
Discover Financial Services		147		6,946
ETRADE Financial Corp.		119		1,671
Eaton Vance Corp.		49		1,889
EZCORP, Inc., Class A *		21		357
Federated Investors, Inc., Class B		77		2,091
First Cash Financial Services, Inc. *		7		387
Franklin Resources, Inc.		175		8,078
Greenhill & Co., Inc.		14		663
IntercontinentalExchange, Inc. *		7		1,258
Invesco Ltd.		126		3,825
Investment Technology Group, Inc. *		49		833
Janus Capital Group, Inc.		196		1,639
JPMorgan Chase & Co.		1,960		99,039
Lazard Ltd., Class A		21		744
Legg Mason, Inc.		133		4,325
Leucadia National Corp.		35		873
LPL Financial Holdings, Inc.		14		515
McGraw Hill Financial, Inc.		182		10,623
Moody’s Corp.		81		5,148
Morgan Stanley		595		15,327
MSCI, Inc. *		35		1,313
Nelnet, Inc., Class A		14		530
Northern Trust Corp.		70		3,841
NYSE Euronext		161		6,730
PHH Corp. *		105		2,191
Raymond James Financial, Inc.		28		1,171
SEI Investments Co.		56		1,667
SLM Corp.		168		4,030
State Street Corp.		133		8,874
Stifel Financial Corp. *		7		280
T. Rowe Price Group, Inc.		70		4,910
TD Ameritrade Holding Corp.		98		2,516
The Bank of New York Mellon Corp.		364		10,825
The Charles Schwab Corp. (a)		399		8,331
The Goldman Sachs Group, Inc.		238		36,207
The NASDAQ OMX Group, Inc.		42		1,254
Waddell & Reed Financial, Inc., Class A		28		1,333
World Acceptance Corp. *		7		600

				605,673

Energy 14.2%
Alpha Natural Resources, Inc. *		203		1,234

4 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Anadarko Petroleum Corp.		168		15,359
Apache Corp.		176		15,080
Arch Coal, Inc.		336		1,502
Atwood Oceanics, Inc. *		14		780
Baker Hughes, Inc.		273		12,692
Basic Energy Services, Inc. *		28		326
Berry Petroleum Co., Class A		14		576
Bill Barrett Corp. *		28		603
Bristow Group, Inc.		14		920
Cabot Oil & Gas Corp.		42		1,643
Cameron International Corp. *		70		3,975
CARBO Ceramics, Inc.		7		571
Chesapeake Energy Corp.		546		14,092
Chevron Corp.		1,561		187,991
Cimarex Energy Co.		28		2,347
Cloud Peak Energy, Inc. *		35		551
Comstock Resources, Inc.		28		409
Concho Resources, Inc. *		7		676
ConocoPhillips		2,234		148,114
CONSOL Energy, Inc.		77		2,405
Crosstex Energy, Inc.		28		546
Delek US Holdings, Inc.		14		348
Denbury Resources, Inc. *		84		1,452
Devon Energy Corp.		273		15,586
Diamond Offshore Drilling, Inc.		57		3,650
Dresser-Rand Group, Inc. *		28		1,706
Dril-Quip, Inc. *		7		714
Energen Corp.		35		2,321
Energy XXI Bermuda Ltd.		14		372
EOG Resources, Inc.		56		8,795
EQT Corp.		28		2,400
EXCO Resources, Inc.		84		612
Exterran Holdings, Inc. *		63		1,728
Exxon Mobil Corp.		3,976		346,548
FMC Technologies, Inc. *		56		3,003
Forest Oil Corp. *		196		1,090
Green Plains Renewable Energy, Inc. *		7		113
Gulfmark Offshore, Inc., Class A		7		322
Halliburton Co.		421		20,208
Helix Energy Solutions Group, Inc. *		70		1,752
Helmerich & Payne, Inc.		35		2,206
Hercules Offshore, Inc. *		112		806
Hess Corp.		308		23,054
HollyFrontier Corp.		49		2,179
Hornbeck Offshore Services, Inc. *		7		381
ION Geophysical Corp. *		49		235
Key Energy Services, Inc. *		154		1,027
Kinder Morgan, Inc.		98		3,717
Marathon Oil Corp.		1,030		35,463
Marathon Petroleum Corp.		260		18,853
Matrix Service Co. *		21		327
McDermott International, Inc. *		203		1,522
Murphy Oil Corp.		218		14,698
Nabors Industries Ltd.		322		4,959
National Oilwell Varco, Inc.		147		10,922
Newfield Exploration Co. *		91		2,168
Newpark Resources, Inc. *		42		467
Noble Energy, Inc.		84		5,160
Nordic American Tankers Ltd.		56		431
Occidental Petroleum Corp.		399		35,196
Oceaneering International, Inc.		28		2,172
Oil States International, Inc. *		21		1,874
Parker Drilling Co. *		126		723
Patterson-UTI Energy, Inc.		133		2,605
PDC Energy, Inc. *		7		402
Peabody Energy Corp.		182		3,130
Penn Virginia Corp. *		133		640
Phillips 66		932		53,217
Pioneer Energy Services Corp. *		49		331
Pioneer Natural Resources Co.		21		3,674
QEP Resources, Inc.		84		2,295
Quicksilver Resources, Inc. *		203		339
Range Resources Corp.		21		1,575
Rosetta Resources, Inc. *		7		326
Rowan Cos. plc, Class A *		56		1,983
SandRidge Energy, Inc. *		147		757
Schlumberger Ltd.		400		32,376
SEACOR Holdings, Inc.		28		2,326
Seadrill Ltd.		98		4,533
SemGroup Corp., Class A		28		1,482
Ship Finance International Ltd.		28		433
SM Energy Co.		21		1,435
Southwestern Energy Co. *		63		2,407
Spectra Energy Corp.		252		8,344
Stone Energy Corp. *		35		959
Superior Energy Services, Inc. *		70		1,719
Swift Energy Co. *		42		474
Targa Resources Corp.		14		953
Teekay Corp.		28		1,119
Tesoro Corp.		154		7,098
TETRA Technologies, Inc. *		77		905
The Williams Cos., Inc.		280		10,147
Tidewater, Inc.		35		1,889
Ultra Petroleum Corp. *		42		869
Unit Corp. *		28		1,289
Valero Energy Corp.		1,099		39,047
W&T Offshore, Inc.		35		541
Western Refining, Inc.		35		1,027
Whiting Petroleum Corp. *		28		1,413
Willbros Group, Inc. *		70		638
World Fuel Services Corp.		119		4,540
WPX Energy, Inc. *		238		4,441

				1,197,330

Food & Staples Retailing 4.0%
Casey’s General Stores, Inc.		35		2,308
Costco Wholesale Corp.		301		33,673
CVS Caremark Corp.		1,037		60,198
Harris Teeter Supermarkets, Inc.		35		1,720
PriceSmart, Inc.		7		602
Rite Aid Corp. *		434		1,502
Roundy’s, Inc.		49		414
Safeway, Inc.		840		21,756
SUPERVALU, Inc. *		2,338		16,763
Susser Holdings Corp. *		14		668
Sysco Corp.		511		16,362
The Andersons, Inc.		14		919
The Kroger Co.		749		27,413
The Pantry, Inc. *		98		1,118
United Natural Foods, Inc. *		28		1,698
Wal-Mart Stores, Inc.		1,442		105,237
Walgreen Co.		841		40,427

See financial notes 5

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Whole Foods Market, Inc.		91		4,800

				337,578

Food, Beverage & Tobacco 4.8%
Altria Group, Inc.		1,114		37,742
Archer-Daniels-Midland Co.		827		29,119
B&G Foods, Inc.		14		474
Beam, Inc.		63		3,947
Brown-Forman Corp., Class B		42		2,814
Bunge Ltd.		224		16,975
Cal-Maine Foods, Inc.		7		319
Campbell Soup Co.		105		4,534
Chiquita Brands International, Inc. *		133		1,640
Coca-Cola Enterprises, Inc.		294		10,996
ConAgra Foods, Inc.		315		10,653
Constellation Brands, Inc., Class A *		56		3,038
Darling International, Inc. *		21		425
Dean Foods Co. *		158		3,018
Dole Food Co., Inc. *		63		864
Dr. Pepper Snapple Group, Inc.		105		4,700
Flowers Foods, Inc.		77		1,601
Fresh Del Monte Produce, Inc.		49		1,414
General Mills, Inc.		259		12,774
Green Mountain Coffee Roasters, Inc. *		7		604
Hillshire Brands Co.		259		8,368
Hormel Foods Corp.		63		2,610
Ingredion, Inc.		35		2,203
J&J Snack Foods Corp.		7		538
Kellogg Co.		126		7,649
Kraft Foods Group, Inc.		63		3,261
Lancaster Colony Corp.		14		1,033
Lorillard, Inc.		196		8,291
McCormick & Co., Inc. Non Voting Shares		35		2,368
Mead Johnson Nutrition Co.		28		2,101
Molson Coors Brewing Co., Class B		63		3,074
Mondelez International, Inc., Class A		1,107		33,952
Monster Beverage Corp. *		14		803
PepsiCo, Inc.		652		51,984
Philip Morris International, Inc.		533		44,473
Pilgrim’s Pride Corp. *		42		644
Post Holdings, Inc. *		21		897
Reynolds American, Inc.		147		7,002
Sanderson Farms, Inc.		21		1,375
Smithfield Foods, Inc. *		168		5,633
Snyders-Lance, Inc.		21		565
The Coca-Cola Co.		1,044		39,860
The Hain Celestial Group, Inc. *		7		572
The Hershey Co.		35		3,218
The J.M. Smucker Co.		49		5,201
TreeHouse Foods, Inc. *		14		910
Tyson Foods, Inc., Class A		420		12,159
Universal Corp.		28		1,373
Vector Group Ltd.		28		457
WhiteWave Foods Co., Class A *		7		134

				400,359

Health Care Equipment & Services 5.8%
Abbott Laboratories		735		24,498
Aetna, Inc.		420		26,624
Alere, Inc. *		35		1,091
Allscripts Healthcare Solutions, Inc. *		7		102
Amedisys, Inc. *		63		1,026
AmerisourceBergen Corp.		329		18,727
AmSurg Corp. *		14		522
Analogic Corp.		7		522
Baxter International, Inc.		217		15,095
Becton Dickinson & Co.		113		11,004
Boston Scientific Corp. *		966		10,220
Brookdale Senior Living, Inc. *		35		876
C.R. Bard, Inc.		42		4,825
Cardinal Health, Inc.		547		27,503
CareFusion Corp. *		84		3,011
Catamaran Corp. *		14		769
Centene Corp. *		28		1,600
Cerner Corp. *		28		1,290
Chemed Corp.		14		975
Cigna Corp.		133		10,466
Community Health Systems, Inc.		84		3,298
CONMED Corp.		14		435
Covidien plc		147		8,732
DaVita HealthCare Partners, Inc. *		35		3,763
DENTSPLY International, Inc.		49		2,057
Edwards Lifesciences Corp. *		14		985
Express Scripts Holding Co. *		182		11,626
Gentiva Health Services, Inc. *		42		482
Haemonetics Corp. *		14		558
Hanger, Inc. *		7		215
HCA Holdings, Inc.		154		5,881
Health Management Associates, Inc., Class A *		196		2,521
Health Net, Inc. *		196		5,915
HEALTHSOUTH Corp. *		21		661
Healthways, Inc. *		35		668
Henry Schein, Inc. *		42		4,244
Hill-Rom Holdings, Inc.		42		1,434
Hologic, Inc. *		56		1,195
Humana, Inc.		162		14,917
IDEXX Laboratories, Inc. *		14		1,313
Integra LifeSciences Holdings Corp. *		7		284
Intuitive Surgical, Inc. *		3		1,160
Invacare Corp.		56		841
Kindred Healthcare, Inc.		147		2,161
Laboratory Corp. of America Holdings *		35		3,350
LifePoint Hospitals, Inc. *		42		1,900
Magellan Health Services, Inc. *		35		1,967
Masimo Corp.		14		346
McKesson Corp.		259		31,445
MEDNAX, Inc. *		14		1,363
Medtronic, Inc.		484		25,047
Molina Healthcare, Inc. *		28		935
MWI Veterinary Supply, Inc. *		7		1,065
Omnicare, Inc.		91		4,948
Owens & Minor, Inc.		91		3,104
Patterson Cos., Inc.		63		2,512
PharMerica Corp. *		49		603
Quest Diagnostics, Inc.		105		6,155
ResMed, Inc.		21		992
Select Medical Holdings Corp.		7		59
Sirona Dental Systems, Inc. *		7		453
St. Jude Medical, Inc.		154		7,763
STERIS Corp.		35		1,431
Stryker Corp.		112		7,492

6 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Teleflex, Inc.		21		1,619
Tenet Healthcare Corp. *		56		2,187
The Cooper Cos., Inc.		7		914
UnitedHealth Group, Inc.		883		63,346
Universal Health Services, Inc., Class B		49		3,320
Varian Medical Systems, Inc. *		35		2,466
VCA Antech, Inc. *		42		1,146
WellCare Health Plans, Inc. *		35		2,228
WellPoint, Inc.		749		63,770
West Pharmaceutical Services, Inc.		14		1,035
Zimmer Holdings, Inc.		105		8,304

				489,357

Household & Personal Products 2.1%
Avon Products, Inc.		329		6,504
Central Garden & Pet Co., Class A *		63		394
Church & Dwight Co., Inc.		35		2,077
Colgate-Palmolive Co.		287		16,580
Elizabeth Arden, Inc. *		7		243
Energizer Holdings, Inc.		28		2,767
Herbalife Ltd.		49		2,990
Kimberly-Clark Corp.		162		15,144
Nu Skin Enterprises, Inc., Class A		21		1,758
Spectrum Brands Holdings, Inc.		7		424
The Clorox Co.		42		3,474
The Estee Lauder Cos., Inc., Class A		49		3,203
The Procter & Gamble Co.		1,534		119,483
WD-40 Co.		7		407

				175,448

Insurance 3.7%
ACE Ltd.		120		10,526
Aflac, Inc.		203		11,731
Alleghany Corp. *		3		1,161
Allied World Assurance Co. Holdings AG		21		1,926
American Equity Investment Life Holding Co.		42		832
American Financial Group, Inc.		56		2,886
American International Group, Inc. *		357		16,586
Aon plc		98		6,505
Arch Capital Group Ltd. *		77		4,105
Argo Group International Holdings Ltd.		21		858
Arthur J. Gallagher & Co.		42		1,736
Aspen Insurance Holdings Ltd.		56		1,992
Assurant, Inc.		105		5,569
Assured Guaranty Ltd.		28		557
Axis Capital Holdings Ltd.		84		3,611
Brown & Brown, Inc.		35		1,090
Cincinnati Financial Corp.		84		3,837
CNO Financial Group, Inc.		140		1,903
Endurance Specialty Holdings Ltd.		56		2,807
Everest Re Group Ltd.		33		4,519
Fidelity National Financial, Inc., Class A		154		3,651
First American Financial Corp.		63		1,317
Genworth Financial, Inc., Class A *		574		6,773
Hartford Financial Services Group, Inc.		498		14,741
HCC Insurance Holdings, Inc.		49		2,068
Horace Mann Educators Corp.		21		554
Infinity Property & Casualty Corp.		14		847
Kemper Corp.		56		1,901
Lincoln National Corp.		161		6,768
Loews Corp.		175		7,781
Markel Corp. *		5		2,554
Marsh & McLennan Cos., Inc.		196		8,081
Mercury General Corp.		21		921
MetLife, Inc.		301		13,903
Montpelier Re Holdings Ltd.		28		696
Old Republic International Corp.		140		1,988
PartnerRe Ltd.		49		4,270
Platinum Underwriters Holdings Ltd.		42		2,427
Primerica, Inc.		49		1,819
Principal Financial Group, Inc.		119		4,870
ProAssurance Corp.		21		990
Protective Life Corp.		49		2,048
Prudential Financial, Inc.		253		18,945
Reinsurance Group of America, Inc.		35		2,268
RenaissanceRe Holdings Ltd.		35		3,059
RLI Corp.		14		1,093
Safety Insurance Group, Inc.		7		351
Selective Insurance Group, Inc.		42		963
StanCorp Financial Group, Inc.		42		2,197
Symetra Financial Corp.		28		484
The Allstate Corp.		385		18,449
The Chubb Corp.		203		16,884
The Hanover Insurance Group, Inc.		35		1,864
The Progressive Corp.		469		11,758
The Travelers Cos., Inc.		484		38,672
Torchmark Corp.		49		3,376
Tower Group International Ltd.		21		297
Unum Group		168		4,961
Validus Holdings Ltd.		42		1,454
W.R. Berkley Corp.		77		3,166
White Mountains Insurance Group Ltd.		4		2,239
XL Group plc		140		4,138

				312,323

Materials 3.8%
A. Schulman, Inc.		28		755
A.M. Castle & Co. *		28		443
Air Products & Chemicals, Inc.		105		10,725
Airgas, Inc.		28		2,846
AK Steel Holding Corp. *		378		1,270
Albemarle Corp.		28		1,746
Alcoa, Inc.		1,688		12,998
Allegheny Technologies, Inc.		98		2,618
AMCOL International Corp.		14		462
Aptargroup, Inc.		35		2,058
Ashland, Inc.		49		4,273
Avery Dennison Corp.		84		3,592
Axiall Corp.		21		841
Ball Corp.		91		4,042
Bemis Co., Inc.		70		2,785
Boise, Inc.		91		778
Cabot Corp.		42		1,680
Carpenter Technology Corp.		21		1,129
Celanese Corp., Series A		63		3,102
Century Aluminum Co. *		70		547
CF Industries Holdings, Inc.		14		2,665
Chemtura Corp. *		56		1,227
Clearwater Paper Corp. *		7		334
Cliffs Natural Resources, Inc.		112		2,337

See financial notes 7

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Coeur Mining, Inc. *		7		101
Commercial Metals Co.		196		2,916
Compass Minerals International, Inc.		14		1,032
Crown Holdings, Inc. *		42		1,825
Cytec Industries, Inc.		21		1,570
Domtar Corp.		49		3,234
E.I. du Pont de Nemours & Co.		357		20,213
Eagle Materials, Inc.		14		898
Eastman Chemical Co.		63		4,788
Ecolab, Inc.		56		5,116
Ferro Corp. *		182		1,338
FMC Corp.		35		2,331
Freeport-McMoRan Copper & Gold, Inc.		603		18,223
Graphic Packaging Holding Co. *		77		640
Greif, Inc., Class A		21		1,131
H.B. Fuller Co.		28		1,044
Hecla Mining Co.		28		96
Huntsman Corp.		140		2,450
Innophos Holdings, Inc.		14		686
Innospec, Inc.		7		286
International Flavors & Fragrances, Inc.		35		2,765
International Paper Co.		281		13,266
Kaiser Aluminum Corp.		14		968
KapStone Paper and Packaging Corp.		14		588
Koppers Holdings, Inc.		7		271
Kraton Performance Polymers, Inc. *		21		389
Louisiana-Pacific Corp. *		42		628
LyondellBasell Industries N.V., Class A		91		6,384
Martin Marietta Materials, Inc.		21		2,017
Materion Corp.		14		412
MeadWestvaco Corp.		119		4,266
Minerals Technologies, Inc.		21		932
Monsanto Co.		127		12,432
Myers Industries, Inc.		28		520
NewMarket Corp.		4		1,097
Newmont Mining Corp.		203		6,449
Nucor Corp.		287		13,056
Olin Corp.		49		1,132
OM Group, Inc. *		35		995
Owens-Illinois, Inc. *		133		3,776
P.H. Glatfelter Co.		35		897
Packaging Corp. of America		56		2,970
PolyOne Corp.		35		946
PPG Industries, Inc.		56		8,748
Praxair, Inc.		105		12,327
Reliance Steel & Aluminum Co.		63		4,201
Resolute Forest Products *		70		883
Rock-Tenn Co., Class A		21		2,333
Rockwood Holdings, Inc.		21		1,341
RPM International, Inc.		63		2,141
RTI International Metals, Inc. *		14		434
Schnitzer Steel Industries, Inc., Class A		63		1,591
Schweitzer-Mauduit International, Inc.		14		802
Sealed Air Corp.		147		4,175
Sensient Technologies Corp.		28		1,161
Sigma-Aldrich Corp.		43		3,546
Silgan Holdings, Inc.		28		1,321
Sonoco Products Co.		77		2,867
Southern Copper Corp.		70		1,925
Steel Dynamics, Inc.		210		3,205
Stepan Co.		7		395
Stillwater Mining Co. *		35		399
SunCoke Energy, Inc. *		35		550
The Dow Chemical Co.		743		27,788
The Mosaic Co.		112		4,665
The Scotts Miracle-Gro Co., Class A		28		1,476
The Sherwin-Williams Co.		28		4,827
The Valspar Corp.		28		1,740
Tredegar Corp.		21		469
United States Steel Corp.		273		4,887
Vulcan Materials Co.		56		2,677
W.R. Grace & Co. *		7		562
Walter Energy, Inc.		49		634
Wausau Paper Corp.		42		461
Westlake Chemical Corp.		7		708
Worthington Industries, Inc.		42		1,400

				318,966

Media 3.9%
AMC Networks, Inc., Class A *		7		434
Belo Corp., Class A		63		891
Cablevision Systems Corp., Class A		210		3,723
CBS Corp., Class B Non Voting Shares		322		16,454
Charter Communications, Inc., Class A *		28		3,400
Cinemark Holdings, Inc.		49		1,444
Comcast Corp., Class A		876		36,871
Dex Media, Inc. *		21		195
DIRECTV *		427		24,843
Discovery Communications, Inc., class A *		50		3,876
DISH Network Corp., Class A		77		3,462
DreamWorks Animation SKG, Inc., Class A *		56		1,585
E.W. Scripps Co., Class A *		49		745
Gannett Co., Inc.		252		6,071
John Wiley & Sons, Inc., Class A		21		920
Lamar Advertising Co., Class A *		42		1,767
Liberty Global plc, Class A *		232		18,022
Live Nation Entertainment, Inc. *		70		1,180
Meredith Corp.		28		1,204
National CineMedia, Inc.		21		378
Omnicom Group, Inc.		165		10,007
Regal Entertainment Group, Class A		70		1,252
Scholastic Corp.		42		1,239
Scripps Networks Interactive, Inc., Class A		21		1,544
Sinclair Broadcast Group, Inc., Class A		21		502
Sirius XM Radio, Inc.		21		75
Starz, Class A *		49		1,223
The Interpublic Group of Cos., Inc.		154		2,421
The Madison Square Garden Co., Class A *		14		815
The New York Times Co., Class A *		119		1,327
The Walt Disney Co.		827		50,306
The Washington Post Co., Class B		6		3,384
Thomson Reuters Corp.		189		6,214
Time Warner Cable, Inc.		154		16,532
Time Warner, Inc.		1,016		61,498
Twenty-First Century Fox, Inc.		729		22,840
Valassis Communications, Inc.		28		771
Viacom, Inc., Class B		246		19,572

				328,987

8 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Pharmaceuticals, Biotechnology & Life Sciences 5.2%
AbbVie, Inc.		98		4,176
Actavis, Inc. *		21		2,839
Agilent Technologies, Inc.		210		9,794
Allergan, Inc.		42		3,712
Amgen, Inc.		350		38,129
Bio-Rad Laboratories, Inc., Class A *		7		798
Biogen Idec, Inc. *		42		8,947
Bristol-Myers Squibb Co.		693		28,891
Bruker Corp. *		7		140
Cambrex Corp. *		14		191
Celgene Corp. *		28		3,919
Charles River Laboratories International, Inc. *		35		1,612
Covance, Inc. *		28		2,269
Cubist Pharmaceuticals, Inc. *		7		443
Eli Lilly & Co.		462		23,747
Endo Health Solutions, Inc. *		49		2,013
Forest Laboratories, Inc. *		140		5,954
Gilead Sciences, Inc. *		322		19,407
Hospira, Inc. *		70		2,732
Illumina, Inc. *		7		545
Impax Laboratories, Inc. *		21		428
Johnson & Johnson		1,218		105,247
Life Technologies Corp. *		42		3,125
Merck & Co., Inc.		1,022		48,330
Mettler-Toledo International, Inc. *		11		2,423
Mylan, Inc. *		84		2,969
PAREXEL International Corp. *		14		650
PDL BioPharma, Inc.		84		667
PerkinElmer, Inc.		49		1,763
Perrigo Co.		14		1,702
Pfizer, Inc.		3,410		96,196
QIAGEN N.V. *		42		842
Techne Corp.		7		543
Thermo Fisher Scientific, Inc.		105		9,327
ViroPharma, Inc. *		14		422
Warner Chilcott plc, Class A		175		3,754
Waters Corp. *		28		2,768
Zoetis, Inc.		7		204

				441,618

Real Estate 1.5%
Alexandria Real Estate Equities, Inc.		14		863
American Campus Communities, Inc.		7		233
American Capital Agency Corp.		21		478
American Tower Corp.		49		3,405
Annaly Capital Management, Inc.		406		4,738
Anworth Mortgage Asset Corp.		70		310
Apartment Investment & Management Co., Class A		84		2,313
Ashford Hospitality Trust Inc.		35		404
AvalonBay Communities, Inc.		14		1,735
BioMed Realty Trust, Inc.		35		644
Boston Properties, Inc.		35		3,587
Brandywine Realty Trust		77		987
BRE Properties, Inc.		14		672
Camden Property Trust		14		865
Capstead Mortgage Corp.		42		493
CBL & Associates Properties, Inc.		49		941
CBRE Group, Inc., Class A *		63		1,378
Chimera Investment Corp.		308		906
Colonial Properties Trust		35		773
CommonWealth REIT		70		1,718
Corporate Office Properties Trust		28		638
Corrections Corp. of America		42		1,383
Cousins Properties, Inc.		42		417
CYS Investments, Inc.		14		108
DCT Industrial Trust, Inc.		77		515
DDR Corp.		70		1,086
DiamondRock Hospitality Co.		70		678
Digital Realty Trust, Inc.		14		778
Douglas Emmett, Inc.		28		647
Duke Realty Corp.		112		1,634
EastGroup Properties, Inc.		7		393
EPR Properties		14		686
Equity Lifestyle Properties, Inc.		7		243
Equity Residential		70		3,632
Essex Property Trust, Inc.		7		1,003
Extra Space Storage, Inc.		14		577
Federal Realty Investment Trust		14		1,362
Forest City Enterprises, Inc., Class A *		21		376
General Growth Properties, Inc.		84		1,611
Glimcher Realty Trust		28		277
Hatteras Financial Corp.		21		384
HCP, Inc.		56		2,281
Health Care REIT, Inc.		21		1,290
Healthcare Realty Trust, Inc.		21		472
Highwoods Properties, Inc.		21		709
Home Properties, Inc.		14		808
Hospitality Properties Trust		84		2,270
Host Hotels & Resorts, Inc.		238		4,053
Inland Real Estate Corp.		42		412
Invesco Mortgage Capital, Inc.		7		107
iStar Financial, Inc. *		140		1,551
Jones Lang LaSalle, Inc.		22		1,809
Kilroy Realty Corp.		14		683
Kimco Realty Corp.		91		1,823
LaSalle Hotel Properties		28		743
Lexington Realty Trust		56		656
Liberty Property Trust		35		1,211
Mack-Cali Realty Corp.		49		1,058
MFA Financial, Inc.		98		706
Mid-America Apartment Communities, Inc.		7		432
National Retail Properties, Inc.		14		429
NorthStar Realty Finance Corp.		56		491
OMEGA Healthcare Investors, Inc.		21		596
Pennsylvania REIT		28		519
Piedmont Office Realty Trust, Inc., Class A		77		1,323
Plum Creek Timber Co., Inc.		70		3,102
Post Properties, Inc.		7		317
Potlatch Corp.		28		1,080
Prologis, Inc.		49		1,727
PS Business Parks, Inc.		7		509
Public Storage		28		4,275
RAIT Financial Trust		70		433
Rayonier, Inc.		35		1,933
Realty Income Corp.		21		830
Redwood Trust, Inc.		42		747
Regency Centers Corp.		21		999

See financial notes 9

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Retail Properties of America, Inc., Class A		14		187
Sabra Health Care REIT, Inc.		7		155
Senior Housing Properties Trust		28		637
Simon Property Group, Inc.		42		6,116
SL Green Realty Corp.		14		1,221
Sovran Self Storage, Inc.		7		464
Sun Communities, Inc.		7		301
Sunstone Hotel Investors, Inc. *		49		589
Tanger Factory Outlet Centers		14		432
Taubman Centers, Inc.		14		944
The Geo Group, Inc.		21		655
The Macerich Co.		28		1,576
UDR, Inc.		49		1,107
Ventas, Inc.		35		2,179
Vornado Realty Trust		57		4,634
Washington REIT		21		512
Weingarten Realty Investors		42		1,206
Weyerhaeuser Co.		560		15,333

				126,503

Retailing 4.9%
Aaron’s, Inc.		63		1,705
Abercrombie & Fitch Co., Class A		70		2,472
Advance Auto Parts, Inc.		42		3,363
Aeropostale, Inc. *		91		740
Amazon.com, Inc. *		25		7,024
American Eagle Outfitters, Inc.		168		2,431
Ann, Inc. *		49		1,700
Asbury Automotive Group, Inc. *		21		1,032
Ascena Retail Group, Inc. *		42		685
AutoNation, Inc. *		35		1,636
AutoZone, Inc. *		7		2,940
Barnes & Noble, Inc. *		63		861
Bed Bath & Beyond, Inc. *		119		8,775
Best Buy Co., Inc.		910		32,760
Big Lots, Inc. *		112		3,967
Brown Shoe Co., Inc.		49		1,099
Cabela’s, Inc. *		7		459
CarMax, Inc. *		77		3,662
Chico’s FAS, Inc.		84		1,310
Core-Mark Holding Co., Inc.		42		2,650
Dick’s Sporting Goods, Inc.		35		1,624
Dillard’s, Inc., Class A		28		2,135
Dollar General Corp. *		70		3,778
Dollar Tree, Inc. *		91		4,796
DSW, Inc., Class A		7		603
Expedia, Inc.		49		2,291
Express, Inc. *		28		588
Family Dollar Stores, Inc.		49		3,488
Foot Locker, Inc.		105		3,381
Fred’s, Inc., Class A		70		1,094
GameStop Corp., Class A		168		8,435
Genesco, Inc. *		14		864
Genuine Parts Co.		106		8,163
GNC Holdings, Inc., Class A		14		712
Group 1 Automotive, Inc.		28		2,148
Guess?, Inc.		49		1,495
hhgregg, Inc. *		7		127
Hibbett Sports, Inc. *		7		363
HSN, Inc.		14		754
J.C. Penney Co., Inc. *		364		4,543
Jos. A. Bank Clothiers, Inc. *		14		557
Kohl’s Corp.		287		14,726
L Brands, Inc.		105		6,023
Liberty Interactive Corp., Class A *		343		7,745
Lithia Motors, Inc., Class A		14		919
LKQ Corp. *		49		1,433
Lowe’s Cos., Inc.		1,009		46,232
Macy’s, Inc.		280		12,440
Monro Muffler Brake, Inc.		7		310
Netflix, Inc. *		7		1,987
Nordstrom, Inc.		91		5,071
Nutrisystem, Inc.		84		1,063
O’Reilly Automotive, Inc. *		28		3,436
Office Depot, Inc. *		581		2,434
OfficeMax, Inc.		126		1,370
Penske Automotive Group, Inc.		35		1,366
PetSmart, Inc.		56		3,944
Pier 1 Imports, Inc.		21		460
Pool Corp.		14		729
Priceline.com, Inc. *		3		2,816
RadioShack Corp. *		644		2,106
Rent-A-Center, Inc.		70		2,626
Ross Stores, Inc.		64		4,305
Saks, Inc. *		126		2,007
Sally Beauty Holdings, Inc. *		14		366
Sears Holdings Corp. *		133		5,884
Select Comfort Corp. *		14		346
Signet Jewelers Ltd.		42		2,789
Sonic Automotive, Inc., Class A		49		1,068
Stage Stores, Inc.		42		782
Staples, Inc.		1,029		14,313
Target Corp.		574		36,340
The Bon-Ton Stores, Inc.		7		77
The Buckle, Inc.		14		725
The Cato Corp., Class A		21		528
The Children’s Place Retail Stores, Inc. *		21		1,117
The Finish Line, Inc., Class A		42		880
The Gap, Inc.		281		11,364
The Home Depot, Inc.		665		49,536
The Men’s Wearhouse, Inc.		49		1,845
The Pep Boys-Manny, Moe & Jack *		63		707
The Wet Seal, Inc., Class A *		119		434
Tiffany & Co.		49		3,778
TJX Cos., Inc.		301		15,869
Tractor Supply Co.		21		2,570
TripAdvisor, Inc. *		7		518
Ulta Salon, Cosmetics & Fragrance, Inc. *		7		695
Urban Outfitters, Inc. *		35		1,468
Vitamin Shoppe, Inc. *		7		295
Williams-Sonoma, Inc.		49		2,764

				415,816

Semiconductors & Semiconductor Equipment 2.4%
Advanced Micro Devices, Inc. *		469		1,534
Altera Corp.		91		3,200
Amkor Technology, Inc. *		147		589
Analog Devices, Inc.		148		6,849
Applied Materials, Inc.		1,051		15,776
Atmel Corp. *		196		1,423
ATMI, Inc. *		21		516

10 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Avago Technologies Ltd.		35		1,348
Broadcom Corp., Class A		140		3,536
Brooks Automation, Inc.		56		493
Cabot Microelectronics Corp. *		14		506
Cirrus Logic, Inc. *		14		315
Cree, Inc. *		14		777
Cypress Semiconductor Corp. *		70		792
Entegris, Inc. *		70		658
Fairchild Semiconductor International, Inc. *		77		940
First Solar, Inc. *		35		1,285
GT Advanced Technologies, Inc. *		147		950
Integrated Device Technology, Inc. *		140		1,219
Intel Corp.		3,283		72,160
International Rectifier Corp. *		35		836
Intersil Corp., Class A		161		1,670
KLA-Tencor Corp.		77		4,247
Lam Research Corp. *		70		3,267
Linear Technology Corp.		70		2,683
LSI Corp. *		322		2,386
Marvell Technology Group Ltd.		231		2,797
Maxim Integrated Products, Inc.		119		3,314
Micrel, Inc.		35		322
Microchip Technology, Inc.		77		2,988
Micron Technology, Inc. *		693		9,404
Microsemi Corp. *		21		541
MKS Instruments, Inc.		28		701
NVIDIA Corp.		210		3,097
OmniVision Technologies, Inc. *		28		433
ON Semiconductor Corp. *		182		1,318
Photronics, Inc. *		56		408
PMC-Sierra, Inc. *		63		392
RF Micro Devices, Inc. *		126		625
Semtech Corp. *		14		416
Silicon Laboratories, Inc. *		21		812
Skyworks Solutions, Inc. *		35		888
Spansion, Inc., Class A *		35		363
SunEdison, Inc. *		441		3,246
Teradyne, Inc. *		70		1,075
Tessera Technologies, Inc.		21		385
Texas Instruments, Inc.		847		32,355
TriQuint Semiconductor, Inc. *		91		686
Veeco Instruments, Inc. *		7		246
Xilinx, Inc.		127		5,514

				202,281

Software & Services 5.8%
Accenture plc, Class A		161		11,632
Activision Blizzard, Inc.		91		1,485
Acxiom Corp. *		56		1,393
Adobe Systems, Inc. *		119		5,444
Akamai Technologies, Inc. *		28		1,287
Alliance Data Systems Corp. *		19		3,718
Amdocs Ltd.		84		3,096
ANSYS, Inc. *		7		588
AOL, Inc. *		133		4,380
Autodesk, Inc. *		56		2,058
Automatic Data Processing, Inc.		183		13,022
BMC Software, Inc. *		70		3,220
Broadridge Financial Solutions, Inc.		70		2,083
CA, Inc.		140		4,095
CACI International, Inc., Class A *		21		1,415
Cadence Design Systems, Inc. *		35		471
Citrix Systems, Inc. *		35		2,477
Cognizant Technology Solutions Corp., Class A *		49		3,592
Computer Sciences Corp.		210		10,532
Compuware Corp.		175		1,867
Convergys Corp.		105		1,851
CoreLogic, Inc. *		210		5,397
CSG Systems International, Inc.		35		824
Digital River, Inc. *		7		121
DST Systems, Inc.		28		1,998
EarthLink, Inc.		161		792
eBay, Inc. *		231		11,548
Electronic Arts, Inc. *		77		2,051
Equinix, Inc. *		7		1,216
Euronet Worldwide, Inc. *		21		721
Facebook, Inc., Class A *		14		578
FactSet Research Systems, Inc.		14		1,433
Fair Isaac Corp.		28		1,402
Fidelity National Information Services, Inc.		140		6,224
Fiserv, Inc. *		56		5,391
Gartner, Inc. *		14		812
Genpact Ltd.		28		539
Global Cash Access Holdings, Inc. *		56		431
Global Payments, Inc.		21		1,001
Google, Inc., Class A *		28		23,713
Heartland Payment Systems, Inc.		14		517
IAC/InterActiveCorp		70		3,436
Informatica Corp. *		14		501
International Business Machines Corp.		483		88,036
Intuit, Inc.		70		4,447
j2 Global, Inc.		14		689
Jack Henry & Associates, Inc.		21		1,048
Lender Processing Services, Inc.		63		2,010
Manhattan Associates, Inc. *		7		613
ManTech International Corp., Class A		28		797
Mastercard, Inc., Class A		12		7,273
MAXIMUS, Inc.		21		788
Mentor Graphics Corp.		21		465
MICROS Systems, Inc. *		14		685
Microsoft Corp.		4,236		141,482
MicroStrategy, Inc., Class A *		7		643
Monster Worldwide, Inc. *		168		756
NeuStar, Inc., Class A *		14		708
Nuance Communications, Inc. *		21		401
Oracle Corp.		862		27,463
Paychex, Inc.		119		4,603
Progress Software Corp. *		21		514
PTC, Inc. *		28		730
Rackspace Hosting, Inc. *		7		314
Red Hat, Inc. *		7		354
Rovi Corp. *		21		377
SAIC, Inc.		329		4,958
Salesforce.com, Inc. *		14		688
Sapient Corp. *		35		523
Solera Holdings, Inc.		7		361
Sykes Enterprises, Inc. *		35		596
Symantec Corp.		420		10,756
Synopsys, Inc. *		28		1,015
Take-Two Interactive Software, Inc. *		35		643

See financial notes 11

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
TeleTech Holdings, Inc. *		21		514
Teradata Corp. *		28		1,640
The Western Union Co.		315		5,522
TIBCO Software, Inc. *		42		947
Total System Services, Inc.		91		2,518
Unisys Corp. *		42		1,057
United Online, Inc.		112		879
ValueClick, Inc. *		35		741
VeriFone Systems, Inc. *		7		139
VeriSign, Inc. *		42		2,016
Visa, Inc., Class A		42		7,326
VistaPrint N.V. *		7		373
WEX, Inc. *		7		560
Yahoo! Inc. *		294		7,973

				487,293

Technology Hardware & Equipment 4.6%
ADTRAN, Inc.		42		1,013
Amphenol Corp., Class A		43		3,258
Anixter International, Inc. *		28		2,340
Apple, Inc.		77		37,503
ARRIS Group, Inc. *		49		768
Arrow Electronics, Inc. *		140		6,499
Avnet, Inc. *		196		7,558
Belden, Inc.		14		794
Benchmark Electronics, Inc. *		84		1,845
Brocade Communications Systems, Inc. *		189		1,399
Cisco Systems, Inc.		2,464		57,436
Cognex Corp.		7		399
Coherent, Inc.		14		786
Comtech Telecommunications Corp.		21		503
Corning, Inc.		567		7,961
Dell, Inc.		1,632		22,473
Diebold, Inc.		49		1,386
Dolby Laboratories, Inc., Class A		14		440
EchoStar Corp., Class A *		21		845
Electronics for Imaging, Inc. *		28		820
EMC Corp.		539		13,895
Emulex Corp. *		77		554
F5 Networks, Inc. *		7		584
FEI Co.		7		548
Finisar Corp. *		28		573
FLIR Systems, Inc.		49		1,533
Harris Corp.		84		4,757
Hewlett-Packard Co.		4,368		97,581
Ingram Micro, Inc., Class A *		525		11,602
Insight Enterprises, Inc. *		63		1,204
InterDigital, Inc.		14		498
Intermec, Inc. *		49		484
Itron, Inc. *		21		787
Jabil Circuit, Inc.		161		3,674
JDS Uniphase Corp. *		49		629
Juniper Networks, Inc. *		266		5,027
Lexmark International, Inc., Class A		84		2,869
Littelfuse, Inc.		7		516
Molex, Inc.		77		2,235
Motorola Solutions, Inc.		252		14,115
MTS Systems Corp.		7		421
National Instruments Corp.		28		777
NCR Corp. *		63		2,242
NetApp, Inc.		77		3,199
NETGEAR, Inc. *		14		405
Plantronics, Inc.		14		605
Plexus Corp. *		35		1,146
Polycom, Inc. *		84		834
QLogic Corp. *		133		1,408
QUALCOMM, Inc.		294		19,486
Rofin-Sinar Technologies, Inc. *		21		472
SanDisk Corp.		56		3,090
Sanmina Corp. *		126		2,050
ScanSource, Inc. *		28		867
Synaptics, Inc. *		14		541
SYNNEX Corp. *		42		1,995
Tech Data Corp. *		140		6,882
Tellabs, Inc.		700		1,554
Trimble Navigation Ltd. *		35		884
ViaSat, Inc. *		7		446
Vishay Intertechnology, Inc. *		147		1,801
Western Digital Corp.		113		7,006
Xerox Corp.		1,127		11,247
Zebra Technologies Corp., Class A *		28		1,277

				390,326

Telecommunication Services 3.4%
AT&T, Inc.		4,298		145,401
CenturyLink, Inc.		231		7,651
Cincinnati Bell, Inc. *		203		607
Consolidated Communications Holdings, Inc.		28		467
Crown Castle International Corp. *		43		2,985
Frontier Communications Corp.		1,064		4,607
Intelsat S.A. *		7		160
Leap Wireless International, Inc. *		105		1,594
Level 3 Communications, Inc. *		49		1,096
NII Holdings, Inc. *		504		3,014
NTELOS Holdings Corp.		21		349
SBA Communications Corp., Class A *		7		525
Sprint Corp. *		889		5,965
T-Mobile US, Inc. *		7		163
Telephone & Data Systems, Inc.		161		4,458
tw telecom, Inc. *		35		1,002
United States Cellular Corp.		14		599
Verizon Communications, Inc.		2,121		100,493
Windstream Corp.		588		4,745

				285,881

Transportation 2.0%
Alaska Air Group, Inc.		28		1,585
AMERCO		7		1,145
Arkansas Best Corp.		77		1,916
Atlas Air Worldwide Holdings, Inc. *		21		970
Avis Budget Group, Inc. *		161		4,310
C.H. Robinson Worldwide, Inc.		91		5,175
Con-way, Inc.		49		2,038
Copa Holdings S.A., Class A		7		916
CSX Corp.		665		16,366
Delta Air Lines, Inc.		280		5,525
Expeditors International of Washington, Inc.		105		4,259
FedEx Corp.		239		25,659
Forward Air Corp.		14		516

12 See financial notes

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Genesee & Wyoming, Inc., Class A *		7		606
Hawaiian Holdings, Inc. *		56		392
Heartland Express, Inc.		35		487
Hertz Global Holdings, Inc. *		196		4,710
Hub Group, Inc., Class A *		28		1,040
J.B. Hunt Transport Services, Inc.		35		2,520
JetBlue Airways Corp. *		175		1,076
Kansas City Southern		14		1,476
Kirby Corp. *		14		1,126
Knight Transportation, Inc.		35		570
Landstar System, Inc.		28		1,530
Matson, Inc.		49		1,305
Norfolk Southern Corp.		147		10,608
Old Dominion Freight Line, Inc. *		21		912
Republic Airways Holdings, Inc. *		112		1,251
Ryder System, Inc.		84		4,671
Saia, Inc. *		21		630
SkyWest, Inc.		126		1,624
Southwest Airlines Co.		441		5,649
Swift Transportation Co. *		42		754
Union Pacific Corp.		148		22,724
United Continental Holdings, Inc. *		105		2,988
United Parcel Service, Inc., Class B		267		22,850
US Airways Group, Inc. *		56		905
UTI Worldwide, Inc.		98		1,618
Werner Enterprises, Inc.		49		1,129

				165,531

Utilities 4.1%
AES Corp.		609		7,740
AGL Resources, Inc.		49		2,154
ALLETE, Inc.		21		991
Alliant Energy Corp.		63		3,125
Ameren Corp.		224		7,573
American Electric Power Co., Inc.		295		12,626
American States Water Co.		7		368
American Water Works Co., Inc.		63		2,567
Aqua America, Inc.		35		1,063
Atlantic Power Corp.		63		250
Atmos Energy Corp.		77		3,107
Avista Corp.		42		1,103
Black Hills Corp.		21		1,008
California Water Service Group		21		419
Calpine Corp. *		168		3,247
CenterPoint Energy, Inc.		245		5,618
Cleco Corp.		21		948
CMS Energy Corp.		133		3,528
Consolidated Edison, Inc.		175		9,840
Dominion Resources, Inc.		385		22,465
DTE Energy Co.		119		7,958
Duke Energy Corp.		253		16,597
Edison International		210		9,637
El Paso Electric Co.		21		722
Entergy Corp.		210		13,278
Exelon Corp.		708		21,587
FirstEnergy Corp.		357		13,377
Great Plains Energy, Inc.		91		1,995
Hawaiian Electric Industries, Inc.		56		1,401
IDACORP, Inc.		21		1,005
Integrys Energy Group, Inc.		63		3,523
ITC Holdings Corp.		15		1,333
MDU Resources Group, Inc.		133		3,551
MGE Energy, Inc.		7		365
National Fuel Gas Co.		35		2,285
New Jersey Resources Corp.		28		1,206
NextEra Energy, Inc.		196		15,751
NiSource, Inc.		182		5,325
Northeast Utilities		91		3,728
Northwest Natural Gas Co.		21		862
NorthWestern Corp.		21		844
NRG Energy, Inc.		273		7,166
NV Energy, Inc.		119		2,791
OGE Energy Corp.		84		2,958
ONEOK, Inc.		98		5,041
Otter Tail Corp.		28		736
Pepco Holdings, Inc.		224		4,243
PG&E Corp.		288		11,912
Piedmont Natural Gas Co., Inc.		42		1,355
Pinnacle West Capital Corp.		63		3,419
PNM Resources, Inc.		56		1,227
Portland General Electric Co.		49		1,412
PPL Corp.		266		8,166
Public Service Enterprise Group, Inc.		392		12,709
Questar Corp.		119		2,608
SCANA Corp.		70		3,368
Sempra Energy		127		10,721
South Jersey Industries, Inc.		14		809
Southwest Gas Corp.		28		1,310
TECO Energy, Inc.		154		2,546
The Empire District Electric Co.		28		593
The Laclede Group, Inc.		21		935
The Southern Co.		421		17,522
UGI Corp.		77		3,018
UIL Holdings Corp.		21		793
UNS Energy Corp.		21		960
Vectren Corp.		56		1,826
Westar Energy, Inc.		63		1,960
WGL Holdings, Inc.		35		1,461
Wisconsin Energy Corp.		77		3,160
Xcel Energy, Inc.		302		8,432

				341,227

Total Common Stock
(Cost $8,591,321)				8,408,700




Other Investment Companies 0.1% of net assets

Equity Fund 0.1%
iShares Russell 3000 ETF		50		4,890

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund 0.00% (b)		3,175		3,175

Total Other Investment Companies
(Cost $8,126)				8,065



End of Investments.

See financial notes 13

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings as of August 31, 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

($)

.8%

Common Stock

6,166,040

6,007,820

.1%

Other Investment Companies

7,286

7,187

.9%

Total Investments

6,173,326

6,015,007

.1%

Other Assets and Liabilities, Net

4,543

100

.0%

Net Assets

6,019,550


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.1%
BorgWarner, Inc.		31		2,994
Delphi Automotive plc		122		6,713
Ford Motor Co.		896		14,506
General Motors Co. *		298		10,156
Harley-Davidson, Inc.		90		5,398
Johnson Controls, Inc.		356		14,429
Lear Corp.		55		3,781
The Goodyear Tire & Rubber Co. *		160		3,219
TRW Automotive Holdings Corp. *		50		3,454
Visteon Corp. *		20		1,432

				66,082

Banks 2.5%
BB&T Corp.		281		9,543
CIT Group, Inc. *		40		1,915
Comerica, Inc.		75		3,063
Fifth Third Bancorp		355		6,493
Hudson City Bancorp, Inc.		325		2,987
Huntington Bancshares, Inc.		320		2,637
KeyCorp		437		5,100
M&T Bank Corp.		35		3,967
New York Community Bancorp, Inc.		165		2,417
Popular, Inc. *		80		2,485
Regions Financial Corp.		715		6,721
SunTrust Banks, Inc.		263		8,421
The PNC Financial Services Group, Inc.		160		11,563
U.S. Bancorp		568		20,522
Wells Fargo & Co.		1,407		57,799
Zions Bancorp		90		2,517

				148,150

Capital Goods 8.2%
3M Co.		231		26,237
AECOM Technology Corp. *		60		1,748
AGCO Corp.		50		2,828
Alliant Techsystems, Inc.		25		2,419
AMETEK, Inc.		35		1,502
Caterpillar, Inc.		212		17,498
Cummins, Inc.		55		6,776
Danaher Corp.		96		6,290
Deere & Co.		126		10,539
Dover Corp.		71		6,039
Eaton Corp. plc		121		7,662
EMCOR Group, Inc.		45		1,692
Emerson Electric Co.		313		18,896
Exelis, Inc.		255		3,751
Fastenal Co.		45		1,980
Flowserve Corp.		40		2,232
Fluor Corp.		106		6,724
General Cable Corp.		40		1,221
General Dynamics Corp.		197		16,400
General Electric Co.		3,841		88,881
Harsco Corp.		80		1,882
Honeywell International, Inc.		232		18,460
Hubbell, Inc., Class B		20		2,027
Illinois Tool Works, Inc.		146		10,435
Ingersoll-Rand plc		132		7,806
ITT Corp.		143		4,698
Jacobs Engineering Group, Inc. *		80		4,662
Joy Global, Inc.		40		1,965
KBR, Inc.		95		2,837
L-3 Communications Holdings, Inc.		106		9,575
Lennox International, Inc.		30		2,059
Lockheed Martin Corp.		171		20,934
Masco Corp.		240		4,541
Northrop Grumman Corp.		247		22,791
Oshkosh Corp. *		55		2,471
Owens Corning *		55		2,059
PACCAR, Inc.		137		7,345
Pall Corp.		25		1,728
Parker Hannifin Corp.		66		6,597
Pentair Ltd. - Reg’d		35		2,104
Precision Castparts Corp.		26		5,492
Quanta Services, Inc. *		65		1,699
Raytheon Co.		255		19,229
Rockwell Automation, Inc.		35		3,403
Rockwell Collins, Inc.		55		3,892
Roper Industries, Inc.		15		1,855
Snap-On, Inc.		15		1,404
SPX Corp.		35		2,591
Stanley Black & Decker, Inc.		35		2,984
Terex Corp. *		65		1,885
Textron, Inc.		130		3,502
The Boeing Co.		207		21,511
Timken Co.		35		1,962
United Rentals, Inc. *		40		2,191
United Technologies Corp.		387		38,739
URS Corp.		70		3,466
W.W. Grainger, Inc.		20		4,947
WESCO International, Inc. *		30		2,213
Xylem, Inc.		60		1,487

				492,743

See financial notes 15

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Commercial & Professional Services 0.8%
Cintas Corp.		55		2,627
Equifax, Inc.		35		2,068
Iron Mountain, Inc.		45		1,161
Manpowergroup, Inc.		120		7,782
Pitney Bowes, Inc.		230		3,754
R.R. Donnelley & Sons Co.		405		6,755
Republic Services, Inc.		100		3,251
Robert Half International, Inc.		90		3,174
The ADT Corp. *		15		598
The Dun & Bradstreet Corp.		25		2,487
United Stationers, Inc.		50		1,987
Waste Management, Inc.		300		12,132

				47,776

Consumer Durables & Apparel 1.0%
Coach, Inc.		90		4,753
D.R. Horton, Inc.		110		1,964
Garmin Ltd.		55		2,242
Harman International Industries, Inc.		30		1,921
Hasbro, Inc.		70		3,191
Jarden Corp. *		40		1,718
Leggett & Platt, Inc.		90		2,603
Mattel, Inc.		110		4,455
Mohawk Industries, Inc. *		25		2,937
Newell Rubbermaid, Inc.		115		2,909
NIKE, Inc., Class B		235		14,763
NVR, Inc. *		3		2,567
Ralph Lauren Corp.		17		2,812
VF Corp.		25		4,680
Whirlpool Corp.		51		6,561

				60,076

Consumer Services 1.5%
Apollo Group, Inc., Class A *		140		2,600
Brinker International, Inc.		60		2,399
Carnival Corp.		120		4,331
Darden Restaurants, Inc.		70		3,235
H&R Block, Inc.		98		2,735
International Game Technology		130		2,456
Marriott International, Inc., Class A		90		3,599
McDonald’s Corp.		348		32,837
MGM Resorts International *		150		2,654
Royal Caribbean Cruises Ltd.		70		2,568
Service Corp. International		100		1,808
Starbucks Corp.		112		7,898
Starwood Hotels & Resorts Worldwide, Inc.		71		4,540
Wyndham Worldwide Corp.		50		2,968
Wynn Resorts Ltd.		20		2,821
Yum! Brands, Inc.		120		8,402

				87,851

Diversified Financials 7.6%
American Express Co.		301		21,645
Ameriprise Financial, Inc.		55		4,738
Bank of America Corp.		7,742		109,317
Berkshire Hathaway, Inc., Class B *		397		44,154
BlackRock, Inc.		15		3,905
Capital One Financial Corp.		210		13,555
Citigroup, Inc.		1,375		66,454
CME Group, Inc.		55		3,911
Discover Financial Services		115		5,434
Eaton Vance Corp.		35		1,349
Franklin Resources, Inc.		137		6,324
Invesco Ltd.		100		3,036
JPMorgan Chase & Co.		1,551		78,372
Legg Mason, Inc.		105		3,415
McGraw Hill Financial, Inc.		137		7,997
Moody’s Corp.		55		3,496
Morgan Stanley		475		12,236
Northern Trust Corp.		61		3,347
NYSE Euronext		117		4,890
PHH Corp. *		85		1,774
SLM Corp.		135		3,239
State Street Corp.		106		7,072
T. Rowe Price Group, Inc.		55		3,858
The Bank of New York Mellon Corp.		285		8,476
The Charles Schwab Corp. (a)		315		6,577
The Goldman Sachs Group, Inc.		187		28,448

				457,019

Energy 15.0%
Alpha Natural Resources, Inc. *		165		1,003
Anadarko Petroleum Corp.		136		12,433
Apache Corp.		137		11,738
Arch Coal, Inc.		255		1,140
Baker Hughes, Inc.		215		9,995
Cameron International Corp. *		55		3,123
Chesapeake Energy Corp.		410		10,582
Chevron Corp.		1,231		148,249
Cimarex Energy Co.		25		2,095
ConocoPhillips		1,767		117,152
CONSOL Energy, Inc.		60		1,874
Devon Energy Corp.		207		11,818
Diamond Offshore Drilling, Inc.		40		2,561
Energen Corp.		30		1,989
EOG Resources, Inc.		45		7,067
EQT Corp.		20		1,714
Exxon Mobil Corp.		3,128		272,637
FMC Technologies, Inc. *		45		2,413
Halliburton Co.		335		16,080
Helmerich & Payne, Inc.		25		1,576
Hess Corp.		245		18,338
HollyFrontier Corp.		35		1,557
Kinder Morgan, Inc.		75		2,845
Marathon Oil Corp.		814		28,026
Marathon Petroleum Corp.		202		14,647
McDermott International, Inc. *		160		1,200
Murphy Oil Corp.		175		11,799
Nabors Industries Ltd.		255		3,927
National Oilwell Varco, Inc.		116		8,619
Newfield Exploration Co. *		70		1,667
Noble Energy, Inc.		67		4,116
Occidental Petroleum Corp.		312		27,522
Patterson-UTI Energy, Inc.		105		2,057
Peabody Energy Corp.		145		2,494
Phillips 66		738		42,140
Pioneer Natural Resources Co.		15		2,625
QEP Resources, Inc.		65		1,776

16 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Rowan Cos. plc, Class A *		45		1,594
Schlumberger Ltd.		316		25,577
SEACOR Holdings, Inc.		20		1,662
Seadrill Ltd.		75		3,470
Southwestern Energy Co. *		50		1,910
Spectra Energy Corp.		203		6,721
Tesoro Corp.		121		5,577
The Williams Cos., Inc.		207		7,502
Valero Energy Corp.		868		30,840
World Fuel Services Corp.		95		3,624
WPX Energy, Inc. *		190		3,545

				904,616

Food & Staples Retailing 4.3%
Casey’s General Stores, Inc.		30		1,978
Costco Wholesale Corp.		237		26,513
CVS Caremark Corp.		823		47,775
Harris Teeter Supermarkets, Inc.		30		1,475
Safeway, Inc.		660		17,094
SUPERVALU, Inc. *		1,790		12,834
Sysco Corp.		388		12,424
The Kroger Co.		593		21,704
Wal-Mart Stores, Inc.		1,140		83,197
Walgreen Co.		664		31,918
Whole Foods Market, Inc.		70		3,693

				260,605

Food, Beverage & Tobacco 5.0%
Altria Group, Inc.		880		29,814
Archer-Daniels-Midland Co.		657		23,133
Beam, Inc.		45		2,819
Brown-Forman Corp., Class B		30		2,010
Bunge Ltd.		175		13,261
Campbell Soup Co.		80		3,454
Coca-Cola Enterprises, Inc.		246		9,200
ConAgra Foods, Inc.		238		8,049
Constellation Brands, Inc., Class A *		45		2,441
Dean Foods Co. *		125		2,395
Dr. Pepper Snapple Group, Inc.		80		3,581
General Mills, Inc.		197		9,716
Hillshire Brands Co.		190		6,139
Hormel Foods Corp.		50		2,072
Ingredion, Inc.		25		1,574
Kellogg Co.		96		5,828
Kraft Foods Group, Inc.		50		2,589
Lorillard, Inc.		147		6,218
McCormick & Co., Inc. Non Voting Shares		30		2,030
Mead Johnson Nutrition Co.		20		1,501
Molson Coors Brewing Co., Class B		45		2,196
Mondelez International, Inc., Class A		878		26,928
PepsiCo, Inc.		517		41,220
Philip Morris International, Inc.		423		35,295
Reynolds American, Inc.		117		5,573
Smithfield Foods, Inc. *		135		4,527
The Coca-Cola Co.		828		31,613
The Hershey Co.		30		2,758
The J.M. Smucker Co.		40		4,246
Tyson Foods, Inc., Class A		335		9,698

				301,878

Health Care Equipment & Services 6.0%
Abbott Laboratories		578		19,265
Aetna, Inc.		332		21,045
AmerisourceBergen Corp.		256		14,572
Baxter International, Inc.		180		12,521
Becton Dickinson & Co.		86		8,375
Boston Scientific Corp. *		723		7,649
C.R. Bard, Inc.		35		4,020
Cardinal Health, Inc.		433		21,771
CareFusion Corp. *		65		2,330
Cigna Corp.		106		8,341
Community Health Systems, Inc.		70		2,748
Covidien plc		117		6,950
DaVita HealthCare Partners, Inc. *		25		2,688
DENTSPLY International, Inc.		40		1,680
Express Scripts Holding Co. *		136		8,688
HCA Holdings, Inc.		125		4,774
Health Management Associates, Inc., Class A *		150		1,929
Health Net, Inc. *		155		4,678
Henry Schein, Inc. *		30		3,031
Humana, Inc.		126		11,602
Laboratory Corp. of America Holdings *		25		2,393
LifePoint Hospitals, Inc. *		35		1,583
Magellan Health Services, Inc. *		25		1,405
McKesson Corp.		202		24,525
Medtronic, Inc.		383		19,820
Omnicare, Inc.		70		3,806
Owens & Minor, Inc.		70		2,388
Patterson Cos., Inc.		50		1,994
Quest Diagnostics, Inc.		85		4,983
St. Jude Medical, Inc.		122		6,150
Stryker Corp.		95		6,355
Tenet Healthcare Corp. *		45		1,757
UnitedHealth Group, Inc.		699		50,146
Universal Health Services, Inc., Class B		35		2,371
Varian Medical Systems, Inc. *		30		2,113
WellCare Health Plans, Inc. *		25		1,592
WellPoint, Inc.		592		50,403
Zimmer Holdings, Inc.		90		7,118

				359,559

Household & Personal Products 2.2%
Avon Products, Inc.		260		5,140
Church & Dwight Co., Inc.		25		1,484
Colgate-Palmolive Co.		236		13,634
Energizer Holdings, Inc.		20		1,977
Herbalife Ltd.		35		2,135
Kimberly-Clark Corp.		126		11,778
The Clorox Co.		30		2,481
The Estee Lauder Cos., Inc., Class A		35		2,288
The Procter & Gamble Co.		1,209		94,169

				135,086

Insurance 3.6%
ACE Ltd.		91		7,983
Aflac, Inc.		161		9,304
Allied World Assurance Co. Holdings AG		15		1,376
American Financial Group, Inc.		45		2,319

See financial notes 17

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
American International Group, Inc. *		285		13,241
Aon plc		76		5,045
Arch Capital Group Ltd. *		60		3,199
Assurant, Inc.		85		4,508
Axis Capital Holdings Ltd.		65		2,794
Cincinnati Financial Corp.		65		2,969
Endurance Specialty Holdings Ltd.		40		2,005
Everest Re Group Ltd.		25		3,424
Fidelity National Financial, Inc., Class A		120		2,845
Genworth Financial, Inc., Class A *		457		5,393
Hartford Financial Services Group, Inc.		395		11,692
HCC Insurance Holdings, Inc.		35		1,477
Lincoln National Corp.		127		5,339
Loews Corp.		142		6,313
Marsh & McLennan Cos., Inc.		152		6,267
MetLife, Inc.		235		10,855
PartnerRe Ltd.		35		3,050
Platinum Underwriters Holdings Ltd.		30		1,733
Principal Financial Group, Inc.		95		3,887
Prudential Financial, Inc.		200		14,976
Reinsurance Group of America, Inc.		25		1,620
RenaissanceRe Holdings Ltd.		30		2,622
The Allstate Corp.		306		14,664
The Chubb Corp.		161		13,390
The Progressive Corp.		385		9,652
The Travelers Cos., Inc.		382		30,522
Torchmark Corp.		40		2,756
Unum Group		133		3,927
W.R. Berkley Corp.		60		2,467
White Mountains Insurance Group Ltd.		2		1,120
XL Group plc		110		3,252

				217,986

Materials 3.6%
Air Products & Chemicals, Inc.		81		8,273
Airgas, Inc.		20		2,033
Albemarle Corp.		25		1,559
Alcoa, Inc.		1,341		10,326
Allegheny Technologies, Inc.		75		2,003
Aptargroup, Inc.		25		1,470
Ashland, Inc.		40		3,488
Avery Dennison Corp.		65		2,779
Ball Corp.		70		3,109
Bemis Co., Inc.		55		2,189
Celanese Corp., Series A		50		2,462
CF Industries Holdings, Inc.		11		2,094
Cliffs Natural Resources, Inc.		90		1,878
Commercial Metals Co.		155		2,306
Cytec Industries, Inc.		20		1,496
Domtar Corp.		35		2,310
E.I. du Pont de Nemours & Co.		276		15,627
Eastman Chemical Co.		51		3,876
Ecolab, Inc.		45		4,111
FMC Corp.		30		1,998
Freeport-McMoRan Copper & Gold, Inc.		476		14,385
Huntsman Corp.		110		1,925
International Flavors & Fragrances, Inc.		25		1,975
International Paper Co.		225		10,622
LyondellBasell Industries N.V., Class A		71		4,981
Martin Marietta Materials, Inc.		15		1,441
MeadWestvaco Corp.		92		3,298
Monsanto Co.		96		9,398
Newmont Mining Corp.		160		5,083
Nucor Corp.		240		10,918
Owens-Illinois, Inc. *		108		3,066
Packaging Corp. of America		35		1,856
PPG Industries, Inc.		45		7,030
Praxair, Inc.		81		9,509
Reliance Steel & Aluminum Co.		51		3,401
RPM International, Inc.		50		1,699
Sealed Air Corp.		115		3,266
Sigma-Aldrich Corp.		30		2,474
Sonoco Products Co.		60		2,234
Southern Copper Corp.		55		1,513
Steel Dynamics, Inc.		165		2,518
The Dow Chemical Co.		588		21,991
The Mosaic Co.		90		3,749
The Sherwin-Williams Co.		21		3,620
The Valspar Corp.		25		1,554
United States Steel Corp.		215		3,849
Vulcan Materials Co.		45		2,151

				214,893

Media 4.1%
Cablevision Systems Corp., Class A		165		2,925
CBS Corp., Class B Non Voting Shares		247		12,622
Charter Communications, Inc., Class A *		25		3,035
Comcast Corp., Class A		693		29,168
DIRECTV *		338		19,665
Discovery Communications, Inc., class A *		35		2,713
DISH Network Corp., Class A		60		2,698
Gannett Co., Inc.		195		4,698
Liberty Global plc, Class A *		185		14,371
Omnicom Group, Inc.		122		7,399
Starz, Class A *		40		998
The Interpublic Group of Cos., Inc.		120		1,886
The Walt Disney Co.		654		39,783
The Washington Post Co., Class B		5		2,820
Thomson Reuters Corp.		150		4,932
Time Warner Cable, Inc.		121		12,989
Time Warner, Inc.		804		48,666
Twenty-First Century Fox, Inc.		578		18,109
Viacom, Inc., Class B		192		15,276

				244,753

Pharmaceuticals, Biotechnology & Life Sciences 5.6%
AbbVie, Inc.		80		3,409
Actavis, Inc. *		15		2,028
Agilent Technologies, Inc.		157		7,323
Allergan, Inc.		30		2,651
Amgen, Inc.		277		30,176
Biogen Idec, Inc. *		31		6,604
Bristol-Myers Squibb Co.		547		22,805
Celgene Corp. *		20		2,800
Eli Lilly & Co.		368		18,915
Forest Laboratories, Inc. *		112		4,763
Gilead Sciences, Inc. *		255		15,369
Hospira, Inc. *		55		2,147
Johnson & Johnson		964		83,299
Life Technologies Corp. *		35		2,604
Merck & Co., Inc.		808		38,210

18 See financial notes

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Mettler-Toledo International, Inc. *		6		1,321
Mylan, Inc. *		65		2,297
Pfizer, Inc.		2,697		76,082
Thermo Fisher Scientific, Inc.		82		7,284
Warner Chilcott plc, Class A		135		2,896
Waters Corp. *		20		1,977

				334,960

Real Estate 0.9%
American Tower Corp.		35		2,432
Annaly Capital Management, Inc.		320		3,734
Apartment Investment & Management Co., Class A		70		1,927
AvalonBay Communities, Inc.		15		1,859
Boston Properties, Inc.		25		2,562
Equity Residential		57		2,958
HCP, Inc.		45		1,833
Health Care REIT, Inc.		20		1,229
Hospitality Properties Trust		65		1,756
Host Hotels & Resorts, Inc.		185		3,151
Kimco Realty Corp.		75		1,502
Plum Creek Timber Co., Inc.		55		2,437
Prologis, Inc.		35		1,233
Public Storage		20		3,053
Rayonier, Inc.		25		1,381
Simon Property Group, Inc.		31		4,515
Ventas, Inc.		25		1,557
Vornado Realty Trust		40		3,252
Weyerhaeuser Co.		445		12,184

				54,555

Retailing 4.8%
Aaron’s, Inc.		50		1,354
Abercrombie & Fitch Co., Class A		55		1,942
Advance Auto Parts, Inc.		30		2,402
Amazon.com, Inc. *		20		5,620
American Eagle Outfitters, Inc.		135		1,954
AutoNation, Inc. *		30		1,402
AutoZone, Inc. *		5		2,100
Bed Bath & Beyond, Inc. *		91		6,710
Best Buy Co., Inc.		723		26,028
Big Lots, Inc. *		85		3,011
CarMax, Inc. *		60		2,854
Core-Mark Holding Co., Inc.		35		2,209
Dick’s Sporting Goods, Inc.		25		1,160
Dillard’s, Inc., Class A		20		1,525
Dollar General Corp. *		55		2,968
Dollar Tree, Inc. *		75		3,953
Expedia, Inc.		40		1,870
Family Dollar Stores, Inc.		40		2,848
Foot Locker, Inc.		80		2,576
GameStop Corp., Class A		135		6,778
Genuine Parts Co.		81		6,238
J.C. Penney Co., Inc. *		285		3,557
Kohl’s Corp.		226		11,596
L Brands, Inc.		82		4,704
Liberty Interactive Corp., Class A *		274		6,187
Lowe’s Cos., Inc.		799		36,610
Macy’s, Inc.		212		9,419
Nordstrom, Inc.		70		3,901
O’Reilly Automotive, Inc. *		25		3,068
PetSmart, Inc.		40		2,817
Priceline.com, Inc. *		2		1,877
RadioShack Corp. *		505		1,651
Rent-A-Center, Inc.		55		2,063
Ross Stores, Inc.		45		3,027
Sears Holdings Corp. *		105		4,645
Signet Jewelers Ltd.		35		2,324
Staples, Inc.		816		11,351
Target Corp.		453		28,679
The Gap, Inc.		212		8,573
The Home Depot, Inc.		523		38,958
Tiffany & Co.		40		3,084
TJX Cos., Inc.		227		11,967
Tractor Supply Co.		15		1,836
Williams-Sonoma, Inc.		40		2,256

				291,652

Semiconductors & Semiconductor Equipment 2.3%
Altera Corp.		55		1,934
Analog Devices, Inc.		107		4,952
Applied Materials, Inc.		835		12,533
Broadcom Corp., Class A		110		2,779
Intel Corp.		2,597		57,082
KLA-Tencor Corp.		62		3,419
Lam Research Corp. *		55		2,567
Linear Technology Corp.		55		2,108
LSI Corp. *		255		1,890
Marvell Technology Group Ltd.		180		2,180
Maxim Integrated Products, Inc.		95		2,645
Microchip Technology, Inc.		60		2,329
Micron Technology, Inc. *		551		7,477
NVIDIA Corp.		170		2,507
Texas Instruments, Inc.		669		25,556
Xilinx, Inc.		92		3,995

				135,953

Software & Services 5.8%
Accenture plc, Class A		131		9,465
Adobe Systems, Inc. *		95		4,346
Alliance Data Systems Corp. *		15		2,936
Amdocs Ltd.		65		2,396
AOL, Inc. *		105		3,458
Autodesk, Inc. *		45		1,654
Automatic Data Processing, Inc.		141		10,034
BMC Software, Inc. *		55		2,530
Broadridge Financial Solutions, Inc.		50		1,488
CA, Inc.		110		3,217
Citrix Systems, Inc. *		20		1,415
Cognizant Technology Solutions Corp., Class A *		30		2,199
Computer Sciences Corp.		167		8,375
CoreLogic, Inc. *		165		4,240
DST Systems, Inc.		25		1,784
eBay, Inc. *		177		8,848
Fidelity National Information Services, Inc.		112		4,980
Fiserv, Inc. *		45		4,332
Google, Inc., Class A *		22		18,632
IAC/InterActiveCorp		60		2,945

See financial notes 19

Schwab Fundamental U.S. Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
International Business Machines Corp.		382		69,627
Intuit, Inc.		61		3,875
Mastercard, Inc., Class A		8		4,849
Microsoft Corp.		3,350		111,890
Oracle Corp.		680		21,665
Paychex, Inc.		90		3,481
SAIC, Inc.		255		3,843
Symantec Corp.		355		9,092
Teradata Corp. *		25		1,464
The Western Union Co.		250		4,382
Total System Services, Inc.		75		2,075
Visa, Inc., Class A		31		5,407
Yahoo! Inc. *		233		6,319

				347,243

Technology Hardware & Equipment 4.6%
Amphenol Corp., Class A		30		2,273
Anixter International, Inc. *		25		2,089
Apple, Inc.		60		29,223
Arrow Electronics, Inc. *		110		5,106
Avnet, Inc. *		142		5,476
Cisco Systems, Inc.		1,948		45,408
Corning, Inc.		450		6,318
Dell, Inc.		1,297		17,860
EMC Corp.		408		10,518
Harris Corp.		65		3,681
Hewlett-Packard Co.		3,454		77,162
Ingram Micro, Inc., Class A *		420		9,282
Jabil Circuit, Inc.		125		2,853
Juniper Networks, Inc. *		205		3,875
Lexmark International, Inc., Class A		70		2,391
Molex, Inc.		65		1,886
Motorola Solutions, Inc.		206		11,538
NetApp, Inc.		60		2,492
QUALCOMM, Inc.		235		15,576
SanDisk Corp.		45		2,483
Tech Data Corp. *		102		5,014
Vishay Intertechnology, Inc. *		115		1,409
Western Digital Corp.		85		5,270
Xerox Corp.		835		8,333

				277,516

Telecommunication Services 3.6%
AT&T, Inc.		3,384		114,481
CenturyLink, Inc.		185		6,127
Crown Castle International Corp. *		30		2,083
Frontier Communications Corp.		840		3,637
NII Holdings, Inc. *		400		2,392
Sprint Corp. *		705		4,730
Telephone & Data Systems, Inc.		125		3,461
Verizon Communications, Inc.		1,677		79,456
Windstream Corp.		465		3,753

				220,120

Transportation 1.6%
Avis Budget Group, Inc. *		125		3,346
C.H. Robinson Worldwide, Inc.		75		4,265
CSX Corp.		525		12,920
Expeditors International of Washington, Inc.		80		3,245
FedEx Corp.		192		20,613
Hertz Global Holdings, Inc. *		155		3,725
J.B. Hunt Transport Services, Inc.		25		1,800
Norfolk Southern Corp.		116		8,370
Ryder System, Inc.		60		3,337
Union Pacific Corp.		116		17,811
United Parcel Service, Inc., Class B		210		17,972

				97,404

Utilities 4.1%
AES Corp.		487		6,190
AGL Resources, Inc.		40		1,758
Alliant Energy Corp.		55		2,729
Ameren Corp.		178		6,018
American Electric Power Co., Inc.		227		9,716
American Water Works Co., Inc.		50		2,037
Atmos Energy Corp.		60		2,421
Calpine Corp. *		130		2,513
CenterPoint Energy, Inc.		199		4,563
CMS Energy Corp.		105		2,786
Consolidated Edison, Inc.		146		8,210
Dominion Resources, Inc.		303		17,680
DTE Energy Co.		96		6,420
Duke Energy Corp.		205		13,448
Edison International		167		7,664
Entergy Corp.		165		10,433
Exelon Corp.		561		17,105
FirstEnergy Corp.		267		10,004
Great Plains Energy, Inc.		75		1,644
Integrys Energy Group, Inc.		50		2,796
MDU Resources Group, Inc.		105		2,803
National Fuel Gas Co.		25		1,632
NextEra Energy, Inc.		151		12,134
NiSource, Inc.		145		4,243
Northeast Utilities		70		2,868
NRG Energy, Inc.		218		5,722
NV Energy, Inc.		95		2,228
OGE Energy Corp.		65		2,289
ONEOK, Inc.		75		3,858
Pepco Holdings, Inc.		175		3,314
PG&E Corp.		230		9,513
Pinnacle West Capital Corp.		50		2,713
PPL Corp.		213		6,539
Public Service Enterprise Group, Inc.		310		10,050
Questar Corp.		95		2,082
SCANA Corp.		55		2,647
Sempra Energy		101		8,526
TECO Energy, Inc.		125		2,066
The Southern Co.		335		13,943
UGI Corp.		60		2,352
Vectren Corp.		40		1,304
Westar Energy, Inc.		50		1,555
Wisconsin Energy Corp.		60		2,462
Xcel Energy, Inc.		228		6,366

				249,344

Total Common Stock
(Cost $6,166,040)				6,007,820

20 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings as of August 31, 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

($)

.8%

Common Stock

6,193,842

5,984,632

.1%

Other Investment Companies

3,785

3,708

.9%

Total Investments

6,197,627

5,988,340

.1%

Other Assets and Liabilities, Net

3,311

100

.0%

Net Assets

5,991,651


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 1.1%
Cooper Tire & Rubber Co.		286		9,132
Dana Holding Corp.		735		15,406
Drew Industries, Inc.		80		3,357
Gentex Corp.		451		10,161
Superior Industries International, Inc.		175		3,052
Tenneco, Inc. *		150		6,919
Thor Industries, Inc.		311		15,932

				63,959

Banks 4.8%
Associated Banc-Corp.		738		11,771
Astoria Financial Corp.		706		8,684
BancorpSouth, Inc.		418		8,101
Bank of Hawaii Corp.		185		9,528
BankUnited, Inc.		35		1,034
BOK Financial Corp.		60		3,845
CapitalSource, Inc.		1,430		16,517
Capitol Federal Financial, Inc.		280		3,427
Cathay General Bancorp		194		4,272
City Holding Co.		70		2,860
City National Corp.		118		7,725
Commerce Bancshares, Inc.		195		8,422
Community Bank System, Inc.		20		665
Cullen/Frost Bankers, Inc.		131		9,280
CVB Financial Corp.		225		2,867
East West Bancorp, Inc.		230		6,723
F.N.B. Corp.		375		4,526
First Financial Bancorp		45		675
First Horizon National Corp.		1,071		11,845
First Midwest Bancorp, Inc.		245		3,682
First Niagara Financial Group, Inc.		742		7,494
First Republic Bank		130		5,756
FirstMerit Corp.		601		12,717
Fulton Financial Corp.		624		7,544
Glacier Bancorp, Inc.		199		4,696
Hancock Holding Co.		100		3,215
International Bancshares Corp.		200		4,384
MB Financial, Inc.		145		3,914
NBT Bancorp, Inc.		125		2,678
Northwest Bancshares, Inc.		240		3,202
Old National Bancorp		255		3,351
People’s United Financial, Inc.		891		12,670
Prosperity Bancshares, Inc.		75		4,485
Provident Financial Services, Inc.		240		3,883
Signature Bank *		10		877
Susquehanna Bancshares, Inc.		395		4,981
SVB Financial Group *		56		4,637
Synovus Financial Corp.		4,968		15,848
TCF Financial Corp.		754		10,594
Trustmark Corp.		218		5,419
UMB Financial Corp.		78		4,659
Umpqua Holdings Corp.		297		4,823
United Bankshares, Inc.		155		4,304
Valley National Bancorp		798		8,052
Washington Federal, Inc.		336		7,019
Webster Financial Corp.		227		6,006
Westamerica Bancorp		90		4,236
Wintrust Financial Corp.		65		2,577

				290,470

Capital Goods 10.9%
A.O. Smith Corp.		180		7,569
AAR Corp.		315		7,903
Actuant Corp., Class A		192		6,858
Acuity Brands, Inc.		151		12,910
Aegion Corp. *		135		2,889
Aircastle Ltd.		402		6,553
Albany International Corp., Class A		150		4,840
Apogee Enterprises, Inc.		171		4,771
Applied Industrial Technologies, Inc.		220		10,476
Armstrong World Industries, Inc. *		140		6,798
Astec Industries, Inc.		110		3,802
B/E Aerospace, Inc. *		158		10,774
Barnes Group, Inc.		249		7,786
Beacon Roofing Supply, Inc. *		162		5,885
Brady Corp., Class A		238		7,854
Briggs & Stratton Corp.		394		7,521
Carlisle Cos., Inc.		220		14,652
Chart Industries, Inc. *		40		4,567
Chicago Bridge & Iron Co. N.V.		253		15,137
CIRCOR International, Inc.		75		4,312
CLARCOR, Inc.		147		7,873
CNH Global N.V.		140		6,423
Crane Co.		168		9,645
Cubic Corp.		55		2,762
Curtiss-Wright Corp.		247		10,315
DigitalGlobe, Inc. *		20		604
Donaldson Co., Inc.		341		12,017
Dycom Industries, Inc. *		327		8,309
Encore Wire Corp.		135		5,094
EnerSys, Inc.		186		9,538
EnPro Industries, Inc. *		60		3,419
ESCO Technologies, Inc.		80		2,452
Esterline Technologies Corp. *		94		7,171

22 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Fortune Brands Home & Security, Inc.		162		5,968
Franklin Electric Co., Inc.		105		3,772
GATX Corp.		270		12,220
Generac Holdings, Inc.		25		990
Gibraltar Industries, Inc. *		255		3,284
Graco, Inc.		162		11,257
GrafTech International Ltd. *		625		4,887
Granite Construction, Inc.		341		9,657
Greenbrier Cos., Inc. *		115		2,596
H&E Equipment Services, Inc.		190		4,575
HEICO Corp.		78		4,875
Hexcel Corp. *		198		7,043
Huntington Ingalls Industries, Inc.		300		18,996
IDEX Corp.		201		11,933
Kaman Corp.		110		3,872
Kaydon Corp.		170		4,837
Kennametal, Inc.		300		12,756
Layne Christensen Co. *		190		3,612
Lincoln Electric Holdings, Inc.		255		15,945
MasTec, Inc. *		135		4,293
Meritor, Inc. *		730		5,438
Moog, Inc., Class A *		160		8,128
MRC Global, Inc. *		180		4,725
MSC Industrial Direct Co., Inc., Class A		110		8,360
Mueller Industries, Inc.		155		8,299
Mueller Water Products, Inc., Class A		913		6,893
National Presto Industries, Inc.		42		2,897
Navistar International Corp. *		395		13,537
Nordson Corp.		95		6,332
Orbital Sciences Corp. *		315		5,468
Polypore International, Inc. *		75		3,206
Quanex Building Products Corp.		230		3,827
Raven Industries, Inc.		80		2,337
Regal-Beloit Corp.		128		8,154
Rush Enterprises, Inc., Class A *		195		4,881
Simpson Manufacturing Co., Inc.		150		4,691
Spirit AeroSystems Holdings, Inc., Class A *		556		12,554
TAL International Group, Inc. *		95		4,066
Teledyne Technologies, Inc. *		100		7,717
Tennant Co.		69		3,545
The Babcock & Wilcox Co.		275		8,522
The Manitowoc Co., Inc.		498		9,950
The Middleby Corp. *		22		4,091
The Toro Co.		255		13,467
Titan International, Inc.		115		1,868
TransDigm Group, Inc.		75		10,275
TriMas Corp. *		20		703
Trinity Industries, Inc.		366		15,453
Triumph Group, Inc.		95		6,837
Tutor Perini Corp. *		671		12,870
Universal Forest Products, Inc.		247		9,248
Valmont Industries, Inc.		50		6,748
WABCO Holdings, Inc. *		139		10,841
Wabtec Corp.		156		9,129
Watsco, Inc.		106		9,519
Watts Water Technologies, Inc., Class A		120		6,217
Woodward, Inc.		182		7,018

				654,658

Commercial & Professional Services 4.3%
ABM Industries, Inc.		487		11,761
Clean Harbors, Inc. *		93		5,285
Consolidated Graphics, Inc. *		118		6,313
Copart, Inc. *		269		8,546
Covanta Holding Corp.		427		9,023
Deluxe Corp.		224		8,814
FTI Consulting, Inc. *		195		6,521
G&K Services, Inc., Class A		136		6,996
Healthcare Services Group, Inc.		175		4,237
Herman Miller, Inc.		327		8,329
HNI Corp.		321		10,747
Huron Consulting Group, Inc. *		65		3,094
ICF International, Inc. *		110		3,618
IHS, Inc., Class A *		45		4,822
Insperity, Inc.		159		5,072
Interface, Inc.		185		3,267
KAR Auction Services, Inc.		40		1,066
Kelly Services, Inc., Class A		606		11,029
Kforce, Inc.		230		3,742
Knoll, Inc.		245		3,731
Korn/Ferry International *		220		3,896
McGrath Rentcorp		100		3,308
Mine Safety Appliances Co.		99		4,765
Navigant Consulting, Inc. *		360		4,914
Nielsen Holdings N.V.		261		9,005
Quad/Graphics, Inc.		305		9,559
Resources Connection, Inc.		410		5,018
Rollins, Inc.		110		2,723
Steelcase, Inc., Class A		740		10,745
Stericycle, Inc. *		90		10,130
Tetra Tech, Inc. *		185		4,214
The Brink’s Co.		466		12,037
The Corporate Executive Board Co.		125		8,105
Towers Watson & Co., Class A		116		9,541
TrueBlue, Inc. *		342		8,317
UniFirst Corp.		50		4,794
Verisk Analytics, Inc., Class A *		135		8,394
Viad Corp.		155		3,498
Waste Connections, Inc.		205		8,684

				257,660

Consumer Durables & Apparel 4.1%
Arctic Cat, Inc.		65		3,489
Blyth, Inc.		170		1,569
Brunswick Corp.		214		7,781
Callaway Golf Co.		705		4,879
Carter’s, Inc.		108		7,953
Columbia Sportswear Co.		65		3,678
Crocs, Inc. *		225		3,029
Deckers Outdoor Corp. *		115		6,754
Ethan Allen Interiors, Inc.		155		4,041
Fossil Group, Inc. *		110		12,775
G-III Apparel Group Ltd. *		75		3,436
Hanesbrands, Inc.		261		15,524
Helen of Troy Ltd. *		95		3,817
JAKKS Pacific, Inc.		315		1,635
KB Home		457		7,326
La-Z-Boy, Inc.		321		6,825
Lennar Corp., Class A		315		10,020

See financial notes 23

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
M.D.C Holdings, Inc.		135		3,757
Meritage Homes Corp. *		95		3,792
Michael Kors Holdings Ltd. *		15		1,111
NACCO Industries, Inc., Class A		70		3,891
Polaris Industries, Inc.		121		13,214
PulteGroup, Inc.		617		9,496
PVH Corp.		115		14,806
Quiksilver, Inc. *		994		4,920
Skechers U.S.A., Inc., Class A *		275		8,451
Steven Madden Ltd. *		84		4,536
Tempur Sealy International, Inc. *		259		9,974
The Jones Group, Inc.		1,116		16,439
The Ryland Group, Inc.		203		7,069
Toll Brothers, Inc. *		335		10,254
Tupperware Brands Corp.		156		12,600
Under Armour, Inc., Class A *		60		4,358
Wolverine World Wide, Inc.		203		11,419

				244,618

Consumer Services 5.5%
Bally Technologies, Inc. *		113		8,151
Bob Evans Farms, Inc.		247		12,110
Boyd Gaming Corp. *		794		9,623
Buffalo Wild Wings, Inc. *		30		3,117
Burger King Worldwide, Inc.		55		1,076
Caesars Entertainment Corp. *		940		20,182
Capella Education Co. *		20		1,087
Career Education Corp. *		2,259		5,919
CEC Entertainment, Inc.		216		8,741
Chipotle Mexican Grill, Inc. *		27		11,021
Choice Hotels International, Inc.		70		2,687
Cracker Barrel Old Country Store, Inc.		141		13,877
DeVry, Inc.		325		9,753
DineEquity, Inc.		50		3,313
Domino’s Pizza, Inc.		233		14,315
Dunkin’ Brands Group, Inc.		20		862
Hillenbrand, Inc.		205		5,076
Hyatt Hotels Corp., Class A *		130		5,642
International Speedway Corp., Class A		145		4,494
ITT Educational Services, Inc. *		491		14,146
Jack in the Box, Inc. *		320		12,637
Las Vegas Sands Corp.		201		11,326
Life Time Fitness, Inc. *		100		4,999
Marriott Vacations Worldwide Corp. *		25		1,090
Matthews International Corp., Class A		152		5,609
Outerwall, Inc. *		83		5,160
Panera Bread Co., Class A *		40		6,561
Papa John’s International, Inc. *		75		5,110
Penn National Gaming, Inc. *		231		12,148
Pinnacle Entertainment, Inc. *		220		5,210
Red Robin Gourmet Burgers, Inc. *		89		5,772
Regis Corp.		553		8,726
Ruby Tuesday, Inc. *		781		5,670
SeaWorld Entertainment, Inc.		20		599
Six Flags Entertainment Corp.		120		3,961
Sonic Corp. *		623		9,943
Sotheby’s		145		6,686
Steiner Leisure Ltd. *		70		3,900
Stewart Enterprises, Inc., Class A		300		3,924
Strayer Education, Inc.		120		4,795
Texas Roadhouse, Inc.		215		5,343
The Cheesecake Factory, Inc.		290		12,113
The Wendy’s Co.		1,555		11,756
Vail Resorts, Inc.		95		6,460
Weight Watchers International, Inc.		183		6,577
WMS Industries, Inc. *		268		6,888

				328,155

Diversified Financials 3.3%
Affiliated Managers Group, Inc. *		52		9,065
American Capital Ltd. *		85		1,061
Ares Capital Corp.		100		1,758
Cash America International, Inc.		145		6,203
CBOE Holdings, Inc.		145		6,654
DFC Global Corp. *		70		791
ETRADE Financial Corp.		898		12,608
EZCORP, Inc., Class A *		195		3,311
Federated Investors, Inc., Class B		589		15,997
First Cash Financial Services, Inc. *		60		3,316
Greenhill & Co., Inc.		110		5,213
IntercontinentalExchange, Inc. *		52		9,347
Investment Technology Group, Inc. *		405		6,885
Janus Capital Group, Inc.		1,640		13,710
Lazard Ltd., Class A		170		6,021
Leucadia National Corp.		295		7,354
LPL Financial Holdings, Inc.		135		4,965
MSCI, Inc. *		270		10,128
Nelnet, Inc., Class A		120		4,546
Raymond James Financial, Inc.		210		8,784
SEI Investments Co.		447		13,303
Stifel Financial Corp. *		85		3,402
TD Ameritrade Holding Corp.		792		20,331
The NASDAQ OMX Group, Inc.		375		11,197
Waddell & Reed Financial, Inc., Class A		193		9,191
World Acceptance Corp. *		55		4,712

				199,853

Energy 6.2%
Atwood Oceanics, Inc. *		95		5,290
Basic Energy Services, Inc. *		205		2,386
Berry Petroleum Co., Class A		141		5,802
Bill Barrett Corp. *		235		5,060
Bristow Group, Inc.		105		6,898
Cabot Oil & Gas Corp.		288		11,269
CARBO Ceramics, Inc.		50		4,079
Cloud Peak Energy, Inc. *		270		4,250
Comstock Resources, Inc.		220		3,212
Concho Resources, Inc. *		60		5,791
Crosstex Energy, Inc.		263		5,131
Delek US Holdings, Inc.		110		2,735
Denbury Resources, Inc. *		666		11,515
Dresser-Rand Group, Inc. *		201		12,249
Dril-Quip, Inc. *		61		6,223
Energy XXI Bermuda Ltd.		125		3,321
EXCO Resources, Inc.		650		4,732
Exterran Holdings, Inc. *		526		14,428
Forest Oil Corp. *		1,518		8,440
Green Plains Renewable Energy, Inc. *		45		724
Gulfmark Offshore, Inc., Class A		85		3,908
Helix Energy Solutions Group, Inc. *		530		13,266
Hercules Offshore, Inc. *		801		5,767

24 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Hornbeck Offshore Services, Inc. *		78		4,249
ION Geophysical Corp. *		370		1,772
Key Energy Services, Inc. *		1,221		8,144
Matrix Service Co. *		180		2,806
Newpark Resources, Inc. *		355		3,951
Nordic American Tankers Ltd.		380		2,922
Oceaneering International, Inc.		200		15,516
Oil States International, Inc. *		161		14,364
Parker Drilling Co. *		973		5,585
PDC Energy, Inc. *		65		3,730
Penn Virginia Corp. *		970		4,666
Pioneer Energy Services Corp. *		380		2,569
Quicksilver Resources, Inc. *		1,395		2,330
Range Resources Corp.		130		9,747
Rosetta Resources, Inc. *		70		3,257
SandRidge Energy, Inc. *		1,112		5,727
SemGroup Corp., Class A		221		11,700
Ship Finance International Ltd.		250		3,865
SM Energy Co.		158		10,795
Stone Energy Corp. *		249		6,823
Superior Energy Services, Inc. *		545		13,385
Swift Energy Co. *		315		3,553
Targa Resources Corp.		87		5,924
Teekay Corp.		241		9,628
TETRA Technologies, Inc. *		629		7,391
Tidewater, Inc.		301		16,242
Ultra Petroleum Corp. *		335		6,934
Unit Corp. *		241		11,098
W&T Offshore, Inc.		230		3,554
Western Refining, Inc.		315		9,239
Whiting Petroleum Corp. *		225		11,356
Willbros Group, Inc. *		485		4,418

				373,716

Food & Staples Retailing 0.9%
PriceSmart, Inc.		35		3,009
Rite Aid Corp. *		3,358		11,619
Roundy’s, Inc.		385		3,249
Susser Holdings Corp. *		80		3,817
The Andersons, Inc.		132		8,667
The Fresh Market, Inc. *		15		732
The Pantry, Inc. *		805		9,185
United Natural Foods, Inc. *		200		12,126

				52,404

Food, Beverage & Tobacco 2.2%
B&G Foods, Inc.		95		3,218
Cal-Maine Foods, Inc.		75		3,422
Chiquita Brands International, Inc. *		1,045		12,885
Darling International, Inc. *		165		3,338
Dole Food Co., Inc. *		463		6,352
Flowers Foods, Inc.		599		12,453
Fresh Del Monte Produce, Inc.		370		10,678
Green Mountain Coffee Roasters, Inc. *		76		6,560
J&J Snack Foods Corp.		45		3,461
Lancaster Colony Corp.		83		6,123
Monster Beverage Corp. *		138		7,920
Pilgrim’s Pride Corp. *		352		5,396
Post Holdings, Inc. *		150		6,405
Sanderson Farms, Inc.		155		10,149
Seaboard Corp.		2		5,360
Snyders-Lance, Inc.		135		3,632
The Hain Celestial Group, Inc. *		55		4,498
TreeHouse Foods, Inc. *		95		6,178
Universal Corp.		207		10,147
Vector Group Ltd.		230		3,756
WhiteWave Foods Co., Class A *		75		1,434

				133,365

Health Care Equipment & Services 4.3%
Alere, Inc. *		301		9,382
Allscripts Healthcare Solutions, Inc. *		55		800
Amedisys, Inc. *		494		8,047
AmSurg Corp. *		147		5,482
Analogic Corp.		35		2,612
Brookdale Senior Living, Inc. *		288		7,206
Catamaran Corp. *		95		5,216
Centene Corp. *		208		11,887
Cerner Corp. *		250		11,515
Chemed Corp.		110		7,660
CONMED Corp.		110		3,420
Edwards Lifesciences Corp. *		100		7,038
Gentiva Health Services, Inc. *		330		3,785
Greatbatch, Inc. *		20		679
Haemonetics Corp. *		120		4,782
Hanger, Inc. *		90		2,764
HEALTHSOUTH Corp. *		165		5,191
Healthways, Inc. *		299		5,705
Hill-Rom Holdings, Inc.		331		11,300
Hologic, Inc. *		425		9,070
IDEXX Laboratories, Inc. *		106		9,945
Integra LifeSciences Holdings Corp. *		65		2,642
Intuitive Surgical, Inc. *		17		6,571
Invacare Corp.		424		6,364
Kindred Healthcare, Inc.		1,127		16,567
Masimo Corp.		135		3,340
MEDNAX, Inc. *		110		10,711
Molina Healthcare, Inc. *		208		6,945
MWI Veterinary Supply, Inc. *		26		3,954
PharMerica Corp. *		421		5,178
ResMed, Inc.		160		7,558
Select Medical Holdings Corp.		80		678
Sirona Dental Systems, Inc. *		67		4,340
STERIS Corp.		265		10,836
Teleflex, Inc.		146		11,254
The Cooper Cos., Inc.		65		8,490
VCA Antech, Inc. *		321		8,760
West Pharmaceutical Services, Inc.		94		6,951

				254,625

Household & Personal Products 0.4%
Central Garden & Pet Co., Class A *		540		3,380
Elizabeth Arden, Inc. *		70		2,431
Nu Skin Enterprises, Inc., Class A		166		13,896
Spectrum Brands Holdings, Inc.		73		4,420
WD-40 Co.		45		2,618

				26,745

See financial notes 25

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Insurance 4.4%
Alleghany Corp. *		20		7,742
American Equity Investment Life Holding Co.		300		5,943
Argo Group International Holdings Ltd.		130		5,309
Arthur J. Gallagher & Co.		320		13,229
Aspen Insurance Holdings Ltd.		446		15,864
Assured Guaranty Ltd.		190		3,779
Brown & Brown, Inc.		269		8,377
CNO Financial Group, Inc.		1,116		15,166
First American Financial Corp.		489		10,220
Horace Mann Educators Corp.		150		3,954
Infinity Property & Casualty Corp.		105		6,354
Kemper Corp.		455		15,447
Markel Corp. *		30		15,321
Mercury General Corp.		165		7,240
Montpelier Re Holdings Ltd.		248		6,163
Old Republic International Corp.		1,146		16,273
Primerica, Inc.		361		13,404
ProAssurance Corp.		150		7,071
Protective Life Corp.		400		16,716
RLI Corp.		106		8,278
Safety Insurance Group, Inc.		70		3,510
Selective Insurance Group, Inc.		325		7,452
StanCorp Financial Group, Inc.		306		16,010
Stewart Information Services Corp.		30		918
Symetra Financial Corp.		220		3,799
The Hanover Insurance Group, Inc.		276		14,703
Tower Group International Ltd.		170		2,402
Validus Holdings Ltd.		327		11,317

				261,961

Materials 5.8%
A. Schulman, Inc.		242		6,524
A.M. Castle & Co. *		195		3,083
AK Steel Holding Corp. *		3,036		10,201
AMCOL International Corp.		100		3,297
Axiall Corp.		151		6,045
Boise, Inc.		746		6,378
Cabot Corp.		310		12,397
Carpenter Technology Corp.		180		9,679
Century Aluminum Co. *		515		4,022
Chemtura Corp. *		441		9,667
Clearwater Paper Corp. *		85		4,051
Coeur Mining, Inc. *		65		939
Compass Minerals International, Inc.		80		5,898
Crown Holdings, Inc. *		334		14,516
Eagle Materials, Inc.		98		6,288
Ferro Corp. *		1,471		10,812
Graphic Packaging Holding Co. *		626		5,202
Greif, Inc., Class A		181		9,750
H.B. Fuller Co.		232		8,651
Hecla Mining Co.		200		684
Innophos Holdings, Inc.		90		4,407
Innospec, Inc.		75		3,069
Kaiser Aluminum Corp.		108		7,465
KapStone Paper and Packaging Corp.		111		4,662
Koppers Holdings, Inc.		75		2,908
Kraton Performance Polymers, Inc. *		165		3,061
Louisiana-Pacific Corp. *		295		4,413
Materion Corp.		140		4,116
Minerals Technologies, Inc.		175		7,770
Myers Industries, Inc.		215		3,990
NewMarket Corp.		23		6,306
Olin Corp.		370		8,547
OM Group, Inc. *		281		7,986
P.H. Glatfelter Co.		250		6,405
PolyOne Corp.		261		7,052
Resolute Forest Products *		525		6,620
Rock-Tenn Co., Class A		136		15,111
Rockwood Holdings, Inc.		185		11,814
RTI International Metals, Inc. *		105		3,252
Schnitzer Steel Industries, Inc., Class A		470		11,867
Schweitzer-Mauduit International, Inc.		105		6,013
Sensient Technologies Corp.		210		8,707
Silgan Holdings, Inc.		190		8,964
Stepan Co.		78		4,402
Stillwater Mining Co. *		265		3,018
SunCoke Energy, Inc. *		270		4,247
The Scotts Miracle-Gro Co., Class A		246		12,967
Tredegar Corp.		145		3,241
W.R. Grace & Co. *		65		5,223
Walter Energy, Inc.		325		4,206
Wausau Paper Corp.		345		3,785
Westlake Chemical Corp.		45		4,553
Worthington Industries, Inc.		326		10,866

				349,097

Media 2.4%
AMC Networks, Inc., Class A *		50		3,099
Belo Corp., Class A		512		7,240
Cinemark Holdings, Inc.		375		11,051
Dex Media, Inc. *		170		1,576
DreamWorks Animation SKG, Inc., Class A *		446		12,622
E.W. Scripps Co., Class A *		390		5,932
John Wiley & Sons, Inc., Class A		171		7,490
Lamar Advertising Co., Class A *		360		15,145
Lions Gate Entertainment Corp. *		25		875
Live Nation Entertainment, Inc. *		589		9,931
Meredith Corp.		210		9,032
National CineMedia, Inc.		190		3,416
Regal Entertainment Group, Class A		545		9,750
Scholastic Corp.		296		8,735
Scripps Networks Interactive, Inc., Class A		150		11,029
Sinclair Broadcast Group, Inc., Class A		190		4,545
Sirius XM Radio, Inc.		190		680
The Madison Square Garden Co., Class A *		80		4,656
The New York Times Co., Class A *		962		10,726
Valassis Communications, Inc.		200		5,510

				143,040

Pharmaceuticals, Biotechnology & Life Sciences 2.0%
Alexion Pharmaceuticals, Inc. *		10		1,078
Bio-Rad Laboratories, Inc., Class A *		55		6,271
Bruker Corp. *		45		902
Cambrex Corp. *		70		954

26 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Charles River Laboratories International, Inc. *		277		12,756
Covance, Inc. *		210		17,018
Cubist Pharmaceuticals, Inc. *		55		3,485
Endo Health Solutions, Inc. *		406		16,682
Illumina, Inc. *		74		5,760
Impax Laboratories, Inc. *		165		3,363
Myriad Genetics, Inc. *		20		523
PAREXEL International Corp. *		100		4,643
PDL BioPharma, Inc.		645		5,121
PerkinElmer, Inc.		391		14,064
Perrigo Co.		80		9,724
QIAGEN N.V. *		342		6,854
Techne Corp.		70		5,426
United Therapeutics Corp. *		10		709
ViroPharma, Inc. *		120		3,618
Zoetis, Inc.		40		1,166

				120,117

Real Estate 7.3%
Alexandria Real Estate Equities, Inc.		95		5,859
American Campus Communities, Inc.		75		2,498
American Capital Agency Corp.		160		3,642
Anworth Mortgage Asset Corp.		590		2,614
Ashford Hospitality Trust Inc.		290		3,344
BioMed Realty Trust, Inc.		270		4,971
Brandywine Realty Trust		631		8,089
BRE Properties, Inc.		120		5,759
Camden Property Trust		130		8,033
Capstead Mortgage Corp.		330		3,874
CBL & Associates Properties, Inc.		352		6,758
CBRE Group, Inc., Class A *		516		11,285
Chimera Investment Corp.		2,614		7,685
Colonial Properties Trust		305		6,737
CommonWealth REIT		560		13,748
Corporate Office Properties Trust		225		5,125
Corrections Corp. of America		345		11,364
Cousins Properties, Inc.		305		3,029
CYS Investments, Inc.		90		691
DCT Industrial Trust, Inc.		575		3,847
DDR Corp.		531		8,241
DiamondRock Hospitality Co.		541		5,242
Digital Realty Trust, Inc.		112		6,227
Douglas Emmett, Inc.		225		5,197
Duke Realty Corp.		881		12,854
EastGroup Properties, Inc.		55		3,091
EPR Properties		109		5,339
Equity Lifestyle Properties, Inc.		70		2,433
Essex Property Trust, Inc.		45		6,449
Extra Space Storage, Inc.		96		3,958
Federal Realty Investment Trust		91		8,855
Forest City Enterprises, Inc., Class A *		170		3,043
General Growth Properties, Inc.		651		12,486
Glimcher Realty Trust		255		2,525
Hatteras Financial Corp.		175		3,202
Healthcare Realty Trust, Inc.		151		3,396
Highwoods Properties, Inc.		186		6,283
Home Properties, Inc.		100		5,770
Inland Real Estate Corp.		280		2,747
Invesco Mortgage Capital, Inc.		50		766
iStar Financial, Inc. *		1,111		12,310
Jones Lang LaSalle, Inc.		136		11,185
Kilroy Realty Corp.		95		4,635
LaSalle Hotel Properties		190		5,041
Lexington Realty Trust		458		5,368
Liberty Property Trust		296		10,242
Mack-Cali Realty Corp.		417		9,007
MFA Financial, Inc.		777		5,594
Mid-America Apartment Communities, Inc.		70		4,316
National Retail Properties, Inc.		125		3,829
NorthStar Realty Finance Corp.		450		3,942
OMEGA Healthcare Investors, Inc.		140		3,976
Pennsylvania REIT		240		4,452
Piedmont Office Realty Trust, Inc., Class A		630		10,823
Post Properties, Inc.		75		3,392
Potlatch Corp.		227		8,753
PS Business Parks, Inc.		40		2,907
RAIT Financial Trust		550		3,399
Realty Income Corp.		152		6,004
Redwood Trust, Inc.		325		5,782
Regency Centers Corp.		176		8,369
Retail Properties of America, Inc., Class A		75		1,001
RLJ Lodging Trust		40		919
Ryman Hospitality Properties, Inc.		20		661
Sabra Health Care REIT, Inc.		40		884
Senior Housing Properties Trust		235		5,346
SL Green Realty Corp.		111		9,678
Sovran Self Storage, Inc.		50		3,313
Starwood Property Trust, Inc.		30		748
Sun Communities, Inc.		55		2,363
Sunstone Hotel Investors, Inc. *		431		5,185
Tanger Factory Outlet Centers		105		3,239
Taubman Centers, Inc.		90		6,067
The Geo Group, Inc.		150		4,681
The Macerich Co.		201		11,312
UDR, Inc.		391		8,833
Washington REIT		171		4,166
Weingarten Realty Investors		315		9,044
WP Carey, Inc.		15		986

				438,808

Retailing 5.7%
Aeropostale, Inc. *		731		5,943
Ann, Inc. *		390		13,533
Asbury Automotive Group, Inc. *		160		7,861
Ascena Retail Group, Inc. *		342		5,582
Barnes & Noble, Inc. *		507		6,931
Brown Shoe Co., Inc.		380		8,520
Cabela’s, Inc. *		82		5,374
Chico’s FAS, Inc.		621		9,688
DSW, Inc., Class A		60		5,165
Express, Inc. *		215		4,513
Fred’s, Inc., Class A		528		8,253
Genesco, Inc. *		115		7,093
GNC Holdings, Inc., Class A		110		5,596
Group 1 Automotive, Inc.		209		16,037
Guess?, Inc.		389		11,865
hhgregg, Inc. *		40		724
Hibbett Sports, Inc. *		73		3,781

See financial notes 27

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
HSN, Inc.		95		5,117
Jos. A. Bank Clothiers, Inc. *		95		3,779
Lithia Motors, Inc., Class A		110		7,218
LKQ Corp. *		411		12,018
Lumber Liquidators Holdings, Inc. *		10		994
Monro Muffler Brake, Inc.		75		3,320
Netflix, Inc. *		47		13,344
Nutrisystem, Inc.		655		8,292
Office Depot, Inc. *		4,565		19,127
OfficeMax, Inc.		962		10,457
Penske Automotive Group, Inc.		301		11,748
Pier 1 Imports, Inc.		170		3,726
Pool Corp.		130		6,772
Saks, Inc. *		1,015		16,169
Sally Beauty Holdings, Inc. *		115		3,005
Sears Hometown and Outlet Stores, Inc. *		20		642
Select Comfort Corp. *		120		2,964
Sonic Automotive, Inc., Class A		376		8,193
Stage Stores, Inc.		300		5,589
The Bon-Ton Stores, Inc.		35		385
The Buckle, Inc.		114		5,903
The Cato Corp., Class A		165		4,151
The Children’s Place Retail Stores, Inc. *		191		10,157
The Finish Line, Inc., Class A		341		7,147
The Men’s Wearhouse, Inc.		376		14,156
The Pep Boys-Manny, Moe & Jack *		450		5,054
The Wet Seal, Inc., Class A *		840		3,066
TripAdvisor, Inc. *		55		4,068
Ulta Salon, Cosmetics & Fragrance, Inc. *		55		5,458
Urban Outfitters, Inc. *		267		11,195
Vitamin Shoppe, Inc. *		50		2,106

				341,779

Semiconductors & Semiconductor Equipment 3.8%
Advanced Micro Devices, Inc. *		3,686		12,053
Amkor Technology, Inc. *		1,252		5,021
Atmel Corp. *		1,546		11,224
ATMI, Inc. *		156		3,830
Avago Technologies Ltd.		293		11,283
Brooks Automation, Inc.		430		3,784
Cabot Microelectronics Corp. *		90		3,251
Cirrus Logic, Inc. *		110		2,475
Cree, Inc. *		125		6,936
Cypress Semiconductor Corp. *		579		6,554
Diodes, Inc. *		25		623
Entegris, Inc. *		629		5,913
Fairchild Semiconductor International, Inc. *		607		7,411
First Solar, Inc. *		277		10,171
GT Advanced Technologies, Inc. *		1,210		7,817
Hittite Microwave Corp. *		10		612
Integrated Device Technology, Inc. *		1,083		9,433
International Rectifier Corp. *		289		6,901
Intersil Corp., Class A		1,311		13,595
Micrel, Inc.		275		2,530
Microsemi Corp. *		140		3,604
MKS Instruments, Inc.		210		5,261
OmniVision Technologies, Inc. *		220		3,399
ON Semiconductor Corp. *		1,423		10,303
Photronics, Inc. *		455		3,312
PMC-Sierra, Inc. *		525		3,271
RF Micro Devices, Inc. *		991		4,915
Semtech Corp. *		100		2,972
Silicon Laboratories, Inc. *		174		6,732
Skyworks Solutions, Inc. *		268		6,796
Spansion, Inc., Class A *		280		2,904
SunEdison, Inc. *		3,418		25,156
Teradyne, Inc. *		546		8,381
Tessera Technologies, Inc.		165		3,026
TriQuint Semiconductor, Inc. *		705		5,316
Veeco Instruments, Inc. *		85		2,985

				229,750

Software & Services 6.0%
Activision Blizzard, Inc.		761		12,420
Acxiom Corp. *		427		10,624
Akamai Technologies, Inc. *		200		9,196
ANSYS, Inc. *		60		5,039
CACI International, Inc., Class A *		175		11,795
Cadence Design Systems, Inc. *		255		3,435
Compuware Corp.		1,411		15,055
Convergys Corp.		821		14,474
CSG Systems International, Inc.		264		6,215
Digital River, Inc. *		55		950
EarthLink, Inc.		1,286		6,327
Electronic Arts, Inc. *		630		16,783
Equinix, Inc. *		25		4,343
Euronet Worldwide, Inc. *		145		4,981
Facebook, Inc., Class A *		95		3,922
FactSet Research Systems, Inc.		91		9,314
Fair Isaac Corp.		216		10,817
FleetCor Technologies, Inc. *		10		1,031
Gartner, Inc. *		125		7,246
Genpact Ltd.		225		4,331
Global Cash Access Holdings, Inc. *		405		3,118
Global Payments, Inc.		180		8,577
Heartland Payment Systems, Inc.		130		4,803
Informatica Corp. *		75		2,683
j2 Global, Inc.		94		4,629
Jack Henry & Associates, Inc.		174		8,683
Lender Processing Services, Inc.		470		14,993
Manhattan Associates, Inc. *		51		4,462
ManTech International Corp., Class A		210		5,974
MAXIMUS, Inc.		172		6,452
Mentor Graphics Corp.		175		3,878
MICROS Systems, Inc. *		131		6,406
MicroStrategy, Inc., Class A *		30		2,754
Monster Worldwide, Inc. *		1,414		6,363
NeuStar, Inc., Class A *		129		6,520
Nuance Communications, Inc. *		175		3,341
Progress Software Corp. *		155		3,791
PTC, Inc. *		210		5,475
Rackspace Hosting, Inc. *		55		2,465
Red Hat, Inc. *		80		4,042
Rovi Corp. *		150		2,690
Salesforce.com, Inc. *		110		5,404
Sapient Corp. *		290		4,335
Solera Holdings, Inc.		65		3,355
Sykes Enterprises, Inc. *		251		4,275
Synopsys, Inc. *		238		8,630
Take-Two Interactive Software, Inc. *		295		5,416

28 See financial notes

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
TeleTech Holdings, Inc. *		165		4,038
TIBCO Software, Inc. *		341		7,686
Unisys Corp. *		307		7,724
United Online, Inc.		910		7,143
ValueClick, Inc. *		250		5,290
VeriFone Systems, Inc. *		35		694
VeriSign, Inc. *		345		16,557
VistaPrint N.V. *		70		3,727
VMware, Inc., Class A *		10		842
WEX, Inc. *		45		3,601

				359,114

Technology Hardware & Equipment 4.9%
ADTRAN, Inc.		326		7,863
ARRIS Group, Inc. *		438		6,863
Belden, Inc.		130		7,374
Benchmark Electronics, Inc. *		686		15,071
Brocade Communications Systems, Inc. *		1,488		11,011
Cognex Corp.		83		4,729
Coherent, Inc.		86		4,827
Comtech Telecommunications Corp.		135		3,236
Diebold, Inc.		411		11,623
Dolby Laboratories, Inc., Class A		105		3,300
EchoStar Corp., Class A *		151		6,079
Electronics for Imaging, Inc. *		195		5,710
Emulex Corp. *		560		4,032
F5 Networks, Inc. *		70		5,837
FEI Co.		45		3,523
Finisar Corp. *		210		4,299
FLIR Systems, Inc.		396		12,387
Insight Enterprises, Inc. *		488		9,326
InterDigital, Inc.		115		4,087
Intermec, Inc. *		385		3,800
Itron, Inc. *		165		6,181
JDS Uniphase Corp. *		449		5,761
Littelfuse, Inc.		50		3,689
MTS Systems Corp.		60		3,610
National Instruments Corp.		196		5,439
NCR Corp. *		486		17,292
NETGEAR, Inc. *		100		2,894
OSI Systems, Inc. *		10		727
Plantronics, Inc.		125		5,400
Plexus Corp. *		276		9,036
Polycom, Inc. *		709		7,040
QLogic Corp. *		1,085		11,490
Rofin-Sinar Technologies, Inc. *		150		3,374
Sanmina Corp. *		961		15,635
ScanSource, Inc. *		236		7,311
Synaptics, Inc. *		95		3,673
SYNNEX Corp. *		345		16,391
Tellabs, Inc.		5,591		12,412
Trimble Navigation Ltd. *		273		6,893
ViaSat, Inc. *		60		3,824
Zebra Technologies Corp., Class A *		220		10,032

				293,081

Telecommunication Services 0.9%
Cincinnati Bell, Inc. *		1,643		4,913
Consolidated Communications Holdings, Inc.		230		3,836
Intelsat S.A. *		35		799
Leap Wireless International, Inc. *		870		13,207
Level 3 Communications, Inc. *		395		8,832
NTELOS Holdings Corp.		185		3,075
SBA Communications Corp., Class A *		70		5,250
T-Mobile US, Inc. *		50		1,167
tw telecom, Inc. *		265		7,584
United States Cellular Corp.		105		4,492

				53,155

Transportation 5.4%
Alaska Air Group, Inc.		202		11,437
Allegiant Travel Co.		10		945
AMERCO		30		4,908
Arkansas Best Corp.		631		15,699
Atlas Air Worldwide Holdings, Inc. *		130		6,006
Con-way, Inc.		388		16,141
Copa Holdings S.A., Class A		50		6,539
Delta Air Lines, Inc.		2,227		43,939
Forward Air Corp.		95		3,499
Genesee & Wyoming, Inc., Class A *		40		3,463
Hawaiian Holdings, Inc. *		415		2,905
Heartland Express, Inc.		275		3,828
Hub Group, Inc., Class A *		213		7,913
JetBlue Airways Corp. *		1,391		8,555
Kansas City Southern		116		12,229
Kirby Corp. *		120		9,652
Knight Transportation, Inc.		290		4,721
Landstar System, Inc.		216		11,804
Matson, Inc.		374		9,960
Old Dominion Freight Line, Inc. *		155		6,730
Republic Airways Holdings, Inc. *		925		10,332
Saia, Inc. *		155		4,652
SkyWest, Inc.		1,010		13,019
Southwest Airlines Co.		3,442		44,092
Swift Transportation Co. *		315		5,657
United Continental Holdings, Inc. *		859		24,447
US Airways Group, Inc. *		478		7,724
UTI Worldwide, Inc.		778		12,845
Werner Enterprises, Inc.		379		8,732

				322,373

Utilities 3.2%
ALLETE, Inc.		141		6,655
American States Water Co.		50		2,630
Aqua America, Inc.		290		8,807
Atlantic Power Corp.		555		2,203
Avista Corp.		291		7,645
Black Hills Corp.		176		8,451
California Water Service Group		150		2,992
Cleco Corp.		175		7,903
El Paso Electric Co.		170		5,848
Hawaiian Electric Industries, Inc.		422		10,554
IDACORP, Inc.		175		8,377
ITC Holdings Corp.		81		7,200
MGE Energy, Inc.		70		3,648
New Jersey Resources Corp.		209		9,004
Northwest Natural Gas Co.		141		5,787
NorthWestern Corp.		182		7,311
Otter Tail Corp.		195		5,125

See financial notes 29

Schwab Fundamental U.S. Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Piedmont Natural Gas Co., Inc.		326		10,517
PNM Resources, Inc.		421		9,224
Portland General Electric Co.		386		11,121
South Jersey Industries, Inc.		93		5,372
Southwest Gas Corp.		215		10,058
The Empire District Electric Co.		205		4,340
The Laclede Group, Inc.		140		6,234
UIL Holdings Corp.		150		5,664
UNS Energy Corp.		180		8,231
WGL Holdings, Inc.		269		11,228

				192,129

Total Common Stock
(Cost $6,193,842)				5,984,632




Other Investment Companies 0.1% of net assets

Equity Fund 0.1%
iShares Russell 2000 ETF		35		3,513

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund 0.00% (a)		195		195

Total Other Investment Companies
(Cost $3,785)				3,708



End of Investments.


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.


ETF —		Exchange Traded Fund
REIT —		Real Estate Investment Trust

30 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings as of August 31, 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	.1%	Common Stock		12,388,393		11,935,436
	0	.3%	Other Investment Companies		33,021		32,438
	0	.4%	Preferred Stock		54,160		50,452


	99	.8%	Total Investments		12,475,574		12,018,326
	0	.2%	Other Assets and Liabilities, Net				18,575


	100	.0%	Net Assets				12,036,901


	Number		Value
Security	of Shares		($)

Common Stock 99.1% of net assets

Australia 4.4%


Banks 1.2%
Australia & New Zealand Banking Group Ltd.		1,225		32,393
Commonwealth Bank of Australia		595		38,601
National Australia Bank Ltd.		1,362		39,364
Westpac Banking Corp.		1,262		35,282

				145,640


Capital Goods 0.1%
CSR Ltd.		1,290		2,585
Leighton Holdings Ltd.		175		2,712
UGL Ltd.		300		1,980

				7,277


Commercial & Professional Services 0.1%
Brambles Ltd.		1,250		9,797
Downer EDI Ltd.		715		2,649

				12,446


Consumer Services 0.1%
Crown Ltd.		280		3,643
TABCORP Holdings Ltd.		2,130		6,109
Tatts Group Ltd.		1,365		3,903

				13,655


Diversified Financials 0.1%
Macquarie Group Ltd.		225		8,789


Energy 0.3%
Caltex Australia Ltd.		330		5,558
Origin Energy Ltd.		595		7,022
Santos Ltd.		435		5,780
Woodside Petroleum Ltd.		312		10,610
WorleyParsons Ltd.		135		2,646

				31,616


Food & Staples Retailing 0.5%
Metcash Ltd.		1,495		4,327
Wesfarmers Ltd.		815		29,514
Woolworths Ltd.		930		29,546

				63,387


Food, Beverage & Tobacco 0.0%
Coca-Cola Amatil Ltd.		275		3,008


Health Care Equipment & Services 0.0%
Sonic Healthcare Ltd.		235		3,234


Insurance 0.4%
AMP Ltd.		1,620		6,839
Insurance Australia Group Ltd.		1,125		5,832
QBE Insurance Group Ltd.		1,125		15,230
Suncorp Group Ltd.		1,470		16,143

				44,044


Materials 1.1%
Amcor Ltd.		800		7,432
Arrium Ltd.		8,125		8,141
BHP Billiton Ltd.		2,182		69,476
BlueScope Steel Ltd. *		2,125		9,463
Boral Ltd.		945		3,535
Incitec Pivot Ltd.		1,175		2,711
Newcrest Mining Ltd.		215		2,539
Orica Ltd.		270		4,509
Rio Tinto Ltd.		350		18,173
Sims Metal Management Ltd.		505		4,237

				130,216


Media 0.0%
Fairfax Media Ltd.		5,525		2,633


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
CSL Ltd.		135		8,175


Real Estate 0.2%
Lend Lease Group		560		4,778
Mirvac Group		1,725		2,527
Stockland		1,650		5,482
Westfield Group		1,105		10,905

				23,692


Telecommunication Services 0.1%
Telstra Corp., Ltd.		4,130		18,024


Transportation 0.1%
Asciano Ltd.		750		3,721
Qantas Airways Ltd. *		3,320		4,051
Sydney Airport		765		2,575
Toll Holdings Ltd.		990		4,814

				15,161


Utilities 0.0%
AGL Energy Ltd.		400		5,611

				536,608

Austria 0.4%


Banks 0.1%
Erste Group Bank AG		490		15,671


Capital Goods 0.1%
Andritz AG		35		1,925
Wienerberger AG		315		4,548

				6,473

See financial notes 31

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Energy 0.1%
OMV AG		295		13,587


Materials 0.1%
Voestalpine AG		240		10,246


Telecommunication Services 0.0%
Telekom Austria AG		735		5,272

				51,249

Belgium 0.9%


Banks 0.1%
KBC GROEP N.V.		245		10,751


Food & Staples Retailing 0.2%
Colruyt S.A.		65		3,590
Delhaize Group		417		26,544

				30,134


Food, Beverage & Tobacco 0.2%
Anheuser-Busch InBev N.V.		300		27,841


Insurance 0.1%
Ageas		320		12,566


Materials 0.2%
NV Bekaert S.A.		135		4,794
Solvay S.A.		55		7,644
Umicore S.A.		145		6,694

				19,132


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
UCB S.A.		60		3,481


Telecommunication Services 0.1%
Belgacom S.A.		275		6,563

				110,468

Canada 6.0%


Automobiles & Components 0.2%
Magna International, Inc.		355		27,245


Banks 1.2%
Bank of Montreal		340		21,307
Bank of Nova Scotia		500		27,728
Canadian Imperial Bank of Commerce		200		15,596
National Bank of Canada		80		6,187
Royal Bank of Canada		700		43,066
The Toronto-Dominion Bank		370		31,434

				145,318


Capital Goods 0.1%
Bombardier, Inc., B Shares		1,680		7,628
Finning International, Inc.		175		3,471
SNC-Lavalin Group, Inc.		80		3,001

				14,100


Consumer Services 0.0%
Tim Hortons, Inc.		60		3,276


Diversified Financials 0.1%
IGM Financial, Inc.		75		3,360
Onex Corp.		100		4,748

				8,108


Energy 1.8%
ARC Resources Ltd.		170		4,064
Baytex Energy Corp.		75		2,961
Bonavista Energy Corp.		225		2,775
Cameco Corp.		185		3,516
Canadian Natural Resources Ltd.		700		21,327
Canadian Oil Sands Ltd.		565		10,824
Cenovus Energy, Inc.		520		14,877
Crescent Point Energy Corp.		85		3,096
Enbridge, Inc.		275		11,259
EnCana Corp.		2,150		36,666
Enerplus Corp.		375		6,196
Husky Energy, Inc.		310		8,751
Imperial Oil Ltd.		240		10,006
Pengrowth Energy Corp.		875		4,828
Penn West Petroleum Ltd.		850		9,573
Suncor Energy, Inc.		865		29,109
Talisman Energy, Inc.		1,350		14,397
TransCanada Corp.		395		17,191

				211,416


Food & Staples Retailing 0.4%
Alimentation Couche-Tard, Inc., B Shares		135		7,773
Empire Co., Ltd., A Shares		65		4,996
George Weston Ltd.		75		5,918
Loblaw Cos. Ltd.		145		6,181
Metro, Inc.		125		7,991
Shoppers Drug Mart Corp.		210		11,733

				44,592


Food, Beverage & Tobacco 0.0%
Saputo, Inc.		75		3,325


Insurance 0.6%
Fairfax Financial Holdings Ltd.		20		8,205
Great-West Lifeco, Inc.		160		4,512
Intact Financial Corp.		70		4,046
Manulife Financial Corp.		1,350		22,101
Power Corp. of Canada		435		11,913
Power Financial Corp.		210		6,311
Sun Life Financial, Inc.		405		12,328

				69,416


Materials 0.5%
Agrium, Inc.		75		6,406
Barrick Gold Corp.		595		11,343
First Quantum Minerals Ltd.		275		4,559
Goldcorp, Inc.		185		5,454
Kinross Gold Corp.		490		2,699
Potash Corp. of Saskatchewan, Inc.		420		12,402
Teck Resources Ltd., Class B		500		12,570
Yamana Gold, Inc.		160		1,826

				57,259


Media 0.0%
Shaw Communications, Inc., B Shares		160		3,849


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Valeant Pharmaceuticals International, Inc. *		50		4,910


Real Estate 0.1%
Brookfield Asset Management, Inc., Class A		450		15,540


Retailing 0.1%
Canadian Tire Corp. Ltd., Class A		75		6,334

32 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
RONA, Inc.		330		3,363

				9,697


Software & Services 0.1%
CGI Group, Inc., Class A *		175		5,798


Technology Hardware & Equipment 0.2%
Blackberry Ltd. *		1,390		14,020
Celestica, Inc. *		465		4,937

				18,957


Telecommunication Services 0.3%
BCE, Inc.		370		15,149
Rogers Communications, Inc., B Shares		315		12,419
TELUS Corp.		280		8,578

				36,146


Transportation 0.2%
Canadian National Railway Co.		235		22,005
Canadian Pacific Railway Ltd.		55		6,459

				28,464


Utilities 0.1%
Canadian Utilities Ltd., Class A		65		2,106
Fortis, Inc.		177		5,092
TransAlta Corp.		315		4,043

				11,241

				718,657

Denmark 0.8%


Banks 0.1%
Danske Bank A/S *		550		10,986


Capital Goods 0.1%
FLSmidth & Co. A/S		30		1,632
Vestas Wind Systems A/S *		525		9,800

				11,432


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		70		6,774


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Novo Nordisk A/S, B Shares		105		17,502


Telecommunication Services 0.1%
TDC A/S		785		6,395


Transportation 0.3%
AP Moller - Maersk A/S, A Shares		2		16,078
AP Moller - Maersk A/S, B Shares		3		25,454
DSV A/S		100		2,618

				44,150

				97,239

Finland 1.4%


Capital Goods 0.2%
Kone Oyj, B Shares		70		5,713
Metso Oyj		160		6,142
Wartsila Oyj Abp		145		6,755

				18,610


Energy 0.1%
Neste Oil Oyj		420		7,698


Food & Staples Retailing 0.1%
Kesko Oyj, B Shares		280		8,425


Insurance 0.1%
Sampo Oyj, A Shares		290		12,049


Materials 0.2%
Stora Enso Oyj, R Shares		1,185		9,133
UPM-Kymmene Oyj		1,275		15,358

				24,491


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Orion Oyj, Class B		130		3,005


Technology Hardware & Equipment 0.6%
Nokia Oyj *		20,045		77,338


Telecommunication Services 0.0%
Elisa Oyj		190		3,986


Utilities 0.1%
Fortum Oyj		600		11,915

				167,517

France 11.5%


Automobiles & Components 0.6%
Peugeot S.A. *		2,845		40,328
Renault S.A.		355		25,315
Valeo S.A.		105		7,887

				73,530


Banks 1.2%
BNP Paribas S.A.		1,200		75,026
Credit Agricole S.A. *		1,885		19,002
Societe Generale		1,010		44,102

				138,130


Capital Goods 1.7%
Alstom S.A.		225		7,899
Bouygues S.A.		545		17,007
Compagnie de Saint-Gobain		1,155		53,822
Eiffage S.A.		160		8,467
European Aeronautic Defence & Space Co., N.V.		190		10,925
Legrand S.A.		155		7,843
Nexans S.A.		80		4,519
Rexel S.A.		185		4,245
Safran S.A.		150		8,310
Schneider Electric S.A.		410		31,302
Thales S.A.		90		4,424
Vallourec S.A.		240		14,364
Vinci S.A.		700		36,062

				209,189


Consumer Durables & Apparel 0.4%
Christian Dior S.A.		47		8,035
Kering		60		13,521
LVMH Moet Hennessy Louis Vuitton S.A.		137		23,945

				45,501


Consumer Services 0.1%
Accor S.A.		280		10,561
Sodexo		65		5,723

				16,284


Diversified Financials 0.0%
Wendel		25		3,037

See financial notes 33

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Energy 2.1%
CGG *		150		3,552
Technip S.A.		60		6,962
Total S.A.		4,470		247,053

				257,567


Food & Staples Retailing 0.6%
Carrefour S.A.		1,700		53,093
Casino Guichard Perrachon S.A.		95		8,970
Rallye S.A.		125		4,387

				66,450


Food, Beverage & Tobacco 0.3%
Danone S.A.		340		25,259
Pernod-Ricard S.A.		85		9,845

				35,104


Health Care Equipment & Services 0.1%
Essilor International S.A.		77		8,294


Household & Personal Products 0.1%
L’Oreal S.A.		95		15,815


Insurance 0.6%
AXA S.A.		2,675		58,147
CNP Assurances		250		4,410
SCOR SE		160		4,995

				67,552


Materials 0.4%
Air Liquide S.A.		185		24,275
Arkema S.A.		55		5,546
Lafarge S.A.		280		17,057

				46,878


Media 0.1%
Eutelsat Communications		80		2,388
Publicis Groupe		70		5,199
Solocal Group *		915		2,039

				9,626


Pharmaceuticals, Biotechnology & Life Sciences 0.7%
Sanofi		900		86,264


Software & Services 0.1%
AtoS		55		4,076
Cap Gemini S.A.		205		11,202

				15,278


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		5,415		13,909


Telecommunication Services 1.2%
Orange		9,000		91,094
Vivendi		2,675		54,126

				145,220


Transportation 0.1%
Air France-KLM *		1,415		10,626


Utilities 1.0%
Electricite de France S.A.		645		18,031
GDF Suez		2,875		62,172
Suez Environnement Co.		610		9,069
Veolia Environnement		1,880		28,892

				118,164

				1,382,418

Germany 8.6%


Automobiles & Components 1.3%
Bayerische Motoren Werke AG		360		33,841
Continental AG		85		12,799
Daimler AG - Reg’d		1,550		106,116
Volkswagen AG		25		5,545

				158,301


Banks 0.1%
Commerzbank AG *		525		6,089


Capital Goods 0.9%
Brenntag AG		40		6,066
GEA Group AG		130		5,244
Hochtief AG		45		3,185
Kloeckner & Co. SE *		375		4,821
MAN SE		30		3,424
MTU Aero Engines AG		40		3,582
Rheinmetall AG		60		2,936
Siemens AG - Reg’d		750		79,205

				108,463


Commercial & Professional Services 0.0%
Bilfinger SE		47		4,340


Consumer Durables & Apparel 0.1%
Adidas AG		135		14,241


Consumer Services 0.0%
TUI AG *		500		5,781


Diversified Financials 0.4%
Deutsche Bank AG - Reg’d		950		41,037
Deutsche Boerse AG		135		9,444

				50,481


Food & Staples Retailing 0.2%
Metro AG		540		19,781


Health Care Equipment & Services 0.3%
Celesio AG		1,000		20,794
Fresenius Medical Care AG & Co. KGaA		110		7,134
Fresenius SE & Co. KGaA		97		11,645

				39,573


Household & Personal Products 0.1%
Beiersdorf AG		40		3,439
Henkel AG & Co. KGaA		60		4,866

				8,305


Insurance 0.9%
Allianz SE - Reg’d		510		72,898
Hannover Rueck SE		45		3,132
Muenchener Rueckversicherungs-Gesellschaft AG - Reg’d		185		33,639

				109,669


Materials 1.3%
Aurubis AG		65		3,742
BASF SE		1,005		87,635
HeidelbergCement AG		185		12,819
K+S AG		155		3,753
Lanxess AG		65		4,179
Linde AG		100		19,186
Salzgitter AG		145		5,497

34 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
ThyssenKrupp AG *		1,050		22,021

				158,832


Media 0.0%
Kabel Deutschland Holding AG		32		3,625


Pharmaceuticals, Biotechnology & Life Sciences 0.6%
Bayer AG - Reg’d		552		61,170
Merck KGaA		40		6,063

				67,233


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG		775		7,010


Software & Services 0.2%
SAP AG		290		21,387


Telecommunication Services 0.8%
Deutsche Telekom AG - Reg’d		7,000		89,459
Freenet AG		100		2,353

				91,812


Transportation 0.4%
Deutsche Lufthansa AG - Reg’d *		550		9,794
Deutsche Post AG - Reg’d		1,250		36,031

				45,825


Utilities 0.9%
E.ON SE		5,000		78,984
RWE AG		1,325		36,332

				115,316

				1,036,064

Hong Kong 0.9%


Banks 0.1%
Hang Seng Bank Ltd.		500		7,770


Capital Goods 0.2%
Hutchison Whampoa Ltd.		2,000		23,187
Noble Group Ltd.		10,000		6,344

				29,531


Consumer Durables & Apparel 0.1%
Li & Fung Ltd.		4,000		5,881


Diversified Financials 0.0%
Hong Kong Exchanges & Clearing Ltd.		100		1,535


Insurance 0.1%
AIA Group Ltd.		2,400		10,538


Real Estate 0.1%
Swire Pacific Ltd., Class A		800		9,171
The Link REIT		800		3,668

				12,839


Retailing 0.1%
Esprit Holdings Ltd.		6,000		10,244


Telecommunication Services 0.0%
PCCW Ltd.		7,000		3,150


Utilities 0.2%
CLP Holdings Ltd.		1,000		7,996
Hong Kong & China Gas Co., Ltd.		5,000		11,555
Power Assets Holdings Ltd.		400		3,448

				22,999

				104,487

Ireland 0.7%


Banks 0.1%
Bank of Ireland *		43,675		12,727


Capital Goods 0.0%
DCC plc		115		4,552


Commercial & Professional Services 0.1%
Experian plc		360		6,293


Food, Beverage & Tobacco 0.1%
Kerry Group plc, A Shares		80		5,035


Materials 0.3%
CRH plc		1,226		25,882
Smurfit Kappa Group plc		360		7,296

				33,178


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Shire plc		115		4,229


Technology Hardware & Equipment 0.1%
Seagate Technology plc		375		14,370

				80,384

Israel 0.3%


Banks 0.0%
Bank Leumi Le-Israel *		1,095		3,605


Materials 0.0%
Israel Chemicals Ltd.		330		2,299


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Teva Pharmaceutical Industries Ltd.		535		20,676


Telecommunication Services 0.1%
Bezeq The Israeli Telecommunication Corp., Ltd.		4,695		7,684

				34,264

Italy 4.0%


Automobiles & Components 0.2%
Fiat S.p.A. *		3,200		24,093
Pirelli & C. S.p.A.		220		2,591

				26,684


Banks 1.3%
Banca Monte dei Paschi di Siena S.p.A. *		39,955		11,517
Banca Popolare dell’Emilia Romagna Scrl *		590		4,185
Banca Popolare di Milano Scarl *		4,800		2,408
Banco Popolare Societa Cooperativa *		5,460		7,747
Intesa Sanpaolo S.p.A.		29,500		57,181
UniCredit S.p.A.		12,000		67,691
Unione di Banche Italiane S.c.p.A.		1,780		8,567

				159,296


Capital Goods 0.2%
Fiat Industrial S.p.A.		555		6,634
Finmeccanica S.p.A. *		1,750		8,930
Prysmian S.p.A.		275		6,092

				21,656


Diversified Financials 0.1%
EXOR S.p.A.		140		4,770

See financial notes 35

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Mediobanca S.p.A.		700		4,344

				9,114


Energy 0.9%
Eni S.p.A.		4,750		108,231
Saipem S.p.A.		180		3,997

				112,228


Insurance 0.2%
Assicurazioni Generali S.p.A.		1,170		22,370


Materials 0.0%
Italcementi S.p.A.		370		2,381


Media 0.1%
Mediaset S.p.A. *		3,200		13,097


Telecommunication Services 0.4%
Telecom Italia S.p.A.		43,920		30,665
Telecom Italia S.p.A. - RSP		25,000		13,858

				44,523


Transportation 0.0%
Atlantia S.p.A.		310		5,584


Utilities 0.6%
A2A S.p.A.		4,560		3,956
Enel S.p.A.		16,820		55,492
Snam S.p.A.		935		4,364
Terna-Rete Elettrica Nazionale S.p.A.		940		4,007

				67,819

				484,752

Japan 21.0%


Automobiles & Components 2.9%
Aisin Seiki Co., Ltd.		300		11,573
Bridgestone Corp.		700		23,044
Denso Corp.		500		22,932
Honda Motor Co., Ltd.		1,700		61,423
Isuzu Motors Ltd.		1,200		7,351
Mazda Motor Corp. *		5,000		20,129
NHK Spring Co., Ltd.		300		3,195
Nissan Motor Co., Ltd.		3,000		29,873
Stanley Electric Co., Ltd.		200		3,855
Suzuki Motor Corp.		500		10,763
Toyota Industries Corp.		200		8,133
Toyota Motor Corp.		2,300		139,245
Yamaha Motor Co., Ltd.		500		6,508

				348,024


Banks 1.1%
Mitsubishi UFJ Financial Group, Inc.		8,000		46,965
Mizuho Financial Group, Inc.		13,000		26,500
Resona Holdings, Inc.		2,000		9,560
Sumitomo Mitsui Financial Group, Inc.		1,000		44,336

				127,361


Capital Goods 2.9%
Asahi Glass Co., Ltd.		2,000		11,741
Daikin Industries Ltd.		200		9,662
Fujikura Ltd.		2,000		6,808
Furukawa Electric Co., Ltd.		2,000		4,036
Hanwa Co., Ltd.		2,000		8,663
IHI Corp.		2,000		8,113
ITOCHU Corp.		1,300		14,760
JTEKT Corp.		500		6,559
Kajima Corp.		2,000		7,155
Kawasaki Heavy Industries Ltd.		2,000		7,012
Komatsu Ltd.		700		15,375
LIXIL Group Corp.		500		10,136
Makita Corp.		100		5,310
Marubeni Corp.		2,000		14,595
Mitsubishi Corp.		1,700		31,916
Mitsubishi Electric Corp.		2,000		19,997
Mitsubishi Heavy Industries Ltd.		3,000		16,481
Mitsui & Co., Ltd.		2,000		27,906
Mitsui Engineering & Shipbuilding Co., Ltd.		2,000		3,628
Nagase & Co., Ltd.		500		5,988
Nippon Sheet Glass Co., Ltd. *		5,000		5,453
Shimizu Corp.		2,000		8,806
Sojitz Corp.		7,000		12,557
Sumitomo Corp.		1,300		16,509
Sumitomo Electric Industries Ltd.		1,300		17,556
Sumitomo Heavy Industries Ltd.		2,000		9,071
Taisei Corp.		2,000		8,215
Toshiba Corp.		5,000		19,926
Toyota Tsusho Corp.		500		11,532

				345,466


Commercial & Professional Services 0.3%
Dai Nippon Printing Co., Ltd.		1,600		15,557
Secom Co., Ltd.		200		11,476
Toppan Printing Co., Ltd.		1,000		7,369

				34,402


Consumer Durables & Apparel 1.2%
NAMCO BANDAI Holdings, Inc.		300		4,794
Nikon Corp.		200		3,384
Panasonic Corp. *		6,000		54,671
Sega Sammy Holdings, Inc.		500		11,955
Sharp Corp. *		5,000		19,569
Sony Corp.		2,500		50,247
Yamaha Corp.		200		2,532

				147,152


Consumer Services 0.1%
Benesse Holdings, Inc.		200		7,257


Diversified Financials 0.2%
Credit Saison Co., Ltd.		200		4,607
Nomura Holdings, Inc.		1,000		6,992
ORIX Corp.		700		9,660

				21,259


Energy 0.7%
Cosmo Oil Co., Ltd. *		5,000		10,345
Inpex Corp.		5		22,703
JX Holdings, Inc.		8,000		42,399
Showa Shell Sekiyu K.K.		1,000		9,958

				85,405


Food & Staples Retailing 0.5%
Aeon Co., Ltd.		2,000		27,397
Seven & i Holdings Co., Ltd.		1,000		34,500
UNY Group Holdings Co., Ltd.		500		3,200

				65,097


Food, Beverage & Tobacco 0.6%
Ajinomoto Co., Inc.		500		6,426

36 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Asahi Group Holdings Ltd.		500		12,455
Coca-Cola West Co., Ltd.		500		9,948
Japan Tobacco, Inc.		500		16,995
Kirin Holdings Co., Ltd.		800		11,007
MEIJI Holdings Co., Ltd.		200		10,376

				67,207


Health Care Equipment & Services 0.2%
Alfresa Holdings Corp.		100		4,750
Medipal Holdings Corp.		500		5,590
Olympus Corp. *		100		2,893
Suzuken Co., Ltd.		200		6,176
Terumo Corp.		100		4,811

				24,220


Household & Personal Products 0.2%
Kao Corp.		500		14,626
Shiseido Co., Ltd.		500		7,950

				22,576


Insurance 0.3%
MS&AD Insurance Group Holdings, Inc.		300		7,598
NKSJ Holdings, Inc.		200		4,904
T&D Holdings, Inc.		200		2,438
The Dai-ichi Life Insurance Co., Ltd.		5		6,717
Tokio Marine Holdings, Inc.		500		15,467

				37,124


Materials 1.9%
Asahi Kasei Corp.		2,000		14,758
DIC Corp.		2,000		5,137
JFE Holdings, Inc.		1,500		33,298
JSR Corp.		200		3,506
Kobe Steel Ltd. *		10,000		16,002
Kuraray Co. Ltd.		500		5,560
Mitsubishi Chemical Holdings Corp.		2,500		11,823
Mitsubishi Materials Corp.		2,000		7,848
Mitsui Chemicals, Inc.		3,000		8,011
Nippon Steel & Sumitomo Metal Corp.		11,000		31,392
Oji Holdings Corp.		2,000		8,031
Shin-Etsu Chemical Co., Ltd.		300		18,132
Showa Denko K.K.		5,000		6,319
Sumitomo Chemical Co., Ltd.		3,000		10,946
Taiheiyo Cement Corp.		2,000		7,522
Teijin Ltd.		3,000		6,604
Toray Industries, Inc.		2,000		12,312
Tosoh Corp.		2,000		7,175
Toyo Seikan Group Holdings Ltd.		500		8,485
Ube Industries Ltd.		5,000		8,867

				231,728


Media 0.1%
Dentsu, Inc.		300		10,044
Hakuhodo DY Holdings, Inc.		50		3,415

				13,459


Pharmaceuticals, Biotechnology & Life Sciences 0.7%
Astellas Pharma, Inc.		300		15,380
Daiichi Sankyo Co., Ltd.		1,000		17,235
Eisai Co., Ltd.		200		8,164
Otsuka Holdings Co., Ltd.		300		9,310
Shionogi & Co., Ltd.		200		3,914
Takeda Pharmaceutical Co., Ltd.		600		27,335

				81,338


Real Estate 0.4%
Daito Trust Construction Co., Ltd.		100		9,173
Daiwa House Industry Co., Ltd.		400		7,216
Mitsubishi Estate Co., Ltd.		200		5,218
Mitsui Fudosan Co., Ltd.		400		12,659
Sumitomo Realty & Development Co., Ltd.		200		8,826

				43,092


Retailing 0.3%
EDION Corp.		1,500		8,149
Isetan Mitsukoshi Holdings Ltd.		1,000		13,025
K’s Holdings Corp.		200		6,115
Yamada Denki Co., Ltd.		400		12,679

				39,968


Semiconductors & Semiconductor Equipment 0.1%
Rohm Co., Ltd.		160		5,659
Tokyo Electron Ltd.		160		6,678

				12,337


Software & Services 0.4%
Fujitsu Ltd.		6,000		22,198
KONAMI Corp.		120		2,657
Nintendo Co., Ltd.		200		22,667
NTT Data Corp.		2		7,175

				54,697


Technology Hardware & Equipment 1.8%
Brother Industries Ltd.		500		5,111
Canon, Inc.		1,500		45,070
FUJIFILM Holdings Corp.		1,000		21,913
Hitachi Ltd.		7,000		42,308
Hoya Corp.		500		10,676
Ibiden Co., Ltd.		200		2,891
Konica Minolta, Inc.		1,000		8,245
Kyocera Corp.		200		20,547
NEC Corp.		10,000		21,302
Nippon Electric Glass Co., Ltd.		2,000		10,355
OMRON Corp.		200		6,278
Ricoh Co., Ltd.		1,000		10,875
Seiko Epson Corp.		500		7,078
TDK Corp.		200		7,257

				219,906


Telecommunication Services 1.2%
KDDI Corp.		700		33,496
Nippon Telegraph & Telephone Corp.		1,000		50,910
NTT DoCoMo, Inc.		20		32,105
SoftBank Corp.		500		31,545

				148,056


Transportation 1.1%
ANA Holdings, Inc.		1,000		2,038
Central Japan Railway Co.		200		22,953
East Japan Railway Co.		500		38,424
Kawasaki Kisen Kaisha Ltd.		3,000		6,788
Mitsui OSK Lines Ltd. *		5,000		19,824
Nippon Express Co., Ltd.		2,000		9,377
Nippon Yusen K.K.		5,000		14,269
Tokyu Corp.		1,000		6,431
West Japan Railway Co.		200		8,276
Yamato Holdings Co., Ltd.		500		10,773

				139,153

See financial notes 37

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Utilities 1.8%
Chubu Electric Power Co., Inc.		1,500		18,774
Electric Power Development Co., Ltd.		200		6,176
Hokkaido Electric Power Co., Inc. *		500		5,881
Hokuriku Electric Power Co.		500		6,630
Kyushu Electric Power Co., Inc. *		1,500		19,523
Osaka Gas Co., Ltd.		2,000		8,092
Shikoku Electric Power Co., Inc. *		500		7,817
The Chugoku Electric Power Co., Inc.		500		6,926
The Kansai Electric Power Co., Inc. *		2,500		28,105
Tohoku Electric Power Co., Inc. *		1,500		16,496
Tokyo Electric Power Co., Inc. *		15,500		78,989
Tokyo Gas Co., Ltd.		2,000		10,396

				213,805

				2,530,089

Luxembourg 0.5%


Energy 0.1%
Tenaris S.A.		335		7,382


Materials 0.4%
APERAM		240		3,240
ArcelorMittal		3,400		43,546

				46,786


Media 0.0%
SES		180		5,276


Telecommunication Services 0.0%
Millicom International Cellular S.A.		45		3,647

				63,091

Netherlands 5.7%


Capital Goods 0.3%
Koninklijke BAM Groep N.V.		800		3,259
Koninklijke Philips N.V.		1,080		33,309
Royal Imtech N.V. *		1,250		3,033

				39,601


Commercial & Professional Services 0.1%
Randstad Holding N.V.		150		6,951


Diversified Financials 0.4%
ING Groep N.V. CVA *		4,750		51,453


Energy 3.0%
Fugro N.V. CVA		80		4,905
Royal Dutch Shell plc, A Shares		6,400		206,672
Royal Dutch Shell plc, B Shares		4,510		151,600

				363,177


Food & Staples Retailing 0.3%
Koninklijke Ahold N.V.		2,245		35,686


Food, Beverage & Tobacco 0.5%
CSM N.V.		155		3,661
DE Master Blenders 1753 N.V. *		125		2,037
Heineken Holding N.V.		85		5,118
Heineken N.V.		100		6,850
Nutreco N.V.		80		3,755
Unilever N.V. CVA		965		36,169

				57,590


Insurance 0.2%
AEGON N.V.		2,770		19,709
Delta Lloyd N.V.		240		4,573

				24,282


Materials 0.3%
Akzo Nobel N.V.		360		21,122
Koninklijke DSM N.V.		220		16,190

				37,312


Media 0.1%
Reed Elsevier N.V.		245		4,415
Wolters Kluwer N.V.		285		6,715

				11,130


Semiconductors & Semiconductor Equipment 0.1%
ASML Holding N.V.		100		8,744


Technology Hardware & Equipment 0.0%
Gemalto N.V.		25		2,870


Telecommunication Services 0.2%
Koninklijke (Royal) KPN N.V. *		7,435		21,666


Transportation 0.2%
PostNL N.V. *		4,880		17,181
TNT Express N.V.		525		4,617

				21,798

				682,260

New Zealand 0.1%


Materials 0.0%
Fletcher Building Ltd.		735		4,980


Telecommunication Services 0.1%
Telecom Corp. of New Zealand Ltd.		4,415		7,770

				12,750

Norway 0.8%


Banks 0.1%
DnB A.S.A.		645		9,999


Energy 0.4%
Aker Solutions A.S.A.		140		2,121
Petroleum Geo-Services A.S.A.		170		2,177
Statoil A.S.A.		1,900		41,668

				45,966


Food, Beverage & Tobacco 0.1%
Marine Harvest		3,525		3,270
Orkla A.S.A.		1,040		7,494

				10,764


Materials 0.1%
Norsk Hydro A.S.A.		2,375		9,549
Yara International A.S.A.		150		5,923

				15,472


Telecommunication Services 0.1%
Telenor A.S.A.		650		13,491

				95,692

Portugal 0.2%


Banks 0.0%
Banco Comercial Portugues S.A. - Reg’d *		38,475		4,870

38 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Banco Espirito Santo S.A. - Reg’d *		2,830		2,963

				7,833


Energy 0.0%
Galp Energia, SGPS, S.A.		195		3,275


Telecommunication Services 0.1%
Portugal Telecom, SGPS, S.A. - Reg’d		2,235		8,420


Utilities 0.1%
EDP - Energias de Portugal S.A.		3,590		12,658

				32,186

Singapore 0.7%


Banks 0.2%
DBS Group Holdings Ltd.		600		7,425
Oversea-Chinese Banking Corp., Ltd.		800		6,197
United Overseas Bank Ltd.		600		9,347

				22,969


Capital Goods 0.1%
Keppel Corp., Ltd.		1,000		7,911
SembCorp Industries Ltd.		2,000		7,660

				15,571


Food, Beverage & Tobacco 0.1%
Wilmar International Ltd.		2,000		4,934


Media 0.0%
Singapore Press Holdings Ltd.		800		2,463


Real Estate 0.0%
Keppel REIT		80		75


Technology Hardware & Equipment 0.1%
Flextronics International Ltd. *		1,250		11,225
Venture Corp., Ltd.		400		2,381

				13,606


Telecommunication Services 0.1%
Singapore Telecommunications Ltd.		5,000		13,746


Transportation 0.1%
ComfortDelGro Corp., Ltd.		2,000		2,890
Singapore Airlines Ltd.		600		4,451

				7,341

				80,705

Spain 4.0%


Banks 1.7%
Banco Bilbao Vizcaya Argentaria S.A.		7,000		66,642
Banco de Sabadell S.A.		3,375		7,761
Banco Popular Espanol S.A. *		2,025		9,487
Banco Santander S.A.		17,465		122,977
Bankia S.A. *		1,250		1,162

				208,029


Capital Goods 0.2%
ACS, Actividades de Construccion y Servicios S.A.		325		9,130
Ferrovial S.A.		325		5,378
Fomento de Construcciones y Contratas S.A.		320		5,682

				20,190


Energy 0.4%
Repsol S.A.		2,000		46,296


Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.		600		4,731


Retailing 0.1%
Inditex S.A.		77		10,169


Software & Services 0.0%
Amadeus IT Holding S.A.		100		3,223


Telecommunication Services 1.0%
Telefonica S.A. *		9,005		122,005


Transportation 0.1%
Abertis Infraestructuras S.A.		350		6,166


Utilities 0.5%
Acciona S.A.		50		2,553
Enagas S.A.		135		3,058
Endesa S.A. *		200		4,644
Gas Natural SDG S.A.		365		7,133
Iberdrola S.A.		6,875		36,370
Red Electrica Corporacion S.A.		70		3,622

				57,380

				478,189

Sweden 2.4%


Automobiles & Components 0.1%
Autoliv, Inc.		112		9,070


Banks 0.4%
Nordea Bank AB		1,635		19,002
Skandinaviska Enskilda Banken AB, A Shares		1,075		11,020
Svenska Handelsbanken AB, A Shares		335		14,353
Swedbank AB, A Shares		380		8,587

				52,962


Capital Goods 0.8%
Alfa Laval AB		185		3,991
Assa Abloy AB, B Shares		155		6,589
Atlas Copco AB, A Shares		485		13,085
Atlas Copco AB, B Shares		230		5,637
NCC AB, B Shares		160		4,177
Sandvik AB		925		12,353
Scania AB, B Shares		230		4,591
Skanska AB, B Shares		575		10,282
SKF AB, B Shares		375		9,914
Trelleborg AB, B Shares		220		3,705
Volvo AB, A Shares		375		5,384
Volvo AB, B Shares		1,150		16,545

				96,253


Commercial & Professional Services 0.1%
Securitas AB, B Shares		565		5,945


Consumer Durables & Apparel 0.1%
Electrolux AB, Series B		320		8,451
Husqvarna AB, B Shares		615		3,867

				12,318


Food, Beverage & Tobacco 0.0%
Swedish Match AB		135		4,706

See financial notes 39

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Health Care Equipment & Services 0.0%
Getinge AB, B Shares		80		2,750


Household & Personal Products 0.1%
Svenska Cellulosa AB, B Shares		645		15,731


Materials 0.1%
Boliden AB		380		5,538
SSAB AB, A Shares		610		4,249
SSAB AB, B Shares		375		2,204

				11,991


Retailing 0.2%
Hennes & Mauritz AB, B Shares		515		18,891


Technology Hardware & Equipment 0.3%
Telefonaktiebolaget LM Ericsson, B Shares		2,735		32,096


Telecommunication Services 0.2%
Tele2 AB		630		7,906
TeliaSonera AB		2,260		16,158

				24,064

				286,777

Switzerland 5.7%


Capital Goods 0.4%
ABB Ltd. - Reg’d *		1,300		27,746
Geberit AG - Reg’d		20		4,856
Schindler Holding AG		15		2,064
Schindler Holding AG - Reg’d		12		1,620
Wolseley plc		325		16,390

				52,676


Commercial & Professional Services 0.3%
Adecco S.A. - Reg’d *		205		12,884
SGS S.A. - Reg’d		2		4,545
Tyco International Ltd.		715		23,624

				41,053


Consumer Durables & Apparel 0.2%
Compagnie Financiere Richemont S.A., A Shares		145		13,747
The Swatch Group AG		10		5,749
The Swatch Group AG - Reg’d		15		1,499

				20,995


Diversified Financials 0.4%
Credit Suisse Group AG - Reg’d *		1,100		31,641
GAM Holding AG *		225		3,958
UBS AG - Reg’d *		500		9,663

				45,262


Energy 0.3%
Noble Corp.		225		8,370
Transocean Ltd.		400		18,134
Weatherford International Ltd. *		875		13,046

				39,550


Food, Beverage & Tobacco 1.1%
Aryzta AG *		40		2,548
Nestle S.A. - Reg’d		1,945		127,351

				129,899


Insurance 0.5%
Baloise Holding AG - Reg’d		40		4,225
Swiss Life Holding AG - Reg’d *		35		6,543
Swiss Re AG *		225		17,230
Zurich Insurance Group AG *		145		36,017

				64,015


Materials 0.7%
Clariant AG - Reg’d *		265		4,289
Givaudan S.A. - Reg’d *		5		6,719
Glencore Xstrata plc *		7,000		33,048
Holcim Ltd. - Reg’d *		230		15,578
Sika AG		2		5,465
Syngenta AG - Reg’d		35		13,694

				78,793


Media 0.0%
Informa plc		600		4,719


Pharmaceuticals, Biotechnology & Life Sciences 1.5%
Lonza Group AG - Reg’d *		60		4,241
Novartis AG - Reg’d		1,270		92,417
Roche Holding AG		312		77,664

				174,322


Semiconductors & Semiconductor Equipment 0.1%
STMicroelectronics N.V.		1,450		11,596


Technology Hardware & Equipment 0.1%
TE Connectivity Ltd.		340		16,660


Telecommunication Services 0.1%
Swisscom AG - Reg’d		20		9,043


Transportation 0.0%
Kuehne & Nagel International AG - Reg’d		35		4,351

				692,934

United Kingdom 18.1%


Automobiles & Components 0.1%
GKN plc		1,500		7,611


Banks 2.7%
Barclays plc		16,375		71,774
HSBC Holdings plc		16,625		173,848
Lloyds Banking Group plc *		37,040		41,569
Royal Bank of Scotland Group plc *		2,775		14,325
Standard Chartered plc		950		21,176

				322,692


Capital Goods 0.7%
BAE Systems plc		3,775		25,408
Balfour Beatty plc		1,250		4,764
Bunzl plc		245		5,158
Carillion plc		715		3,169
Cobham plc		875		3,854
Foster Wheeler AG *		150		3,477
IMI plc		205		4,551
Meggitt plc		450		3,665
Rolls-Royce Holdings plc *		895		15,395
SIG plc		1,575		4,261
Smiths Group plc		290		5,751
The Weir Group plc		75		2,523
Travis Perkins plc		235		5,726
Vesuvius plc		425		3,029

				90,731

40 See financial notes

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Commercial & Professional Services 0.2%
Aggreko plc		80		2,013
Capita plc		390		5,752
G4S plc		1,575		6,335
Hays plc		3,250		5,153
Serco Group plc		360		3,049

				22,302


Consumer Durables & Apparel 0.2%
Barratt Developments plc *		1,345		6,315
Burberry Group plc		170		4,034
Persimmon plc		320		5,440
Taylor Wimpey plc		3,905		6,004

				21,793


Consumer Services 0.6%
Carnival plc		215		8,022
Compass Group plc		1,450		19,200
InterContinental Hotels Group plc		120		3,347
Ladbrokes plc		840		2,397
Thomas Cook Group plc *		10,250		22,357
TUI Travel plc		1,125		5,993
Whitbread plc		125		5,956
William Hill plc		525		3,372

				70,644


Diversified Financials 0.1%
ICAP plc		545		3,097
Man Group plc		6,265		7,894

				10,991


Energy 2.9%
AMEC plc		250		4,018
BG Group plc		2,250		42,706
BP plc		41,785		288,411
Ensco plc, Class A		125		6,945
John Wood Group plc		325		4,050
Tullow Oil plc		150		2,339

				348,469


Food & Staples Retailing 0.9%
J Sainsbury plc		3,135		18,651
Tesco plc		11,880		67,362
William Morrison Supermarkets plc		5,250		23,568

				109,581


Food, Beverage & Tobacco 1.3%
Associated British Foods plc		265		7,563
British American Tobacco plc		1,030		51,862
Diageo plc		1,015		30,994
Imperial Tobacco Group plc		610		20,118
SABMiller plc		330		15,692
Tate & Lyle plc		400		4,981
Unilever plc		695		26,437

				157,647


Health Care Equipment & Services 0.1%
Smith & Nephew plc		590		6,845


Household & Personal Products 0.2%
Reckitt Benckiser Group plc		300		20,349


Insurance 0.8%
Amlin plc		515		3,124
Aviva plc		4,765		28,511
Legal & General Group plc		3,490		10,085
Old Mutual plc		4,240		11,872
Prudential plc		915		15,258
Resolution Ltd.		1,955		9,638
RSA Insurance Group plc		4,570		8,384
Standard Life plc		1,205		6,174
Willis Group Holdings plc		125		5,160

				98,206


Materials 1.4%
Anglo American plc		2,397		54,822
Antofagasta plc		210		2,778
BHP Billiton plc		1,225		35,587
Johnson Matthey plc		240		10,547
Kazakhmys plc		410		1,912
Mondi plc		475		7,307
Rexam plc		885		6,679
Rio Tinto plc		1,020		45,963
Vedanta Resources plc		225		4,044

				169,639


Media 0.4%
British Sky Broadcasting Group plc		550		7,142
ITV plc		1,980		5,042
Pearson plc		635		12,485
Reed Elsevier plc		410		5,020
WPP plc		825		15,250

				44,939


Pharmaceuticals, Biotechnology & Life Sciences 1.7%
AstraZeneca plc		1,740		85,539
GlaxoSmithKline plc		4,800		122,181

				207,720


Real Estate 0.1%
British Land Co. plc		420		3,625
Land Securities Group plc		520		7,103

				10,728


Retailing 0.6%
Dixons Retail plc *		11,070		7,064
Home Retail Group plc		5,530		12,190
Inchcape plc		860		7,836
Kingfisher plc		3,345		19,921
Marks & Spencer Group plc		2,720		19,847
Next plc		135		10,220

				77,078


Software & Services 0.0%
The Sage Group plc		900		4,791


Telecommunication Services 2.1%
BT Group plc		10,500		52,837
Cable & Wireless Communications plc		10,750		6,421
Inmarsat plc		400		4,300
Vodafone Group plc		57,750		184,250

				247,808


Transportation 0.1%
FirstGroup plc		2,195		3,891
International Consolidated Airlines Group S.A. *		815		3,609
National Express Group plc		880		3,594

				11,094


Utilities 0.9%
Centrica plc		5,335		31,847

See financial notes 41

Schwab Fundamental International Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Drax Group plc		650		7,018
National Grid plc		3,030		34,802
Pennon Group plc		285		3,088
Severn Trent plc		210		5,483
SSE plc		1,025		24,783
United Utilities Group plc		760		7,977

				114,998

				2,176,656

Total Common Stock
(Cost $12,388,393)				11,935,436




Other Investment Companies 0.3% of net assets

United States 0.3%


Equity Fund 0.1%
iShares MSCI EAFE ETF		200		11,834


Money Market Fund 0.2%
State Street Institutional U.S. Government Money Market Fund 0.00% (a)		20,604		20,604

Total Other Investment Companies
(Cost $33,021)				32,438




Preferred Stock 0.4% of net assets

Germany 0.4%


Automobiles & Components 0.3%
Bayerische Motoren Werke AG		75		5,487
Volkswagen AG		150		34,039

				39,526


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		85		8,216


Utilities 0.0%
RWE AG		100		2,710

Total Preferred Stock
(Cost $54,160)				50,452



End of Investments.


*		Non-income producing security.
(a)		The rate shown is the 7-day yield.


CVA —		Dutch Certificate
ETF —		Exchange Traded Fund
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

42 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings as of August 31, 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	.2%	Common Stock		7,436,054		7,179,138
	0	.4%	Other Investment Companies		31,222		30,729
	0	.4%	Preferred Stock		26,939		25,819
	0	.0%	Rights		—		155


	100	.0%	Total Investments		7,494,215		7,235,841
	(0	.0%)	Other Assets and Liabilities, Net				(1,850	)


	100	.0%	Net Assets				7,233,991


	Number		Value
Security	of Shares		($)

Common Stock 99.2% of net assets

Australia 4.3%


Banks 0.2%
Bank of Queensland Ltd.		612		5,233
Bendigo & Adelaide Bank Ltd.		795		7,158

				12,391


Capital Goods 0.2%
Ausdrill Ltd.		750		982
Boart Longyear Ltd.		6,915		2,833
Bradken Ltd.		693		3,518
Cardno Ltd.		150		855
GWA Group Ltd.		1,770		4,477
Monadelphous Group Ltd.		201		3,325

				15,990


Commercial & Professional Services 0.3%
ALS Ltd.		618		5,064
Programmed Maintenance Services Ltd.		384		868
Seek Ltd.		285		2,716
Skilled Group Ltd.		1,086		3,018
Transfield Services Ltd.		4,395		4,482
Transpacific Industries Group Ltd. *		5,049		4,362

				20,510


Consumer Durables & Apparel 0.0%
G.U.D. Holdings Ltd.		351		1,869


Consumer Services 0.2%
Aristocrat Leisure Ltd.		1,728		6,956
Echo Entertainment Group Ltd.		1,296		3,117
Flight Centre Ltd.		153		6,405

				16,478


Diversified Financials 0.3%
ASX Ltd.		225		7,104
Challenger Ltd.		1,176		5,446
IOOF Holdings Ltd.		105		795
Perpetual Ltd.		129		4,418

				17,763


Energy 0.1%
AWE Ltd. *		2,658		3,090
Beach Energy Ltd.		2,814		3,496

				6,586


Food, Beverage & Tobacco 0.3%
Goodman Fielder Ltd. *		16,266		10,721
GrainCorp Ltd.		390		4,321
Treasury Wine Estates Ltd.		927		3,930

				18,972


Health Care Equipment & Services 0.4%
Ansell Ltd.		405		7,005
Cochlear Ltd.		75		3,831
Primary Health Care Ltd.		1,332		6,110
Ramsay Health Care Ltd.		168		5,588
Sigma Pharmaceuticals Ltd.		13,887		7,916

				30,450


Insurance 0.0%
NIB Holdings Ltd.		1,635		3,102


Materials 0.4%
Adelaide Brighton Ltd.		1,605		4,789
Aquarius Platinum Ltd. *		7,866		5,499
DuluxGroup Ltd.		180		725
Fortescue Metals Group Ltd.		507		1,955
Iluka Resources Ltd.		552		5,285
Mount Gibson Iron Ltd.		1,500		962
Nufarm Ltd.		1,041		4,358
OZ Minerals Ltd.		1,635		6,160

				29,733


Media 0.1%
Seven West Media Ltd.		1,782		3,730
Southern Cross Media Group Ltd.		1,896		2,846
Ten Network Holdings Ltd. *		10,239		2,781

				9,357


Real Estate 0.6%
Australand Property Group		843		2,538
CFS Retail Property Trust Group		3,444		6,196
Charter Hall Retail REIT		225		737
Commonwealth Property Office Fund		3,825		3,918
Dexus Property Group		9,702		8,900
Goodman Group		1,269		5,233
GPT Group		2,778		8,783
Investa Office Fund		1,005		2,632
Westfield Retail Trust		582		1,514

				40,451


Retailing 0.6%
Automotive Holdings Group Ltd.		309		1,082
David Jones Ltd.		3,834		9,630
Harvey Norman Holdings Ltd.		2,526		6,772
JB Hi-Fi Ltd.		471		7,912
Myer Holdings Ltd.		3,495		8,560
Pacific Brands Ltd.		10,995		7,442
Premier Investments Ltd.		579		4,187

				45,585

See financial notes 43

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Software & Services 0.1%
Computershare Ltd.		1,065		9,153


Transportation 0.2%
Aurizon Holdings Ltd.		1,851		7,501
Transurban Group		1,320		7,936

				15,437


Utilities 0.3%
APA Group		1,215		6,482
DUET Group		4,500		8,336
SP Ausnet		5,013		5,157

				19,975

				313,802

Austria 0.7%


Banks 0.1%
Raiffeisen Bank International AG		267		9,139


Capital Goods 0.1%
Zumtobel AG		294		3,649


Energy 0.0%
Schoeller-Bleckmann Oilfield Equipment AG		6		633


Insurance 0.1%
Vienna Insurance Group AG		135		6,850


Materials 0.1%
Lenzing AG		30		2,140
RHI AG		84		2,643

				4,783


Real Estate 0.2%
Immofinanz AG *		3,201		12,595


Transportation 0.1%
Oesterreichische Post AG		186		7,726


Utilities 0.0%
Verbund AG		141		2,710

				48,085

Belgium 1.1%


Capital Goods 0.0%
Cie d’Entreprises CFE		54		2,928


Diversified Financials 0.2%
Ackermans & van Haaren N.V.		42		3,758
Gimv N.V.		72		3,436
Groupe Bruxelles Lambert S.A.		75		5,963
Sofina S.A.		33		3,092

				16,249


Materials 0.2%
Nyrstar *		1,449		6,745
Tessenderlo Chemie N.V.		277		6,666

				13,411


Media 0.1%
Telenet Group Holding N.V.		138		6,639


Real Estate 0.1%
Befimmo S.A.		30		1,954
Cofinimmo		30		3,321

				5,275


Retailing 0.2%
D’Ieteren S.A. N.V.		264		12,187


Technology Hardware & Equipment 0.1%
Barco N.V.		60		4,282
EVS Broadcast Equipment S.A.		39		2,641

				6,923


Telecommunication Services 0.1%
Mobistar S.A.		480		7,139


Utilities 0.1%
Elia System Operator S.A. N.V.		135		5,623

				76,374

Canada 8.1%


Automobiles & Components 0.2%
Linamar Corp.		267		8,302
Martinrea International, Inc.		471		5,286

				13,588


Banks 0.2%
Canadian Western Bank		105		2,972
Genworth MI Canada, Inc.		246		6,564
Home Capital Group, Inc.		54		3,278
Laurentian Bank of Canada		75		3,152

				15,966


Capital Goods 0.6%
Aecon Group, Inc.		258		3,162
Bird Construction, Inc.		171		1,827
CAE, Inc.		648		6,917
Genivar, Inc.		45		1,039
MacDonald, Dettwiler & Associates Ltd.		84		6,478
Russel Metals, Inc.		390		9,731
Toromont Industries Ltd.		330		7,051
Wajax Corp.		117		3,916

				40,121


Commercial & Professional Services 0.4%
Newalta Corp.		231		3,348
Progressive Waste Solutions Ltd.		384		9,286
Ritchie Bros. Auctioneers, Inc.		183		3,372
Stantec, Inc.		90		4,123
Transcontinental, Inc., Class A		753		9,772

				29,901


Consumer Durables & Apparel 0.2%
Dorel Industries, Inc., Class B		204		6,962
Gildan Activewear, Inc.		192		8,423
Lululemon Athletica, Inc. *		12		850

				16,235


Consumer Services 0.0%
EnerCare, Inc.		309		2,783


Diversified Financials 0.4%
AGF Management Ltd., Class B		603		7,317
CI Financial Corp.		432		13,125
Dundee Corp., Class A *		105		1,973
GMP Capital, Inc.		612		3,324

				25,739


Energy 2.1%
Advantage Oil & Gas Ltd. *		1,845		6,699
AltaGas Ltd.		249		8,481

44 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Calfrac Well Services Ltd.		30		934
Enerflex Ltd.		144		1,929
Ensign Energy Services, Inc.		585		9,749
Freehold Royalties Ltd.		105		2,354
Gibson Energy, Inc.		288		6,167
Gran Tierra Energy, Inc. *		120		819
Keyera Corp.		150		8,195
Lightstream Resources Ltd.		669		4,585
Mullen Group Ltd.		363		8,689
Nuvista Energy Ltd. *		306		2,152
Pacific Rubiales Energy Corp.		330		6,235
Parkland Fuel Corp.		285		4,701
Pason Systems, Inc.		39		792
Pembina Pipeline Corp.		345		10,688
Petrominerales Ltd.		576		3,522
Peyto Exploration & Development Corp.		210		5,723
Precision Drilling Corp.		1,584		15,571
Savanna Energy Services Corp.		288		2,110
ShawCor Ltd.		147		5,829
Trican Well Service Ltd.		441		6,191
Trinidad Drilling Ltd.		852		7,333
Uranium One, Inc. *		288		756
Veresen, Inc.		651		7,412
Vermilion Energy, Inc.		198		10,622

				148,238


Food & Staples Retailing 0.2%
Liquor Stores N.A. Ltd.		129		1,986
The Jean Coutu Group, Inc., A Shares		486		8,343
The North West Co., Inc.		291		6,386

				16,715


Food, Beverage & Tobacco 0.2%
Cott Corp.		600		4,800
Maple Leaf Foods, Inc.		606		7,899

				12,699


Health Care Equipment & Services 0.1%
CML Healthcare, Inc.		600		6,092


Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.		240		9,403


Materials 1.4%
Agnico Eagle Mines Ltd.		150		4,515
Canfor Corp. *		294		5,794
CCL Industries, Inc., Class B		90		6,150
Centerra Gold, Inc.		576		3,631
Chemtrade Logistics Income Fund		202		3,259
Dominion Diamond Corp. *		277		3,461
Eldorado Gold Corp.		432		3,673
Franco-Nevada Corp.		18		818
HudBay Minerals, Inc.		759		4,979
IAMGOLD Corp.		1,053		6,309
Lundin Mining Corp. *		1,695		6,973
Major Drilling Group International, Inc.		288		1,846
Methanex Corp.		396		18,375
New Gold, Inc. *		144		969
Pan American Silver Corp.		222		2,704
Sherritt International Corp.		2,004		6,991
Silver Wheaton Corp.		108		2,850
Thompson Creek Metals Co., Inc. *		1,284		4,711
West Fraser Timber Co., Ltd.		138		10,910

				98,918


Media 0.5%
Aimia, Inc.		567		8,611
Cineplex, Inc.		156		5,785
Cogeco Cable, Inc.		75		3,438
Corus Entertainment, Inc.		252		6,032
Quebecor, Inc., Class B		636		13,607

				37,473


Real Estate 0.4%
Boardwalk Real Estate Investment Trust		30		1,596
Brookfield Office Properties, Inc.		480		7,667
Calloway Real Estate Investment Trust		90		2,078
Canadian Real Estate Investment Trust		48		1,857
First Capital Realty, Inc.		45		717
Granite Real Estate Investment Trust		138		4,644
H&R Real Estate Investment Trust		150		2,917
RioCan Real Estate Investment Trust		183		4,085

				25,561


Retailing 0.2%
Dollarama, Inc.		81		5,709
Reitmans (Canada) Ltd., Class A		495		4,617
Sears Canada, Inc.		237		2,629

				12,955


Software & Services 0.1%
Davis & Henderson Corp.		246		6,061
Open Text Corp.		60		4,118

				10,179


Telecommunication Services 0.1%
Manitoba Telecom Services, Inc.		222		7,092


Transportation 0.1%
TransForce, Inc.		339		6,681
Westshore Terminals Investment Corp.		75		2,087

				8,768


Utilities 0.6%
ATCO Ltd., Class I		312		12,810
Capital Power Corp.		357		6,992
Emera, Inc.		339		9,586
Just Energy Group, Inc.		720		4,361
Northland Power, Inc.		180		2,447
Superior Plus Corp.		891		9,282

				45,478

				583,904

Denmark 1.5%


Banks 0.3%
Jyske Bank A/S *		264		12,157
Sydbank A/S *		363		8,739

				20,896


Capital Goods 0.2%
NKT Holding A/S		177		7,963
Rockwool International A/S, B Shares		45		7,079
Schouw & Co.		24		842
Solar A/S		30		1,517

				17,401

See financial notes 45

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Consumer Durables & Apparel 0.1%
Pandora A/S		123		4,418


Food, Beverage & Tobacco 0.0%
Royal UNIBREW A/S		24		2,702


Health Care Equipment & Services 0.2%
Coloplast A/S Class B		117		6,339
GN Store Nord A/S		270		5,546
William Demant Holding A/S *		30		2,566

				14,451


Insurance 0.2%
Topdanmark A/S *		270		6,815
Tryg A/S		84		7,133

				13,948


Materials 0.0%
Chr Hansen Holding A/S		72		2,380


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
H. Lundbeck A/S		330		6,638
Novozymes A/S, B Shares		303		11,017

				17,655


Software & Services 0.1%
SimCorp A/S		144		4,505


Transportation 0.2%
D/S Norden A/S		345		12,166

				110,522

Finland 2.2%


Automobiles & Components 0.2%
Nokian Renkaat Oyj		267		12,445


Capital Goods 0.7%
Cargotec Oyj, B Shares		255		8,608
Cramo Oyj		219		3,436
Konecranes Oyj		213		6,614
Outotec Oyj		540		6,985
Ramirent Oyj		360		3,864
Uponor Oyj		513		9,085
YIT Oyj		573		7,858

				46,450


Consumer Durables & Apparel 0.2%
Amer Sports Oyj		546		10,785


Diversified Financials 0.1%
Pohjola Bank plc, A Shares		457		7,406


Materials 0.7%
Huhtamaki Oyj		585		11,416
Kemira Oyj		579		9,093
Metsa Board Oyj		1,773		5,541
Outokumpu Oyj *		17,205		10,354
Rautaruukki Oyj		2,055		14,470
Tikkurila Oyj		120		2,698

				53,572


Media 0.1%
Sanoma Oyj		1,341		9,708


Real Estate 0.0%
Sponda Oyj		555		2,752


Retailing 0.1%
Stockmann Oyj Abp, B Shares		264		4,581


Software & Services 0.1%
Tieto Oyj		459		9,121

				156,820

France 4.8%


Automobiles & Components 0.2%
Faurecia *		426		10,810
Plastic Omnium S.A.		99		6,523

				17,333


Banks 0.1%
Natixis		2,130		9,156


Capital Goods 0.4%
Areva S.A. *		315		5,138
Mersen		180		4,707
Saft Groupe S.A.		165		3,999
Zodiac Aerospace		96		13,867

				27,711


Commercial & Professional Services 0.6%
Bureau Veritas S.A.		288		8,681
Derichebourg S.A. *		810		2,478
Edenred		243		7,261
Societe BIC S.A.		90		10,322
Teleperformance		312		14,031

				42,773


Consumer Durables & Apparel 0.2%
Nexity S.A.		210		7,714
SEB S.A.		105		8,119

				15,833


Consumer Services 0.1%
Club Mediterranee S.A. *		237		5,438


Diversified Financials 0.2%
Eurazeo S.A.		180		11,138


Energy 0.1%
Bourbon S.A.		198		5,168
Etablissements Maurel et Prom		210		3,454

				8,622


Food, Beverage & Tobacco 0.1%
Remy Cointreau S.A.		30		3,149
Vilmorin & Cie S.A.		21		2,497

				5,646


Health Care Equipment & Services 0.1%
bioMerieux		45		4,493
Orpea		75		3,443

				7,936


Insurance 0.1%
Euler Hermes S.A.		60		6,764


Materials 0.2%
Eramet		66		6,091
Imerys S.A.		159		10,331

				16,422


Media 0.7%
Havas S.A.		807		5,844
Ipsos		108		4,138
JC Decaux S.A.		201		6,719
Metropole Television S.A.		537		10,253

46 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Societe Television Francaise 1		936		12,447
Technicolor S.A. *		2,985		14,170

				53,571


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Ipsen S.A.		90		3,323


Real Estate 0.5%
Fonciere Des Regions		129		9,952
Gecina S.A.		51		6,053
ICADE		114		9,911
Klepierre		228		9,022
Mercialys S.A.		30		578
Societe Immobiliere de Location pour l’Industrie et le Commerce		30		3,064

				38,580


Software & Services 0.4%
Alten S.A.		90		3,615
Altran Technologies S.A. *		540		3,930
Dassault Systemes S.A.		60		7,647
UbiSoft Entertainment *		747		11,258

				26,450


Technology Hardware & Equipment 0.3%
Ingenico		69		4,804
Neopost S.A.		204		14,257

				19,061


Telecommunication Services 0.1%
Iliad S.A.		30		7,180


Transportation 0.3%
Aeroports de Paris		120		11,686
Bollore S.A.		15		6,597
Groupe Eurotunnel S.A. - Reg’d		903		6,694

				24,977

				347,914

Germany 3.4%


Automobiles & Components 0.2%
ElringKlinger AG		78		2,829
Grammer AG		18		643
Leoni AG		180		9,860

				13,332


Banks 0.1%
Aareal Bank AG *		150		4,056


Capital Goods 0.8%
Bauer AG		105		2,444
BayWa AG		135		6,462
Deutz AG *		642		5,766
Duerr AG		60		4,019
Gildemeister AG		207		4,596
Heidelberger Druckmaschinen AG *		4,029		10,838
Indus Holding AG		159		5,116
Krones AG		54		4,564
Nordex SE *		465		5,406
Pfeiffer Vacuum Technology AG		30		3,485
SGL Carbon SE		90		2,842
Vossloh AG		30		2,466

				58,004


Consumer Durables & Apparel 0.1%
Gerry Weber International AG		45		2,017
Hugo Boss AG		36		4,375
Puma SE		15		4,254

				10,646


Food, Beverage & Tobacco 0.1%
Suedzucker AG		273		8,789


Health Care Equipment & Services 0.2%
Draegerwerk AG & Co. KGaA		9		905
Rhoen Klinikum AG		534		12,375

				13,280


Insurance 0.0%
Talanx AG *		52		1,652


Materials 0.4%
Fuchs Petrolub SE		30		2,045
Symrise AG		285		12,432
Wacker Chemie AG		135		13,221

				27,698


Media 0.3%
Axel Springer AG		180		8,972
ProSiebenSat.1 Media AG - Reg’d		237		10,023

				18,995


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Gerresheimer AG		102		6,140
Stada Arzneimittel AG		261		12,596

				18,736


Real Estate 0.1%
Deutsche Euroshop AG		63		2,568
GAGFAH S.A. *		246		3,000
GSW Immobilien AG		24		1,043

				6,611


Retailing 0.1%
Fielmann AG		57		5,787


Semiconductors & Semiconductor Equipment 0.1%
Aixtron SE *		282		4,401
Kontron AG		576		3,110
SMA Solar Technology AG		81		2,591

				10,102


Software & Services 0.3%
Bechtle AG		123		5,941
Software AG		210		6,412
United Internet AG - Reg’d		243		8,376

				20,729


Technology Hardware & Equipment 0.2%
Jenoptik AG		231		3,150
Wincor Nixdorf AG		228		14,262

				17,412


Telecommunication Services 0.0%
Telefonica Deutschland Holding AG		324		2,259


Transportation 0.1%
Fraport AG		123		7,921
Hamburger Hafen und Logistik AG		126		2,811

				10,732

				248,820

See financial notes 47

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Hong Kong 2.7%


Banks 0.2%
Bank of East Asia Ltd.		3,000		11,606
Wing Hang Bank Ltd.		200		1,932

				13,538


Capital Goods 0.2%
Johnson Electric Holdings Ltd.		6,000		3,938
NWS Holdings Ltd.		3,000		4,480
Singamas Container Holdings Ltd.		12,000		2,724

				11,142


Consumer Durables & Apparel 0.1%
Techtronic Industries Co., Ltd.		3,000		7,366


Consumer Services 0.3%
Cafe de Coral Holdings Ltd.		600		1,884
Sands China Ltd.		1,200		6,902
SJM Holdings Ltd.		3,000		7,691
Wynn Macau Ltd.		1,200		3,629

				20,106


Diversified Financials 0.1%
First Pacific Co., Ltd.		6,000		6,213
Guoco Group Ltd.		200		2,358

				8,571


Media 0.1%
Television Broadcasts Ltd.		600		3,931


Real Estate 0.9%
Great Eagle Holdings Ltd.		1,000		3,424
Hang Lung Group Ltd.		1,000		4,907
Hang Lung Properties Ltd.		3,000		9,382
Henderson Land Development Co., Ltd.		1,000		5,867
Hongkong Land Holdings Ltd.		1,000		6,460
Hysan Development Co., Ltd.		1,000		4,346
Kerry Properties Ltd.		1,500		6,074
New World Development Co., Ltd.		7,000		9,821
Sino Land Co., Ltd.		6,000		8,062
Swire Properties Ltd.		200		560
Wheelock & Co., Ltd.		1,000		5,107

				64,010


Retailing 0.1%
Chow Sang Sang Holdings International Ltd.		3,000		8,260
Luk Fook Holdings International Ltd.		600		2,050

				10,310


Technology Hardware & Equipment 0.1%
VTech Holdings Ltd.		600		8,821


Telecommunication Services 0.0%
Hutchison Telecommunications Hong Kong Holdings Ltd.		6,000		2,600


Transportation 0.6%
Cathay Pacific Airways Ltd.		6,000		10,291
MTR Corp., Ltd.		3,000		11,316
Orient Overseas International Ltd.		2,000		11,013
Pacific Basin Shipping Ltd.		16,000		10,028

				42,648

				193,043

Ireland 0.8%


Capital Goods 0.3%
Grafton Group plc		1,908		16,102
Kingspan Group plc		636		9,820

				25,922


Consumer Services 0.1%
Paddy Power plc		48		3,851


Food, Beverage & Tobacco 0.1%
C&C Group plc		1,296		7,177
Glanbia plc		294		3,916

				11,093


Health Care Equipment & Services 0.1%
United Drug plc		1,428		7,489


Insurance 0.1%
FBD Holdings plc		183		3,717


Materials 0.1%
James Hardie Industries plc CDI		504		4,404


Transportation 0.0%
Aer Lingus Group plc		282		628

				57,104

Israel 1.4%


Banks 0.3%
Bank Hapoalim B.M.		2,949		13,721
Israel Discount Bank Ltd., A Shares *		3,216		5,072
Mizrahi Tefahot Bank Ltd.		315		3,389

				22,182


Capital Goods 0.1%
Clal Industries Ltd.		738		3,140
Discount Investment Corp. *		366		1,968
Elbit Systems Ltd.		114		5,137

				10,245


Energy 0.3%
Delek Group Ltd.		27		7,539
Oil Refineries Ltd. *		12,504		4,908
Paz Oil Co., Ltd. *		36		5,564

				18,011


Food & Staples Retailing 0.1%
Shufersal Ltd.		870		3,466


Materials 0.1%
The Israel Corp., Ltd. *		15		6,382


Software & Services 0.2%
Check Point Software Technologies Ltd. *		225		12,616
NICE Systems Ltd.		75		2,836

				15,452


Telecommunication Services 0.3%
Cellcom Israel Ltd. *		1,083		11,889
Partner Communications Co., Ltd.		1,359		10,102

				21,991

				97,729

48 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Italy 2.8%


Automobiles & Components 0.0%
Piaggio & C S.p.A.		1,275		3,278


Banks 0.2%
Banca Carige S.p.A. *		7,446		4,904
Banca Piccolo Credito Valtellinese Scarl *		4,929		6,230
Banca Popolare di Sondrio Scrl		900		4,944

				16,078


Capital Goods 0.3%
Astaldi S.p.A.		330		2,524
C.I.R. S.p.A - Compagnie Industriali Riunite *		6,423		9,037
Danieli & C Officine Meccaniche S.p.A.		132		2,571
Impregilo S.p.A.		876		3,939

				18,071


Consumer Durables & Apparel 0.4%
De’Longhi S.p.A.		42		623
Geox S.p.A.		888		2,248
Indesit Co. S.p.A.		462		3,643
Luxottica Group S.p.A.		225		11,704
Prada S.p.A.		300		2,956
Safilo Group S.p.A. *		276		4,840
Tod’s S.p.A.		27		4,817

				30,831


Consumer Services 0.2%
Autogrill S.p.A. *		582		9,163
GTECH S.p.A.		270		7,573

				16,736


Diversified Financials 0.1%
Azimut Holding S.p.A.		180		3,857


Energy 0.2%
ERG S.p.A.		951		9,254
Saras S.p.A. *		6,159		7,431

				16,685


Food, Beverage & Tobacco 0.2%
Davide Campari-Milano S.p.A.		528		4,177
Parmalat S.p.A.		2,184		7,050

				11,227


Health Care Equipment & Services 0.0%
Sorin S.p.A. *		1,035		2,771


Insurance 0.4%
Fondiaria-Sai S.p.A. *		3,594		6,666
Mediolanum S.p.A.		474		3,300
Societa Cattolica di Assicurazioni Scrl		255		5,713
Unipol Gruppo Finanziario S.p.A.		2,940		10,583

				26,262


Materials 0.1%
Buzzi Unicem S.p.A.		612		8,215


Media 0.0%
RCS MediaGroup S.p.A. *		450		688


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		384		4,319


Real Estate 0.0%
Beni Stabili S.p.A.		4,728		2,899


Transportation 0.2%
Ansaldo STS S.p.A.		441		3,809
ASTM S.p.A. *		357		4,218
Societa Iniziative Autostradali e Servizi S.p.A.		402		3,668

				11,695


Utilities 0.4%
ACEA S.p.A.		672		6,203
Enel Green Power S.p.A.		3,384		7,126
Hera S.p.A.		5,064		9,963
IREN S.p.A.		7,359		8,490

				31,782

				205,394

Japan 38.6%


Automobiles & Components 3.3%
Aisan Industry Co., Ltd.		600		5,803
Akebono Brake Industry Co., Ltd.		600		2,587
Calsonic Kansei Corp.		1,000		4,892
Exedy Corp.		300		7,026
FCC Co., Ltd.		300		6,632
Futaba Industrial Co., Ltd. *		1,200		4,819
Keihin Corp.		600		8,720
Koito Manufacturing Co., Ltd.		1,000		17,724
KYB Co., Ltd.		3,000		18,101
Mitsubishi Motors Corp. *		600		6,329
Musashi Seimitsu Industry Co., Ltd.		300		7,354
NGK Spark Plug Co., Ltd.		500		9,698
Nifco, Inc.		300		7,149
Nissan Shatai Co., Ltd.		500		7,124
Nissin Kogyo Co., Ltd.		300		5,330
Nok Corp.		600		8,800
Press Kogyo Co., Ltd.		1,000		3,934
Riken Corp.		1,000		3,842
Sanden Corp.		1,000		3,914
Showa Corp.		400		5,019
Sumitomo Rubber Industries Ltd.		700		9,881
T RAD Co., Ltd.		1,000		3,211
Tachi-S Co., Ltd.		300		4,140
Takata Corp.		300		7,140
The Yokohama Rubber Co., Ltd.		500		4,418
Tokai Rika Co., Ltd.		600		11,949
Tokai Rubber Industries Ltd.		400		3,404
Toyo Tire & Rubber Co., Ltd.		1,000		5,432
Toyoda Gosei Co., Ltd.		400		9,707
Toyota Boshoku Corp.		900		11,851
TS Tech Co., Ltd.		300		10,121
Unipres Corp.		600		13,075
Yorozu Corp.		100		1,937

				241,063


Banks 1.8%
Fukuoka Financial Group, Inc.		1,000		4,281
Hokuhoku Financial Group, Inc.		6,000		11,191
Kiyo Holdings, Inc.		3,000		3,944
Seven Bank Ltd.		1,200		3,938
Shinsei Bank Ltd.		6,000		11,864
The 77 Bank Ltd.		1,000		4,525
The Awa Bank Ltd.		1,000		5,025
The Bank of Kyoto Ltd.		1,000		8,235

See financial notes 49

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Daishi Bank Ltd.		1,000		3,241
The Gunma Bank Ltd.		1,000		5,402
The Hachijuni Bank Ltd.		1,000		5,646
The Hiroshima Bank Ltd.		1,000		4,016
The Hyakugo Bank Ltd.		1,000		3,853
The Joyo Bank Ltd.		1,000		5,178
The Juroku Bank Ltd.		1,000		3,639
The Keiyo Bank Ltd.		1,000		5,147
The Musashino Bank Ltd.		100		3,312
The Nishi-Nippon City Bank Ltd.		1,000		2,558
The Ogaki Kyoritsu Bank Ltd.		1,000		2,731
The San-In Godo Bank Ltd.		1,000		7,614
The Shiga Bank Ltd.		1,000		5,320
The Shizuoka Bank Ltd.		1,000		10,620
Yamaguchi Financial Group, Inc.		1,000		9,336

				130,616


Capital Goods 7.2%
Aica Kogyo Co., Ltd.		100		1,818
Amada Co., Ltd.		1,000		7,420
Asahi Diamond Industrial Co., Ltd.		300		2,825
Central Glass Co., Ltd.		1,000		3,068
Chiyoda Corp.		1,000		11,446
CKD Corp.		400		3,033
COMSYS Holdings Corp.		900		11,191
Daifuku Co., Ltd.		500		4,709
Daihen Corp.		1,000		3,608
Ebara Corp.		3,000		16,022
Fuji Electric Co., Ltd.		3,000		11,099
Fuji Machine Manufacturing Co., Ltd.		400		3,637
Fujitec Co., Ltd.		1,000		10,508
Furukawa Co., Ltd.		3,000		6,146
Futaba Corp.		300		3,477
Glory Ltd.		300		6,293
GS Yuasa Corp.		1,000		4,943
Hino Motors Ltd.		500		6,559
Hitachi Construction Machinery Co., Ltd.		600		11,821
Hitachi Koki Co., Ltd.		300		2,253
Hitachi Zosen Corp.		3,500		5,137
Hoshizaki Electric Co., Ltd.		300		9,998
Inaba Denki Sangyo Co., Ltd.		100		2,782
Inabata & Co., Ltd.		700		6,036
Iseki & Co., Ltd.		1,000		3,231
Iwatani Corp.		3,000		10,793
Kamei Corp.		400		2,907
Kandenko Co., Ltd.		3,000		15,594
Kanematsu Corp. *		4,000		4,321
Keihan Electric Railway Co., Ltd.		1,000		4,036
Kinden Corp.		1,000		9,897
Kitz Corp.		600		2,568
Komori Corp.		600		6,947
Kurita Water Industries Ltd.		400		8,072
Kuroda Electric Co., Ltd.		300		4,018
Kyowa Exeo Corp.		600		6,482
Mabuchi Motor Co., Ltd.		100		4,964
Maeda Corp.		800		4,281
Maeda Road Construction Co., Ltd.		1,000		15,574
Makino Milling Machine Co., Ltd.		1,000		5,708
Meidensha Corp.		1,000		3,292
Minebea Co., Ltd.		3,000		12,964
Mirait Holdings Corp.		700		5,536
MISUMI Group, Inc.		300		7,384
Miura Co., Ltd.		100		2,577
Mori Seiki Co., Ltd.		600		8,274
Nabtesco Corp.		300		6,452
Nachi-Fujikoshi Corp.		1,000		4,974
NGK Insulators Ltd.		500		6,971
Nichias Corp.		600		3,822
Nippo Corp.		1,000		16,093
Nippon Signal Co., Ltd.		300		2,015
Nishimatsu Construction Co., Ltd.		3,000		6,910
Nisshinbo Holdings, Inc.		1,000		7,399
Nitta Corp.		100		1,909
Nitto Boseki Co., Ltd.		1,000		3,690
Nitto Kogyo Corp.		100		1,563
Noritake Co., Ltd.		1,000		2,456
Noritz Corp.		100		2,010
NTN Corp. *		4,000		14,840
Oiles Corp.		100		2,167
OKUMA Corp.		400		3,033
Okumura Corp.		1,000		3,720
OSG Corp.		300		4,801
Penta-Ocean Construction Co., Ltd.		2,000		4,729
Ryobi Ltd.		1,000		3,863
Sankyo Tateyama, Inc.		100		2,037
Sanwa Holdings Corp.		1,000		5,595
Shinmaywa Industries Ltd.		400		2,952
Sintokogio Ltd.		300		2,140
Sumikin Bussan Corp.		1,000		3,251
Tadano Ltd.		300		4,210
Taikisha Ltd.		100		2,222
Takara Standard Co., Ltd.		400		2,886
Takasago Thermal Engineering Co., Ltd.		400		3,180
The Japan Steel Works Ltd.		1,000		5,137
The Nippon Road Co., Ltd.		3,000		15,319
THK Co., Ltd.		600		11,699
Toa Corp. *		1,000		1,386
Toda Corp.		3,000		9,020
TOKAI Holdings Corp.		300		1,049
Toshiba Machine Co., Ltd.		1,000		4,179
Totetsu Kogyo Co., Ltd.		300		5,782
TOTO Ltd.		1,000		12,424
Toyo Engineering Corp.		1,000		3,944
Trusco Nakayama Corp.		100		1,833
Tsubakimoto Chain Co.		600		4,036
Ushio, Inc.		600		6,739
Yamazen Corp.		400		2,483
Yuasa Trading Co., Ltd.		1,000		1,712

				523,881


Commercial & Professional Services 0.7%
Duskin Co., Ltd.		400		7,567
Kokuyo Co., Ltd.		900		6,540
Kyodo Printing Co., Ltd.		1,000		2,568
Matsuda Sangyo Co., Ltd.		100		1,304
Meitec Corp.		100		2,486
Moshi Moshi Hotline, Inc.		100		1,097
Nissha Printing Co., Ltd. *		300		5,011
Okamura Corp.		1,000		6,564
Park24 Co., Ltd.		100		1,737
Sato Holdings Corp.		100		1,636
Sohgo Security Services Co., Ltd.		600		10,855
Temp Holdings Co., Ltd.		100		2,179
Toppan Forms Co., Ltd.		400		3,632

				53,176

50 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Consumer Durables & Apparel 1.8%
Alpine Electronics, Inc.		400		3,918
Asics Corp.		400		7,037
Casio Computer Co., Ltd.		1,500		12,903
Foster Electric Co., Ltd.		100		1,933
Funai Electric Co., Ltd.		400		4,020
Gunze Ltd.		2,000		4,994
Haseko Corp. *		9,000		10,549
JVC Kenwood Corp.		1,800		3,687
Kurabo Industries Ltd.		1,000		1,580
Onward Holdings Co., Ltd.		1,000		8,724
PanaHome Corp.		400		2,430
Pioneer Corp. *		3,600		5,687
Rinnai Corp.		100		7,002
Sangetsu Co., Ltd.		300		7,656
Sankyo Co., Ltd.		300		13,989
Sanyo Shokai Ltd.		1,000		2,517
Sumitomo Forestry Co., Ltd.		1,200		11,448
Tamron Co., Ltd.		100		1,941
Token Corp.		60		3,070
Tomy Co., Ltd.		600		2,801
TSI Holdings Co., Ltd.		100		656
Unitika Ltd. *		4,000		2,161
Wacoal Holdings Corp.		1,000		10,060

				130,763


Consumer Services 0.8%
Accordia Golf Co., Ltd.		4		4,346
Doutor Nichires Holdings Co., Ltd.		300		4,675
HIS Co., Ltd.		100		5,076
McDonald’s Holdings Co. Japan Ltd.		300		7,880
MOS Food Services, Inc.		100		1,952
Plenus Co., Ltd.		300		5,421
Resorttrust, Inc.		100		3,216
Round One Corp.		400		2,254
Royal Holdings Co., Ltd.		100		1,485
Saizeriya Co., Ltd.		300		3,941
Tokyo Dome Corp.		1,000		6,706
Yoshinoya Holdings Co., Ltd.		400		4,607
Zensho Holdings Co., Ltd.		300		3,391

				54,950


Diversified Financials 1.1%
Acom Co., Ltd. *		180		4,517
AEON Financial Service Co., Ltd.		200		5,379
Aiful Corp. *		1,650		13,672
Century Tokyo Leasing Corp.		100		2,715
Daiwa Securities Group, Inc.		3,000		24,339
Hitachi Capital Corp.		100		2,051
Jaccs Co., Ltd.		1,000		4,342
Mitsubishi UFJ Lease & Finance Co., Ltd.		900		4,091
Orient Corp. *		3,000		7,124
SBI Holdings, Inc.		900		9,430

				77,660


Energy 0.1%
Japan Petroleum Exploration Co.		100		4,474
Shinko Plantech Co., Ltd.		300		2,413

				6,887


Food & Staples Retailing 1.0%
Arcs Co., Ltd.		300		5,476
Cawachi Ltd.		300		5,556
Cocokara fine, Inc.		100		2,946
FamilyMart Co., Ltd.		100		4,214
Heiwado Co., Ltd.		400		6,030
Kato Sangyo Co., Ltd.		300		5,984
Matsumotokiyoshi Holdings Co., Ltd.		300		10,151
Mitsubishi Shokuhin Co., Ltd.		100		2,653
San-A Co., Ltd.		200		4,911
Sugi Holdings Co., Ltd.		100		3,878
Sundrug Co., Ltd.		100		4,658
Tsuruha Holdings, Inc.		100		9,061
Valor Co., Ltd.		300		4,348
Welcia Holdings Co., Ltd.		100		4,969
Yokohama Reito Co., Ltd.		100		810

				75,645


Food, Beverage & Tobacco 2.5%
Calbee, Inc.		100		9,774
Coca-Cola East Japan Co., Ltd.		600		8,574
Dydo Drinco, Inc.		100		3,761
Ezaki Glico Co., Ltd.		1,000		8,898
Fuji Oil Co., Ltd.		600		10,561
Hokuto Corp.		100		1,754
House Foods Corp.		600		9,356
Ito En Ltd.		300		6,770
Itoham Foods, Inc.		1,000		4,077
J-Oil Mills, Inc.		1,000		3,098
Kagome Co., Ltd.		600		10,304
Kewpie Corp.		600		9,075
Kikkoman Corp.		500		8,546
Marudai Food Co., Ltd.		1,000		3,119
Maruha Nichiro Holdings, Inc.		3,000		5,626
Megmilk Snow Brand Co., Ltd.		600		8,659
Mitsui Sugar Co., Ltd.		1,000		3,190
Morinaga Milk Industry Co., Ltd.		3,000		8,928
Nichirei Corp.		2,000		9,642
Nippon Flour Mills Co., Ltd.		1,000		4,892
Nippon Suisan Kaisha Ltd. *		3,000		6,146
Nissin Foods Holdings Co., Ltd.		300		11,864
Prima Meat Packers Ltd.		3,000		6,115
Sapporo Holdings Ltd.		1,000		3,598
Takara Holdings, Inc.		500		3,817
The Nisshin Oillio Group Ltd.		1,000		3,455
Warabeya Nichiyo Co., Ltd.		300		4,801
Yakult Honsha Co., Ltd.		100		4,245

				182,645


Health Care Equipment & Services 0.5%
Miraca Holdings, Inc.		100		4,474
Nichii Gakkan Co.		600		5,914
Nihon Kohden Corp.		100		3,700
Nipro Corp.		600		5,204
Ship Healthcare Holdings, Inc.		100		3,628
Sysmex Corp.		100		5,820
Toho Holdings Co., Ltd.		300		4,944

				33,684


Household & Personal Products 0.6%
Fancl Corp.		300		3,773
Kobayashi Pharmaceutical Co., Ltd.		100		5,555
Kose Corp.		300		8,424
Lion Corp.		1,000		6,054
Mandom Corp.		100		3,231
Pigeon Corp.		100		4,617
Pola Orbis Holdings, Inc.		100		3,154

See financial notes 51

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Unicharm Corp.		100		5,198

				40,006


Insurance 0.1%
Sony Financial Holdings, Inc.		300		4,901


Materials 5.0%
Adeka Corp.		800		8,757
Aichi Steel Corp.		1,000		4,994
Air Water, Inc.		500		6,732
Asahi Holdings, Inc.		200		3,363
Daicel Corp.		1,000		8,684
Daido Steel Co., Ltd.		1,000		5,351
Daio Paper Corp.		1,000		5,483
Dowa Holdings Co., Ltd.		1,000		8,969
Earth Chemical Co., Ltd.		100		3,684
FP Corp.		100		7,033
Fuji Seal International, Inc.		100		2,859
Furukawa-Sky Aluminum Corp.		1,000		3,037
Godo Steel Ltd.		1,000		1,651
Hitachi Chemical Co., Ltd.		900		14,897
Hitachi Metals Ltd.		1,000		12,037
Hokuetsu Kishu Paper Co., Ltd.		500		2,094
Ishihara Sangyo Kaisha Ltd. *		3,000		2,293
Kansai Paint Co., Ltd.		1,000		11,639
Kureha Corp.		1,000		3,384
Kyoei Steel Ltd.		300		4,917
Lintec Corp.		300		5,650
Maruichi Steel Tube Ltd.		300		6,953
Mitsubishi Gas Chemical Co., Inc.		1,000		8,082
Mitsubishi Paper Mills Ltd. *		3,000		2,538
Mitsubishi Steel Manufacturing Co., Ltd.		1,000		2,711
Nihon Parkerizing Co., Ltd.		1,000		19,324
Nippon Denko Co., Ltd.		1,000		2,721
Nippon Kayaku Co., Ltd.		1,000		12,679
Nippon Paint Co., Ltd.		1,000		14,452
Nippon Shokubai Co., Ltd.		1,000		10,182
Nippon Soda Co., Ltd.		500		2,905
Nissan Chemical Industries Ltd.		600		8,256
Nittetsu Mining Co., Ltd.		1,000		4,515
NOF Corp.		1,000		5,983
Pacific Metals Co., Ltd.		1,000		3,496
Rengo Co., Ltd.		3,000		14,830
Sanyo Chemical Industries Ltd.		1,000		6,258
Sanyo Special Steel Co., Ltd.		1,000		4,434
Sumitomo Bakelite Co., Ltd.		1,000		3,496
Sumitomo Light Metal Industries Ltd.		3,000		2,966
Sumitomo Osaka Cement Co., Ltd.		3,000		11,099
Taiyo Nippon Sanso Corp.		1,000		6,574
Toagosei Co., Ltd.		3,000		12,139
Toho Zinc Co., Ltd.		1,000		2,925
Tokai Carbon Co., Ltd.		1,000		2,966
Tokuyama Corp.		4,000		14,187
Tokyo Ohka Kogyo Co., Ltd.		100		2,107
Tokyo Steel Manufacturing Co., Ltd.		2,100		10,295
Topy Industries Ltd.		1,000		1,957
Toyo Ink SC Holdings Co., Ltd.		1,000		4,637
Toyo Kohan Co., Ltd.		500		1,733
Toyobo Co., Ltd.		6,000		9,907
Yamato Kogyo Co., Ltd.		100		3,277
Yodogawa Steel Works Ltd.		1,000		4,057
Zeon Corp.		1,000		11,690

				363,839


Media 0.5%
Asatsu-DK, Inc.		300		7,140
Avex Group Holdings, Inc.		100		2,820
CyberAgent, Inc.		1		2,572
Daiichikosho Co., Ltd.		200		5,388
Kadokawa Corp.		100		3,374
SKY Perfect JSAT Holdings, Inc.		10		5,040
Toho Co., Ltd.		300		5,962
Tokyo Broadcasting System Holdings, Inc.		300		3,718
TV Asahi Corp.		100		2,122
Zenrin Co., Ltd.		100		974

				39,110


Pharmaceuticals, Biotechnology & Life Sciences 1.2%
Chugai Pharmaceutical Co., Ltd.		600		12,341
Dainippon Sumitomo Pharma Co., Ltd.		400		5,141
Hisamitsu Pharmaceutical Co., Inc.		100		5,381
Kissei Pharmaceutical Co., Ltd.		300		6,112
KYORIN Holdings, Inc.		300		6,442
Kyowa Hakko Kirin Co., Ltd.		600		6,072
Mitsubishi Tanabe Pharma Corp.		900		12,283
Mochida Pharmaceutical Co., Ltd.		1,000		12,506
Santen Pharmaceutical Co., Ltd.		300		13,943
Tsumura & Co.		300		8,066

				88,287


Real Estate 1.4%
Advance Residence Investment Corp.		1		2,033
Aeon Mall Co., Ltd.		300		7,849
Daikyo, Inc.		1,000		2,915
Japan Prime Realty Investment Corp.		1		2,875
Japan Real Estate Investment Corp.		1		10,661
Japan Retail Fund Investment Corp.		3		5,522
Kenedix Realty Investment Corp.		1		3,776
Leopalace21 Corp. *		2,100		12,992
Nippon Building Fund, Inc.		1		10,906
Nomura Real Estate Holdings, Inc.		600		13,760
Nomura Real Estate Office Fund, Inc.		1		4,291
NTT Urban Development Corp.		3		3,559
Orix JREIT, Inc.		3		3,183
Tokyo Tatemono Co., Ltd.		1,000		8,551
Tokyu Land Corp.		1,000		9,316
United Urban Investment Corp.		1		1,292

				103,481


Retailing 2.3%
ABC-Mart, Inc.		100		4,194
Alpen Co., Ltd.		100		1,916
Aoyama Trading Co., Ltd.		400		9,919
Arc Land Sakamoto Co., Ltd.		100		1,430
Autobacs Seven Co., Ltd.		600		8,567
Bic Camera, Inc.		9		3,912
Canon Marketing Japan, Inc.		700		8,890
Chiyoda Co., Ltd.		100		2,196
DCM Holdings Co., Ltd.		1,100		7,545
Don Quijote Co., Ltd.		100		5,208
Doshisha Co., Ltd.		100		1,371
Geo Holdings Corp.		6		5,351
Gulliver International Co., Ltd.		100		538
H2O Retailing Corp.		1,000		8,409
Hikari Tsushin, Inc.		100		5,983
Izumi Co., Ltd.		100		2,778

52 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Kohnan Shoji Co., Ltd.		300		3,226
Komeri Co., Ltd.		300		7,467
Marui Group Co., Ltd.		1,500		14,065
MX Mobiling Co., Ltd.		100		5,595
Nitori Holdings Co., Ltd.		150		13,438
Point, Inc.		60		2,831
Rakuten, Inc.		600		7,406
Ryohin Keikaku Co., Ltd.		100		8,806
T-Gaia Corp.		100		985
The Daiei, Inc. *		3,750		12,880
USS Co., Ltd.		60		7,516
Xebio Co., Ltd.		300		6,776

				169,198


Semiconductors & Semiconductor Equipment 0.7%
Advantest Corp.		600		7,400
Dainippon Screen Manufacturing Co., Ltd. *		1,000		4,739
Disco Corp.		100		5,901
Renesas Electronics Corp. *		1,800		6,843
Sanken Electric Co., Ltd.		1,000		5,300
Shinko Electric Industries Co., Ltd.		600		5,718
Sumco Corp.		900		7,522
Tokyo Seimitsu Co., Ltd.		100		1,885
UKC Holdings Corp.		100		1,669
Ulvac, Inc. *		400		3,522

				50,499


Software & Services 1.6%
Capcom Co., Ltd.		300		5,180
DeNA Co., Ltd.		100		1,966
DTS Corp.		100		1,404
Fuji Soft, Inc.		100		1,702
Gree, Inc.		100		794
IT Holdings Corp.		900		10,769
Itochu Techno-Solutions Corp.		100		3,399
NEC Networks & System Integration Corp.		300		6,632
Net One Systems Co., Ltd.		600		4,495
Nexon Co., Ltd.		100		1,095
Nihon Unisys Ltd.		600		4,898
Nomura Research Institute Ltd.		400		12,496
NS Solutions Corp.		100		1,922
NSD Co., Ltd.		300		3,311
Obic Co., Ltd.		30		8,827
Otsuka Corp.		60		7,247
SCSK Corp.		300		7,014
Square Enix Holdings Co., Ltd.		400		5,858
Transcosmos, Inc.		300		4,550
Trend Micro, Inc.		300		10,518
Yahoo! Japan Corp.		16		7,942

				112,019


Technology Hardware & Equipment 2.7%
Alps Electric Co., Ltd.		1,800		12,971
Amano Corp.		400		4,020
Anritsu Corp.		300		3,669
Azbil Corp.		400		8,594
Canon Electronics, Inc.		100		1,760
Citizen Holdings Co., Ltd.		1,800		11,668
Daiwabo Holdings Co., Ltd.		1,000		1,661
Eizo Corp.		100		2,143
Hamamatsu Photonics K.K.		100		3,241
Hirose Electric Co., Ltd.		100		13,209
Hitachi High-Technologies Corp.		600		12,145
Hitachi Kokusai Electric, Inc.		1,000		10,264
Horiba Ltd.		100		3,251
Hosiden Corp.		1,800		9,595
Japan Aviation Electronics Industry Ltd.		1,000		9,937
Macnica, Inc.		100		2,453
Melco Holdings, Inc.		100		1,289
Mitsumi Electric Co., Ltd. *		2,100		15,411
Nichicon Corp.		300		3,082
Nippon Chemi-Con Corp. *		1,000		3,944
Oki Electric Industry Co., Ltd. *		4,000		6,727
Riso Kagaku Corp.		100		2,435
Ryosan Co., Ltd.		400		6,759
Shimadzu Corp.		1,000		8,776
Star Micronics Co., Ltd.		300		2,896
Taiyo Yuden Co., Ltd.		600		7,601
Toshiba TEC Corp.		1,000		5,218
Yaskawa Electric Corp.		600		7,143
Yokogawa Electric Corp.		900		11,366

				193,228


Transportation 1.6%
Fukuyama Transporting Co., Ltd.		1,000		6,024
Hitachi Transport System, Ltd.		300		3,999
Japan Airport Terminal Co., Ltd.		300		5,519
Kamigumi Co., Ltd.		1,000		8,011
Keikyu Corp.		600		5,143
Keio Corp.		1,000		6,778
Keisei Electric Railway Co., Ltd.		600		5,712
Kintetsu World Express, Inc.		100		3,598
Mitsubishi Logistics Corp.		1,000		12,903
Mitsui-Soko Co., Ltd.		1,000		4,668
Nankai Electric Railway Co., Ltd.		300		1,119
Nippon Konpo Unyu Soko Co., Ltd.		300		4,669
Nishi-Nippon Railroad Co., Ltd.		3,000		11,558
Odakyu Electric Railway Co., Ltd.		1,000		9,142
Sankyu, Inc.		3,000		9,570
Senko Co., Ltd.		1,000		4,790
Sotetsu Holdings, Inc.		1,000		3,771
The Sumitomo Warehouse Co., Ltd.		1,000		5,290

				112,264


Utilities 0.1%
Shizuoka Gas Co., Ltd.		100		663
The Okinawa Electric Power Co., Inc.		100		3,440

				4,103

				2,791,905

Luxembourg 0.5%


Banks 0.2%
Espirito Santo Financial Group S.A. *		1,587		11,007


Commercial & Professional Services 0.1%
Regus plc		2,478		6,781


Consumer Durables & Apparel 0.0%
Samsonite International S.A.		300		778


Household & Personal Products 0.1%
Oriflame Cosmetics S.A.		180		5,255


Materials 0.1%
AZ Electronic Materials S.A.		216		1,021

See financial notes 53

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Ternium S.A.		400		9,904

				10,925


Media 0.0%
RTL Group S.A. *		30		2,897


Semiconductors & Semiconductor Equipment 0.0%
Magnachip Semiconductor Corp. *		75		1,534

				39,177

Netherlands 1.8%


Capital Goods 0.5%
Aalberts Industries N.V.		375		9,321
AerCap Holdings N.V. *		270		4,844
Arcadis N.V.		216		5,340
Koninklijke Boskalis Westminster N.V.		309		12,203
Sensata Technologies Holding N.V. *		90		3,355

				35,063


Commercial & Professional Services 0.1%
USG People N.V.		1,527		11,074


Consumer Durables & Apparel 0.1%
TomTom N.V. *		978		5,972


Diversified Financials 0.0%
BinckBank N.V.		90		783


Energy 0.3%
Core Laboratories N.V.		9		1,363
Koninklijke Vopak N.V.		96		5,373
SBM Offshore N.V. *		933		18,288

				25,024


Food & Staples Retailing 0.1%
X5 Retail Group N.V. *		360		5,832


Food, Beverage & Tobacco 0.0%
Koninklijke Wessanen N.V.		264		969


Materials 0.1%
Koninklijke Ten Cate N.V.		216		5,234


Real Estate 0.3%
Corio N.V.		201		7,874
Eurocommercial Properties N.V.		75		2,794
VastNed Retail N.V.		90		3,738
Wereldhave N.V.		78		5,181

				19,587


Semiconductors & Semiconductor Equipment 0.1%
ASM International N.V.		114		3,557
NXP Semiconductor N.V. *		48		1,784

				5,341


Software & Services 0.0%
Unit 4 N.V.		72		2,516


Technology Hardware & Equipment 0.1%
TKH Group N.V.		180		5,083


Telecommunication Services 0.1%
Ziggo N.V.		108		4,274

				126,752

New Zealand 0.4%


Consumer Services 0.1%
SKYCITY Entertainment Group Ltd.		1,695		5,100


Health Care Equipment & Services 0.1%
Fisher & Paykel Healthcare Corp., Ltd.		1,950		5,370


Materials 0.0%
Nuplex Industries Ltd.		1,566		3,864


Media 0.0%
Sky Network Television Ltd.		936		4,084


Real Estate 0.0%
Kiwi Income Property Trust		750		670


Telecommunication Services 0.0%
Chorus Ltd.		669		1,506


Transportation 0.1%
Air New Zealand Ltd.		573		629
Auckland International Airport Ltd.		1,434		3,417
Mainfreight Ltd.		90		738

				4,784


Utilities 0.1%
Contact Energy Ltd.		1,158		4,748
Infratil Ltd.		375		689

				5,437

				30,815

Norway 1.1%


Banks 0.1%
SpareBank 1 SR Bank A.S.A.		426		3,420
Sparebanken 1 SMN		414		3,297

				6,717


Capital Goods 0.1%
Vard Holdings Ltd. *		1,000		673
Veidekke A.S.A.		693		5,202

				5,875


Commercial & Professional Services 0.0%
Tomra Systems A.S.A.		390		3,484


Diversified Financials 0.0%
Aker A.S.A., A Shares		90		2,717


Energy 0.2%
Fred. Olsen Energy A.S.A.		120		5,545
Kvaerner A.S.A.		390		615
TGS Nopec Geophysical Co. A.S.A.		270		7,948

				14,108


Food, Beverage & Tobacco 0.1%
Austevoll Seafood A.S.A.		150		815
Cermaq A.S.A.		270		4,450
Leroy Seafood Group A.S.A.		30		737

				6,002


Insurance 0.2%
Gjensidige Forsikring A.S.A.		537		7,619
Storebrand A.S.A. *		1,074		6,007

				13,626


Media 0.1%
Schibsted A.S.A.		165		8,066


Semiconductors & Semiconductor Equipment 0.2%
Renewable Energy Corp. A.S.A. *		25,005		11,465


Software & Services 0.0%
Atea A.S.A.		363		3,598

54 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
Golden Ocean Group Ltd. *		3,456		4,399

				80,057

Portugal 0.4%


Banks 0.1%
Banco BPI S.A. - Reg’d *		2,991		3,652


Capital Goods 0.1%
Sonae		8,199		8,973


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A.		420		8,136


Media 0.1%
ZON OPTIMUS, SGPS, S.A.		963		5,286


Utilities 0.0%
Redes Energeticas Nacionais S.A.		903		2,643

				28,690

Singapore 1.6%


Capital Goods 0.3%
Cosco Corp. Singapore Ltd.		4,000		2,099
SembCorp Marine Ltd.		3,000		9,822
Singapore Technologies Engineering Ltd.		3,000		9,305

				21,226


Consumer Services 0.0%
Genting Singapore plc		1,000		1,030


Diversified Financials 0.0%
Singapore Exchange Ltd.		600		3,416


Food & Staples Retailing 0.1%
Olam International Ltd.		4,000		4,496


Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.		18,000		7,895


Real Estate 0.6%
Ascendas Real Estate Investment Trust		1,000		1,707
CapitaCommercial Trust		3,000		3,184
Capitaland Ltd.		4,000		9,555
CapitaMall Trust		3,000		4,370
City Developments Ltd.		1,000		7,809
Global Logistic Properties Ltd.		1,000		2,115
Keppel Land Ltd.		1,000		2,640
Suntec Real Estate Investment Trust		3,000		3,572
UOL Group Ltd.		1,000		5,013

				39,965


Telecommunication Services 0.2%
M1 Ltd.		800		2,017
StarHub Ltd.		3,000		9,869

				11,886


Transportation 0.3%
Hutchison Port Holdings Trust		9,000		6,660
Neptune Orient Lines Ltd. *		9,000		7,331
SATS Ltd.		1,000		2,358
Singapore Post Ltd.		3,000		2,925
SMRT Corp., Ltd.		3,000		3,055

				22,329

				112,243

Spain 2.1%


Banks 0.2%
Bankinter S.A.		2,436		10,873


Capital Goods 0.8%
Abengoa S.A.		1,017		2,648
Construcciones y Auxiliar de Ferrocarriles S.A.		6		2,658
Elecnor S.A.		54		765
Gamesa Corp. Tecnologica S.A.		4,302		30,065
Obrascon Huarte Lain S.A.		186		6,377
Sacyr Vallehermoso S.A. *		1,464		5,210
Zardoya Otis S.A.		609		8,954

				56,677


Commercial & Professional Services 0.0%
Prosegur, Compagnia de Seguridad S.A. - Reg’d		564		2,945


Diversified Financials 0.1%
Bolsas y Mercados Espanoles S.A.		243		7,038


Energy 0.0%
Tecnicas Reunidas S.A.		78		3,399


Food, Beverage & Tobacco 0.2%
Ebro Foods S.A.		390		8,441
Viscofan S.A.		108		5,621

				14,062


Insurance 0.2%
Grupo Catalana Occidente S.A.		150		3,877
Mapfre S.A.		3,564		11,979

				15,856


Materials 0.1%
Acerinox S.A.		1,002		10,384


Media 0.2%
Atresmedia Corporacion de Medios de Comunicaion S.A.		447		4,350
Mediaset Espana Comunicacion S.A. *		1,170		11,404

				15,754


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Almirall S.A.		255		3,110
Grifols S.A.		96		3,652

				6,762


Software & Services 0.2%
Indra Sistemas S.A.		819		11,842

				155,592

Sweden 2.3%


Capital Goods 0.4%
Haldex AB		90		729
Indutrade AB		135		4,860
Lindab International AB *		663		5,973
Nibe Industrier AB		165		2,970
Peab AB		1,464		8,116
Saab AB, Class B		291		5,322

				27,970


Commercial & Professional Services 0.2%
Intrum Justitia AB		210		5,109

See financial notes 55

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Loomis AB, B Shares		429		9,226

				14,335


Consumer Durables & Apparel 0.2%
JM AB		450		11,558
Nobia AB		927		7,262

				18,820


Diversified Financials 0.2%
L E Lundbergforetagen AB, B Shares		126		4,916
Ratos AB, B Shares		1,188		10,344

				15,260


Energy 0.1%
Lundin Petroleum AB *		180		3,853


Food & Staples Retailing 0.1%
Axfood AB		135		6,006


Food, Beverage & Tobacco 0.1%
AarhusKarlshamn AB		81		4,448


Health Care Equipment & Services 0.1%
Elekta AB, B Shares		321		5,044


Materials 0.2%
BillerudKorsnas AB		453		4,108
Hexpol AB		12		828
Hoganas AB, B Shares		75		3,717
Holmen AB, B Shares		315		9,035

				17,688


Media 0.1%
Eniro AB *		255		699
Modern Times Group AB, B Shares		219		9,894

				10,593


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		663		7,286


Real Estate 0.2%
Castellum AB		300		4,101
Fabege AB		390		4,054
Kungsleden AB		966		6,389

				14,544


Retailing 0.1%
Bilia AB		273		5,099
Clas Ohlson AB, B Shares		180		2,610
KappAhl AB *		144		831

				8,540


Technology Hardware & Equipment 0.1%
Hexagon AB, B Shares		285		8,170


Transportation 0.1%
SAS AB *		3,561		6,732

				169,289

Switzerland 2.8%


Banks 0.1%
Banque Cantonale Vaudoise - Reg’d		6		3,208
Valiant Holding AG - Reg’d		39		3,664

				6,872


Capital Goods 0.7%
AFG Arbonia-Forster Holding AG *		165		5,353
Bucher Industries AG - Reg’d		6		1,469
Daetwyler Holding AG		9		1,045
Georg Fischer AG - Reg’d *		27		14,609
Implenia AG - Reg’d *		54		3,012
Meyer Burger Technology AG *		105		1,064
OC Oerlikon Corp. AG - Reg’d *		372		4,608
Rieter Holding AG - Reg’d *		24		4,373
Sulzer AG - Reg’d		75		10,915
Zehnder Group AG		63		2,412

				48,860


Commercial & Professional Services 0.2%
DKSH Holding AG		57		4,267
Gategroup Holding AG *		180		4,354
Kaba Holding AG, B Shares - Reg’d *		9		3,646

				12,267


Consumer Durables & Apparel 0.0%
Forbo Holding AG - Reg’d *		4		2,816


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d *		21		7,641


Diversified Financials 0.2%
Julius Baer Group Ltd. *		288		12,664
Partners Group Holding AG		15		3,837

				16,501


Food, Beverage & Tobacco 0.1%
Barry Callebaut AG - Reg’d *		6		5,634
Emmi AG *		3		836

				6,470


Health Care Equipment & Services 0.3%
Nobel Biocare Holding AG - Reg’d *		666		9,572
Sonova Holding AG - Reg’d *		60		6,628
Straumann Holding AG - Reg’d		21		3,824

				20,024


Insurance 0.1%
Helvetia Holding AG - Reg’d		18		7,703


Materials 0.2%
Ems-Chemie Holding AG - Reg’d		18		5,748
Schmolz + Bickenbach AG - Reg’d *		2,034		7,395

				13,143


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Actelion Ltd. - Reg’d *		150		10,175
Galenica AG - Reg’d		12		9,164

				19,339


Real Estate 0.1%
Allreal Holding AG - Reg’d *		18		2,461
Swiss Prime Site AG - Reg’d *		60		4,395

				6,856


Retailing 0.2%
Dufry AG - Reg’d *		39		5,170
Valora Holding AG - Reg’d		36		7,297

				12,467


Software & Services 0.0%
Temenos Group AG - Reg’d *		30		725


Technology Hardware & Equipment 0.1%
Logitech International S.A. - Reg’d		1,125		8,217


Transportation 0.2%
Flughafen Zuerich AG - Reg’d		9		4,563

56 See financial notes

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Panalpina Welttransport Holding AG - Reg’d		78		11,586

				16,149

				206,050

United Kingdom 13.8%


Banks 0.0%
Paragon Group Cos. plc		675		3,339


Capital Goods 1.8%
Ashtead Group plc		1,446		14,428
Bodycote plc		1,032		10,025
Chemring Group plc		972		4,618
Fenner plc		549		2,913
Galliford Try plc		432		6,369
Interserve plc		954		8,264
Invensys plc		1,953		14,770
Keller Group plc		687		11,807
Kier Group plc		285		6,516
Lavendon Group plc		270		716
Melrose Industries plc		1,587		7,227
Morgan Crucible Co. plc		1,329		6,055
Morgan Sindall Group plc		144		1,509
Qinetiq Group plc		3,717		10,810
Rotork plc		123		5,156
Senior plc		1,074		4,489
Speedy Hire plc		1,104		969
Spirax-Sarco Engineering plc		153		7,034
Ultra Electronics Holdings plc		225		6,456

				130,131


Commercial & Professional Services 1.4%
Babcock International Group plc		606		10,668
Berendsen plc		996		13,266
Cape plc		843		3,306
De La Rue plc		636		9,794
Homeserve plc		1,173		4,389
Intertek Group plc		189		9,361
Mears Group plc		432		2,690
Michael Page International plc		1,500		10,741
Mitie Group plc		1,920		8,224
Rentokil Initial plc		8,190		12,732
RPS Group plc		1,095		4,235
Shanks Group plc		3,519		5,103
WS Atkins plc		336		6,133

				100,642


Consumer Durables & Apparel 0.5%
Bellway plc		648		13,442
Bovis Homes Group plc		516		5,934
Guinness Peat Group plc *		15,321		6,815
Redrow plc *		882		3,070
The Berkeley Group Holdings plc		303		9,932

				39,193


Consumer Services 1.1%
Betfair Group plc		291		4,454
Enterprise Inns plc *		11,616		25,642
Greene King plc		978		12,617
J.D. Wetherspoon plc		609		6,689
Marston’s plc		3,750		9,055
Mitchells & Butlers plc *		2,094		13,799
Spirit Pub Co. plc		2,640		3,022
The Restaurant Group plc		648		5,418

				80,696


Diversified Financials 1.7%
3i Group plc		1,434		7,953
Aberdeen Asset Management plc		1,152		6,276
Ashmore Group plc		666		3,438
Close Brothers Group plc		510		8,181
F&C Asset Management plc		2,421		3,633
Henderson Group plc		3,978		10,153
IG Group Holdings plc		906		7,961
Intermediate Capital Group plc		1,282		8,678
International Personal Finance plc		993		9,147
Investec plc		1,590		10,109
Jupiter Fund Management plc		633		3,262
London Stock Exchange Group plc		579		13,972
Provident Financial plc		438		11,430
Schroders plc		240		8,587
Schroders plc, Non-Voting Shares		90		2,580
Tullett Prebon plc		1,239		6,549

				121,909


Energy 0.4%
Bumi plc *		225		757
Enquest plc *		1,578		3,037
Hargreaves Services plc		60		753
Hunting plc		447		5,663
Petrofac Ltd.		384		8,227
Premier Oil plc		843		4,692
Subsea 7 S.A.		414		8,478

				31,607


Food & Staples Retailing 0.3%
Booker Group plc		7,500		14,467
Greggs plc		912		5,876

				20,343


Food, Beverage & Tobacco 0.4%
Britvic plc		951		8,437
Cranswick plc		321		5,551
Dairy Crest Group plc		1,434		11,180
Greencore Group plc		2,376		5,449

				30,617


Health Care Equipment & Services 0.1%
Synergy Health plc		210		3,596


Household & Personal Products 0.1%
PZ Cussons plc		825		5,118


Insurance 0.8%
Admiral Group plc		453		8,836
Beazley plc		1,731		5,329
Catlin Group Ltd.		1,440		10,414
Direct Line Insurance Group plc		384		1,288
Hiscox Ltd.		1,296		12,931
Jardine Lloyd Thompson Group plc		300		4,193
Lancashire Holdings Ltd.		810		9,009
Phoenix Group Holdings		732		8,475

				60,475


Materials 0.9%
African Barrick Gold plc		360		1,058
Alent plc		174		955
Croda International plc		165		6,634
DS Smith plc		3,081		12,287

See financial notes 57

Schwab Fundamental International Small Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Elementis plc		894		3,427
Essentra plc		471		5,610
Eurasian Natural Resources Corp. plc *		2,055		7,260
Evraz plc		3,456		6,682
Hill & Smith Holdings plc		105		700
Lonmin plc *		2,073		10,916
Petropavlovsk plc		975		1,599
Randgold Resources Ltd.		30		2,360
RPC Group plc		624		4,337
Synthomer plc		225		783
Victrex plc		120		2,911

				67,519


Media 0.5%
Cineworld Group plc		750		4,997
Daily Mail & General Trust plc, A Shares		870		10,632
Trinity Mirror plc *		1,500		2,761
UBM plc		1,317		14,078

				32,468


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Genus plc		36		813
Hikma Pharmaceuticals plc		210		3,294

				4,107


Real Estate 0.6%
Derwent London plc		87		3,117
Hammerson plc		1,350		10,097
Intu Properties plc		1,545		7,311
Savills plc		588		5,503
SEGRO plc		2,550		11,518
Songbird Estates plc *		2,301		5,415

				42,961


Retailing 1.1%
Darty plc		13,275		16,531
Debenhams plc		7,890		13,071
Halfords Group plc		1,752		9,811
Howden Joinery Group plc		813		3,539
John Menzies plc		264		3,081
Lookers plc		2,139		4,037
Mothercare plc *		909		6,117
N Brown Group plc		591		4,946
Sports Direct International plc *		399		4,166
WH Smith plc		858		11,248

				76,547


Semiconductors & Semiconductor Equipment 0.2%
ARM Holdings plc		585		7,918
CSR plc		600		4,632

				12,550


Software & Services 0.2%
Aveva Group plc		60		2,153
Computacenter plc		849		6,626
Fidessa Group plc		21		693
Micro Focus International plc		357		4,371
Xchanging plc		1,590		3,087

				16,930


Technology Hardware & Equipment 0.8%
Domino Printing Sciences plc		300		3,102
Electrocomponents plc		2,517		10,100
Halma plc		783		6,619
Laird plc		1,866		6,212
Pace plc		1,050		4,644
Premier Farnell plc		1,440		4,941
Spectris plc		300		10,307
Spirent Communications plc		2,253		4,381
TT electronics plc		1,425		4,100
Xyratex Ltd.		360		3,663

				58,069


Telecommunication Services 0.1%
Kcom Group plc		2,178		2,847
TalkTalk Telecom Group plc		1,986		7,327

				10,174


Transportation 0.7%
BBA Aviation plc		2,196		10,459
easyJet plc		513		9,785
Go-Ahead Group plc		255		5,850
Northgate plc		1,842		11,255
Stagecoach Group plc		1,440		7,117
Stobart Group Ltd.		471		838
Stolt-Nielsen Ltd.		207		4,762

				50,066

				999,057

Total Common Stock
(Cost $7,436,054)				7,179,138




Other Investment Companies 0.4% of net assets

United States 0.4%


Equity Fund 0.2%
iShares MSCI EAFE Small Cap ETF		400		17,832


Money Market Fund 0.2%
State Street Institutional U.S. Government Money Market Fund 0.00% (a)		12,897		12,897

				30,729

Total Other Investment Companies
(Cost $31,222)				30,729




Preferred Stock 0.4% of net assets

Germany 0.4%


Automobiles & Components 0.1%
Porsche Automobil Holding SE		114		9,560


Capital Goods 0.1%
Jungheinrich AG		90		4,875


Health Care Equipment & Services 0.1%
Draegerwerk AG & Co. KGaA		30		3,600


Materials 0.1%
Fuchs Petrolub SE		78		6,297

				24,332

58 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings as of August 31, 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				($)		($)

	89	.4%	Common Stock		8,859,346		8,778,092
	1	.4%	Other Investment Companies		147,796		138,976
	9	.2%	Preferred Stock		935,145		909,590
	0	.0%	Rights		—		257


	100	.0%	Total Investments		9,942,287		9,826,915
	(0	.0%)	Other Assets and Liabilities, Net				(4,315	)


	100	.0%	Net Assets				9,822,600


	Number		Value
Security	of Shares		($)

Common Stock 89.4% of net assets

Brazil 5.1%


Banks 1.0%
Banco Bradesco S.A.		2,400		31,903
Banco do Brasil S.A.		5,400		52,360
Itau Unibanco Holding S.A.		800		9,453

				93,716


Capital Goods 0.2%
Embraer S.A.		2,400		19,768


Diversified Financials 0.1%
BM&FBovespa S.A.		2,800		13,769


Energy 1.4%
Petroleo Brasileiro S.A.		19,800		133,016
Ultrapar Participacoes S.A.		400		8,733

				141,749


Food, Beverage & Tobacco 0.4%
BRF S.A.		1,200		27,865
Companhia de Bebidas das Americas		200		7,040
JBS S.A.		3,000		9,288

				44,193


Materials 1.3%
Companhia Siderurgica Nacional S.A.		7,400		26,211
Usinas Siderurgicas de Minas Gerais S.A. *		1,200		5,144
Vale S.A.		6,400		92,667

				124,022


Software & Services 0.1%
Cielo S.A.		600		14,743


Telecommunication Services 0.2%
Oi S.A.		1,200		1,918
Tim Participacoes S.A.		3,400		13,416

				15,334


Utilities 0.4%
Centrais Eletricas Brasileiras S.A.		4,800		9,995
Cia Energetica de Minas Gerais		400		3,130
Companhia de Saneamento Basico do Estado de Sao Paulo		1,200		9,889
CPFL Energia S.A.		1,600		13,124

				36,138

				503,432

Chile 0.7%


Energy 0.2%
Empresas COPEC S.A.		1,352		17,978


Food & Staples Retailing 0.1%
Cencosud S.A.		2,560		10,342


Utilities 0.4%
Empresa Nacional de Electricidad S.A.		9,600		13,100
Enersis S.A.		91,800		29,072

				42,172

				70,492

China 12.1%


Automobiles & Components 0.1%
Dongfeng Motor Group Co., Ltd., H Shares		9,500		13,158


Banks 4.4%
Agricultural Bank of China Ltd., H Shares		48,000		20,613
Bank of China Ltd., H Shares		240,000		100,898
Bank of Communications Co., Ltd., H Shares		12,000		7,923
BOC Hong Kong Holdings Ltd.		7,000		22,071
China Construction Bank Corp., H Shares		223,000		163,345
China Merchants Bank Co., Ltd., H Shares		6,500		11,266
Industrial & Commercial Bank of China Ltd., H Shares		160,000		105,024

				431,140


Capital Goods 0.3%
China Communications Construction Co., Ltd., H Shares		20,000		15,320
China Railway Group Ltd., H Shares		22,000		11,292

				26,612


Consumer Durables & Apparel 0.1%
Yue Yuen Industrial Holdings Ltd.		4,000		12,328


Energy 3.2%
China Petroleum & Chemical Corp., H Shares		145,000		104,528
China Shenhua Energy Co., Ltd., H Shares		8,000		24,863
CNOOC Ltd.		44,000		87,383
PetroChina Co., Ltd., H Shares		88,000		95,780

				312,554

60 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Food & Staples Retailing 0.1%
China Resources Enterprise Ltd.		4,000		11,400


Insurance 0.6%
China Life Insurance Co., Ltd., H Shares		13,000		31,920
China Pacific Insurance (Group) Co., Ltd., H Shares		2,600		8,684
People’s Insurance Co. Group of China Ltd., H Shares		8,000		3,879
Ping An Insurance (Group) Co., H Shares		2,000		14,018

				58,501


Materials 0.1%
China National Building Material Co., Ltd., H Shares		8,000		7,356


Real Estate 0.1%
China Overseas Land & Investment Ltd.		4,200		12,512


Retailing 0.2%
Belle International Holdings Ltd.		8,000		11,060
GOME Electrical Appliances Holdings Ltd. *		104,000		10,729

				21,789


Technology Hardware & Equipment 0.2%
Lenovo Group Ltd.		16,000		15,475


Telecommunication Services 2.7%
China Mobile Ltd.		18,000		193,477
China Telecom Corp., Ltd., H Shares		74,000		37,313
China Unicom (Hong Kong) Ltd.		22,000		33,364

				264,154

				1,186,979

Colombia 0.3%


Banks 0.1%
Bancolombia S.A.		500		6,811


Energy 0.2%
Ecopetrol S.A.		8,372		18,740

				25,551

Czech Republic 0.4%


Telecommunication Services 0.2%
Telefonica Czech Republic A/S		1,024		15,259


Utilities 0.2%
CEZ A/S		1,012		23,326

				38,585

Egypt 0.2%


Telecommunication Services 0.2%
Orascom Telecom Holding SAE GDR - Reg’d *		7,400		22,082

Greece 1.6%


Banks 0.4%
Alpha Bank AE *		22,000		14,736
National Bank of Greece S.A. *		3,600		14,526
Piraeus Bank S.A. *		6,360		9,309

				38,571


Consumer Services 0.6%
OPAP S.A.		5,500		54,392


Telecommunication Services 0.4%
Hellenic Telecommunications Organization S.A. *		4,200		37,881


Utilities 0.2%
Public Power Corp. S.A.		2,480		23,349

				154,193

Hungary 0.7%


Banks 0.3%
OTP Bank plc		1,260		23,350


Energy 0.3%
MOL Hungarian Oil & Gas plc		420		29,726


Telecommunication Services 0.1%
Magyar Telekom Telecommunications plc		8,860		12,201

				65,277

India 1.7%


Automobiles & Components 0.2%
Mahindra & Mahindra Ltd. GDR		648		7,394
Tata Motors Ltd. ADR		400		8,928

				16,322


Banks 0.2%
ICICI Bank Ltd. ADR		500		13,010
State Bank of India GDR - Reg’d		208		9,526

				22,536


Energy 0.8%
Reliance Industries Ltd. GDR (b)		3,120		78,499


Materials 0.1%
Tata Steel Ltd. GDR		2,900		11,554


Software & Services 0.4%
Infosys Ltd. ADR		856		39,693

				168,604

Indonesia 0.7%


Automobiles & Components 0.2%
PT Astra International Tbk		34,500		19,114


Banks 0.1%
PT Bank Rakyat Indonesia (Persero) Tbk		14,000		8,461


Energy 0.1%
PT Bumi Resources Tbk *		170,000		6,383


Telecommunication Services 0.3%
PT Telekomunikasi Indonesia Persero Tbk		172,500		34,753

				68,711

Malaysia 1.7%


Banks 0.6%
CIMB Group Holdings Berhad		6,800		15,071
Malayan Banking Berhad		6,000		18,266
Public Bank Berhad		4,400		22,852

				56,189

See financial notes 61

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Capital Goods 0.2%
Sime Darby Berhad		7,600		21,726


Consumer Services 0.1%
Genting Berhad		4,400		12,498


Food, Beverage & Tobacco 0.1%
IOI Corp. Berhad		7,200		11,837


Telecommunication Services 0.4%
Axiata Group Berhad		9,600		19,698
Telekom Malaysia Berhad		11,200		18,447

				38,145


Utilities 0.3%
Tenaga Nasional Berhad		10,000		26,577

				166,972

Mexico 3.8%


Banks 0.2%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		2,400		15,007
Grupo Financiero Santander Mexico S.A.B. de C.V. ADR		600		8,184

				23,191


Capital Goods 0.2%
Alfa S.A.B. de C.V., A Shares		6,800		17,188


Food & Staples Retailing 0.3%
Wal-Mart de Mexico S.A.B. de C.V., Series V		11,600		27,836


Food, Beverage & Tobacco 0.5%
Coca-Cola Femsa S.A.B. de C.V., Series L		400		4,769
Fomento Economico Mexicano S.A.B. de C.V.		3,300		31,260
Grupo Bimbo S.A.B. de C.V., Series A		5,600		16,294

				52,323


Materials 1.1%
Cemex S.A.B. de C.V., Series CPO *		74,800		84,985
Grupo Mexico S.A.B. de C.V., Series B		8,000		22,888

				107,873


Media 0.4%
Grupo Televisa S.A.B., Series CPO		7,200		36,151


Telecommunication Services 1.1%
America Movil S.A.B. de C.V., Series L		108,400		104,405

				368,967

Philippines 0.0%


Telecommunication Services 0.0%
Philippine Long Distance Telephone Co.		65		4,194

Poland 2.1%


Banks 0.4%
Bank Pekao S.A.		280		15,047
Powszechna Kasa Oszczednosci Bank Polski S.A. *		1,760		20,825

				35,872


Energy 0.5%
Polski Koncern Naftowy Orlen S.A.		3,400		47,245


Insurance 0.2%
Powszechny Zaklad Ubezpieczen S.A.		192		25,971


Materials 0.3%
KGHM Polska Miedz S.A.		880		33,322


Telecommunication Services 0.3%
Telekomunikacja Polska S.A.		11,400		26,935


Utilities 0.4%
PGE S.A.		4,480		23,509
Tauron Polska Energia S.A.		11,280		14,911

				38,420

				207,765

Republic of Korea 21.1%


Automobiles & Components 2.2%
Hyundai Mobis		172		43,230
Hyundai Motor Co.		576		129,205
Kia Motors Corp.		780		47,220

				219,655


Banks 1.7%
Hana Financial Group, Inc.		1,200		37,836
KB Financial Group, Inc.		1,240		39,879
Shinhan Financial Group Co., Ltd.		1,760		64,848
Woori Finance Holdings Co., Ltd.		2,080		20,799

				163,362


Capital Goods 4.1%
Daelim Industrial Co., Ltd.		180		14,189
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		440		11,753
Doosan Corp.		76		9,482
Doosan Heavy Industries & Construction Co., Ltd.		280		10,758
Hyundai Engineering & Construction Co., Ltd.		228		11,790
Hyundai Heavy Industries Co., Ltd.		260		53,286
LG Corp.		2,140		129,165
Samsung C&T Corp.		664		34,275
Samsung Heavy Industries Co., Ltd.		560		19,927
SK Holdings Co., Ltd.		500		84,230
SK Networks Co., Ltd.		3,120		18,551

				397,406


Consumer Durables & Apparel 0.9%
LG Electronics, Inc.		1,400		91,311


Energy 1.0%
GS Holdings		516		26,357
S-Oil Corp.		276		19,095
SK Innovation Co., Ltd.		424		53,475

				98,927


Food & Staples Retailing 0.0%
E-Mart Co., Ltd.		24		4,454


Food, Beverage & Tobacco 0.3%
KT&G Corp.		400		26,161


Insurance 0.5%
Samsung Fire & Marine Insurance Co., Ltd.		112		25,224
Samsung Life Insurance Co., Ltd.		208		19,862

				45,086

62 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 2.7%
Cheil Industries, Inc.		176		14,000
Hanwha Corp.		560		16,446
Hyosung Corp.		240		15,351
Hyundai Steel Co.		280		18,514
LG Chem Ltd.		160		41,440
Lotte Chemical Corp.		80		12,360
POSCO		520		151,074

				269,185


Retailing 0.4%
Lotte Shopping Co., Ltd.		44		13,497
Shinsegae Co., Ltd.		116		20,952

				34,449


Semiconductors & Semiconductor Equipment 4.3%
Samsung Electronics Co., Ltd.		313		385,734
SK Hynix, Inc. *		1,520		38,683

				424,417


Software & Services 0.6%
Naver Corp.		28		11,338
SK C&C Co. Ltd.		448		44,193

				55,531


Technology Hardware & Equipment 0.8%
LG Display Co., Ltd. *		1,920		50,679
Samsung Electro-Mechanics Co., Ltd.		164		12,056
Samsung SDI Co., Ltd.		132		20,096

				82,831


Telecommunication Services 0.9%
LG Uplus Corp. *		2,280		26,804
SK Telecom Co., Ltd.		328		65,449

				92,253


Utilities 0.7%
Korea Electric Power Corp. *		2,480		68,588

				2,073,616

Russia 14.1%


Banks 0.5%
Sberbank of Russia		20,400		54,003


Energy 11.3%
Gazprom OAO		99,600		393,400
LUKOIL OAO		7,439		429,904
NovaTek OAO GDR - Reg’d		214		25,637
Rosneft OJSC GDR - Reg’d		7,400		54,390
Surgutneftegas OAO		186,000		145,933
Tatneft OAO		9,000		56,427

				1,105,691


Materials 0.9%
Mechel ADR *		2,400		6,936
MMC Norilsk Nickel OJSC		452		59,271
Severstal OAO GDR - Reg’d		1,440		11,894
Uralkali OJSC GDR - Reg’d		280		6,580

				84,681


Telecommunication Services 1.2%
Mobile TeleSystems OJSC ADR		3,000		63,480
Rostelecom OJSC ADR		1,310		24,274
Sistema JSFC GDR - Reg’d		1,200		26,568

				114,322


Utilities 0.2%
RusHydro JSC ADR		7,200		11,304
Russian Grids OAO *		364,000		11,094

				22,398

				1,381,095

South Africa 7.2%


Banks 0.8%
Barclays Africa Group Ltd.		1,000		13,378
Nedbank Group Ltd.		720		13,254
Standard Bank Group Ltd.		4,400		49,194

				75,826


Capital Goods 0.7%
Aveng Ltd.		5,520		14,683
Barloworld Ltd.		2,240		19,195
Bidvest Group Ltd.		1,480		36,531

				70,409


Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd. *		6,200		17,775


Diversified Financials 0.4%
FirstRand Ltd.		8,600		25,251
Remgro Ltd.		680		12,417

				37,668


Energy 1.3%
Sasol Ltd.		2,800		131,737


Food & Staples Retailing 0.1%
Shoprite Holdings Ltd.		692		10,890


Food, Beverage & Tobacco 0.1%
Tiger Brands Ltd.		508		14,027


Insurance 0.2%
Sanlam Ltd.		4,960		22,294


Materials 1.2%
Anglo American Platinum Ltd. *		372		14,884
AngloGold Ashanti Ltd.		688		9,405
ArcelorMittal South Africa Ltd. *		4,680		14,989
Gold Fields Ltd.		3,500		18,425
Impala Platinum Holdings Ltd.		3,200		35,465
Kumba Iron Ore Ltd.		224		9,843
Sappi Ltd. *		5,080		12,138

				115,149


Media 0.3%
Naspers Ltd., N Shares		340		28,166


Retailing 0.2%
Imperial Holdings Ltd.		912		18,544


Telecommunication Services 1.7%
MTN Group Ltd.		6,000		110,058
Telkom SA SOC Ltd. *		18,200		40,697
Vodacom Group Ltd.		1,040		11,786

				162,541

				705,026

Taiwan 13.7%


Banks 0.3%
CTBC Financial Holding Co., Ltd.		28,980		18,255

See financial notes 63

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Mega Financial Holding Co., Ltd.		20,000		15,272

				33,527


Capital Goods 0.4%
Far Eastern New Century Corp.		20,400		21,917
Walsin Lihwa Corp. *		48,000		14,196

				36,113


Consumer Durables & Apparel 0.2%
Pou Chen Corp.		16,000		17,484


Diversified Financials 0.2%
Fubon Financial Holding Co., Ltd.		16,000		21,922


Energy 0.2%
Formosa Petrochemical Corp.		9,000		22,857


Food, Beverage & Tobacco 0.2%
Uni-President Enterprises Corp.		11,000		20,034


Insurance 0.2%
Cathay Financial Holding Co., Ltd.		14,000		19,836


Materials 2.5%
China Steel Corp.		68,000		57,491
Formosa Chemicals & Fibre Corp.		26,000		67,510
Formosa Plastics Corp.		21,000		52,352
Nan Ya Plastics Corp.		28,000		54,831
Taiwan Cement Corp.		13,000		17,160

				249,344


Semiconductors & Semiconductor Equipment 3.1%
Advanced Semiconductor Engineering, Inc.		24,000		21,213
MediaTek, Inc.		3,600		44,151
Siliconware Precision Industries Co.		20,000		22,457
Taiwan Semiconductor Manufacturing Co., Ltd.		53,000		177,998
United Microelectronics Corp.		88,000		36,171

				301,990


Technology Hardware & Equipment 5.5%
Acer, Inc. *		43,000		28,667
Asustek Computer, Inc.		6,000		47,820
AU Optronics Corp. *		133,000		52,445
Compal Electronics, Inc.		60,000		40,402
Delta Electronics, Inc.		6,000		27,168
Hon Hai Precision Industry Co., Ltd.		47,000		127,534
HTC Corp.		5,000		26,149
Innolux Corp. *		37,000		18,547
Inventec Corp.		44,000		35,804
Lite-On Technology Corp.		16,000		27,108
Pegatron Corp. *		22,000		34,039
Quanta Computer, Inc.		14,000		29,521
Synnex Technology International Corp.		8,000		12,605
Wistron Corp.		25,000		22,432
WPG Holdings Ltd.		10,000		11,496

				541,737


Telecommunication Services 0.9%
Chunghwa Telecom Co., Ltd.		17,500		55,323
Far EasTone Telecommunications Co., Ltd.		6,000		15,178
Taiwan Mobile Co., Ltd.		4,000		14,436

				84,937

				1,349,781

Thailand 1.1%


Energy 0.8%
PTT Exploration & Production PCL NVDR		3,600		18,621
PTT PCL NVDR		4,900		49,776
Thai Oil PCL NVDR		6,400		10,836

				79,233


Materials 0.1%
PTT Global Chemical PCL NVDR		4,100		8,788


Telecommunication Services 0.2%
Advanced Info Service PCL NVDR		2,400		17,894

				105,915

Turkey 1.1%


Banks 0.4%
Akbank T.A.S.		3,520		11,709
Turkiye Garanti Bankasi A/S		4,480		15,473
Turkiye Halk Bankasi A/S		960		6,123
Turkiye Is Bankasi, C Shares		4,800		11,257

				44,562


Capital Goods 0.2%
KOC Holding A/S		4,460		18,030


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		2,800		11,951


Energy 0.2%
Tupras-Turkiye Petrol Rafinerileri A/S		960		18,463


Telecommunication Services 0.2%
Turkcell Iletisim Hizmetleri A/S *		3,400		17,849

				110,855

Total Common Stock
(Cost $8,859,346)				8,778,092




Other Investment Companies 1.4% of net assets

India 1.2%


Equity Funds 1.2%
iShares India 50 ETF		1,840		34,794
WisdomTree India Earnings Fund		5,760		79,949

				114,743

United States 0.2%


Money Market Fund 0.2%
State Street Institutional U.S. Government Money Market Fund 0.00% (c)		24,233		24,233

Total Other Investment Companies
(Cost $147,796)				138,976

64 See financial notes

Schwab Fundamental Emerging Markets Large Company Index ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Preferred Stock 9.2% of net assets

Brazil 6.9%


Banks 1.7%
Banco Bradesco S.A.		5,200		60,614
Itau Unibanco Holding S.A.		8,200		100,034
Itausa - Investimentos Itau S.A.		3,600		12,660

				173,308


Energy 1.7%
Petroleo Brasileiro S.A.		23,200		163,958


Food, Beverage & Tobacco 0.3%
Companhia de Bebidas das Americas		800		27,999


Materials 2.3%
Bradespar S.A.		1,000		10,378
Gerdau S.A.		6,400		46,172
Metalurgica Gerdau S.A.		4,600		40,965
Usinas Siderurgicas de Minas Gerais S.A., A Shares *		4,000		17,348
Vale S.A.		8,600		112,510

				227,373


Telecommunication Services 0.3%
Oi S.A.		5,200		7,744
Telefonica Brasil S.A.		1,400		27,373

				35,117


Utilities 0.6%
Centrais Eletricas Brasileiras S.A. B Shares		3,600		13,887
Companhia Energetica de Minas Gerais		3,200		25,038
Companhia Paranaense de Energia - Copel, B Shares		800		9,608
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.		3,000		9,200

				57,733

				685,488

Colombia 0.1%


Banks 0.1%
Bancolombia S.A.		628		8,717

Republic of Korea 0.8%


Automobiles & Components 0.2%
Hyundai Motor Co.		80		7,495
Hyundai Motor Co. 2nd		120		12,108

				19,603


Consumer Durables & Apparel 0.1%
LG Electronics, Inc.		210		5,382


Materials 0.0%
LG Chem Ltd.		28		3,330


Semiconductors & Semiconductor Equipment 0.5%
Samsung Electronics Co., Ltd.		60		49,673

				77,988

Russia 1.4%


Banks 0.1%
Sberbank of Russia		2,400		5,031


Energy 1.3%
AK Transneft OAO		46		105,858
Surgutneftegas OAO		35,600		23,904

				129,762


Telecommunication Services 0.0%
Rostelecom OJSC		1,200		2,604

				137,397

Total Preferred Stock
(Cost $935,145)				909,590




Rights 0.0% of net assets

China 0.0%


Banks 0.0%
China Merchants Bank *(a)		1,131		257

Total Rights
(Cost $—)				257



End of Investments.


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(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 $78,499 or 0.8% of net assets.
(c)		The rate shown is the 7-day yield.


ADR —		American Depositary Receipt
ETF —		Exchange Traded Fund
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered

See financial notes 65

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10: Submission of Matters to a Vote of Security Holders.

Not applicable.

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.



Assets

Investments in affiliated issuers, at value (cost $8,722)		$8,331
Investments in unaffiliated issuers, at value (cost $8,590,725)	+	8,408,434

Total investments, at value (cost $8,599,447)		8,416,765
Receivables:
Investments sold		10
Dividends	+	6,858

Total assets		8,423,633

Liabilities

Payables:
Investment adviser fees		287

Total liabilities		287

Net Assets

Total assets		8,423,633
Total liabilities	−	287

Net assets		$8,423,346

Net Assets by Source
Capital received from investors		8,600,342
Net investment income not yet distributed		6,037
Net realized capital losses		(351	)
Net unrealized capital losses		(182,682	)

Net Asset Value (NAV)



Investment Income

Dividends (net of foreign withholding tax of $4)		$6,954

Expenses

Investment adviser fees		917

Total expenses	−	917

Net investment income		6,037

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(351	)
Net unrealized losses on affiliated issuer		(391	)
Net unrealized losses on unaffiliated investments	+	(182,291	)

Net unrealized losses	+	(182,682	)

Net realized and unrealized losses		(183,033	)

Net decrease in net assets resulting from operations		($176,996	)


*8/14/13-8/31/13**
Net investment income		$6,037
Net realized losses		(351	)
Net unrealized losses	+	(182,682	)

Net decrease in net assets resulting from operations		($176,996	)


*	SCHWAB is a registered trademark of Charles Schwab & Co., Inc. FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.


	8/14/13¹–
	8/31/13*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.02
Net realized and unrealized gains (losses)		(0.95	)

Total from investment operations		(0.93	)

Net asset value at end of period		24.07

Total return (%)		(3.72	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.32	³
Gross operating expenses		0.32	³
Net investment income (loss)		2.11	³
Portfolio turnover rate⁴		1	²
Net assets, end of period ($ x 1,000)		8,423



Assets

Investments in affiliated issuers, at value (cost $6,876)		$6,577
Investments in unaffiliated issuers, at value (cost $6,166,450)	+	6,008,430

Total investments, at value (cost $6,173,326)		6,015,007
Receivables:
Dividends	+	4,765

Total assets		6,019,772

Liabilities

Payables:
Investment adviser fees		222

Total liabilities		222

Net Assets

Total assets		6,019,772
Total liabilities	−	222

Net assets		$6,019,550

Net Assets by Source
Capital received from investors		6,176,048
Net investment income not yet distributed		4,302
Net realized capital losses		(2,481	)
Net unrealized capital losses		(158,319	)

Net Asset Value (NAV)



Investment Income

Dividends (net of foreign withholding tax of $3)		$4,846

Expenses

Investment adviser fees		544

Total expenses	−	544

Net investment income		4,302

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(2,481	)
Net unrealized losses on affiliated issuer		(299	)
Net unrealized losses on unaffiliated investments	+	(158,020	)

Net unrealized losses	+	(158,319	)

Net realized and unrealized losses		(160,800	)

Net decrease in net assets resulting from operations		($156,498	)


*8/14/13-8/31/13**
Net investment income		$4,302
Net realized losses		(2,481	)
Net unrealized losses	+	(158,319	)

Net decrease in net assets resulting from operations		($156,498	)



Assets

Investments, at value (cost $6,197,627)		$5,988,340
Receivables:
Investments sold		65
Dividends	+	3,469

Total assets		5,991,874

Liabilities

Payables:
Investment adviser fees		223

Total liabilities		223

Net Assets

Total assets		5,991,874
Total liabilities	−	223

Net assets		$5,991,651

Net Assets by Source
Capital received from investors		6,199,922
Net investment income not yet distributed		3,168
Net realized capital losses		(2,152	)
Net unrealized capital losses		(209,287	)

Net Asset Value (NAV)



Investment Income

Dividends (net of foreign withholding tax of $11)		$3,714

Expenses

Investment adviser fees		546

Total expenses	−	546

Net investment income		3,168

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(2,152	)
Net unrealized losses on investments	+	(209,287	)

Net realized and unrealized losses		(211,439	)

Net decrease in net assets resulting from operations		($208,271	)


*8/14/13-8/31/13**
Net investment income		$3,168
Net realized losses		(2,152	)
Net unrealized losses	+	(209,287	)

Net decrease in net assets resulting from operations		($208,271	)



Assets

Investments, at value (cost $12,475,574)		$12,018,326
Foreign currency, at value (cost $1,210)		1,204
Receivables:
Dividends		17,744
Foreign tax reclaims	+	60

Total assets		12,037,334

Liabilities

Payables:
Investments bought		74
Investment adviser fees	+	359

Total liabilities		433

Net Assets

Total assets		12,037,334
Total liabilities	−	433

Net assets		$12,036,901

Net Assets by Source
Capital received from investors		12,480,337
Net investment income not yet distributed		16,674
Net realized capital losses		(2,734	)
Net unrealized capital losses		(457,376	)

Net Asset Value (NAV)



Investment Income

Dividends (net of foreign withholding tax of $753)		$18,365

Expenses

Investment adviser fees		1,691

Total expenses	−	1,691

Net investment income		16,674

Realized and Unrealized Gains (Losses)

Net realized losses on foreign currency transactions		(2,734	)
Net unrealized losses on investments		(457,248	)
Net unrealized losses on foreign currency translations	+	(128	)

Net unrealized losses	+	(457,376	)

Net realized and unrealized losses		(460,110	)

Net decrease in net assets resulting from operations		($443,436	)


*8/14/13-8/31/13**
Net investment income		$16,674
Net realized losses		(2,734	)
Net unrealized losses	+	(457,376	)

Net decrease in net assets resulting from operations		($443,436	)



Assets

Investments, at value (cost $7,494,215)		$7,235,841
Foreign currency, at value (cost $2,597)		2,591
Receivables:
Dividends		4,775
Foreign tax reclaims	+	119

Total assets		7,243,326

Liabilities

Payables:
Investments bought		9,029
Investment adviser fees	+	306

Total liabilities		9,335

Net Assets

Total assets		7,243,326
Total liabilities	−	9,335

Net assets		$7,233,991

Net Assets by Source
Capital received from investors		7,488,580
Net investment income not yet distributed		4,883
Net realized capital losses		(1,059	)
Net unrealized capital losses		(258,413	)

Net Asset Value (NAV)



Investment Income

Dividends (net of foreign withholding tax of $431)		$6,128

Expenses

Investment adviser fees		1,245

Total expenses	−	1,245

Net investment income		4,883

Realized and Unrealized Gains (Losses)

Net realized losses on foreign currency transactions		(1,059	)
Net unrealized losses on investments		(258,374	)
Net unrealized losses on foreign currency translations	+	(39	)

Net unrealized losses	+	(258,413	)

Net realized and unrealized losses		(259,472	)

Net decrease in net assets resulting from operations		($254,589	)


*8/14/13-8/31/13**
Net investment income		$4,883
Net realized losses		(1,059	)
Net unrealized losses	+	(258,413	)

Net decrease in net assets resulting from operations		($254,589	)



Assets

Investments, at value (cost $9,942,287)		$9,826,915
Foreign currency, at value (cost $1,093)		1,082
Receivables:
Dividends		6,988
Foreign tax reclaims	+	35

Total assets		9,835,020

Liabilities

Payables:
Investments bought		11,961
Investment adviser fees	+	459

Total liabilities		12,420

Net Assets

Total assets		9,835,020
Total liabilities	−	12,420

Net assets		$9,822,600

Net Assets by Source
Capital received from investors		9,937,039
Net investment income not yet distributed		6,594
Net realized capital losses		(5,569	)
Net unrealized capital losses		(115,464	)

Net Asset Value (NAV)



Investment Income

Dividends (net of foreign withholding tax of $1,223)		$7,987

Expenses

Investment adviser fees		1,393

Total expenses	−	1,393

Net investment income		6,594

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(5,556	)
Net realized losses on foreign currency transactions	+	(13	)

Net realized losses		(5,569	)
Net unrealized losses on investments		(115,372	)
Net unrealized losses on foreign currency translations	+	(92	)

Net unrealized losses	+	(115,464	)

Net realized and unrealized losses		(121,033	)

Net decrease in net assets resulting from operations		($114,439	)


*8/14/13-8/31/13**
Net investment income		$6,594
Net realized losses		(5,569	)
Net unrealized losses	+	(115,464	)

Net decrease in net assets resulting from operations		($114,439	)



Assets

Investments, at value (cost $550,840,418)		$533,332,563
Receivables:
Dividends	+	207,923

Total assets		533,540,486

Liabilities

Payables:
Investment adviser fees		3,038

Total liabilities		3,038

Net Assets

Total assets		533,540,486
Total liabilities	−	3,038

Net assets		$533,537,448

Net Assets by Source
Capital received from investors		543,951,688
Net investment income not yet distributed		4,476,205
Net realized capital gains		2,617,410
Net unrealized capital losses		(17,507,855	)

Net Asset Value (NAV)



Investment Income

Dividends		$9,310,455
Interest	+	10

Total investment income		9,310,465

Expenses

Investment adviser fees		196,214

Total expenses	−	196,214

Net investment income		9,114,251

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(3,866,044	)
Net realized gains on in-kind redemptions	+	7,101,792

Net realized gains		3,235,748
Net unrealized losses on investments	+	(49,513,470	)

Net realized and unrealized losses		(46,277,722	)

Net decrease in net assets resulting from operations		($37,163,471	)


By:		/s/ Marie Chandoha
		Marie Chandoha
		Chief Executive Officer

Date:		October 14, 2013